Richtlinie zum Anleger-Entschädigungsfonds

1. Purpose of Policy

In compliance with CySEC’s Law and in particular section 15 of the Law, StoneX Europe Ltd (hereafter ‘SEL’ or ‘the Company’) is a member of the Investors Compensation Fund (hereafter ‘ICF’).

The consolidation of CySEC’s Directives DI87-07 of 2019 and DI87-07(A) of 2020 (hereafter the ‘Directive’), set out the governing rules of the ICF Scheme, that SEL adheres to.

The Policy set out the procedures a client should follow, in the unlikely scenario that the Company will become insolvent and not be able to fulfill its financial obligations towards its clients.

Paragraph five (5) of the Directive state that ‘The object of the Fund shall be to secure the claims of covered clients against the Fund members through the payment of compensation.’

2. Investor Information

SEL shall inform all its clients about the:

• coverage provided by the Fund;

• covered clients;

• maximum amount of the compensation payable to clients for their total claims;

• conditions and formalities for the payment of compensation.

SEL ensures that adequate and updated information is posted on the Company’s website and that additional or clarifying information on the formalities and conditions for the payment of compensation, is provided to any covered client on request.

SEL is prohibited from promoting their subscription to the Fund for advertising purposes through advertising leaflets or other messages in any way, provided that the mere informative reference to such subscription shall be allowed.

3. Covered Claims

The ICF covers claims arising due to a member’s failure:

(a) to repay the funds owed to covered clients or belonging to them and held on their behalf in connection with investment operations; or

(b) to return to covered clients any financial instruments belonging to them and held, managed, or administered on their behalf in connection with investment operations.


4. Covered Clients

ICF shall compensate all clients of a member, in case this is deemed necessary, unless they fall into the following investor categories:

A. Institutional and Professional Investors such as:

i. Investment Firms;

ii. legal entities associated with the member and generally belonging to the same group of companies;

iii. banks;

iv. cooperative credit institutions;

v. insurance companies;

vi. collective investment undertakings in transferable securities and their management companies;

vii. social insurance institutions and funds;

viii. investors characterized by the member as professionals upon their request, pursuant to the provisions of paragraph Β of the Second Schedule of the Law.

B. Supranational institutions, government and central administrative authorities.

C. Provincial, regional, local and municipal authorities.

D. Enterprises that have close ties with the member as the term «close ties» is construed in Article 2(1) of the Law.

E. Managerial and administrative staff of the member.

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

G. Investors having in enterprises connected with the member and, in general, with the group of companies to which the member belongs, positions or duties corresponding to those listed in sub-paragraphs (E) and (F).

H. Up to second-degree relatives and spouses of the persons listed in sub-paragraphs (E), (F) and (G), as well as third parties acting for the account of such persons.

I. Investors-clients of the fund’s member responsible for facts pertaining to the Company that have caused its financial difficulties or have contributed to the worsening of its financial situation or have profited from these facts.

J. Other firms in the same group.

K. 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.

In the cases of sub-paragraphs (E), (F), (G), (H), and (J) the Fund shall suspend the payment of compensation informing the interested parties accordingly until it reaches a final decision as to whether such cases apply.

5. Payable Compensation

The amount of compensation payable is determined by:

i. The calculation of the compensation payable shall arise from the sum of the total established claims of the covered client against he fund’s member, arising from all covered services provided by the member as per its CySEC License and regardless of the number of accounts of which it is the beneficiary, the currency and place where such services are provided within the European Union.

ii. The Fund shall provide coverage for the client’s claims which applies for the total claims of the covered client against the fund’s member and shall be defined as the lower of 90% of the cumulative covered claims of the covered client and €20.000.

iii. In the case of joint investment business:

(a) in the calculation of the coverage provided for in subparagraph (ii), the share attributable to each covered investor shall be taken into account;

(b) the claims shall be allocated equally amongst covered investors, unless there exist special provisions, and without prejudice to section (c), each investor is provided with separate coverage pursuant to the provisions of subparagraph (ii);

(c) claims relating to joint investment business to which two or more persons are entitled as members of a business partnership, association or grouping of a similar nature, which has no legal personality, shall, for the purpose of calculating the coverage provided for in subparagraph (2), be aggregated and treated as if arising from an investment made by a single investor

iv. Compensation shall be paid in Euro, and, where the funds and/or financial instruments are expressed in a currency other than the Euro, the exchange reference rate of the said currency against the Euro fixed by the European Central Bank at the end of the day on which the compensation payment procedure was activated, shall be used.

v. Where a covered client is not the ultimate beneficiary of the funds or financial instruments held by the fund’s member:

(a) compensation shall be paid to the ultimate beneficiary if his identity is or may be established prior to the date of the determination or ruling as per section 6 below.

(b) if the ultimate beneficiaries are more than one, in the calculation of the coverage provided for, the share attributable to each one of them according to the arrangements regulating the management of the funds or financial instruments shall be taken into account.

This section shall not apply to undertakings for collective investments.

6. Compensation Payment Procedure

The Fund shall initiate the compensation payment procedure when:

i. the CySEC has determined that the fund’s member appears, for the time being, for reasons directly related to its financial circumstances, to be unable to meet its obligations arising out of investors' claims and has no early prospect of being able to do so.

ii. a Court of the Republic has made a ruling, for reasons directly related to the member’s financial circumstances, which has the effect of suspending investors' ability to make claims against it.

iii. The Commission shall issue its decision for the initiation of the compensation payment procedure by the Fund within a reasonable time and publish the relevant information on its website.