Nearly 1,400 clients of the collapsed investment firm, Custom House Capital (CHC), are facing further delays in the payment of compensation for their losses.
The extra wait is the result of a High Court case being taken by the state's investor compensation scheme, Investor Compensation Company DAC (ICCL), seeking legal clarification about an aspect of its statutory powers.
While the case is ongoing, the liquidator to CHC has been prevented from distributing the funds arising from any further recovery of assets from the failed firm.
"The protracted delays in the certification of claims in CHC and related payment of compensation to eligible clients, remains a source of considerable frustration," said ICCL chairperson, Jane Marshall.
"It is hoped that the ICCL’s application to the Court in respect of its statutory right of subrogation claim will be heard in early course and enable progress on certifications to be realised."
CHC went into liquidation in October 2011 with total investor losses of €61m spread across almost 2,000 clients.
€19.7m of those losses have been deemed to qualify for compensation.
According to the ICCL annual report, published this morning, so far around €7.4m in compensation has been paid out to 574 of the claimants.
A further 1,370 claims remain to be validated by liquidator Kieran Wallace from KPMG before they can be paid out.
However, Mr Wallace has challenged the scope and effect of the ICCL’s claim as the largest creditor to CHC to use certain legal powers to replace eligible CHC clients in its claim for compensation payments – a process known as subrogation.
The matter is to begin a process of adjudication before the High Court later today.
"The Board considers that determination of this issue is necessary to ensure that the Company properly performs its statutory duties in the context of CHC and future insolvencies," the ICCL said in a statement.
The CHC case is the largest failure of an investment firm dealt with by the ICCL.
Also this year, the ICCL concluded its case around the Irish Banking Resolution Corporation, following the payment of a final dividend of €6,184.
Total compensation of €12,368 has now been paid to its clients.
Outstanding claims related to Asset Management Trust were also certified by its administrator during the year.
Compensation totaling €23,000 was paid out to a total of 12 claimants.
ICCL also said the liquidation of Money Markets International Stockbrokers Limited (MMI), dating back 20 years is also ongoing.
The ICCL is awaiting the payment of its claim for €775,000 in respect of compensation it paid to 313 clients in the case.
Overall, ICCL had a surplus of €4.3m in the year to the end of July, down €214,000 on a year earlier.
€6.2m in levies was received during the period and it had accumulated reserves of €61.6m at the end of July.
Jane Marshall said it was noteworthy that during the period there had been an influx from the United Kingdom of new firms to the scheme, with the related authorisations likely to have resulted from Brexit-related issues.