Legal documentation
Investor Compensation Fund

Investor Compensation Fund

In accordance with the Law 87 (Ι)/2017, Coverdeal Holdings Ltd. is a member of the Investor Compensation Fund (hereinafter referred to as the ICF or the Fund).

The objective of the ICF is to secure claims of Clients against Cyprus Investment Firms (hereinafter referred to as the CIFs), members of the ICF, through the payment of compensation in the event of the CIF being unable:

  • to return to Clients funds owed to them or funds which belong to them but are held by the CIF in the context of providing investment services to the said Clients,
  • to hand over to Clients financial instruments which belong to them and which the CIF holds, manages or keeps said instruments on their behalf.

The ICF does not cover Professional Clients or Eligible Counterparties but only Retail Clients of CIFs.

The amount of compensation payable to each covered client may not exceed 20,000 EUR, irrespective of the number of accounts held, currency and place of offering of the investment service.

Non-covered Clients

Under applicable Regulations the ICF does not compensate the following investor categories:

1. The following categories of institutional and professional investors:

  • Investment Firms (IFs),
  • Legal entities associated with the member of the Fund and, in general, belonging to the same group of companies,
  • Banks,
  • Cooperative credit institutions,
  • Insurance companies,
  • Collective investment organizations in transferable securities and their management companies, social insurance institutions and funds,
  • Investors characterized by the member as professionals, upon their request, in accordance with articles 14 and 15 of the Code of Professional Conduct of IFs.

2. States and international organizations.

3. Central, federal, confederate, regional and local administrative authorities.

4. Enterprises associated with the member of the Fund, in accordance with the Fifth Schedule of the Law 144(I).

5. Managerial and administrative staff of the member of the Fund.

6. Shareholders of the member of the Fund, whose participation directly or indirectly in the capital of the member of the Fund amounts to at least 5% of its share capital, or its partners who are personally liable for the obligations of the member of the Fund, as well as persons responsible for the carrying out of the financial audit of the member of the Fund as provided by the Law, such as its qualified auditors.

7. Investors involved in enterprises connected with the member of the Fund and, in general, of the group of companies, to which the member of the Fund belongs, positions or duties corresponding to the ones listed in paragraphs (5) and (6).

8. Second-degree relatives and spouses of the persons listed in paragraphs (5), (6) and (7), as well as third parties acting for the account of these persons.

9. Apart from the investors referred to in subsection (2) of section 55 of the Law 144(I), Investors-Clients of a member of the Fund responsible for facts pertaining to the member of the Fund that have caused its financial difficulties or have contributed to the worsening of its financial situation or which have profited from these facts.

10 .Investors in the form of a company, which due to its size, is not allowed to draw a summary balance sheet in accordance with the Companies Law or a corresponding law of a Member State of the European Union.

  • In the cases of paragraphs 2.1 [(5), (6), (7) and (8)], the Fund suspends the payment of compensation informing the interested parties accordingly, until it reaches a final decision as to whether such cases apply.