Morrogh investigators to report within weeks

TWO working groups set up to examine the collapse of the Cork stockbroking firm W&R Morrogh will report their findings within weeks.

It is understood that the reports, including recommendations, will be handed to Finance Minister Brian Cowen shortly.

The groups were set up by the Department of Finance nearly 18 months ago after Morrogh went bust leaving its clients facing heavy losses.

The first group was set up to examine compensation levels and the costs of the failure of Morrogh. It will also investigate whether new funding structures should be put in place.

Also among its inquiries will be the impact and sustainability of the existing unlimited liability of contributory firms in terms of funding investor compensation, the manner by which receiver and liquidator costs are funded and legislative amendments that could be implemented to expedite compensation payments to clients.

The second working group the Legislative and Financial Group will examine issues such as the treatment of client assets in situations where investment firms go into liquidation or receivership. Both groups consist of members of the stock market, the financial regulator, industry lobby groups, three government departments and the Consumers' Association of Ireland.

Last week Stephen Pearson, the junior partner in W&R Morrogh was sentence to two years in prison by the Dublin Circuit Court.

Many of his victims are only now receiving repayments from the Investor Compensation Company. Some will now recoup their full losses.

The cost of the liquidator to the firm, which had liabilities of more than €10 million when it went bust, are nearly €6 million.