Guarantee Fund

Objectives

The objective of the Fund is to guarantee, under the conditions and to the extent provided by the Guarantee Fund Act, protection of funds:

deposited by clients of credit institutions (depositors),
clients of investment institutions (investors),
unit-holders of mandatory pension funds and
policyholders which have entered into an insurance contract for a mandatory funded pension

and accumulate funds for financing the implementation of the resolution tools and powers, thereby increasing the reliability and stability of the financial sector.

Functions

In order to achieve its objective, the Fund shall:

collect contributions from credit institutions, investment institutions, management companies of mandatory pension funds and insurance undertakings entering into pension contracts,
accumulate the funds necessary for financing the implementation of the resolution tools and powers,
compensate under the conditions, to the extent and pursuant to the procedure provided by the Guarantee Fund Act:
- depositors for deposits placed thereby with credit institutions,
- investors for their investments,
- for any damage caused by a pension management company to unit-holders of mandatory pension funds.
supports, under the conditions and to the extent provided by the Guarantee Fund Act, the transfer of insurance portfolio from one insurer to another one, ensuring thus that a policyholder receives periodic payments of insurance contracts for a mandatory funded pension,
perform other duties arising from the Guarantee Fund Act (investment of Fund's assets; execution the right of claim against fund participants upon payment of compensation to depositors, investors and unit-holders).

Legal status

The Guarantee Fund is a legal person in public law founded by Guarantee Fund Act on 1 July, 2002.

The Guarantee Fund is the legal successor of the Deposit Guarantee Fund, which was founded on May 1998 and operated on the basis of the Deposit Guarantee Fund Act.

The Guarantee Fund Act provides for objective, the legal status and the bases and procedure for the activities of the Guarantee Fund.

The Statutes of the Fund shall be approved and amended by the Government of the Republic on the proposal of the minister responsible for the area.

The Guarantee Fund is registered in the state register of state and local government agencies by registry number 74000047 on 15 August, 2002.

Structure

Supervisory Board of the Guarantee Fund

The highest directing body of the Fund is the supervisory board of the Fund.

The members of the supervisory board shall elect the chairman of the supervisory board and the deputy chairman of the supervisory board from among themselves.
The term of authority of the supervisory board shall be four years as of the date of the first meeting of the supervisory board.

Director

The Fund shall be managed and represented by the Director.
The supervisory board shall appoint and remove the Director of the Fund.
The chairman of supervisory board conclude, amend, suspend and terminate the agreement with the Director on behalf of the Fund.
The term of authority of the Director shall be three years.

The employees of the Fund

The employees of the Fund: main specialist and assistant.
The Director shall enter into, amend, suspend and terminate employment contracts with the employees of the Fund