EdW - Entschädigungseinrichtung der Wertpapierhandelsunternehmen

In August 1998 new regulations on securing customer deposits came into force in the Federal Republic of Germany – the Law to Secure Deposits and Compensate Investors (EAG - Einlagensicherungs- und Anlegerentschädigungsgesetz). The German legislator thus made an important contribution to harmonizing banking and securities regulations in the European Union member states. It was a first step in the harmonization efforts aiming at completing the single European market.

The Compensatory Fund of Securities Trading Companies was set up for providers of financial services and capital investment companies – in short: securities trading companies. Its aim is to protect investors, especially small investors, against the loss of their claims arising from securities trading by providing statutory minimum cover. All registered securities trading companies are legally obliged to join the Compensatory Fund.