1. General Provisions
1.1. The compensation fund is established for the purpose of ensuring financial liability of Partnership members for their duties that arose as a result of incurring losses to the customers of the companies certified by IGMRRC due to the provision of substandard brokerage services.
1.2. Within the means of the compensation fund the Partnership is financially liable for the IGMRRC certified companies’ obligations specified in the documents regulating the company-customer relations and spends the money means solely for reimbursement of losses that occurred as the result of non-fulfillment or substandard fulfillment of these obligations.
2. The Procedure of Forming the Compensation Fund
2.1. Upon receiving the IGMRRC certificate of compliance the financial organization shall pay the fee to the compensation fund within 5 business days after the Partnership’s decision to issue the certificate.
2.2. The financial organization shall not be relieved of paying the fees to the compensation fund, including at the expense of its demands to the Partnership.
2.3. In case the company’s certificate is forfeited in accordance with the current Statute of IGMRRC NCP, the fees paid to the compensation fund are not reimbursed.
3. Payouts from the Compensation Fund
3.1. The payouts from the compensation fund are permissible solely in cases when the IGMRRC Board has acknowledged the infringement by the IGMRRC NCP certified brokerage company and in turn the company refuses to consider a claim and reimburse the losses to the customer.
3.2. The means of the compensation fund are spent solely for the purposes stated in provision 1.3 of the present Regulations.
3.3. In case of acknowledged relevancy of the customer’s claim and necessity of its satisfaction, IGMRRC Board makes a decision to conduct the payout from the compensation fund. The payout is performed within 10 business days after the according decision.
3.4. The payouts are performed in accordance with payment details provided by the customer and IGMRRC NCP has the right to request any necessary documents to validate the customer’s identity. In case of the customer’s refusal to provide the requested documents IGMRRC NCP reserves the right to refuse payout from the compensation fund.
4. Final Provisions
4.1. The present Regulations come into effect
upon the approval by the IGMRRC NCP Board.
4.2. Alterations and amendments to the present Regulations are approved by the IGMRRC NCP Board and are published at the Partnership’s official website.