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Investor compensation fund

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Investor compensation fund. HOME · THE COMMISSION THE COMMISSION · PUBLIC INFORMATION PUBLIC INFORMATION · REGULATED ENTITIES REGULATED ENTITIES · REGULATORY FRAMEWORK REGULATORY FRAMEWORK · INVESTOR PROTECTION INVESTOR PROTECTION.

Investor compensation fund


The English version of this agreement is the governing version and shall prevail whenever there is any discrepancy between the English version and the other versions. The Fund constitutes a private law legal entity and its administration is exercised by an Administrative Committee of five members, who are designated for a three-year term. The object of the Fund is to secure the claims of the covered clients against the members of the Fund by the payment of compensation for their claims arising from the covered services provided by its members, so long as failure buy the member to fulfill its obligations has been ascertained.

The Fund covers the clients of the Company, except those belonging into the following categories:. In the cases of paragraphs e , f , g and h , the Find suspends the payment of compensation informing the interested parties accordingly, until it reaches a final decision as to whether such cases apply. Financial Services in relation to which investment services are currently provided by the Company are the following:.

Failure of a member of the Fund to fulfill its obligations toward its investors The Fund compensates the covered clients for claims arising from the covered services provided by its members, as long as failure by the member to fulfill its obligations has been ascertained notwithstanding a relevant obligation by the member of the Fund in accordance with the legislation and the terms which govern its agreement with the covered client and regardless of whether the said obligation of the member of the Fund is based on the agreement or on wrongdoing.

CySEC may request by the member of the Fund to set out its views within a short deadline so fixed, which cannot be less than three working days from the date of the invitation to set out such views. Procedure relating to the invitation of covered clients to submit applications Upon issuance of a decision by the Court or by CySEC, on the commencement of the compensation payment process, the Fund publishes in at least three newspapers of national coverage, an invitation to the covered clients to make their claims against the member of the Fund arising from covered services, designating the procedure for the submission of the relevant applications, the deadline for their submission and their content.

In case a covered client, not being its fault, was neither informed about the invitation to submit compensation applications nor in a position to submit within the deadline this application, the deadline is interrupted provided that an interruption of the deadline arises in case of an event of force majeure, as long as it has been proved that it prevented the keeping of the deadline for the submission of compensation applications or the collection and submission of the required information.

A covered client who submits an application late to the Fund for the payment of compensation is obliged to submit, in addition to the information forming the necessary minimum content of the application a solemn declaration stating the reason for which he was not in a position to claim compensation in time attaching the necessary supporting evidence to prove his allegations. The compensation applications of covered clients with which they make their claims against a member of the Fund are submitted to the Fund in writing.

The compensation applications must include:. The Fund designates at least one qualified auditor and at least one lawyer with knowledge on capital market issues, who after having checked initially the prerequisites, they evaluate the claims submitted to the Fund and recommend to the Administrative Committee their acceptance in total or in part or their rejection.

In case of disagreement between these persons, each one them submits a separate recommendation. The remuneration of the persons is agreed between the Fund and these persons and burdens the member of the Fund, and, if necessary, is paid by the Fund. The persons have full access to the books kept by the member of the Fund, in order to accomplish their work, and they are obliged to exhibit confidentiality against any third party as to the information coming to their knowledge in the exercise of their duties provided that the said obligation of confidentiality is disregarded in order to render possible the exercise of their duties.

The Administrative Committee during the examination of the applications takes into consideration the recommendations of the persons and decides on the applications submitted to the Fund determining the amount of the compensations for each covered client-claimant. The Fund may demand at any time from a covered client to return the compensation paid to it, if it finds out a posteriori that there was a reason to reject its application.

To ascertain the claims of a claimant against a member of the Fund, as well as any counterclaims of the member of the Fund against the claimant, the books kept and the particulars issued by the member of the Fund as well as the supporting evidence produced by the claimant are taken into consideration. The amount of the compensation payable to each covered client is calculated in accordance with the legal and contractual terms governing the relation of the covered client with the member of the Fund, subject to the set-off rules applied for the calculation of the claims between the covered client and the member of the Fund.

The calculation of the payable compensation derives from the sum of total established claims of the covered client against the member of the Fund, arising from all covered services provided by the member and regardless of the number of accounts, of which it is a beneficiary, the currency and place of provision of these services.

CySEC, in order to ensure that the provisions of the legislation in force in the Republic are fulfilled during the examination of the applications and the calculation of the amount of the corresponding compensation per covered client, may:. The CySEC, in as long as it finds errors or inaccuracies as to the evaluation by the Fund of the applications for the payment of compensation and the fixing of the compensation for each claimant, taking into consideration any memos submitted to it by claimants, may demand from the Fund to correct the payable compensations with a decision communicated to the Fund within forty-five days from the communication to it of the minutes of the compensation beneficiaries.

The Fund is obliged to pay to each covered client-claimant the compensation within three months from sending to CySEC the minutes with the compensation beneficiaries. The payment of the compensation by the Fund is deposited to a bank account of the covered client-claimant designated by the latter in writing to the Fund.

Every compensation payable to a covered client burdens initially the property of the Fund corresponding to the individual shares of its members and then the assets of the fixed reserve. The payment of any compensation by the Fund entails ipso jure subrogation of the Fund to the rights of the compensated covered client-claimant against the member of the Fund for an amount equal to the compensation payable to it. Binary Options or digital options enables to profit by predicting the price movement of an asset, where the outcome is not related to the magnitude of the movement.

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These products may not be suitable for everyone and you should ensure that you understand the risks involved and only invest money that you can afford to lose. You should become aware of all the risks associated with trading and seek independent advice if necessary. Please read our Risk Disclosure Statement. Hello Your balance 0. My Account My Account. Please enable JavaScript for this site to work properly. The following categories of institutional and professional investors: IFs legal entities associated with the member of the Fund and, in general, belonging to the same group of companies banks cooperative credit institutions insurance companies collective investment organizations in transferable securities and their management companies social insurance institutions and funds investors characterized by the member as professionals, upon their request States and supranational organizations Central, federal, confederate, regional and local administrative authorities.

Reception and transmission of orders in relation to one or more financial instruments Execution of orders on behalf of clients Financial Services in relation to which investment services are currently provided by the Company are the following: Failure by a member of the Fund to fulfill its obligations consists of its failure: Either to return to its covered clients funds owed to them or funds which belong to them but are held by the member, directly or indirectly, in the framework of the provision by the said member to the said clients of covered services, and which the latter requested the member to return, in exercise of their relevant right Or to hand over to the covered clients financial instruments which belong to them and which the member of the Fund holds, manages or keeps on their account, including the case where the member is responsible for the administrative management of the said financial instruments.

Preconditions for the initiation of the compensation payment procedure by the Fund The Fund initiates the compensation payment procedure: The publication contains at least: Interruption of deadline for submission of applications In case a covered client, not being its fault, was neither informed about the invitation to submit compensation applications nor in a position to submit within the deadline this application, the deadline is interrupted provided that an interruption of the deadline arises in case of an event of force majeure, as long as it has been proved that it prevented the keeping of the deadline for the submission of compensation applications or the collection and submission of the required information.

Content of compensation applications submitted to the Fund The compensation applications of covered clients with which they make their claims against a member of the Fund are submitted to the Fund in writing. The compensation applications must include: Procedure relating to the recording and evaluation of the alleged compensation claims The Fund designates at least one qualified auditor and at least one lawyer with knowledge on capital market issues, who after having checked initially the prerequisites, they evaluate the claims submitted to the Fund and recommend to the Administrative Committee their acceptance in total or in part or their rejection.

The persons in order to evaluate the applications: Decision of the Administrative Committee on submitted applications Upon submission of the applications the Administrative Committee has control especially if: The claimant used fraudulent means in order to secure the payment of compensation by the Fund, especially if it knowingly submitted false evidence; the damage suffered by the claimant substantially derived from concurrent negligence or offence on its behalf in relation to the damage it suffered and to its underlying cause.

Unjustifiably paid compensation The Fund may demand at any time from a covered client to return the compensation paid to it, if it finds out a posteriori that there was a reason to reject its application. Fixing of the amount of payable compensation To ascertain the claims of a claimant against a member of the Fund, as well as any counterclaims of the member of the Fund against the claimant, the books kept and the particulars issued by the member of the Fund as well as the supporting evidence produced by the claimant are taken into consideration.

Valuation of claims of covered clients and its notification process Upon completion of the valuation, the Fund: CySEC, in order to ensure that the provisions of the legislation in force in the Republic are fulfilled during the examination of the applications and the calculation of the amount of the corresponding compensation per covered client, may: Deadline and procedure relating to the payment of compensation The Fund is obliged to pay to each covered client-claimant the compensation within three months from sending to CySEC the minutes with the compensation beneficiaries.

Effects of payment of compensation The payment of any compensation by the Fund entails ipso jure subrogation of the Fund to the rights of the compensated covered client-claimant against the member of the Fund for an amount equal to the compensation payable to it. Get Started How to trade? What are Binary Options? What are Pair Options? Stockpair About us Why Stockpair? Contact us Affiliates Regulation. My Account Settings Deposit.


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