Participation in investor protection scheme and guaranteed compensation amount
The bank is a member of the investor protection scheme of the Republic of Latvia. The investor protection scheme is a set of measures for the protection of investor interests, as well as for the provisions of financial means necessary for protection and for payment of compensations in accordance with the Investor Protection Law.
This law provides that in cases when the investment services provider terminates its activity and cannot fulfil its obligations, the investors are entitled to receive a compensation for irreversibly lost financial instruments or losses due to an investment service that has not been provided. The investor protection scheme does not provide for the payment of guaranteed compensation in cases when the investors have incurred losses due to changes in financial instrument prices or when the financial instruments have lost their liquidity.
Each investor is guaranteed a compensation of 90% from irreversibly lost financial instrument value or losses due to an investment service that has not been provided, but not exceeding EUR 20,000.