Investor Compensation Scheme
The purpose of the Investor Compensation Scheme is to pay compensation to you (subject to certain limits) if you have invested money or investment instruments in either of the following cases:
- An authorised firm that the Central Bank has decided is not in a position to repay investors or
- A court ruling prevents the firm from returning your investment
The Investor Compensation Company Ltd (ICCL) administers the scheme. If a member firm of the scheme goes out of business and cannot return your money or investment instruments, you may be able to claim compensation from the scheme.
You can find out more information and whether a firm is a member of the scheme by contacting the ICCL.
The scheme covers investment products including:
- Public and private company shares
- Units in collective investment schemes
- Life insurance policies (including unit-linked funds)
- Non-life insurance policies
- Tracker bonds
- Futures and options
Usually you can only make a claim after a firm goes out of business and its assets have been liquidated and distributed to those who are owed money. Check the details of the schemes for any limits that apply – not all losses will be covered as there are maximum levels of compensation. The ICCL will pay you compensation for 90% of the amount you have lost, up to a maximum of €20,000.
In some circumstances you may have to claim from a compensation scheme in another country. This would be the case with a bank or other financial institution authorised and regulated in another state but operating here on a branch basis under EU rules.