Regulatory Alerts2017-05-03
Added · Updated
Centralized Customer Protection Compensation Fund Regulations, 2017
Securities exchanges must establish and maintain a centralized customer protection compensation fund, with its minimum size determined every three years by an independent expert using Commission-approved methodologies. The fund is financed through initial contributions from demutualization trust funds, ongoing levies on traded securities, a percentage of exchange revenue, fines, and investment income. When customer claims exceed assets recovered from a defaulter, securities exchanges must pay the shortfall from the fund on a pro-rata basis, while also maintaining claim databases and disclosing fund balances publicly.
Topics
safeguarding
securities
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