Information about EdW

Functions of EdW

Compensation payments

EdW provides (small) investors with minimum compensation for their claims under securities transactions against an assigned institution.

EdW compensates investors under the provisions of the AnlEntG when a securities trading company assigned to the EdW is in financial difficulties and no longer able to fulfil its obligations under securities transactions concluded with its clients. The German Financial Supervisory Authority determines when this event has occurred and publishes this determination in the Federal Gazette.

The amount of compensation awarded to each investor under securities transactions is 90% of the claims against the securities trading company (not more than EUR 20,000). Compensation cannot be claimed unless the funds are denominated in a currency of a EU member state or in euros. Further exclusions are regulated in section 3 (2) of the AnlEntG.

Contributions

The funds used for compensation payments are provided from contributions of the assigned securities trading companies (section 8 (1) of the AnlEntG).

EdW collects annual contributions and one-off payments, as well as special contributions and/or separate payments if required.

Auditing the assigned institutions under section 9 (1) of the AnlEntG

In order to assess the risk of occurrence of a compensation event, EDW conducts audits of the institutions assigned to it in regular intervals and in special circumstances.

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© 1998-2017 EdW - Entschädigungseinrichtung der Wertpapierhandelsunternehmen, Berlin