The Investor Compensation Company Limited (ICCL) has paid out £500,000 (#635,000) to investors affected by the liquidation of MMI Stockbrokers and is preparing to pay a further £160,000 in the coming months.

At the end of July the firm provided for compensation payments totalling £900,000 for MMI and for investors who lost money following the collapse of Andrew Casey's firm in Cork. Associated legal costs could be a further £200,000.

In its second annual report, chairman Mr Joe Maher said that while it was disappointing that reserves were hit so heavily in the early years, the firm was comfortable in terms of funding. Based on the total payments to investors in the MMI and Andrew Casey cases, the company would review its financial strength.

The ICCL is funded by firms such as stockbrokers and authorised investment businesses obliged by law to make contribute £1,400 to £3,000 annually to the fund depending on client numbers. Contribution rates for insurance and investment intermediaries are smaller at £125 to £200. The report again refers to difficulties the company has had in collecting these contributions with small investment and insurance intermediaries slow to pay up. At the end of July 1,209 owed £286,000 and the ICCL has indicated it will initiate legal actions to enforce payments. Mr Maher said the situation had improved considerably and now just 30 firms still had to pay and estimated £6,000.

The ICCL has paid out on just one claim in respect of Andrew Casey for £15,751. The company received nine claims for compensation following the firm's closure, six of which were ruled to be ineligible and two others are still being processed.

In the year to the end of July 2000 the ICCL collected total income of £1.67 million.