The Investors Compensation Fund (S.C. Fondul de Compensare a Investitorilor S.A.) is a legal entity, namely a joint-stock company, established according to Law 31/1990 on companies, with the subsequent amendments and completions, and in compliance with the provisions of the Capital Markets Law no. 297/2004 and those of FSA Regulation no. 3/2006..
The shareholders of the Fund are intermediaries and investment management companies which have as object of activity the management of individual investment portfolios. They can be shareholders of the Market Operators Fund, the Central Depository and other entities regulated and supervised by the FSA.

In compliance with the applicable legal provisions of article 46 of Law no. 297/2004 on capital markets, the purpose of the Fund is to compensate investors, as per legal and FSA requirements, in case the members of the Fund are unable to reimburse funds and/or financial instruments due or belonging to investors, which were held in their name, when rendering services of financial instruments of management of individual investment portfolios.

(2) In the sense of this chapter, an investor is defined as any individual who has entrusted funds or financial instruments to a member of the Fund, in order for the latter to render financial investment services.

(3) The value of an investor’s claim will be calculated as per the legal and contractual provisions, taking into account compensation and mutual claims to be compensated, which are applicable for the establishment, at the date of the notice or decision mentioned under article 47 paragraph (1), of the money or values, determined, if possible, at market value of the financial instruments belonging to investors, which the member of the Fund cannot pay or reimburse, in the conditions provisioned under article 47 paragraph (1) and (2).

(4) The Fund compensates, equally and without discrimination, the investors, within the limit of the annually established threshold, by order of the FSA chairman

(5) The following categories of investors are excluded from compensation:
a. professional investors;
b. administrators, including managers, directors, censors, financial auditors of the Fund members, their shareholders with holdings that exceed 5% of the share capital, as well as investors with a similar position within other companies of the same group as the Fund’s members;
c. spouses, first rank relatives and in-laws, as well as persons acting on behalf of the investors mentioned under b);
d. other legal entities in the same group as Fund’s members;
e. investors, private individuals or legal entities, who have direct responsibility for actions which have aggravated a Fund’s member financial difficulties or which have contributed to the deterioration of the latter’s financial situation.

(6) The Fund will suspend any payment for investors who are under criminal investigation, in relation to an action entailed by or in connection with money laundering, until a final and irrevocable court resolution is met by the competent authority.

Art.47. – (1) The Fund will compensate investors in any of the following situations:
a. FSA has acknowledged that, for the time being, from its point of view, an intermediary or an investment management company which manages individual investment portfolios, for reasons directly linked to the financial situation, is not able to meet its obligations resulted from investors’ claims and furthermore, there is no possibility for the member to meet these obligations in the shortest time possible;
b. the competent legal authority, for reasons directly or indirectly linked to the financial situation of a Fund member, has issued a final decision that has as a result the suspension of investors from the possibility of exercising their rights as regards the resolution of their claims against said company.
(2) The compensation will be ensured for the rights entailed by the incapacity of a Fund member to:
a. reimburse the funds belonging to investors and held in their name, in relation to their investment activities;
b. return to the investors any financial instrument which belongs to them and is held and administered in their name, in relation to their investment activity.
(3) In case the intermediary is a credit institution, any situation similar to the one mentioned under paragraph (1) will be remitted to FSA by the National Bank of Romania.
(4) In case the compensation is ensured by the Bank Deposit Guarantee Fund, the investor is not entitled to double compensation.

As per the applicable regulations, until 31.12.2012, the limit of the compensation ceiling is established in order to gradually reach the level of 20.000 Euro, as follows:

a. at the date of the authorisation of the Fund: the “lei” equivalent of 1.000 Euro/individual investor;
b. as of 01.01.2006: the “lei” equivalent of 2.000 Euro/ individual investor;
c. as of 01.01.2007: the “lei” equivalent of 4.500 Euro/ individual investor;
d. as of 01.01.2008: the “lei” equivalent of 7.000 Euro/ individual investor;
e. as of 01.01.2009: the “lei” equivalent of 9.000 Euro/ individual investor;
f. as of 01.01.2010: the “lei” equivalent of 11.000 Euro/ individual investor;
g. as of 01.01.2011: the “lei” equivalent of 15.000 Euro/ individual investor;
h. as of 01.01.2012: the “lei” equivalent of 20.000 Euro/ individual investor.

Contact – The Investors Compensation Fund (S.C. Fondul de Compensare a Investitorilor S.A.)
34-36 CAROL Ist Boulevard, 12th floor, room 10, postal code 020922, 2nd district, Bucharest
Tel: 40-21-315 73 48; Fax: 40-21-315 73 40
Bank: Banca Transilvania – Lipscani Branch
IBAN code: RO82 BTRL 0410 1202 6286 61xx
Unique Identification Code: 18005590