Investor Protection Fund Operator
On adopting the Capital Market Law, which came into effect on 17 May 2011, investor protection system was for the first time introduced in the Republic of Serbia. Pursuant to provisions of this law, Deposit Insurance Agency was, after obtaining the license by the Securities Commission, established as the Investor Protection Fund Operator.
Membership in the Investor Protection Fund is mandatory for all the investment companies and banks providing portfolio management and performing administration of the clients’ money and securities accounts, as well as for the management companies providing the said services to the clients other than investment funds.
The Fund member’s client is a legal entity or natural person, resident or non-resident, which signed the contract with a member of the Fund on providing the said services and activities. The clients which are not covered with the investor protection system are listed in Article 140 of the Capital Market Law.
The Investor Protection Fund insures claims up to the amount of EUR 20.000 in RSD equivalent per Fund member’s client.
RSD claims and claims for return of financial instruments which the a member of the Fund owes to a client or belonging to a client, arisen on the basis of portfolio management activities and administration and keeping services are deemed insured claims.
The Fund provides protection in the cases when the bankruptcy proceedings are opened against a member of the Fund, or when the Securities Commission determined that a member of the Fund is unable to fulfill its liabilities to clients, and there is no likelihood that such situation would change significantly in the near future.
Payment of insured claims shall be carried out within 3 months from the day when the right to compensation was determined.