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Fund Payment

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Fund Payment

Under Articles 20 and 21 of the Securities Investor and Futures Trader Protection Act, the Center should compensate investors for their losses with the protection fund if a securities or futures firm were unable to pay due to financial difficulties, in situations where (1) the investor, after completing settlement obligations for a trade of securities on the stock market or (2) after having requested exercise of warrant rights with the issuer of call (put) warrants through the securities firm, while having already made the necessary payment or delivery of securities, is unable to obtain the securities or payment of funds due, or when a futures investor did not receive deposits, royalties, or other payments due.Considering that money in the Fund is limited and the possibility that payout in one single case could deplete the Fund and jeopardize the operation of the Center, the competent authority decided to set limits on maximum payments from the Fund. For individual investors, the compensation is limited to NT$1.2 million in a single payment. For all securities investors or future traders of a securities firm or futures firm, the aggregate compensation in a single payment shall be 1,000 times the amount the securities or futures firm has contributed to the Fund over the past one year or the average over the past three years( which amount is higher) with the maximum set at NT$ 1.2billion. The procedure of Fund payment is according to Regulations Governing Payment Operations of Securities Investor and Futures Trader Protection Funds. The Center has not made any such compensation payment since establishment.

Update Date:2015/12/31 10:45