Investor’s Compensation Fund
The Investors’ Compensation Fund covers customer’s financial assets and instruments held with Nordea. If Nordea cannot fulfil its obligations due to permanent payment difficulties, the Fund pays a maximum compensation of EUR 20,000 to non-professional investors.
The compensation does not apply to losses arising from securities price changes or service provider’s bad advice. Such losses are always the customer’s own liability.
The Fund does not cover mutual fund activities and investment-linked insurances or deposits.
The Fund does not cover securities trading, investment advice or arrangement of multilateral trading if Nordea does not hold the customer’s assets.
In case the investor receives compensation from Deposit Quarantee Fund he is not entitled for compensation from Investor compensation fund for the same assets.
Level of compensation
The maximum level of compensation to be paid to one investor on claim from one service provider is EUR 20,000. The compensation is calculated so that the Fund is liable for 90% of the claim and customer for 10%.
Hence, a full compensation requires a claim of approximately EUR 22,200 from the service provider.
Who is entitled to compensation?
The Investors’ Compensation Fund only provides protection for non-professional investors, which generally means private persons. Professional investors are companies of certain size and institutional investors. A private person cannot be a professional investor unless notified as such by the person himself.