PrintInvestments not subject to guarantee and compensation
Investments guaranteed and compensated on the basis of the Estonian Central Register of Securities Act
Investments subject to compensation on the basis of §§ 52 and 53 of the Estonian Central Register of Securities Act, where the civil liability of the registrar of the Estonian Central Register of Securities and the account manager are applied in compensating for the damages caused, are not compensated for out of the Investor Protection Sectoral Fund. The liability of the registrar arising from keeping the register and other activities and the liability of the account manager arising from account management must be insured in a manner that sufficiently reduces the risks associated with said activities. If demands for compensation cannot be satisfied in the manner provided in the Estonian Central Register of Securities Act or they cannot be satisfied to the full extent, the Republic of Estonia will be liable for the damages caused and it will have the right of recourse against either the registrar or the account manager.
Investments of Estonian or foreign persons
Investments belonging to professional investors or any of the following Estonian or foreign persons as at the date of compensation shall not be guaranteed or compensated for out of the Sectoral Fund:
1) the state;
2) a local government;
3) a financial institution;
4) a company belonging to the same consolidation group as the given investment institution;
5) a member of the supervisory board or management board or an auditor of the same investment institution or a company belonging to the same consolidation group as the investment institution, and a person holding at least five per cent of the share capital of the investment institution or a company belonging to the same consolidation group as the investment institution;
6) a close relative of a person specified in clause 5) or a third party acting on behalf of such person.
Professional investor. Pursuant to subsections 6 (2) or (4) of the Securities Markets Act, a qualified investor is an investor who is: a credit institution, investment firm, management company, investment fund, insurer or another person subject to financial supervision, foreign states, central banks of foreign countries, international organisations, small or medium-sized enterprises and natural persons entered in the list of qualified investors kept by the Financial Supervision Authority, and other foreign persons registered as professional investors in foreign countries.
Investments which owner has outstanding liabilities to the investment institution
An investment the owner of which has outstanding liabilities to the same investment institution shall not be compensated for out of the Sectoral Fund to the extent of such liabilities.
Investments connected with money laundering
Investments in connection with which a judgment of conviction has been made for money laundering shall not be compensated for out of the Sectoral Fund. Compensation for an investment in connection with which a criminal proceeding relating to money laundering has been commenced shall be suspended until the entry into force of the court judgment.
Investments of Estonian branch of a foreign investment institutions
Investments of the investors of a branch which under a guarantee scheme of the home country of the foreign investment institution are guaranteed and compensated to the same or a higher level than prescribed by the Guarantee Fund Act shall not be guaranteed and compensated pursuant to the Guarantee Fund Act.
Investments of a foreign branch of Estonian investment institution
Investments of a foreign branch of an Estonian investment institution which are guaranteed and compensated under a guarantee scheme of the host country of the branch to the same or a higher level than prescribed by the Guarantee Fund Act shall not be guaranteed and compensated pursuant to the Guarantee Fund Act.
Remark: Investments in a foreign branch of an Estonian investment institution located in a state which is a Contracting Party to the European Economic Area Agreement shall be guaranteed and compensated for out of the Investor Protection Sectoral Fund to the extent of 100 per cent but not more than in the amount of 20 000 euro per investor in any one investment institution.
- The following states are contracting parties to the EEA Agreement: Austria, Belgium, Bulgaria, Estonia, Spain, Holland, Ireland, Iceland, Italy, Greece, Cyprus, Lithuania, Liechtenstein, Luxembourg, Latvia, Malta, Norway, Poland, Portugal, France, Sweden, Romania, Germany, Slovakia, Slovenia, Finland, United Kingdom, Denmark, the Czech Republic, Hungary.
