The Board of directors of the Investor Compensation Company Limited is expected shortly to sanction a levy on financial institutions, stockbrokers and investment intermediaries to cover investor losses at W & R Morrogh.
Annual subscriptions to the ICCL from these groups are due in August and the ICCL is likely to seek the additional funding then. Depending on the number of clients, the annual fee ranges from £1,400 to £40,000 (€1,778-€50,790).
The ICCL reported reserves of £1.3 million last year out of which claims are paid. This year's subscriptions are expected to increase the reserves closer to £2 million which is unlikely to meet expected claims.
Mr Bernard Sheridan of the ICCL said it was too early to estimate how much money would have to be paid to the around 2,000 clients of Morrogh's who were affected by its collapse. He added that any levy imposed would not be substantial for the organisations involved.
Most of Morrogh's clients are expected to be fully compensated as their losses fall below the €20,000 upper limit for compensation from the ICCL.
Investors should make claims for compensation before November 2001. The ICCL is required to pay out on eligible claims within three months after the administrator, Mr Tom Grace, has certified these claims as eligible. The ICCL is working closely with the Central Bank of Ireland and Mr Grace.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)