Investor Compensation Scheme

The Investor Compensation Scheme is a rescue fund for investors of investment firms which are licensed by MFSA and which have stopped trading and/or have become insolvent. The scheme can only pay compensation if a licensed firm is unable or likely to be unable to pay claims against it. In general this is when the licensed firm stops trading or becomes insolvent. The Scheme is based on an EU directive on investor-compensation schemes.

If your claim is accepted by the scheme, you will be paid 90% of the net loss subject to a maximum of €20,000.

To qualify for compensation you need to satisfy a number of conditions, such as:

  • You are claiming as an individual or a small and medium sized company (the law lists a number of entities which are unable to claim  compensation).

  • You are claiming against a firm which is licensed to provide investment services by the MFSA.

You cannot claim compensation on the basis of:

  • Market movements resulting in a decrease in the value of an investment.

  • Poor investment advice.

  • A failed investment that had been duly executed

  • A bankruptcy of a collective investment scheme.

  • Inflation.

  • A decrease in interest rates.

More information about the investor compensation scheme is available from