Former clients of Morrogh to be paid €2.2m compensation

MORE than €2.2 million in compensation payments is to be sent out to 579 clients who lost cash when stockbroking firm W&R Morrogh collapsed 15 months ago with a shortfall of €10 million.

The director of the Investment Compensation Company Limited (ICCL), Patricia Fitzgerald, revealed yesterday that the company has been authorised by receiver Tom Grace of PricewaterhouseCoopers to pay out 2.23 million to former Morrogh clients who lost cash held in trust by the Cork stockbroking firm when it collapsed in April of last year.

The payments are the first to be made to former Morrogh clients. The amount of a payment from the compensation fund is fixed under the Investor Compensation Act 1998 at the lesser of 90% of the loss incurred or 20,000.