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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 IFMRRC due to the provision of substandard brokerage services.
1.2. Within the means of the compensation fund the Partnership is financially liable for the IFMRRC 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.
1.3. Within the limits of the Compensation Fund the Partnership is financially liable for the obligations of the companies certified by the IFMRRC. This obligations are stipulated in the documents regulating the relations between the companies and their clients. The Compensation Fund spends the money only to compensate the losses incurred as a result of non-fulfillment or improper fulfillment of these obligations.
2. The Procedure of Forming the Compensation Fund
2.1. Upon receiving the IFMRRC 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 IFMRRC 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 IFMRRC Board has acknowledged the infringement by the IFMRRC 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, IFMRRC 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 IFMRRC 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 IFMRRC 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 IFMRRC NCP Board.
4.2. Alterations and amendments to the present Regulations are approved by the IFMRRC NCP Board and are published at the Partnership’s official website.