The Regulations on the Compensation Fund of “Financial Market Relations Regulation Center “ Non-Commercial Partnership.
1. General Provisions
1.1. The present Regulations have been comprised in accordance with the Laws of the Russian Federation and the current Statute of “Financial Market Relations Regulation Center “ Non-Commercial Partnership (hereinafter – FMRRC NCP) to regulate the matters of establishing and using the FMRRC NCP compensation fund.
1.2. 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 FMRRC due to the provision of substandard brokerage services.
1.3. Within the means of the compensation fund the Partnership is financially liable for the FMRRC 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. The compensation fund is formed from the fees paid by the FMRRC NCP certified companies. The transfer of fees into the compensation fund is performed into the Partnership’s current account or any other way that does not contravene with the Laws of the Russian Federation.
2.2. Upon receiving the FMRRC 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.
2.3. 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.
2.4. In case the company’s certificate is forfeited in accordance with the current Statute of FMRRC 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 FMRRC Board has acknowledged the infringement by the FMRRC 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, FMRRC 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 FMRRC 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 FMRRC 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 FMRRC NCP Board.
4.2. Alterations and amendments to the present Regulations are approved by the FMRRC NCP Board and are published at the Partnership’s official website.