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Bloxham clients unlikely to be compensated for firm's losses

The Central Bank and the company’s administrator say that while clients can seek compensation, they probably won’t get it.

Bloxham, formerly Ireland's oldest stockbroking firm, was shut down by the Central Bank last month.
Bloxham, formerly Ireland's oldest stockbroking firm, was shut down by the Central Bank last month.
Image: Sam Boal/Photocall Ireland

AUTHORITIES HAVE SAID that clients of the fallen stockbroking firm Bloxham are unlikely to be compensated for any losses accrued by the firm.

The comments came from the Central Bank as it confirmed Kieran Wallace of KPMG had been appointed as an Official Liquidator and Administrator to the company, which was shut down last month.

The appointment of the liquidator means that under Irish law, the administrator must invite applications for compensation from former Bloxham clients who believe they might be eligible for it.

But the bank warned that it did not believe the company would have the means to meet any claims for compensation.

“The Central Bank of Ireland and the Official Liquidator have indicated that, to date, they have not identified any case which would lead them to conclude that the liquidation of Bloxham will result in compensatable losses for clients,” a statement issued by the Investor Compensation Company Ltd (ICCL) said.

The ICCL was established under the Investor Compensation Act of 1998 and manages funds from which clients of failed investment firms can apply for compensation.

The ICCL said it would write to Bloxham’s remaining clients within the next month informing them of the possibility that they could apply for compensation – applications which Wallace, as administrator, will verify.

Eligible investors can receive up to 90 per cent of their compensatable losses, up to a ceiling of  €20,000.

Bloxham was shut down by the Central Bank last month after its management informed the Central Bank of certain financial irregularities in the company. Its private clients and fund management businesses were transferred to its former rival Davy.

Read: Central Bank to investigate Bloxham for financial irregularities

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Gavan Reilly

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