The Scheme is funded by levies paid by participant firms which are authorised to conduct investment and/or insurance services. The method of calculating, and, the quantum of the levy payable has always been decided following an extensive process of consultation with participant firms and industry representative groups. Since 1999 there have been six consultation processes and the most recent consultation process is scheduled to commence in late 2015.
The Funding Arrangements covering the period 1 August 2019 - 31 July 2022 are available here.
The levy rate varies depending on the nature of the investment services provided and in certain situations, on the number of clients being provided with services by the participant firm, or, the quantum of regulated income derived from those investment services.
Where a product producer appoints another firm to act as its agent, the appointing firm may, in certain circumstances, be obliged to reimburse compensation paid by the ICCL if the appointed firm fails.
Other Investor Compensation Schemes in Ireland
Section 25 of the Investor Compensation Act provides that the Central Bank of Ireland may authorise the establishment of compensation schemes by professional bodies representing accountants. Such schemes would be independent of the ICCL and would be the provider of compensation in respect of the failure of members of the relevant professional body. However, to date, no such authorisation has been granted.
Categories of Participant Firms and Allocated Fund
Details on the categories of participant firms which come within the scope of the Scheme can be found in Appendix 3 of the Funding Arrangements Document available here.