How investor compensation works

When you engage a bank, securities company, securities broker or some other institution to provide an investment service, such as the purchase, sale and deposition of financial instruments, the institution is required to hold your securities separate from its own.

The scheme covers both securities and any fund that the institution receives in conjunction with providing an investment service for which it is accountable. Since your financial instruments and funds must be held separate from the institution’s assets, they will ordinarily be returned to you in the event of a bankruptcy.

If however the institution cannot return your property, as for example in a case wherein, following the bankruptcy, it cannot be determined which assets are yours and which belong to the institution, you are entitled to investor compensation.

The compensation is limited to a maximum of 250,000 kronor per customer per institution. If two or more people make a joint deposit, each is, for compensation purposes, treated individually.

You must yourself file a claim for compensation with the Debt Office within one year of the day of the bankruptcy decision.

Financial instruments covered by investor compensation

Investor compensation covers financial instruments such as shares, bonds and various types of derivatives for instance warrants and futures. They are defined in the Securities Market Act (2007:528).

To whom is investor compensation available?

The insurance covers private individuals, companies and other legal entities.