€7.4m has been paid out to date in compensation to clients of the failed investment firm Custom House Capital, the latest report from the Investor Compensation Company shows.

The Investor Compensation Company (ICCL) pays out compensation to eligible investors when an investment firm fails. 

The ICCL collects annual levies from investment firms, retail intermediaries and accountants in order to build the reserves from which compensation can be paid. It is not funded by the State.

Custom House Capital was the biggest such case dealt with by the ICCL. 

The company's total investor losses were estimated at €56m of which €20m was described as compensatable. 

The ICCL received just under 2,000 claims for compensation from clients of the firm, but only 574 have been certified to date.

The ICCL said the "highly unusual and complex nature of the liquidation has contributed to lengthy delays in the validation of claims". 

Today's annual report from the ICCL showed that its recorded a surplus for the year to July 31 of €4.5m, a fall of €250,000 on the previous year. 

It said that total levies received from investment firms participating in the compensation scheme came to €6.1m. 

This comprised €4.5m from large investment firms such as banks and stockbrokers, and €1.5m for smaller investment firms including insurance brokers, retail intermediaries and accountants.

At the end of its financial year, ICCL said its accumulated reserves stood at €57.3m. 

Jane Marshall, the Chairperson of the ICCL, said that in the year under review the ICCL has continued to improve its financial resources.

The ICCL's chairperson said it now has capacity to provide for compensation liabilities of up to €136m that could arise on the failure of a large investment firm.  

"The regular growth in underlying reserves has only been possible through the commitment of the vast majority of participating firms to pay annual levies due on a timely basis," she added.

Jane Marshall also welcomed the fact that no new compensation cases arose in the past year that necessitated a call on ICCL's funds. 

"However, the persistent delays in the certification of claims in CHC and ensuing payment of compensation to eligible clients is a source of considerable disappointment, particularly as we stand ready to discharge any liabilities without delay on receipt of validation from the administrator. 

"While CHC represents a complex and difficult fraud case, nevertheless the protracted wait for statutory compensation endured by its investors is damaging to confidence within the investing public," she added.