N O T I F I C A T I O N

 

Under Art. 27, para (3) of the Law on Public Offering of Securities

 

With this notification Deltastock AD informs you that in compliance with Art. 77a of the Law on Public Offering of Securities, a Fund for Compensation of Investors is established, hereinafter referred to as “the Fund”, as a legal entity with its head office in Sofia, Bulgaria. The Fund shall guarantee the payment of compensation to the clients of an investment intermediary and to its subsidiaries in the host member states under the conditions and procedure of this Law on Public Offering of Securities, by the raised in the fund money, in he cases where the investment intermediary is not able to pay its liabilities to the clients, due to reasons directly linked to its financial situation.

 

Any investment intermediary, which holds, administers or manages clients’ funds and/or financial instruments and for which, due to it, liabilities to clients may arise, is obligated to contribute pecuniary premiums in the fund. The failure to pay the premiums due by the investment intermediary shall not deprive the entitled clients of the investment intermediary of compensation up to the amounts, envisaged below.

 

The Fund shall pay compensations to the investment intermediary’s clients up to the amounts, envisaged below in the cases where:

1.      By a decision of the respective district court bankruptcy proceedings have been instituted for the investment intermediary, including also when the bankruptcy proceedings have been terminated on the grounds of Art. 632 of the Commercial Code;

2.      The license or the authorization has been withdrawn for pursuing the business of an investment intermediary, by a decision of the Financial Supervision Commission in the cases where the investment intermediary is in continuous deteriorating financial condition and cannot perform its operations.

 

Within 7 days of receiving the notification under the points above, the Fund shall publish at least in two central daily newspapers and on its website announcement of the pronounced decision under the points above and of the term, within which the clients of the investment intermediary may raise a claim for payment of compensation from the Fund, as well as the bank, through which the payment of the compensation shall be made.

 

Compensation shall be paid for the receivables that have arisen as a result of the inability of the investment intermediary to return the clients’ assets in compliance with the legal and contractual provisions. Clients’ assets shall mean the cash, financial instruments and other assets, of an investment intermediary’s clients, which the investment intermediary holds, administers or manages for their account in connection with the services provided under Art. 5, para (2) and (3) of the Markets in Financial Instruments Act, including interests, dividends and other such payments.

 

The Fund shall pay compensation to every client of the investment intermediary, at the rate of 90 percent of the amount of the receivable, but not more than:

 

1.      Until 31 of December 2006 – EUR 6 000;

2.      From 1 of January 2007 to 31 of December 2007 - EUR 12 000;

3.      From 1 of January 2008 to 31 of December 2009 - EUR 15 000;

4.      From 1 of January 2010 - EUR 20 000.

 

In case of further interest you will be presented details on the terms and conditions of the compensation procedure in accordance with the Law on Public Offering of Securities and the Regulation for the Structure and the Activity of the Fund for Compensation of Investors.