Eco Investments insurance fund was initiated so that investors could receive compensation for losses if the conditions stipulated in the contract were violated by the broker.
A special bank account contains funds contributed by brokers, members of Eco Investments. This money can only be used if the broker does not comply with Eco Investments decision. Also, these funds act as insurance for clients of brokerage companies certified by Eco Investments.
Every month, brokers make contributions to Eco Investments, which are transferred to the insurance fund.
Valid for all clients of brokerage companies that are part of Eco Investments. It is very important to understand that the use of the fund can only be if the broker refuses to comply with the decision made by the commission.
If the company is certified by Eco Investments , then the insurance fund will compensate decisions up to 50,000 € per claim.
* Eco Investments is obliged to pay compensation to the client within 90 days from the date of the decision. During this period, Eco Investments will make every effort to ensure that compensation to the client is paid directly by the member company.
** In the event that the funds are not enough due to a large number of unsatisfied claims against the participating company, the current balance of the fund will be evenly distributed among all applicants.
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An insurance fund (also known as an insurance fund) is a special fund or reserve that is managed by an insurance company or a financial services regulator, such as a brokerage firm. This fund is designed to ensure financial stability and protect the interests of customers and investors who may face financial losses as a result of the activities of a broker or other financial organization.
The main objectives of an insurance fund include:
1. Protecting investors: the Insurance Fund can compensate investors and clients in case of financial losses caused by the misconduct of a broker or financial organization.
2. Ensuring market stability: An insurance fund can be used to minimize systemic risks and prevent crises in financial markets by providing additional capital in case of major losses or bankruptcy of financial institutions.
3. Supporting investor confidence: The existence of an insurance fund can help to increase investor confidence in financial institutions and regulators, as it guarantees some protection of their interests.
Insurance funds are usually financed by contributions and fees from financial institutions operating in the market. The size and structure of an insurance fund may vary from country to country and jurisdiction to jurisdiction depending on local laws and regulations. It is important that brokerage firms and other financial institutions comply with financial stability and insurance fund contribution requirements to ensure that the interests of customers and investors in the financial markets are protected.
