Terms of compensation payment
The Guarantee Fund shall compensate clients / investors of an Investment Services Firm when such clients / investors are not fully satisfied due to failure confirmed by decision of the Hellenic Capital Market Commission and the firm becomes subject to special clearing obligation either by a court decision on bankruptcy in order a) to give back the capital payable to them or owned by them and which are held by the Firm on their behalf, or b) to return financial instruments owned by them and which are held or managed on their behalf.
Information on this matter can be found in section Q&As.
Persons excluded from the Guarantee Fund coverage
The Guarantee Fund shall not cover certain categories of clients / investors below which shall be excluded from coverage:
- credit institutions;
- financial institutions;
- insurance firms;
- undertakings of collective investment, management companies;
- legal persons;
- states, central administrative authorities, government agencies and supranational bodies and organizations;
- local authorities;
- directors, members of the Board of Directors, Auditors and other persons providing confidential consulting services to the Investment Services Firm where such executives work as Members of the Board of Directors, auditors or advisers, and shareholders of the Investment Services Firm holding at least 5% of the share capital
- relatives by blood or by marriage up to 2nd degree relatives of the persons of above case;
- any other person associated with the Investment Services Firm and is recipient of covered investment services by it.
The Guarantee Fund may deny payment of compensation to clients / investors in the below situations:
- part of claim for compensation is considered to be false;
- clients / investors have utilized fraudulent means in order to receive compensation by the Guarantee Fund;
- clients / investors act as an intermediary in respect of the covered service giving ground to claim thereof, and nothing in the available information provides evidence of the end-beneficiary’s entitlement to compensation as a client or of the compensation received by the end-beneficiary on different grounds
- a substantial part of loss stemming from intent or gross negligence thereof;
- a late claim for compensation;
- money laundering.
Should the Guarantee Fund find any indication that the covered service being the object of claim to compensation conflicts with the bans set out in L. 2331/1995, as in force, it shall refer the matter to the Commission under L. 2331/1995 and shall refrain from making a decision until a final decision is issued in line with provisions in L. 2331/1995”.
“Payment of compensation for claims stemming from covered services being the object of a conviction for money laundering within the meaning of L. 2331/1995”.
Clients / investors claiming compensation from an Investment Services Firm providing them with investment services and whose failure has been found to be permanent and non-reversible shall be entitled to compensation from the Guarantee Fund up to 30,000.00 euro only when such claim has not been satisfied under special clearing process as set out in the relevant provisions (Article 22 of L. 3606/2007, as in force.
Information on this matter can be found in section Q&As.
The Guarantee Fund shall set out the process to be carried out following decision by the Board of Directors on the payment of compensation to clients / investors as determined by the Compensations committee and shall notify investors accordingly.
