Dáil Éireann Debate, Tuesday - 26 May 2026
196. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Finance if his attention has been drawn to the issues AIB customers have experienced with funds (details supplied); if he has engaged with the Central Bank or the Financial Services and Pensions Ombudsman on the matter; and if he will make a statement on the matter. [39881/26]
Amharc ar fhreagraAs Minister for Finance, I am prevented from intervening in commercial and operational decisions in any particular bank, even one in which the State previously had a shareholding. Notwithstanding this, officials in my Department contacted AIB and received the following response:
Between 2002 to 2006 the Group sold a series of speculative investments in UK commercial properties, known as the Belfry funds. Belfry Investment Fund 1 realised a return of c.250% whilst the other five funds suffered losses due to the global financial crisis and the downturn in the property market.
In 2021, AIB announced a case-by-case review to determine if a refund may be due to some investors. The review assessed the suitability of the Belfry funds for investors. This involved checking that the investors’ investment objectives, experience and financial position were appropriately aligned to investing in the Belfry funds and that the documentation provided to investors was clear. Review outcomes and payments have been communicated to 99.8% of investors.
• Where the review concluded the investment may have been unsuitable, investors received a full repayment of their investment plus additional compensation payments.
• Where the review concluded that an error may have been made in the process, investors received 50% of their investment plus additional compensation payments.
• Where the review found the investment was suitable for the investor to whom it was sold, no payments were made.
The documentation was very clear about the high-risk nature of Belfry 5 and 6. Nonetheless, the bank conducted a case-by-case review of these funds. In some cases, it was concluded that the investment may have been unsuitable.
All investors had the right to appeal to an independent appeal panel and were offered a payment towards the cost of obtaining independent professional advice. Investors can also take their case to the Financial Services and Pensions Ombudsman if they wish to do so.
AIB communicated its approach and treatment methodology to the regulator. Like all financial institutions the bank is subject to regulatory oversight to ensure consumers are protected.
