Investors’ Compensation Fund

Global Capital Securities & Financial Services Ltd is a member of the Investors’ Compensation Fund (ICF) for Investment Firms. 

The purpose of the ICF is to pay compensation to retail investors in those cases in which the investment firm concerned is unable to pay over clients’ assets due to its financial circumstances, and there is no realistic prospect of these circumstances improving in the near future. 

The ICF is governed by a 5-member Administration Committee chaired by the Chairman of the Board of Directors of the Cyprus Securities & Exchange Committee.

Customers Covered by the ICF 

Eligible for compensation by the ICF are all Global Capital’s clients who do not fall in any of the following categories: 

a. Investment Firm 

b. Bank 

c. Cooperative Credit Institution 

d. Insurance Company 

e. Investors categorized as “professional” 

f. Social Insurance Institution 

g. UCID and its management company 

h. States and Supra-national organizations 

i. Central, federal, regional or local government 

j. Legal Entity associated with a Member of the ICF 

k. Management and Administrative staff of the Member of the ICF 

l. Shareholder of a Member of the ICF with a participation of more than 5% 

m. Auditor of the Member of the ICF 

n. 2nd degree relatives and spouses of categories k-m above 

o. Investors that are legal entities and which, because of their size, are forbidden by Law to issue a Summary Balance Sheet. 

Payable Compensation 

The maximum payable compensation to be paid by the ISC to any one client amounts to €20.000. In those circumstances where two or more eligible clients share a common account, the maximum payable compensation for the account remains €20.000 which, in the absence of any other agreement, is shared equally by the account owners. 

Pre-conditions of Compensation Payment 

The ICF may compensate the covered clients for claims arising from the covered services provided by its members in the following circumstances; 

a. Return to its clients funds owed to them or funds that belong to them but are held by the IF, directly or indirectly, in the framework of the provision of the covered services, and which the clients requested the IF to return, in exercise of their relevant right; or 

b. Hand over to the covered clients, financial instruments which belong to them and which the IF holds, manages or keeps on their account, including the case where the IF is responsible for the administrative management of the said financial instruments.