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Investors compensation fund

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The Investors Compensation Fund (Fondul de Compensare a Investitorilor) is a legal person established as a joint-stock company, according to its articles of association, preliminary approved by the Romanian National Securities Commission (C.N.V.M.). The Fund’s Shareholders are represented by the agents and the investment managing companies, whose main activity object consists in the management of the investment individual portfolios, as well as the BVB.


The identification data of the Investors Compensation Fund (S.C. Fondul de Compensare a Investitorilor S.A.): Sole registration number: 18805590, head office located in Bucharest, 34-36 CAROL I blvd., 12th floor, room 10, zip code: 020922, sector 2, Tel: 40-21-315 73 48; Fax: 40-21-315 73 40, e-mail office@fond-fci.ro, web www.fond-fci.ro.


The Fund's main objective is to compensate the investors, if any of the Fund's members fail to reimburse the money and / or the financial instruments owed by or belonging to the investors, and which were owned on their behalf while supplying the financial investment services or services of managing the investment individual portfolios. The Investors Compensation Fund (Fondul de Compensare al Investitorilor SA) will equally and non-discriminatorily compensate the investors within the limit of a maximum limit representing the equivalent in Romanian currency of 9.000 Euro, a valid amount starting with 01.01.2009, following that this limit to be gradually increased up to an equivalent amount, in Romanian currency, of Eur 20.000.

 

The Fund will compensate the investors in any of the following circumstances:


  • a) Romanian National Securities Commission (C.N.V.M.) found that, in its opinion, an agent or an investment managing company that manages investment individual portfolios, based on certain reasons directly related to the financial situation, has no capacity to discharge its obligations derived from the investors debts and, at the same time, there is no perspectives to immediately discharge such obligations
  • b) the competent judicial authority, based on certain reasons directly or indirectly related to the financial situation of a Fund’s member, issued a final judgment whose effect is to suspend the investors’ possibility to exercise their rights regarding the valuation of their debts upon that particular company.
 

The compensation will be provided for the rights deriving from the incapacity of a Fund's member to:


  • a) return the money funds belonging to the investors and owed on their behalf, in relation to their investment activities
  • b) return to the investors any financial instrument owned by them and currently held and managed on their behalf, in relation to their investment activity.

The following investor groups are excepted from compensations:


  • a) professional and institutional investors, including:
    • The investment companies, in compliance with the legislation regarding the credit institutions and capital appropriateness
    • Credit institutions, in compliance with the legislation regarding the credit institutions and capital appropriateness
    • Financial institutions, in compliance with the legislation regarding the credit institutions and capital appropriateness
    • Insurance companies
    • Collective placement bodies
    • Retirement funds
  • b) Ather professional and institutional investors established according to the regulations imposed by the Romanian National Securities Commission (C.N.V.M.)
  • c) international organizations, governments and central public administration authorities
  • d) regional and local public administration authorities
  • e) administrators, including managers, directors and any other competent individuals whose main responsibility is to conduct the audit of the Fund’s members, and whose shareholders own over 5% of the registered share capital, as well as any other investors with similar statute within any other companies of the same group with the Fund's members
  • f) spouses, relatives and any other relative persons up to the 1st degree, as well as any other individuals who act on behalf of the investors indicated to let.b)
  • g) legal persons within the same group as the Fund’s members
  • h) investors who undertook the responsibility or took advantages of certain situations related to a Fund member and which brought about the financial difficulties of such member or which generated the decline of its financial situation
  • i) companies which, due to their economic size, are not allowed to draw up an abridged balance sheet according to the applicable accountancy norms.
 

The Fund will be based on the following financial resources:


  • a) the members’ initial contribution, paid according to the regulations applied by the Romanian National Securities Commission (C.N.V.M.)
  • b) the yearly and / or special contribution paid by the members
  • c) incomes derived from the investment of the Fund’s resources
  • d) incomes derived from the recovery of the debts compensated by the Fund
  • e) short-term loans that might entirely cover temporary needs generated by the grant of compensations
  • f) other incomes set forth by certain regulations imposed by the Romanian National Securities Commission (C.N.V.M.).