Securities deposits

SECURITIES DEPOSITS GUARANTEED

The marketable securities and financial instruments, envisaged in article 2 of the Stock-Market Law, that investors have entrusted to a member institutions for their deposit and administration or in relation to any investment service are covered. The protection covers the case of the non-return of the securities or financial instruments deposited, but in no circumstances does it cover the loss in value of the investment, nor in any circumstances will be covered the loss of value of the investment or any credit risk.

Deposits of securities and financial instruments entrusted to credit institutions are covered up to the amount of 100,000 euros, per depositor in each credit entity, independently from the guarantee for money deposits held in the same institution.

The guarantee shall be applied per investor, whether the depositor is a natural or legal person, and regardless of the number and type of guaranteed securities of which the depositor is holder at the same institution.  This limit shall also apply to depositors who hold deposits whose amount is above the guaranteed maximum.

When a security has more than one holder, the sum shall be divided among the holders according to the terms of the contract of deposit, or in equal parts otherwise. Each holder is guaranteed up to the maximum limit.

When the holders of a deposit act as representatives or agents of third parties, provided they act as such at the time of placing the deposit and this fact has been formally declared to the institution prior to the circumstances giving rise to the execution of the guarantee arising, the cover given by the FGD shall be payable to each of the third party beneficiaries of the deposit on the basis of their corresponding share of the deposit.

Securities existing at the time of a member institution’s having its authorization revoked will remain covered during three months from the date of exclusion.