Trading Group takes pride place in Investors amends Fund membership (further named Fund) for investor companies clients. The last ones have FSP-license and do not belong to any credit organization. These companies were created in accordance with investor companies law (from 2002), changed by Law 144, that could foresee Fund’s FSP creating and acting, which positions had passed within the law. Fund is ruled by 5 committee members and acts as private administrative official. Committee members have been chosen for term of 3 years. The Fund’s function is to cover claims for Fund’s membership and protected clients by compensations in accordance with all the protecting services requirements, in case if Fund’s member is unable to carry out responsibility himself.
All IFs, in particular CIFs which do not belong to banks, are required to accept the membership of the Fund. The amount of any monetary compensation for clients provided by the Fund should not be more than 20 thousand euros. This rule also applies to aggregate customer claims against the enterprise.
II. CLIENTS’ PROTECTION
1. The Fund provides protection only to those clients who do not belong to the following categories:
Institutional and professional investors:
- insurance companies;
- FSP IK;
- cooperative credit enterprises;
- legal entities which are associated with the Fund and belong to their group of companies;
- social funds and institutions;
- collective investment companies;
- investors who are characterized by professionals only on their own request;
- states and national organizations;
- organizations associated with members of the Fund;
- staff members of the Fund;
- federal, local, central and regional authorities;
- Shareholders of the Fund who is personally responsible for Obligations of members and audit of the Fund’s resources and whose capital is more
- than 5% of the authorized capital or capital of its partners ;
- Investors whose activities are related to the enterprises of the members of the Fund.
- Relatives of persons listed above and persons who can act for these individuals;
- Clients-investors of the Fund’s member who caused financial losses to a member of the
- Fund or who benefited from his losses;
- Companies-investors who can not write out a balance sheet in accordance with the Companies Acts because of their size.
In many of these cases, the Funds stop compensation payments before clarifying the circumstances and making a final decision as to whether such cases are applicable.
Protective services are a list of the following investment services that are offered by the Company:
- Circulation of securities;
- Money market instruments;
- Futures, options, swaps, derivative contracts (forward and other) on currencies, securities, income and interest rates and other measures of financial measures that can be performed in cash or physically.
- Futures, options, swaps, derivative contracts (forward and other) on currencies, securities, income, rates of interest and other measures of financial measures that can be performed in cash or physically.
- Futures, options, swaps, derivative contracts (forward and other) on goods, That should or could be redeemed at the option of one of the parties, except for cases of termination or default.
- Futures, options, swaps, derivative contracts (forward and other) that relate to a commodity that can be physically established on the basis that it trades on a regulated market and / or at multilateral sites.
- Futures, options, swaps, derivative contracts (forward and other) that relate to the commodity, which can be settled physically if commertial activity is not intended.
- Derivative instruments for the transfer of risks on the loan;
- A money contract for differences;
- Futures, options, swaps, derivative contracts (forwards and others) to the freight rate, emission quota or inflation rate, climatic variables, other official statistics, which must be repaid in cash at the option of one of the parties (not counting default or default). Any other derivative contracts related to assets, liabilities, rights, indices and other measures that are not mentioned in this clause but which have the characteristics of other financial instruments and if they are traded in regulated markets or multilateral trading platforms, are committed or calculated by clearing organizations or subject to regular requests for margin growth.
IV. COMPENSATION TO PROTECTED CLIENTS AND PAYMENT PROCEDURE
In case if Fund’s member refuses to fulfill obligations to its investors, the Fund shall reimburse payments to all its protected clients upon demand, which arise from the protective services provided to its members. It happens in the event if a member’s refusal to fulfill obligations was established, despite the obligations of a member of the Fund under the terms and conditions that are possible to regulate its agreement to protect the clients, regardless of what the obligation is based on: on an offense or contract.
Nonfulfillment of obligations by any member of the Fund is caused by the inability:
- To return to its protected client the funds belonging to him, but are at the direct or indirect disposal of the member.
- To give the client the financial instruments belonging to him, which are managed by a member of the Fund (who keeps them in account and manages them), including situations when the member of the Fund is responsible for the administration of these funds.
ii Conditions for the commencement of the compensation payments process
The Fund starts the process of compensation payment:
- In case if the Fund’s member submits a written application to the FSP or the Fund, it must state the incapacity of the member to fulfill his obligations to the clients.
- When an application for liquidation is submitted;
- In case if the FSP has stopped or withdrawn the activity of a participant in providing an investment service, stating that he is not able to perform his duties to the clients at the moment, for a reason that does not affect short-term lack of liquidity and can be considered immediately.
FSP may request the Fund’s member to state his similar views for a short time (up to 3 business days from the request);
Iii. The process associated with offering protected customers to lodge a request;
After the appearing of the FSP’s or court’s decision to compensate payments, the Foundation should publish invitations in three national newspapers for protected clients to file complaints against the member of the Fund, which arose as a result of the protection of services indicating the procedure for the submission of necessary applications, content and their term Granting.
Such publication must contain the following items:
- сoordinates and the name of the Fund’s member, against whom through the Fund the compensation procedure was initiated .
- The last date for granting a compensation application, which can not be less than 5 and more than 9 months since the last publication in the newspaper;
- Address and time of submission of applications;
- The address for investors, according to which they would be able to receive the necessary information about applications, receiving a similar form from the Fund.
V. Halt of a period of limitation for the filing
In cases where the protected client was not informed through his own fault about the need to submit a claim for compensation or was unable to provide it at the right time, the period of limitation for the filing will be suspended. It happens on condition if this procedure is suspended in the event of a force majeure situation and the interference with the application procedure is proved.
Confirmiation that a protected client has barriers that can not be acted upon, but they make it impossible to apply for compensation may be:
- The absence of a client proved in written form; the period of absence must cover not less than half the time required for the timely submission of applications.
- The medical problem confirmed by the doctor and has become an obstacle for the submission of applications within not less half of period appointed for the application;
- Stay of the client in the place of imprisonment for a term that is not less than half the period limit established for filing applications.
A client who makes a late application for a compensation payment must submit an application in addition to the application for compensation, where he will specify in detail the reason for late filing of the application and provide the necessary evidence in proof of his statement.
V. The content of the compensation application submitted to the Fund
Applications for payment of compensation from protected clients is made in written form, in which they complain about a member of the Fund. Applications for payments should consist of:
- The applicant’s name;
- His address, contact phone, fax, e-mail address;
- Client code belonging to the claimant and owned by a Fund’s member;
- Detailed information on the contract of compensation payments between the claimant and the Fund;
- The amount and type of anticipated payments;
- A statement of the information from which the claimant’s claim and the amount of the payment are derived.
The Fund has the right to request any information that is included in the annexes on compensation payments, which will be announced to them by at least three national newspapers and in the Official Gazette, and will provide a list of this information to investors in its offices and / or organization of the Fund’s member.
vi. The process of assessing and recording (claims for reimbursement)
The Fund is required to appoint at least one auditor and one lawyer with knowledge of financial conditions that should evaluate the application submitted to the Fund and recommended by the Administrative Committee for accepting (full or partial) or rejecting it after initial inspections. If there are disagreements between these individuals in the assessment of the application, each of them presents its recommendations separately. The amount of remuneration of persons must also be agreed between these persons, be announced to the Fund’s member and, if it is necessary, be paid by the Fund.
Individuals who evaluate applications have to:
- Ask the member of the Fund for his opinion on the situation and the reason for the claims and ask him to provide accompanying supporting documents;
- Evaluate the applications in the form of provided information, determining the amount of compensation for the applicants.
These persons must have full access to accounting records, which are maintained by the Fund’s member by virtue of their duties. They are required to maintain confidentiality with respect to other parties and not to disseminate information that has become known to them during this procedure, provided that the obligation not to disclose information will be taken into account in the implementation of obligations.
Vii. The Administrative Committee’s decision on the submitted application
- The claimant is classified as a protected client;
- The application was submitted on time;
- All the conditions of the Law and this Policy on the provision of compensation payments are observed.
The Administrative Committee may refuse to protect clients in accepting their applications if the applicants do not meet all of the above conditions or there is at least one of the following reasons:
- The applicant filed false information or used improper means to apply to the Fund;
- The loss suffered by the claimant, mostly occurred through the fault of the applicant himself.
During the consideration of applications, the Administrative Committee can take into account the recommendations of other persons. Deciding on applications submitted to the Fund, the committee determines the amount of payments for the clients of the applicants.
Viii. Unreasonably paid compensation payment
At any time, the Fund may request a refund of the funds paid to the protected client in the form of compensation if it becomes aware that there was a reason to reject its application.
ix. Maximum amount of compensation
To clarify the applicant’s claims to the Fund’s member and possible back applications from a member of the Fund to the applicant, a member of the Fund must have all the accounting records and evidence that the applicant’s applications were accepted for consideration.
The amount of the compensation to be paid to the claimant is calculated on the contractual and legal conditions governing the relations of a member of the Fund with a protected client, taking into account the rules for netting that are applied to the calculation in the requirements between a member of the Fund and a protected client.
The valuation of the amount of financial instruments, which relates to the compensation payment to the client, is based on the valuation of the current value:
- The publication amounts of the decision of the FSP commission;
- Amounts of publication of the court.
The calculation of the payment is calculated from the sum of the general agreed rules in the protection of the client against the members of the Fund, and arising from all the rendered services, which are provided by the Fund’s member, regardless of all the material goods that it owns, the places of provision of services.
In case if the amount of the claim is made under these Rules exceeds EUR 20,000 (twenty thousand euros), the applicant receives a one-time payment of 20,000 euros (twenty thousand euros).
X. Evaluation of the requirements of protected clients and the notification procedure
After the Fund performs the evaluation, it:
- Issues a protocol in which all the clients of the Fund’s member who are acting as compensation beneficiaries are indicated, indicates the amount of money that each of them will receive, informs the Fund members and the FSP within 5 working days from the date of its issuance;
- Must contact each affected customer within a period of not more than 15 days from the date of the release of the protocol determining the amount of compensation that the client is entitled to rely on.
In order to assure that the provisions of the legislation are being implemented in the EU during the consideration of applications and the determination of compensation payments for protected clients, FSP is available:
- To request the Foundation, the Fund’s senator, the applicant all the necessary information and information on the case;
- To pursue investigation necessary to implement the provisions of the FSP laws (2001-2002) and provisions, which strengthen the commission provisions in the participation and investigation.
If the applicant is not satisfied with the amount of the sum indicated by the Fund as a compensation, he can submit his claims to the FSP within 10 days from the receipt of the decision from the Fund. If the FSP sees inaccuracies or errors in the evaluation of the Fund on an application for payment of compensation or in calculation, the Commission has the right to amend it within 45 days from the date of announcing to the Fund about the protocol of applicants for compensation payments.
Xi.Terms and procedure of payments
After three months from the date of sending applicants for payment to the bidders and FSP protocol, the Fund must pay compensation to each claimant.
Payments are made to the applicant’s bank account, which he must put on the application for compensation to the Fund.
Compensations paid to protected clients are the property of the Fund, taking into account the shares of all members and assets of the reserve.
Xii. The consequences of compensation payment
Payment of any compensation by the Fund results in the Fund’s subrogation with respect under the rights of the protected client payment to the member of the Fund in the amount equivalent to the compensation paid to it.