Investor Compensation: Investors who have lost money through misappropriation or mismanagement of funds may be eligible for compensation under the Investor Compensation Act.
This Act set up the Investor Compensation Company Ltd (ICCL), which has the power to pay eligible investors up to a maximum of £15,571 (#19,771).
The ICCL covers losses associated with investment firms, stockbrokers, credit unions and investment or insurance intermediaries. When one of these firms collapses and is unable to return investors' funds, the ICCL will take complaints from clients or inform them that they are entitled to compensation. Clients have five months to file a complaint.
Many professional organisations require their members to carry professional indemnity insurance. Although insurance companies and insurance intermediaries are not required to have indemnity insurance, the Irish Brokers' Association requires its members to have professional bonds.
The scheme requires members to have a £100,000 bond with a maximum payout of £50,000 per client. The scheme operates in addition to the ICCL.
If consumers are uncertain of a brokers affiliation with a life provider, contact the company directly.
Complaints: General complaints against advisers should initially be directed to the relevant industry body or ombudsman scheme.
When making a complaint, put it in writing and include as many relevant details as possible.
This formal letter should outline the nature of the problem and include photocopies of supporting documentation.
Include your contact details and those of the company and person with whom you have a complaint.
Also ensure that you provide all account numbers, reference numbers and dates.
If the problem relates to mis-selling then the self-regulating industry group should be informed of the complaint.
The Irish Brokers' Association (IBA) represents insurance intermediaries and the Irish Insurance Federation (IIF) regulates insurance companies.
The Irish Stock Exchange also handles complaints against its members.
