Call for new laws to speed investor compensation

New legislation may be required to ensure investors are compensated in a reasonable period of time when big investment firms go under, the Investor Compensation Company, set up to protect investors, has said.

Chief operating officer Michael Fagan said lessons had to be learned from the 2011 collapse of Custom House Capital, where the “lion’s share” of investors were still awaiting compensation.

With 500 Custom House Capital investors dealt with, the Investor Compensation Company faces delays paying 1,500 more Custom House Capital investors because of complications in dealing with the liquidator of the failed investment firm because of the pooled nature of the funds.