Blackbee Investments liquidators to begin contacting investors

Court heard the Cork firm had about 1,700 retail clients and held client assets of some €180m

The Central Bank said it had engaged extensively with the firm for an extended period in relation to a number of concerns including inadequate corporate governance structures, deterioration of the firm’s regulatory capital and liquidity positions and a lack of suitable controls.

The Central Bank said it could find no viable alternative than to seek the liquidation of Cork investment fund BlackBee Investments Limited.

The bank succeeded in its High Court application on Monday for provisional liquidators to be appointed to the firm, with some €180m in client assets.

The company is a regulated investment firm with a registered office and corporate headquarters located at City Quarter, Lapp's Quay, Cork. It is an indirect subsidiary of Blackbee Holdings Limited, the parent company of Blackbee Group, but the appointment of the liquidators only relates to BlackBee Investments Ltd.

In a statement, the Central Bank said it had engaged extensively with the firm for an extended period in relation to a number of concerns including inadequate corporate governance structures, deterioration of the firm’s regulatory capital and liquidity positions and a lack of suitable controls to protect client assets, resulting in heightened risks to the safeguarding of client interests.

"Despite extensive supervisory engagement in an effort to find a solution that protected clients’ interests, no viable alternatives were found," the Central Bank said. 

On this basis, it was decided that the appointment of joint provisional liquidators was the most appropriate action to protect the immediate and ongoing interests of the clients of BlackBee Investments Limited."

During the period of supervisory engagement, the Central Bank imposed a series of requirements, including a direction to stop the company paying dividends to shareholders for a period of 12 months in November 2020 and again in September 2022. 

The company was also told in September 2021 not to take on new businesses and, in December 2022, it was not to make any payments from third-party client accounts without the approval of the Central Bank.

The liquidators Luke Charleton and Colin Farquharson
of EY will be contacting affected clients in the coming days to advise them of the next steps in relation to their investments. 

The court heard the firm had about 1,700 retail clients (non-professional investors) and held client assets of some €180m as of April 28.