Hellenic Investor Compensation Fund
The Hellenic Investor Compensation Fund is a legal private entity that operates as the Greek Investor Compensation System for covered investment services provided by participating members and as a resolution fund for investment firms. It is governed by Law 4941/2022 and is based in Athens. The Fund does not fall under the broader public domain or the general government entities and is supervised by the Minister of Finance.
The Fund’s purposes are:
- Provide compensation to investors, in case of a confirmed permanent or irreversible inability of a participating member to fulfill his/her obligations arising from the provision of covered investment services.
- The use of resources of the Resolution Segment for investment firms, as directed by the Resolution Authority, to ensure the complete and effective implementation of resolution measures.
The Fund is divided into two distinct segments:
- The Investment Services Coverage Segment (ISCS), that covers investors of participating members for the provision of covered services in Greece, as well as investors that receive covered services through a branch in another European Union member state.
- The Resolution Segment (RS), that finances the resolution measures for investment firms.
Each segment is independent and has separate funds, that are exclusively used for achieving their respective objectives.
The most recent update to the definition and institutional framework of the Fund occurred under Law 4941/2022, published in FEK A’ 113 on June 16, 2022.