Clare Daly (Dublin North, Socialist Party)
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Question 64: To ask the Minister for Finance the steps he will take to assist those whose pension funds have been frozen by Custom House Capital, in view of the fact that this was a Government approved financial organisation; the reason that steps were not taken to ensure that funds were adequately protected. [22949/11]

Clare Daly (Dublin North, Socialist Party)
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Question 65: To ask the Minister for Finance if, in view of the freezing of pension funds in the Government approved Custom House Capital, he will consider the establishment of a State fund in order to allow persons to invest safely for their retirement. [22950/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 64 and 65 together.

Pensions policy falls within the remit of my colleague, the Minister for Social Protection. I have no role in relation to the regulation of pensions in Ireland, a role which is fulfilled by the Irish Pensions Board. Any proposals for a compensation fund for pensions would be a matter for that Minister and the Pensions Board. However, in the context of the questions tabled by the Deputy, I would like to draw the Deputy's attention to a number of issues.

This investment firm was originally granted its authorisation to operate by the Financial Regulator in 1998. As part of its supervisory function, the Central Bank has, since 2009, intensified its monitoring of the firm. Recently the Bank became increasingly concerned about the firm. The Bank successfully applied to the High Court for the appointment of inspectors to the firm and Custom House Capital consented to the appointment of the inspectors. The application arose from the Bank's continuing concerns about the firm's management of its client holdings as well as the financial position of the firm. A final report is expected to come before the High Court on 21st October 2011.

The specific inspection activity currently underway is mandated by Regulation 166 of the European Communities (Markets in Financial Instruments) Regulations 2007.

The steps taken by the Central Bank to closely monitor activities of the firm demonstrate the active and urgent efforts being made to ensure the orderly oversight of the firm and the protection of investors.

I understand the process of inspection necessitates temporary and urgent restrictions on the firm's activities while the Central Bank attempts to investigate the issues with the firm. Regrettably, this has resulted in the temporary freezing of funds. However, the restrictions are deemed necessary by the Central Bank, acting independently to ensure the protection of all clients' holdings in this firm.