1. The Fund pays out compensations of investment intermediary’s clients, when:
    • by a decision of the respective district court bankruptcy proceedings have been instituted for the investment intermediary, including also when the bankruptcy proceedings have been terminated on the grounds of 632 of the Commercial Law;
    • the license or the authorization has been withdrawn for pursuing the business of an investment intermediary, by a decision of the competent authority in the cases under 20 para 2 item 3 of the Markets in Financial Instruments Act, and in respect to the investment intermediaries, which are banks – in the cases under Art. 36 para 2 of the Law on Credit Institutions.
  1. Within 30 days after the circumstances for compensation payment have appeared, the appointed questor, liquidator or trustee shall submit to the Fund written information about the clients’ assets.
  2. The compensation payment claim is put forward to the Fund within one year term after publishing the message that the procedure for compensation payments has started, unless the avoidance of the term was caused by unforeseen circumstances.
  3. The Fund considers the claim for the compensation payment, ascertains the claim and its amount and pays out the compensation no later than three months after the reasoning for the payment was determined. In particular cases the deadline for compensation payments to the clients of investment intermediaries could be extended with no more than three months by the Financial supervision commission (FSC).
  4. The Fund enters into the right of the clients against the investment intermediary up to the amount of the paid compensation. The Fund informs periodically the questor, liquidator or trustee for the amount of the compensation paid out to each client. For the claims which are higher than the compensation limit paid by the Fund the clients could be sustained from the investment intermediary’s property in accordance with the operative legislation.