Deltastock Inc.

Guaranteed Payments by Security Investors Compensation Fund (SICF)

SICF pays out compensation to every client of an investment intermediaries up to 90% of the amount of the receivable, but not more than:

12 000 BGN (6000 EUR) – for the period of January 1st up to December 31st 2006;
24 000 BGN (12000 EUR) - for the period of January 1st up to December 31st 2007;
30 000 BGN (15000 EUR) - for the period of January 1st 2008 up to December 31st 2009;
40 000 BGN (20000 EUR) - from January 1st 2010.

No compensation is paid to:

members of the management and supervisory body of the investment intermediary, as well as to its procurators;
persons who own directly or through related persons 5 or over 5 percent of the votes in the General Assembly of the investment intermediary or may control it as well as the persons belonging to the same group to which the investment intermediary also belongs, for which consolidated reports are prepared;
the registered auditor who has audited the annual financial statement of the investment intermediary;
the spouses, relatives in the direct line without limitation, in the collateral line up to the second degree inclusive and by affinity up to the second degree inclusive of the person under items 1, 2 and 3.
investment intermediaries;
banks;
insurance companies;
pension and social insurance funds;
investment companies, collective funds and special purpose vehicles;
government and government institutions;
municipalities;
Securities Investor Compensation Fund, Deposit Insurance Fund and the Guarantee Fund under Art.87 of the Law on Insurance;
other professional and investment intermediaries;

  The Fund does not pay compensation to the claims arising out of/related to transactions that are defined as “money laundering” in accordance to Art.2 of the Law on the Measures against Money Laundering and the party is being judged.
  The amount of the compensation is determined by adding up all receivables of the respective client to the investment intermediary.
  In cases where the clients’ assets are in foreign currency or in securities, the client is paid in BGN equivalence of his receivables.
  In cases where the client’s assets belong to more than one person, each person’s portion should be taken into account in establishing the total amount of the receivables from the investment intermediary. Unless otherwise provided for, it shall be assumed that the client’s portions are equal.
  In cases where the client of the investment intermediary has acted for someone else account, the compensation should be paid to the person, for whose account the client has acted, provided that this person can be defined before the date on which the circumstances for paying compensation occurred. If the client of the investment intermediary has acted for two or more persons’ account, the above written procedure should be applied. The clients’ assets that are encumbered or serve as a collateral should be included in determining the amount of the compensation and the relevant due on the clients’ asset compensation should not be paid until the encumbrance or the collateral has been lifted out. If there is in force a judicial document issued by a legal authority on certain clients’ assets, the Fund pays the compensation due to the person indicated in the document for being eligible to receive the compensation. Within the period of 30 days after the circumstances that have led to paying out compensation to the clients of the investment intermediary, the appointed quaestor, liquidator or receiver presents to the Fund written information about the clients' assets.
  The claim for paying out compensation should be raised in writing to the Fund within a period of 5 years from the date when the announcements for the circumstances that have led to the payment of compensation were published. The right to compensation elapses after that period of 5 years unless this term is not respected due to unforeseen circumstances. The Fund considers the claim lodged for compensation, determines the amount of the receivables and pays out the claim not later than three months after the claim is being raised. In certain circumstances the deadline for paying compensation can be prolonged by not more than three months after approval from the Financial Supervision Commission.
  The Fund enters into the rights of the clients to the amount of the paid compensation. The Fund informs on a regular basis the quaestor, liquidator or receiver for the amount of the paid out compensation to each client. The way and the procedures for paying out compensations by the Fund shall be set in the Ordinance regulating the way and the procedures for paying out compensation.

Protection of client's funds