INVESTOR COMPENSATION FUND PROTECTION SCHEME

1. INTRODUCTION

 

1.1. REDFIN CAPITAL LTD is a Cyprus Investment Firm (hereinafter called the "CIF") registered with the Registrar of Companies in Nicosia under the number HE 381021 and regulated by the Cyprus Securities and Exchange Commission (hereinafter called the "CySEC") under the license number 375/19 (hereinafter called the "Company").

 

2. PURPOSE

 

2.1. The Company is a member of the Investor Compensation Fund (hereinafter called the "Fund"). The main objective of the Fund is to secure the claims of covered clients of regulated CIFs that are members of the Fund ("Fund Members") against Fund Members, in situations where the CIF is unable to fulfil its obligations.

 

2.2. The Fund compensates covered clients arising from the services provided by the Fund Member, so long as failure by the CIF to fulfil its obligations has been ascertained. Failure by a Fund Member to fulfil its obligations consists of its failure:

 

(a) to return to its covered clients funds owed to them or funds which belong to them but are held by a Fund Member, directly or indirectly, in the framework of the provision by the said Fund Member to the said clients of covered services and which the latter requested the Fund Member to return, in exercise of their relevant right;

 

(b) to hand over to the covered clients financial instruments which belong to them and which the Fund Member holds, manages or keeps on their account, including the instances where the Fund Member is responsible for the administrative management of the said financial instruments.

 

2.3. The Company’s clients bear the risk of losing their assets, which are held by third parties, especially in case of their insolvency and in case the third parties are not covered by any investor compensation system and/or have no other insurance cover.

 

3. COVERED SERVICES

 

3.1. Covered Services are the investment services listed on the Company’s license issued by the CySEC. The Fund shall not pay compensation to individuals for which criminal proceedings under the provisions of the Prevention and Suppression of the Legalization of Proceeds from Criminal Activities Law of 2007, as amended, are pending against them.

 

4. COVERED CLIENTS

 

4.1. The Fund compensates all clients of the Company unless they fall into the following investor categories:

 

 

(a)  institutional and professional investors including:

 

• investment firms;

• legal entities associated with the Company 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 Company as professionals.

 

(b) states and international organizations;

 

(c) central, federal, confederate, regional and local administrative authorities;

 

(d) enterprises who have close ties with the Company;

 

(e) managerial and administrative staff of the Company;

 

(f) shareholders of the Company, whose participation directly or indirectly in the capital of the Company amounts to at least 5% (Five percent) of its share capital, or its partners who are personally liable for the obligations of the Company, as well as persons responsible for the carrying out of the financial audit of the Company as provided by the Provision of Investment Services, the Exercise of Investment Activities, the Operation of Regulated Markets and Other Related Services Law 87(I) of 2017, as it may be amended from time to time, such as its qualified auditors;

 

(g) investors having in enterprises connected with the Company and, in general, of the group of companies to which the Company belongs, positions or duties corresponding to the ones listed in points (e) and (f) above;

 

(h) second-degree relatives and spouses of the persons listed in subparagraphs (e), (f) and (g), as well as third parties acting for the account of these persons;

 

(i) apart from investors convicted of criminal offence pursuant to the Prevention and Suppression of Money Laundering Activities Law of 2007, as amended, investors-clients of the Company 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;

 

(j) 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, cap. 113 of 1968, as amended, or a corresponding law of a Member State.

 

 

5. COMPENSATION PAYMENT PROCEDURE

 

5.1. The Fund initiates the compensation payment procedure when at least one of the following preconditions is fulfilled:

 

(a) the CySEC has determined by Resolution that the Company, which is subscribed to the Fund, is unable, at present, to meet such of its duties as arise from its investor-clients’ claims in connection with the provision of investment services, provided that such inability is directly related to its financial circumstances in respect of which there is no foreseeable realistic prospect of improvement in the near future; or

 

(b) a court has, on reasonable grounds directly related to the financial circumstances of the Company which is subscribed to the Fund, issued a ruling which has the effect of suspending the investors ability to lodge claims against the Company.

 

5.2. Upon issuance of a decision by the Court or by the CySEC on the commencement of the compensation payment process, the Fund publishes in at least three newspapers of national coverage, an invitation to the covered clients to make their claims against the Company arising from covered services. The procedure for the submission of the relevant applications, the deadline and their content will be designated in the invitation.

 

6. PAYABLE COMPENSATION

 

6.1. The amount of compensation payable to each covered client is calculated in accordance with the legal and contractual terms governing the relation of the covered client with the Company, subject to the set-off rules applied for the calculation of the claims between the covered client and the Company.

 

6.2. The calculation of the payable compensation shall be derived from the sum of total established claims of the covered client against the Company, arising from all covered services provided by the Company and regardless of the number of accounts, of which it is a beneficiary, the currency and place of provision of these services.

 

6.3. Insofar as the amount of the claim determined exceeds the amount of EUR 20.000 (Twenty Thousand Euro), the claimant shall receive as compensation the lump sum of the amount of EUR 20.000 (Twenty Thousand Euro).

 

 

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