Regulatory Alerts2020-10-01
Added · Updated
Regulation on Procedures and Principles Regarding Investor Compensation and Gradual Liquidation of Investment Firms
The Capital Markets Board issued this regulation to establish the procedures for compensating investors and conducting the gradual liquidation of failed investment firms under the Capital Markets Law. It mandates the Investor Compensation Centre to manage asset disposition, determine eligible claims up to a statutory limit, and distribute compensation within specified timeframes. The framework further outlines the gradual liquidation process where the Centre assumes control to repay remaining debts using firm assets, exempting such proceedings from standard commercial and bankruptcy codes.
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