Which investors are eligible to receive a compensation from the FOGAIN?
In order to be entitled to receive a compensation from the FOGAIN an investor must fulfil the following conditions:
- The investor must be a client of the insolvent firm at the date in which the insolvency is declared (see here).
- The investor must have a credit balance of moneys or securities with the insolvent firm at the date in which the insolvency is declared. Where the insolvent firm is an investment firm, the moneys and securities may have been delivered to the firm for deposit/custody purposes or may have been put at the firm's dispossal in the ambit of a discretionary portfolio management contract. In the event of an UCITS Manager only the latter case will apply.
- The investor's circumstances must not fall within those that determine the exclusion from the FOGAIN's coverage. The investors excluded from the FOGAIN's coverage ( with no right to obtain a compensation from the FOGAIN) are the following:
- Investment firms.
- Entities forming part of the insolvent firm's group.
- Credit entities.
- Insurance companies.
- UCITS (Undertakings for Collective Investment in Transferable Securities) and UCITS Managers.
- Pension funds and pension funds managers.
- Venture capital entities and their managers.
- Any entity that, according to the laws and regulations applicable to it , carry out any of the activities listed above.
- Public administration bodies.
- Managers and directors of the insolvent firm. Persons empowered by the insolvent firm. Shareholders of the insolvent firm holding at least 5% of the stock capital. The auditor of the insolvent firm. Any person or entity that fulfil any of these conditions in respect of any entity belonging to the insolvent firm's group. Couple of any of the above as well as his/her first degree relatives.
- Any person or entity that is directly or indirectly responsible for the insolvent situation of the firm as well as those that are beneficiaries of insolvent firm's acts that have caused its insolvency. Any entity or person acting in concert with them.
- Persons or entities that have not complied with anti money laundering legal provissions. Any entity or person acting in concert with them.
- Any person or entity that have committed a crime in tis relationship with the insolvent investment firm. Any entity or person acting in concert with them.