Investor Compensation Scheme

The Investor Compensation Scheme is a rescue fund for investors of investment  firms that are licensed by Brokerage Entities and which have stopped trading and/or have become insolvent. The scheme can only pay compensation if a licensed firm is unable or likely to be unable to pay claims against it. In general, this is when the licensed firm stops trading or becomes insolvent. The Scheme is based on an EU directive on investor-compensation schemes.

If your claim is accepted by the scheme, you will be paid 90% of the net loss subject to a maximum of €20,000.

To qualify for compensation you need to satisfy several conditions, such as:

  • You are claiming as an individual or a small and medium-sized company (the law lists several entities which are unable to claim compensation).
  • You are claiming against a firm that is licensed to provide investment services by the Brokerage Entities.

You cannot claim compensation based on:

  • Market movements result in a decrease in the value of an investment
  • Poor investment advice
  • A failed investment that had been duly executed
  • A bankruptcy of a collective investment scheme
  • Inflation
  • A decrease in interest rates