Investor Compensation fund
Novox Capital Ltd. (hereinafter called the “Company) is a member of the Investor Compensation Fund (hereinafter called the “Fund”), and licensed under the Cyprus Securities & Exchange commission (license number 224/14). The objective of the Fund is to secure any claims of covered clients against members of the Fund, through the payment of compensation in cases where the member concerned is unable, due to its financial circumstances and when no realistic prospect of improvement in the above circumstances in the near future seems possible: (a) to return to its covered clients funds owed to them or funds which belong to them but are, directly or indirectly, held by the member in the context of providing investment services to the said clients or (b) to hand over to covered clients financial instruments which belong to them and which the member concerned holds, manages or keeps on their account.
Failure of the member of the Fund to execute its obligations consists of the following:
1. Failure to return to a covered client funds owed to them or funds which belong to them but are held by a member of the Fund, directly or indirectly, in the framework of the provision by the member of the Fund to the client of a covered service and which the client has requested that the member of the Fund returns in exercise of their relevant right; or
2. Failure to return to a covered client financial instruments which belong to them and which the member of the Fund holds, manages or keeps on its account, including the case where the member of the Fund is responsible for the administrative management of the said financial instruments.
The Company’s Clients have the risk of losing their assets which are held by third parties, especially in case of their insolvency and in case the third parties are not covered by any investor compensation system and/or other insurance cover.
Covered Services are the investment services listed on the Company’s license (number 224/14) issued by the Cyprus Securities and Exchange Commission.
The Fund does not cover Professional clients but only retail Clients of Cyprus Investment Firms.
The Company’s Clients are all covered by the Fund unless they fall within the following categories:
1. The following categories of institutional and professional investors
(a) Investment Firms
(b) Legal entities associated with the Company and, in general, belonging to the same group of companies
(d) Cooperative credit institutions
(e) Insurance companies
(f) Collective investment organizations in transferable securities and their management companies
(g) Social insurance institutions and funds
(h) Investors characterized by the Company as professionals
2. States and supranational organizations
3. Central, federal, confederate, regional and local administrative authorities
4. Enterprises associated with the Company
5. All staff of the Company inclusive of Managerial and Administration staff
6. Shareholders of the Company whose participation directly or indirectly in the capital of the member of the fund amounts to at least 5% of its share capital, or its partners who are personally liable for the obligations of the member of the Fund, as well as persons responsible for the carrying out of the financial audit of the member of the Fund as provided by the Law, such as qualified auditors
7. Investors having an enterprise connected with the Company and in general of the group of companies to which the Company belongs, positions or duties corresponding to the ones listed in paragraphs 5 and 6 above
8. Second-degree relatives and spouses of the persons listed in paragraphs 5, 6 and 7 as well as third parties acting for the account of these persons
9. Apart from investors convicted of a criminal offence pursuant to the Prevention and Suppression of Money Laundering Activities Law of 2007 as amended from time to time, investor-clients of the Company responsible for facts pertaining to the Company that has caused its financial difficulties or has contributed to the worsening of its financial situation or which have profited from these facts
10. Investors in the form of a company which due to its is not allowed to draw a summary balance- sheet in accordance with the Companies Law or a corresponding law of a Member State.
In the cases of paragraphs (5), (6), (7) and (8), the Fund suspends the payment of compensation informing the interested parties accordingly, until it reaches a final decision as to whether such cases apply.
PROCEDURE FOR DECISION TO COMMENCE THE COMPENSATION PAYMENT PROCESS
The Fund will commence the compensation payment process in at least one of the following circumstances:
1.The Cyprus Securities and Exchange Commission has determined by Resolution that a member of the Fund is unable to meet client claims provided that this inability is a result from its financial circumstances which show no prospect of improving in the near future; or
2. A judicial authority has on reasonable grounds directly related to the financial circumstances of the ember issued a ruling with the effect that investors ability to lodge claims against it are suspended or that a well-founded claim by a client exists then the compensation payment procedure will commence.
Upon issuing a decision to initiate the compensation payment process, the Cyprus Securities and Exchange Commission will publish, in at least three national newspapers, an invitation to the covered clients to make their claims. In that invitation the name and address of the headquarters of the member of the Fund, to whom the covered client compensation process has been activated through the Fund; the mode and address of submission of applications; the address at which investors may be informed about the exact content of the applications to be submitted, and get the relevant form provided by the Fund; a deadline for submission and the content will be outlined.
CONTENTS OF THE APPLICATION FORM
(1) The application forms for compensation of covered clients on which they make their claims against a member of the Fund are submitted to the Fund in writing.
(2) The applications must include–
(a) The name of the claimant;
(b) The address, telephone and fax numbers as well as any email address of the claimant;
(c) The client code that the claimant had for the member of the Fund;
(d) The particulars of the covered services agreement between the Fund and the claimant;
(e) The type and amount of the alleged claims of the claimant; and
(f) The exposition of the particulars from which the alleged claims of the claimant and their amount are derived.
(3) Subject to the provisions of paragraph (2), the Fund may ask for more information to be included in the compensation application, which it communicates by publishing them in at least three newspapers of national coverage as well as in the Official Gazette of the Republic, and places a list with this information at the disposal of investors, at its offices and/or at the offices of the member of the Fund.
AMOUNT OF COMPENSATION
The total payable compensation to each covered client of an ICF’s member may not exceed €20.000, irrespective of the number of accounts held, currency and place of offering the investment service.
To ascertain the claims of a claimant against a member of the Fund, as well as any counterclaims of the member of the Fund against the claimant, the books kept and the particulars issued by the member of the Fund as well as the supporting evidence produced by the claimant are taken into consideration.
The amount of the compensation payable to each covered client is calculated in accordance with the legal and contractual terms governing the relation of the covered client with the member of the Fund, subject to the set- off rules applied for the calculation of the claims between the covered client and the member of the Fund.
RoyalPip is operated by Novox Capital Ltd which is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) with CIF license number 224/14