Asset Protection Scheme Sample Clauses
Asset Protection Scheme. Trade Republic is affiliated with the Compensation Scheme of Securities Trading Companies (Entschädigungseinrichtung der Wertpapierhandelsunternehmen – hereinafter "▇▇▇"). Pursuant to Sec. 6 (1) of the German Deposit Guarantee and Investor Compensation Act (Anlegerentschädigungsgesetz – hereinafter “AnlEntG”), the ▇▇▇ is established as a special fund of the German Federal Government with no legal capacity at the Credit Institute for Reconstruction (“Kreditanstalt für Wiederaufbau – hereinafter “KfW”). The AnlEntG is the legal basis for the activities of ▇▇▇.
Asset Protection Scheme. Trade Republic joined the Compensatory Fund of Securities Trading Companies (hereinafter referred to as "▇▇▇"). Pursuant to Sec. 6 para. 1 of the German Investor Compensation Act (Anlegerentschädigungsgesetz - “AnlEntG”), the ▇▇▇ is established as a special fund of the German Federal Government with no legal capacity at the Kreditanstalt für Wiederaufbau (KfW). The AnlEntG is the legal basis for EdW's activities. ▇▇▇ provides compensation in accordance with the AnlEntG if an assigned securities trading company runs into financial difficulties and is no longer able to meet its obligations to its Customers arising from securities transactions. The Federal Financial Supervisory Authority (BaFin) determines when this condition is met and publishes this decision in the Federal Gazette ("Bundesanzeiger"). The claim for compensation amounts to 90% of the investor's claim from securities transactions against Trade Republic, up to a maximum of EUR 20,000.00. There is no claim for compensation if funds are not denominated in the currency of an EU member state or in euros. Further reasons for exclusion are set out in Sec. 3 para. 2 AnlEntG. If Trade Republic itself has to file for insolvency and any payments resulting from securities transactions have not yet been booked to the Omnibus Trust Account, the Customer is protected by the ▇▇▇ - as described above - up to an amount of EUR 20,000.00. However, transactions in crypto assets (i.e. also so-called currency tokens) that are tradable via Trade Republic do not count as securities transactions within the meaning of the AnlEntG (cf. Sec. 1 para. 2 no. 1 AnlEntG). Therefore, there is no statutory compensation scheme for transactions in crypto assets. The Trust Banks used by Trade Republic are affiliated with a statutory compensation scheme. Further information can be found in the information sheet for the depositor and on the website of the respective compensation institution. Trade Republic will inform the Customer of the relevant compensation scheme.