Investor Compensation Fund
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Transcript of Investor Compensation Fund
Regulated by the Cyprus Securities &Exchange Commission (License# 247/14)
INVESTOR COMPENSATION FUND
1. Introduction
Iqoption Europe ltd (hereinafter called the “Company”)is a member of the Investor Compensation Fund(hereinafter called the “Fund”). The objective of theFund is to secure the claims of covered clients againstmembers of the Fund by the payment of compensationfor their claims arising from the failure by a member ofthe Fund to fulfil its obligations.
Failure by the Company to fulfil its obligations can leadto either (a) its inability to return to its covered clientsfunds owed to them or funds which belong to them butare held by the Company, directly or indirectly, in theframework of the provision of covered services, or (b)its inability to return to its covered clients financialinstruments which belong to them and which theCompany holds or controls in its accounts on behalf ofthe clients.
2. Covered Services
Covered Services are the investment and ancillaryservices listed on the Company’s licence (247/14)issued by the Cyprus Securities and ExchangeCommission.
3. Covered Clients
Covered clients are all the clients of the Company thatare NOT included in the following categories ofinvestors:
1. Institutional and professional investors such as:a. Investment Firms (IFs)b. Legal entities associated with the Company
and, in general, belonging to the same groupof companies as the Company
c. Banksd. Cooperative credit institutionse. Insurance companiesf. Collective investment organisations in
transferable securities and their managementcompanies
g. Social insurance institutions and fundsh. Investors characterized by the Company as
professionals2. States and supranational organizations.3. Central, federal, confederate, regional and local
administrative authorities.4. Enterprises associated with the Company.5. Managerial and administrative staff of the
Company.6. Shareholders of the Company, whose participation
directly or indirectly in the capital of the Companyamounts to at least 5% of its share capital, or itspartners who are personally liable for theobligations of the Company, as well as personsresponsible for the carrying out of the financialaudit of the Company, such as its qualifiedauditors.
7. Investors having enterprises connected with theCompany and in general, of the group ofcompanies to which the Company belongs,positions or duties corresponding to the ones listedin paragraphs 5 and 6 above.
8. Second degree relatives and spouses of thepersons listed in paragraphs 5, 6 and 7, as well asthird parties acting for the account of thesepersons.
9. Investors whose claim arises out of transactionsinvolving individuals who have been convicted of acriminal offence for these transactions, pursuant tothe Concealment, Investigation and Confiscation ofProceeds from Criminal Activities Act 1996 asamended.
10. Investors-clients of the Company responsible forfacts pertaining to the Company which havecaused its financial difficulties or have contributedto the worsening of its financial situation or whichhave profited from these facts.
11. Investors in the form of a company, which due toits size, is not allowed to draw a summary balancesheet in accordance with the Companies Law or acorresponding law of a member state of theEuropean Union.
4. Procedure for Initiating the Compensation Payment
The Fund initiates the compensation paymentprocedure when at least one of the followingcircumstances is satisfied:
a. The Cyprus Securities and Exchange Commissionhas determined by resolution that the Company isunable to meet its obligations arising from itsinvestors-clients’ claims, in connection with thecovered services it has provided, as long as suchinability is directly related to the Company’sfinancial position which has no realistic prospect ofimprovement in the near future, or
b. A judicial authority has, on reasonable groundsdirectly related to the financial circumstances ofthe Company, issued a ruling, which has the effectof suspending the investors’ ability to lodge claimsagainst it.
Following the decision to initiate the compensationpayment process in accordance with paragraphs (a) or(b) above, the Fund publishes in at least three nationalnewspapers an invitation to the covered clients tomake their claims against the Company arising fromcovered services, designating the procedure for thesubmission of the relevant applications, the deadlinefor their submission and their content.
5. Amount of Payable Compensation
The amount of compensation payable to each coveredclient is calculated in accordance with the legal andcontractual terms governing the relation of the coveredclient with the Company, subject to the setoff rules
Investor Compensation Fund (Version: 1.0 – 09/14) Page 1 of 2
Regulated by the Cyprus Securities &Exchange Commission (License# 247/14)
applied for the calculation of the claims between thecovered client and the Company. The calculation of thepayable compensation derives from the sum of totalestablished claims of the covered client against theCompany, arising from all covered services providedby the Company and regardless of the number ofaccounts of which the client is a beneficiary, thecurrency and place of provision of these services.Currently, the maximum amount any claimant canreceive as compensation is the sum of €20,000(Euros).
Investor Compensation Fund (Version: 1.0 – 09/14) Page 2 of 2