Custom House Capital Update

Update 24 August 2017

Ms. Justice Finlay Geoghegan has issued judgement in the Official Liquidator’s Directions and MiFID Regulation Applications on 26 July 2017 a copy of the judgement can be accessed here.

All queries in relation to the above matter must be directed initially by email to chcqueries@kpmg.ie or by phone to 01 4101405.

Update 18 July 2017

Ms. Justice Finlay Geoghegan has confirmed that judgement in the Official Liquidator’s Directions and MiFID Regulation Applications will be delivered on Wednesday 26 July 2017 at 9.30 am.

All queries in relation to either matter above must be directed initially by email to chcqueries@kpmg.ie or by phone to 01 4101405.

Update 4 July 2017

The Official Liquidator’s Directions and MiFID Regulation Applications were heard by Ms. Justice Finlay Geoghegan on 27 -29 June 2017. A number of representative parties had been appointed by the Court in April 2017, as communicated below, these parties together with the Official Liquidator participated in the hearing. Ms. Justice Finlay Geoghegan has reserved judgement and will issue a written judgement in due course. Updates in relation to the status of the judgement will appear here.

The Central Bank of Ireland has also lifted restrictions imposed on the Official Liquidator on the provision of certain information to clients of CHC. In light of this the Official Liquidator will be able to make more information available to clients initially through this website and in due course through direct contact with clients. It is important to note however that it will not be possible to furnish clients with an accurate statement of their account until the reconciliation work and recovery of misappropriated monies outlined in the Directions Application is carried out.

All queries in relation to either matter above must be directed initially by email to chcqueries@kpmg.ie or by phone to 01 4101405.

Update 7 April 2017

On 6 April 2017, the Official Liquidator’s Directions Application came before Ms. Justice Finlay Geoghegan.

The Court made directions regarding the appointment of Representative Parties and timelines for provision of information and exchange of submissions.

The Court indicated that the matter is more likely to be listed for full hearing on the 27 June 2017 over the course of 2-4 days. This date will be confirmed in due course.

The matter is in for mention on 15 June 2017.

A further update will be provided here following the further consideration of the matter by the Court on 15 June 2017.

Update 23 March 2017

On 15 March 2017, the Official Liquidator’s Directions Application came before Ms. Justice Finlay Geoghegan.

The matter was adjourned to Thursday, 6 April 2017 at 9.30am to allow those clients in attendance in Court on that date time to consider their position and determine whether they would act as representative parties to the application.

On 6 April 2017, the Directions Application returns before the Court. On that date, the Court will make further directions as to (i) the representative parties for the application, (ii) the legal representation of such representative parties and (iii) costs.

The Court has provisionally listed the matter for full hearing on 16 May 2017. The hearing is likely to take between 2 – 4 days.

A further update will be provided here following the further consideration of the matter by the Court on 6 April 2017.

Update 3 March 2017

As communicated on this website following the further consideration hearing on 27 January 2017 the Liquidator has now lodged an application in Court seeking the following;

  1. Directions as to:
    1. the mode of distribution of remaining client assets held by or on behalf of the Company to their respective beneficial owners; and
    2. the manner in which misappropriated monies recovered by the Official Liquidator are to be distributed;
  2. An order pursuant to Regulation 158 of the above referenced Regulations granting the Official Liquidator permission to deduct from client monies the fees, costs and expenses incurred in the distribution of client assets and, if such an order is made, directions as to how any such deduction is to be apportioned as between the different classes of client assets; and
  3. Directions regarding the hearing or hearings of the application in respect of the reliefs, inter alia, set out above, including regarding:
    1. the order in which such matters should be heard and determined;
    2. the appropriate parties, including representative parties, to be put on notice for the purpose of the hearing or of each hearing respectively as the case may be;
    3. the manner or mode of service of notice upon such parties;
    4. the exchange of pleadings, affidavits and submissions for the hearing or for each hearing respectively and a timetable for same; and
    5. how the legal costs of each notice party are to be met.

The Application is returnable before the High Court on Wednesday, 15 March 2017 at 9.30am for the making of preliminary directions as to the matters outlined at paragraph (c) above. The application as to the matters outlined at paragraphs (a) and (b) above will not be heard or determined on this date. Any interested parties or clients of the Company may contact Cormac O’Connor or Eucharia Commins of KPMG, 1 Stokes Place, St Stephen’s Green, Dublin 2 by email at chcqueries@kpmg.ie or by telephone on 01 4101405 in relation to the Application.

…FAQs

Update from Further Consideration Hearing on 26 January 2017

On 26 January 2017, the matter of Custom House Capital (In Official Liquidation) was listed for further consideration before Ms. Justice Finlay Geoghegan.

On that date, the Liquidator proposed to bring an application before the Court to seek directions in respect of the following matters:

  1. The method of distribution of remaining client assets and recovered misappropriated funds to clients; and
  2. An application under Regulation 157 of the EC (Markets in Financial Instruments) Regulations 2007 (as amended) to approve the payment of the Official Liquidator’s fees and costs out of client assets.

The Court directed that the application be made by 28 February 2017 and set 15 March 2017 as an initial return date. On 15 March 2017, the application will not be dealt with. Rather, the Court will make initial directions to determine who will be the notice parties to the application.

Once the application issues, the Court directed that an advertisement be placed in The Irish Times with a notice of the application and its initial return date. Contact details will be provided in the advertisement in the event clients have specific queries in relation to the application.

This application represents an important step in moving to a position to allow the transfer out of remaining client’s assets. A further update in respect of progress on this matter will be provided here following the initial hearing on 15 March 2017.

Disqualification Proceedings against former Directors

The proceedings were heard by Mr Justice Keane over two days on 18 November 2015 and 4 December 2015. Mr. Justice Keane delivered his judgment on 2 December 2016. In finding that each of the three directors were guilty of fraud, breach of duty and are unfit to be concerned in the management of a company, the Court made an order disqualifying the directors as follows:

  • Harry Cassidy – 14 years;
  • John Mulholland – 12 years; and
  • John Whyte – 10 years.

To view a Copy of the Court Judgement (PDF) please click here.

Background

Kieran Wallace was appointed Official Liquidator of Custom House Capital Limited (‘CHC or the Company’) on 21 October 2011.

  • At that date BCWM plc (“BCWM”) had been engaged by CHC to assist with the management of client assets and it was agreed that the Liquidator would continue that engagement in order to preserve continuity.
  • In that regard a sub-management agreement was entered into on 13 October 2011 and that agreement continues in existence to date.
  • For a Glossary of terms, please click here.

Asset Categories

Client Assets within CHC are dealt with in the following categories:

  • Segregated Client Assets – are those assets that are held on behalf of individual clients and are separately identifiable from assets of other clients. These include segregated property assets held in a Destiny Structure.
  • Pooled Client Assets – are those assets held within pooled funds and pooled bank accounts of CHC, meaning that one client’s money was intermingled with another client’s and therefore is not as readily identifiable.
  • Syndicated Property Investments – consist of shares in European SPVs which hold property investments or units in Destiny Funds which hold property assets.

…Read More

ICCL

If you have made a claim under the Investor Compensation scheme and are seeking information in relation to your claim, please email:
info@investorcompensation.ie

Transfers

Role of BCWM – BCWM plc (“BCWM”) was engaged by the liquidator to manage the assets of Custom House Capital.

For updates on transfers, please contact the transfer team by clicking here or phone: +353 1 9060250.

Investment Information Registration

To register your interest in specific investments please click here here.

Investors can also print out the above form and post it to:

BCWM
Marine House, Clanwilliam Place, Dublin DO2 Y24

Alternatively please click here to contact us directly via email or phone: +353 1 9060250