Investor Compensation Act, 1998
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Payment of compensation. |
34.—(1) In the case of an investment firm in respect of which the supervisory authority has made a determination under section 31 or a court has made a ruling, where the investment firm was not a member of a compensation scheme approved of under section 25 at the time of the determination or ruling, the Company shall pay to each eligible investor an amount equal to the compensatable loss of that eligible investor. | |
(2) In the case of an investment firm in respect of which the supervisory authority has made a determination under section 31 or a court has made a ruling, where the investment firm was a member of a compensation scheme approved of under section 25 at the time of the determination or ruling, that compensation scheme shall pay to each eligible investor an amount equal to the compensatable loss of that eligible investor. | ||
(3) Until the 31st day of December, 1999, where— | ||
(a) compensatable loss arises from the provision of investment business services by an authorised investment firm in another Member State, and | ||
(b) the investment business services provided are investment business for the purposes of the Investor Compensation Directive, | ||
the Company shall pay to the eligible investor an amount which is equal to the lesser of— | ||
(i) that compensatable loss, or | ||
(ii) the amount to which the eligible investor would be entitled in accordance with Article 7 of the Investor Compensation Directive if the investment firm was an investment firm authorised in accordance with the Investment Services Directive in that other Member State or a credit institution authorised in accordance with Council Directive 77/780/EEC as amended by Council Directive 89/646/EEC in that other Member State. | ||
(4) Where the Company has made a payment under subsection (1) and all or part of such payment relates to net losses of a client arising from investment business services provided by the investment firm while it was a member of a compensation scheme approved of under section 25 , the relevant compensation scheme shall pay to the Company an amount which bears to the compensatable loss of the client the same proportion as the client's net loss arising while the investment firm was a member of the compensation scheme bears to the client's net loss. | ||
(5) Where a compensation scheme approved of under section 25 has made a payment under subsection (2) and all or part of such payment relates to net losses of a client arising from investment business services provided by the investment firm while it was not a member of a compensation scheme approved of under section 25 , the Company shall pay to the relevant compensation scheme an amount which bears to the compensatable loss of the client the same proportion as the client's net loss arising while the investment firm was not a member of the compensation scheme approved of under section 25 bears to the client's net loss. | ||
(6) Where an investment firm has paid contributions to different funds maintained by the Company by virtue of a change in the class or category of investment firm to which the investment firm belonged, and net losses of clients of the investment firm arose while the investment firm belonged to such different classes or categories, the Company shall endeavour to ensure that payments made under this section shall be made from the fund maintained in respect of the appropriate class or category of investment firm. | ||
(7) Where a dispute or difference arises in respect of payments under subsection (4), (5) or (6), that dispute or difference shall be resolved under regulations made by the Minister on the advice of the supervisory authority. |