22 July 2017
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Investor Compensation Fund

Investor Compensation Fund


 

I. INTRODUCTION

 

Eclipse Finance is owned and operated by Herrold Capital LLP (“the Company”) a financial services company regulated by the International Offshore Investment Regulatory Commission (hereinafter called “IOIRC”) with license number IOI897. The Company is a member of the Investor Compensation Fund (the “Fund”) for Customers of UK Investment Firms (UKIFs) and other Investment Firms (IFs) which are not credit institutions.

The Fund constitutes a private law legal entity and its administration is exercised by an Administrative Committee of seven members, who are designated for a three-year term. The object of the Fund is to secure the claims of the covered clients against the members of the Fund by the payment of compensation for their claims arising from the covered services provided by its members, so long as failure buy the member to fulfill its obligations has been ascertained.

It is a legal obligation for UKIFs and other IFs, which are not banks, to subscribe to the Fund. Any compensation provided to clients by the Investor Compensation Fund shall not exceed $500,000 USD. This applies to clients’ aggregate claims against the Company.

 

 

 

II. COVERED CLIENTS

 

The Fund covers the clients of the Company, except those belonging into the following categories:

 

  1. The following categories of institutional and professional investors:
    1. IFs
    2. legal entities associated with the member of the Fund and, in general, belonging to the same group of companies
    3. banks
    4. cooperative credit institutions
    5. insurance companies
    6. collective investment organizations in transferable securities and their management companies
    7. social insurance institutions and funds
    8. investors characterized by the member as professionals, upon their request
  2. States and supranational organizations
  3. Central, federal, confederate, regional and local administrative authorities.
  4. Managerial and administrative staff of the member of the Fund
  5. Shareholders of the member of the Fund, 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, such as its qualified auditors
  6. Investors having in enterprises connected with the member of the Fund and, in general, of the group of companies, to which the member of the Fund belongs, positions or duties corresponding to the ones listed in paragraphs (v) and (vi)
  7. Second-degree relatives and spouses of the persons listed in paragraphs (v), (vi) and (vii), as well as third parties acting for the account of these persons
  8. Apart from the investors, investors-clients of a member of the Fund responsible for facts pertaining to the member of the Fund that have caused its financial difficulties or have contributed to the worsening of its financial situation or which have profited from these facts
  9. Investors in the form of a company, which due to its size, 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 (e), (f), (g) and (h), the Fund suspends the payment of compensation informing the interested parties accordingly, until it reaches a final decision as to whether such cases apply.

 

 

 

III. COVERED SERVICES

 

Covered services are the following investment services which are offered by the Company:

 

  1. Reception and transmission of orders in relation to one or more financial instruments
  2. Execution of orders on behalf of clients

 

Financial Services in relation to which investment services are currently provided by the Company are the following:

 

  1. Transferable securities
  2. Money-market instruments
  3. Units in collective investment undertakings
  4. Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, or other derivatives instruments, financial indices orfinancial measures which may be settled physically or in cash
  5. Options, futures, swaps, forward rate agreements and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event)
  6. Options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market or/and an MTF
  7. Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in point 6 of Part III and not being for commercial purposes, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are cleared and settled through recognized clearing houses or are subject to regular margin calls
  8. Derivative instruments for the transfer of credit risk
  9. Financial contracts for differences
  10. Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event), as well as any other derivative contract relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Part, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market or an MTF, are cleared and settled through recognised clearing houses or are subject to regular margin calls.

 

 

 

 

IV. AMOUNT OF COMPENSATION

 

The Company’s books will be used together with supporting evidence to ascertain the claims of member and the amount payable will be calculated in accordance with the legal and contractual terms governing the relation of the client with the member of the fund subject to set-off rules. The calculation of compensation payable will derive from the sum of the total established claims of the covered client arising from all covered services provided, despite of the number of accounts of which it is a beneficiary, the currency and the place of provision of these services. If the claim exceeds $500,000 USD then the claimant is only entitled to receive a maximum of the equivalent of $500,000.