Where do I send my funds?
We do not hold your funds in our own name. We have appointed highly regulated and respected custodians to provide safe custody and administration services.
The custodian holds clients’ securities separately and distinctly from its own assets.
As segregated assets they are fully protected in the extremely unlikely event of default or bankruptcy of either the custodian or its sub custodians. In most markets, the custodian operates through omnibus accounts where client securities are held on behalf of clients in the name of the custodian or its nominee company.
This structure provides asset protection for underlying clients as the market recognises the custodian or its nominee as merely the account holder who holds assets on behalf of underlying beneficial owners. This beneficial ownership is reflected in the custodian's book of record.
IMPORTANT
Our custodians are domiciled exclusively outside of the Republic of Ireland to avoid the risk of any precendent established in Irish Case Law arising from the collapse of Morrogh Stockbrokers in Cork applying to our client's investments.
Morrogh Stockbrokers in Cork
W & R Morrogh was a 100-year-old Cork stockbroker firm that was wound up in April 2001 as a result of a fraud. The collapse of the partnership occurred after a junior partner lost an estimated €12 million gambling on futures and options and fraudulently embezzling funds from clients to meet losses.
According to reports at the time. the firm had 9,000 clients but only 2,500 submitted claims for losses, and most were dealt with under the Irish Central Bank investor compensation scheme. The scheme did not protect larger clients who sustained a significant portion of the €7 million shortfall in client funds.