Covered Services are the investment and secondary services that the company provides in accordance with the license (247/14) issued by the CySEC.
Investment services that the company provides are execution of orders on behalf of clients, dealing on own account, portfolio management and others.
Moreover, the broker provides secondary services such as safekeeping and administration of nancial instruments, including custodianship and related services and others.
Covered clients are customers who aren’t included in the following investor categories :
Institutional and professional investors, like banks, insurance companies, investment companies. Also states and supranational organizations, central, federal, confederate, regional and local administrative authorities are not covered clients. Managerial, administrative staff of the Company and shareholders of the Company are not covered clients too. There are as well many more categories of investors who are not covered clients.
The objective of the Fund is to protect claims of covered clients against the broker. Thus, if the broker fails to fulfill its obligations, it has to provide compensation for their claims, emerging from covered services.
There are several cases in which the fund will provide a compensation payment. One of them is in case the Cyprus Securities and Exchange Commission has identified that the Company is not capable of fulfilling its obligations emerging from its investors-clients’ claims, in connection with the covered services it has provided, so long as such failure is directly connected to the Company’s financial position that has no realistic perspective of enhancement in the near future.
The amount of compensation payable is calculated for every customer according to the contractual and legal terms managing the relation of the covered customer and the Company, in accordance with the set used to calculate claims between the covered customer and the Company. At the present time, any claimant may receive up to €20,000 as a compensation.