Investor Compensation Scheme
What is the Investor Compensation Scheme?
The Investor Compensation Scheme (ICS) protects investors if an authorised investment firm is put into liquidation or cannot meet investor claims. It does not cover losses from bad investment advice, poor management or market downturns. The scheme is run by the Investor Compensation Company Limited (ICCL).
You can find further information on their website.
What investments may be covered?
The Investor Compensation Scheme (ICS) may protect certain investments that an authorised investment firm holds on your behalf. However, investing through an authorised firm does not automatically mean that you are covered.
Whether protection applies will depend on the investment, the firm involved and the circumstances of the claim. If you'd like to know whether a particular investment is covered, check with the provider or visit the ICCL website for more information. Examples of investments that may be covered include:
- Public and private company shares
- Units in collective investment funds
- Life insurance policies, including unit-linked funds
- Non-life insurance policies
- Tracker bonds
- Futures and options
How much protection do you have?
If an eligible investment firm cannot return the money or investments they owe to you, the ICS covers 90% of your net loss, limited to a maximum pay out of €20,000.
What does the ICS not cover?
The ICS does not pay compensation if:
- You lose money because of bad investment advice
- Your investments are poorly managed
- Your investment performs poorly because of market or economic conditions
If you experience one of these issues, find out how to make a complaint about a financial services provider.
What if my investment is not covered?
If your investment is not covered under the ICS, it may be covered under the Deposit Guarantee Scheme (DGS).
If your investment is eligible under both schemes, the Central Bank of Ireland will decide which scheme pays compensation.
What investments may be covered?
The ICS may apply to certain investments held by an eligible investment firm on your behalf. Coverage depends on the investment, the firm and the circumstances of the claim.
Examples of investments that may be covered include:
- Public and private company shares
- Units in collective investment funds
- Life insurance policies, including unit-linked funds
- Non-life insurance policies
- Tracker bonds
- Futures and options
How do you check if you are covered?
Coverage depends on:
- The investment firm involved
- The type of investment
- Whether the firm is authorised
- The circumstances of the claim
Check with the provider or visit the ICCL website for eligibility information.
Am I automatically covered if I invest through an authorised firm?
No. Eligibility depends on the investment, the firm and the circumstances of the claim. Check the ICCL website for details.
What if the ICS does not apply?
Some products may be protected under the Deposit Guarantee Scheme (DGS) instead. If a product could qualify under both schemes, the Central Bank of Ireland will determine which scheme applies.
