Subject to the provisions of relevant section of the Investment Services and Activities and Regulated Markets Law No. 144(I)/2007 with any amendments hereto, the Investor Compensation Fund for Clients of Investment Firms compensates the covered clients for claims arising from the covered services provided by M.G.T.M. FINANCIAL SERVICES LIMITED so long as failure by M.G.T.M. FINANCIAL SERVICES LIMITED to fulfill its obligations has been ascertained, in accordance with the terms and procedure defined in the Law, notwithstanding a relevant obligation of M.G.T.M. FINANCIAL SERVICES LIMITED incurred in accordance with the legislation and the terms which govern its agreement with the covered client and regardless of whether the said obligation is based on the agreement or on wrongdoing.
Failure by M.G.T.M. FINANCIAL SERVICES LIMITED to fulfill its obligations consists of its failure:
- Either to return to its covered clients funds owed to them or funds which belong to them but are held by M.G.T.M. FINANCIAL SERVICES LIMITED, directly or indirectly, in the framework of the provision by M.G.T.M. FINANCIAL SERVICES LIMITED to the said clients of covered services, and which the latter requested M.G.T.M. FINANCIAL SERVICES LIMITED to return, in exercise of their relevant rights;
- Or to hand over to the covered clients financial instruments which belong to them and which M.G.T.M. FINANCIAL SERVICES LIMITED holds, manages or keeps on their account, including the case where M.G.T.M. FINANCIAL SERVICES LIMITED is responsible for the administrative management of the said financial instruments.
The Fund will also initiate the compensation payment procedure if:
- M.G.T.M. FINANCIAL SERVICES LIMITED submits to the Fund or to the Securities and Exchange Commission a written statement declaring its failure to fulfill its obligations toward its clients;
- M.G.T.M. FINANCIAL SERVICES LIMITED files an application for liquidation, or;
- The Securities and Exchange Commission has revoked or suspended M.G.T.M. FINANCIAL SERVICES LIMITED authorization to provide investment services and ascertains that M.G.T.M. FINANCIAL SERVICES LIMITED is not expected to be in a position to fulfill its obligations toward its clients in the near future, for reasons which do not concern a temporary lack of liquidity which can be dealt with immediately.
The maximum amount of the compensation payable to the covered clients for the total of their claims shall be equal to EUR 20.000, including co-beneficiaries of joint accounts.
The Fund does not compensate the following investor categories: credit institutions; investment firms; other authorized or regulated financial institutions; insurance companies; collective investment schemes or management companies of such schemes; pension funds or management companies of such funds; commodity/commodity derivatives dealers; local authorities; institutional investors whose main activity is to invest in financial instruments, including the securitization of assets or other financial transactions; national and regional governments; public bodies that manage public debt; Central bank; international or supranational institutions such as the World bank, the IMF, the ECB, the IEB or other similar international organization; professional clients of CIFs; 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.
Upon issuance of a decision either by the court or by the Securities and Exchange Commission on the commencement of the compensation payment process, the Fund publishes in at least three national newspapers an invitation to the covered clients to make their claims arising from covered services, designating the procedure for the submission.
The payment of the compensation by the Fund is deposited to a bank account of the covered client-claimant designated by the latter in writing to the Fund.