Regulators' report on Custom House Capital due next month

THE REGULATORS appointed to investigate the affairs of investment business Custom House Capital are likely to make their final report to the High Court next month.

The court appointed Noel Thompson and George Treacy to investigate the firm’s affairs following an application by the Central Bank on July 15th. Mr Thompson told the High Court this week he believes the inspectors will be in a position to provide it with a final report next month.

The court has scheduled October 21st as the date for the presentation of the report.

However, the document will not be published until individuals named in it have had a chance to respond to it.

Earlier this week lawyers acting for a number of investors in Custom House Capital told the High Court they may seek to be notice parties to the bank’s investigation of the firm’s affairs.

News of the investigation and the issues raised by the Central Bank prompted the investors to go to court.

The Central Bank has been involved with Custom House Capital since 2009. An affidavit sworn by Mr Thompson states that in July, a senior staff member told the bank money had been taken from pooled client accounts without proper authority.

About €2.5 million and 55 client accounts were involved, according to the court documents.

The affidavit also states that assets in three other trusts may have been used to cover shortfalls in property investments and that the sums involved may be €13 million.

Mr Thompson says the Central Bank suspects Custom House Capital supplied both its investors and the bank itself with incomplete and misleading information in relation to significant issues.