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The protection of investors and the maintenance of confidence in the capital market are essential to ensure proper functioning of the internal European market. It is within this framework that Directive 97\/9\/EC of the European Parliament and of the Council of 3 March 1997 provided that it is essential, to that end, for each Member State to have one or more investor-compensation schemes.\u00a0 Investor-compensation schemes guarantee a harmonized minimum level of protection at least for the small investor in the event of an investment firm being unable to meet its obligations to its investor clients arising out of investment services.<\/p>\n
The \u201cInvestment Guarantee Fund\u201d with the distinctive title \u201cGuarantee Fund\u201d is a legal person under private law operating as a non-profit Guarantor, having its seat in Athens and is governed by provisions of Articles 1 and 61 \u2013 78 in L. 2533\/1997 (GG [FEK] 228\/11.11.1997, issue \u0391\u2019) transposing Directive 97\/7\/EC into the Greek laws.\u00a0\u00a0 The Guarantee Fund operates under the supervision of the Hellenic Capital Market Commission and being a legal person under private law is not subject to any provision setting restrictions for legal persons under public law.<\/p>\n
It was established pursuant to Legislative Decree 3078\/11.10.1954 under the name \u201cJoint Trading Transactions Guarantee Fund\u201d and is one of the oldest ones across Europe.<\/p>\n
The \u201cGuarantee Fund\u201d compensates investor clients for investment services provided by investment firms authorized to provide such services under the supervision of the competent Supervisory Authorities, i.e., the below:<\/p>\n
The above firms make their contributions to the \u201cInvestment Guarantee Fund\u201d in line with the provisions of Article 71 in Law 2533\/1997, as in force.<\/p>\n
Recovery and resolution of investment firms is set out in Directive 2014\/59\/EU and has been transposed into the Greek laws through provisions of Articles 94 \u2013 117 paras. 1 and 3 in L. 4335\/2015 (GG [FEK] 87 \/ 23.07.2015 issue \u0391’).<\/p>\n
The Guarantee Fund was designated as Resolution Fund for Investment Services Firms falling within the above provisions and is utilized by the Resolution Authority of the Hellenic Capital Market Commission solely and only to the extent required to ensure effective enforcement of measures of resolution in respect of those firms.<\/p>\n
\u00a0<\/strong><\/p>\n To that end, an independent function has been created within the Capital of the Guarantee Fund under the above provisions, funded by contributions of Investment Services Firms to which resolution measures apply. \u00a0\u00a0<\/strong><\/p>\n [\/vc_column_text][la_divider height=”lg:40px;”][vc_column_text]<\/p>\n [\/vc_column_text][vc_column_text]<\/p>\n The \u201cGuarantee Fund\u201d has been operating in Greece<\/p>\n \u0391. as an Investor-compensation Scheme in line with Directive 97\/9\/EC of the European Parliament and of the Council of 3 March 1997 \u201con investor compensation schemes\u201d transposed in the Greek laws through provisions of Articles 1 and 61 \u2013 78 in L. 2533\/1997 (GG [FEK] 228\/11.11.1997 issue \u0391\u2019).\u00a0 Article 2 of the above Directive provides for the establishment and functioning of an investor-compensation scheme in each Member State.\u00a0 The purpose of an investor-compensation scheme is to compensate investors for services received by investment undertakings operating in each Member State and providing investment services.<\/p>\n \u0392. as a Resolution Fund for Investment Services Firms in line with Directive 2014\/59\/EU of the European Parliament and of the Council of May 15 2014 establishing a framework for the recovery and resolution of credit institutions and investment firm transposed in the Greek laws through provisions of Articles 94 \u2013 117 paras. 1 and 3 in L. 4335\/2015 (GG [FEK] 87 \/ 23.07.2015 issue \u0391’).\u00a0 The purpose of this Directive is to harmonize resolution procedures in the institutions at Union level, to deal effectively with unsound or failing credit institutions to safeguard financial stability, minimize economic and social consequences in the Member States where these institutions operate.<\/p>\n [\/vc_column_text][la_divider height=”lg:70px;”][\/vc_column][\/vc_row][vc_section full_width=”stretch_row_content” css=”.vc_custom_1484107635630{background-color: #f9f9f9 !important;}”][vc_row][vc_column][la_divider height=”lg:25px;”][la_heading spacer=”line” spacer_position=”middle” line_height=”2″ title=”Structure and functions” line_width=”lg:50px;” line_color=”#375be4″ title_class=”h1″ line_class=”margin-top-30 margin-bottom-30 sm-margin-top-15 sm-margin-bottom-15″]In the following section, three key axes are presented regarding the structure and the function of the Guarantee Fund.[\/la_heading][la_divider height=”lg:65px;”][\/vc_column][\/vc_row][vc_row equal_height=”yes” el_class=”hover-box-icon”][vc_column width=”1\/2″ offset=”vc_col-md-4″][la_icon_boxes icon_type=”custom” icon_pos=”left” icon_size=”75″ icon_image_id=”2989″ title=”Statutory Bodies” title_fz=”md:24px;” title_class=”font-weight-700″]Articles 68, 69 and 70 of law 2533\/1997 define the Management and Auditory Bodies of the Guarantee Fund.<\/p>\n READ MORE<\/a>[\/la_icon_boxes][\/vc_column][vc_column width=”1\/2″ offset=”vc_col-md-4″][la_icon_boxes icon_type=”custom” icon_pos=”left” icon_size=”75″ icon_image_id=”2986″ title=”Compensations” title_fz=”md:24px;” title_class=”font-weight-700″]The Guarantee Fund shall compensate investors against money claims made for covered investment services.<\/p>\nBrief history<\/strong><\/h4>\n