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 

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; 

1. The Investment Firm (IF) fails to fulfill its obligations under the provided services, irrespectively of whether the obligation derives from tort or from the service agreement. Failure is ascertained in those cases where the IF fails to: 
• 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. 
2. The IF submits to the ICF or to CySEC a written statement concerning its inability to fulfill its obligations towards its clients, or 
3. The IF files an application for liquidation in accordance with the provisions of the Companies Law, 
4. If CySEC has revoked or suspended the IF’s authorization to provide investment services and ascertains that the IF is not expected to be in a position to fulfill its obligations toward its clients in the near future, for reasons which do not concern a temporary lack of liquidity. 
5. CySEC’s decision may be the result of an investigation conducted either ex officio or upon a request submitted to it by a covered client of an IF, the ICF, another competent supervisory authority or any other person with legitimate interest. 
6. Upon issuance of a Court decision, based on reasons directly relevant to the IF’s financial position, for the suspension of the investors’ ability to submit claims against the IF.