Shane Ross (Dublin South, Independent)
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To ask the Minister for Finance the reason the Central Bank of Ireland did not advise clients of Custom House Capital of the problems that was brought to their notice so that the clients could have stopped investing with Custom House Capital; and if he will make a statement on the matter. [42234/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Central Bank that where it was aware of information relating to client investments and had substantiated its concerns, it ensured that Custom House Capital advised affected clients and reviewed the information that was provided. I am further advised that in July 2011 the Central Bank received new information, previously unknown, which increased concerns regarding the integrity of client investments. The Central Bank, at that stage, sought the appointment of High Court Inspectors to fully investigate the affairs of the firm.

Shane Ross (Dublin South, Independent)
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To ask the Minister for Finance the reason the Central Bank of Ireland should not compensate clients of Custom House Capital for moneys stolen from Pension Funds from March 2009 when they received information that Custom House Capital when not complying with the requirements of the Financial Regulator until July 2011 when they sought to seek the appointment of High Court Inspectors to investigate the affairs of the firm; and if he will make a statement on the matter. [42235/12]

Michael Noonan (Limerick City, Fine Gael)
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The compensation of investors is provided for in the Investor Compensation Act, 1998 and the investor compensation scheme is operated by the Investor Compensation Company Limited. There is no provision in legislation for the Central Bank to pay compensation in such circumstances. I am advised by the Central Bank that where it was aware of information relating to client investments and had substantiated its concerns, it ensured that Custom House Capital advised affected clients and reviewed the information that was provided. I am further advised that in July 2011 the Central Bank received new information, previously unknown, which increased concerns regarding the integrity of client investments. The Central Bank, at that stage sought the appointment of High Court Inspectors to fully investigate the affairs of the firm.

Shane Ross (Dublin South, Independent)
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To ask the Minister for Finance if he will advise an increase in the compensation figure of €20,000 from the Investor Compensation Company Limited to €100,000 to match the guarantee for bank deposits; if they will backdate it to the same date for the introduction of the guarantee for bank deposits in order that clients of Custom House Capital can be compensated for the lack of supervision and regulation of the Financial Regulator / Central Bank of Ireland; and if he will make a statement on the matter. [42236/12]

Michael Noonan (Limerick City, Fine Gael)
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The basic requirements for investor compensation schemes are laid down in the EU Investor Compensation Directive, which has been transposed into Irish law as the Investor Compensation Act 1998. The Directive, including the level of compensation across the EU, is currently being reviewed by all Member States at EU level. A formal Commission proposal, published in 2010, is still under negotiation. The scheme currently in operation in Ireland, administered by the Investor Compensation Company Ltd., is funded from industry.