A DIRECTOR of Custom House Capital is transferring responsibility for more than €100 million of pension assets at a separate firm run by him to a subsidiary of Davy stockbrokers due to the fallout from the collapse of the company.

John Mulholland is transferring responsibilities for the pensions of 320 clients at European Pensioneer Trustee Company, which he owns with his wife, to Davy Pensioneer Trustees.

Mr Mulholland told clients that this was to provide them with “comfort and reassurance, and in the interest of prudence” after inspectors found a “systemic and deliberate misuse” of client funds at Custom House Capital.

"I thought it was prudent to offer my clients a greater sense of security," he told The Irish Times.

He told the clients in an e-mail before the inspectors’ report was published last week that this was “an exciting opportunity for us”.

Mr Mulholland will cease to be involved with the pensions afterwards, but he said he will continue working in the pensions business.

Individuals with self-administered pensions must have a “pensioneer trustee” to manage the funds and act as co-signatory.

Mr Mulholland said that some client funds administered by European Pensioneer Trustee Company were directed into property investments by Custom House Capital but that all of this cash was accounted for, as European Pensioneer Trustee had direct control over its clients’ funds.

The inspectors were told that Mr Mulholland held shares in trust in Custom House Capital and European Pensioneer Trustee for Isle of Man-based solicitor John Caldwell, who is being investigated by the Mahon tribunal into planning corruption. They discovered payments of €2 million from Custom House Capital client funds to Mr Caldwell, described as “a silent partner”, from 2007 through a Luxembourg bank account to buy out his shares in the companies.