EdW - Entschädigungseinrichtung der Wertpapierhandelsunternehmen

30.11.2009

In its information for creditors dated 16 October 2009 the insolvency administrator described the current state of the debate surrounding the issue of possible rights of segregation. According to this information, a decision is still pending as to whether rights of segregation exist and whether the statute of limitations will apply from the end of the year if such rights do exist (www.schubra.de).

In relation to this concern, EdW has been receiving a growing number of queries in writing and by telephone from investors asking whether EdW compensates a possible right of segregation that could no longer be claimed before a court after the limitation period and whether the investors should sue for compensation of their asserted claims before the end of the year. We would like to take this opportunity to point out (see Phoenix menu item "General Notes") that EdW by virtue of its function does not render any legal advice and does not provide information outside the scope of its functions and responsibilities.

Accordingly, EdW does not provide information on statutory limitations on possible segregation claims in the insolvency proceedings, nor does it issue any other recommendations. Investors are advised to refer to persons or institutions authorised to render legal advice in these matters. In this context we would like to draw your attention to our information dated 8 June 2009 (see below) which contains a link to the Office of Consumer Affairs of the State of Thuringia (in German).

Generally, the following must be taken into account in the compensation proceedings: Rights of segregation pursuant to § 47 of the Insolvency Act are not compensable obligations in the meaning of the Deposit Guarantee and Investor Compensation Act irrespective of whether the investor asserts these rights or not.

Legal actions instituted against EdW alleging that EdW was not entitled to retain a deduction when calculating compensation amounts because of possible rights of segregation have been dismissed. The courts justified their rulings on the grounds that, among others, the investors had a duty to collaborate in enforcing claims against the insolvency administrator to which they may be entitled (see rulings under "Onlinebibliothek" on our German website).

Whether or not investors are entitled to rights of segregation of the customer payments they have deposited remains highly debated. Until this issue has been legally clarified, the insolvency administrator continues to maintain his legal opinion that the funds under administration are not trustee funds. Accordingly, he will issue the same response to investors' queries in this respect. As soon as the rights of segregation have been legally clarified, and, if applicable, after the question of how to distribute segregated assets has been resolved, EdW will decide without delay how to handle the withheld portions of compensation claims. It will take these decisions in the order in which the applications were received. At this point, however, we are unable to determine when this will take place.

The portion of compensation payments retained by EdW (as collateral for possible segregation claims) is not subject to statutory limitation until further notice. Additional information on the topic of statutory limitation on (partial) compensation claims is available under the Phoenix menu item "FAQ list".

To avoid written pledges of partial compensation payments being returned to sender, we would like to remind investors to inform EdW promptly of any changes of address in writing (not by e-mail).

04.11.2009

Thus far EdW has pledged partial compensation to some 8,400 investors. Altogether about 10,200 decisions have been rendered, including those applications that were ready to be decided and already processed in 2008 and whose applicants, in most cases, were not entitled to claim compensation.

The volume of (partial) compensation paid out by EdW through today adds up to some EUR 37 million.

15.09.2009

The processing of the numerous claims that have been received continues to make good progress. Through today EdW has pledged partial compensation adding up to approx. EUR 32 million to some 7,000 investors.

14.07.2009

As the first half of 2009 is now over, EdW is taking the opportunity to inform you of the current status of claims processing:

In the past months partial compensation adding up to approx. EUR 22 million has been pledged to some 5,000 investors, enabling the processing of compensation claims giving rise to partial compensation payments to progress quickly and as planned.

24.04.2009

Since the end of February 2009 EdW has committed partial compensation payments of about EUR 12 million to roughly 2,500 investors.

In the light of recent developments we would like to point out again that EdW processes claims for compensation that have become ready for decision in the order of their receipt by EdW. EdW will maintain this procedure also for investors represented by a lawyer.

In the course of the compensation procedure to date EdW has come under sometimes heavy public criticism and has been faced with legal action with regard to its handling of the matter.

• It is alleged that no compensation is paid for fictitious profits stated by Phoenix in account statements or balance confirmations and
• that a number of claims have not yet been decided.

However, all court decisions taken so far have confirmed EdW's procedure with regard to the Phoenix compensation proceedings.

Moreover, the state liability action brought against the Federal Republic of Germany by an investor, who complained about not having his claim for compensation decided, was dismissed by the Berlin District Court in February 2009. The Court did not see any violation of the relevant European Directive on investor compensation and its implementation into German law and did equally not express any doubts about EdW's performance. Meanwhile the verdict has become legally binding.

In addition, in February 2009 the European Commission has dismissed the breach of contract proceedings with regard to this Directive filed against the Federal Republic of Germany due to complaints by Phoenix investors. The European Commission could equally not see any incorrect implementation of the Directive in the Deposit Guarantee and Investor Compensation Act (EAG).

Most recent allegations voiced by some investors' lawyers and consumer protection representatives according to which EdW illegally retains part of investors' compensation payments and delays compensation payments until the claims become statue-barred are wrong and completely unfounded.

As we have pointed out several times EdW is obliged, as a precautionary measure, first to deduct the putative segregation claims of investors when calculating partial compensation amounts, since according to the laws currently in effect, such claims are not compensable. In a judgement given in the insolvency proceedings in November 2008 the District Court of Frankfurt am Main asserted that such segregation claims do exist. In the judgement the segregation claim of an investor was fundamentally admitted. The insolvency administrator has given notice of appeal against the judgement.

EdW also maintains this procedure if an investor is represented by a lawyer.

As regards the limitation of claims for (partial) compensation we refer to the FAQ-list.

25.02.2009

As last announced, EdW has begun rendering partial compensation payments. Thus far several hundred investors have received partial compensation adding up to millions of euros. EdW's personnel resources have again been increased to ensure payment of an estimated total of approx. EUR 128 million in partial compensation over the next 2.5 years. EdW intends to pay out some EUR 45 million more in partial compensation in 2009.

As regards the processing of compensation claims we would like to inform you as follows:

Apart from receiving payment of the calculated partial compensation amount, each investor will be notified in writing.

This notice will contain information

1. on the partial compensation amount that initially cannot be paid owing to a possible segregation claim and
2. on the actual development of the investment shares in the Phoenix Managed Account.

To a)
The withholdings determined along with the partial compensation are calculated for each investor individually and therefore are not expressly based on a generally applicable "formula".

As regards the segregation issue we refer once more to the information we provided on 16 November 2007 and to the extensive explanations on the insolvency administrator's website at www.schubra.de.

EdW will decide how to handle withheld portions of compensation claims immediately after the segregation issue and, if necessary, the question of how to distribute segregated assets have been finally clarified by a court of law. It is too early to judge when this will become possible.

To b)
Each investor will receive an overview of the actual development of his/her Phoenix Managed Account. This overview will serve as the basis for the compensation and will also correspond to the claim calculation performed by the insolvency administrator during his review of the claim.

At this stage we would like to mention once again that fictitious profits stated by Phoenix in account statements or balance confirmations are not eligible for compensation.

The District Court (Landgericht) of Berlin passed a judgment on the topic of fictitious profits on 1 October 2008 (4 O 297/08) that EdW has made available on its website in the online library section.

We again expressly ask you to refrain from contacting us to inquire about the state of your claim as this may put the time frame for processing the claims (see above) at risk.

22.12.2008

The work on the database to enable the calculation of partial compensation payments has since been completed. EdW can now process individual claims for compensation in the order of their receipt by EdW and anticipates that it will be able to begin disbursing partial compensation as early as February 2009. As some 27,500 claims for compensation are still pending, the time required to review and disburse the individual claims will probably take 2 1/2 years.

The interim financing for the compensation payments that is required as per the decision by the administrative court (Verwaltungsgericht) of Berlin from 17 September 2008 (see information dated 23 September 2008) has been assured by a loan granted to EdW by the German Government.

We again ask that you refrain from enquiring in writing or by telephone about the status of your claim so as not to delay speedy processing. EdW will send every investor a written decision on his/her claim for compensation in due time.

13.11.2008

EdW has completed its processing of claims for compensation that have become ready for decision in the interim. Processing of those claims for which a decision could not be taken thus far because the segregation issue has not yet been clarified will continue once the database for calculating partial compensation payments has been finalised and is available.

EdW assumes that the work on the database will be completed and the data will be synchronised by year-end.

In the opinion of EdW, the special contributions to finance the partial compensation payments were collected legally. For this reason EdW, in an exemplary case, has filed an appeal against the decision by the administrative court (Verwaltungsgericht) of Berlin (see information dated 23 September 2008) with the higher administrative court (Oberverwaltungsgericht) of Berlin-Brandenburg.

Since the higher administrative court of Berlin-Brandenburg is not expected to decide on EdW's appeal in the near future, intense parallel efforts to find alternative financing for the partial compensation are ongoing.

23.09.2008

In its ruling of 17 September 2008 the administrative court of Berlin suspended the immediate execution of the obligation of those institutions affiliated with EdW to pay special contributions. The court substantially sustained the motions of the institutions (see information dated 31 July 2008) owing to doubts about the legitimacy of the legal regulations pertaining to the collection of special contributions. EdW is therefore unable to, at short notice, collect the funds needed to finance the partial compensation payments out of the special contributions from the EdW institutions.

EdW is currently considering appealing the court decision. Alternative financing possibilities continue to be examined.

31.07.2008

So far EdW has not been able to generate any significant income from the collection of special contributions to finance the partial compensation payments or compensation instalments because a large portion of the institutions affiliated to EdW have appealed against the contribution notifications and refused payment. The administrative court of Berlin announced it would take a first decision in regard to pending court proceedings in mid-September 2008.

EdW will continue to process decision-ready claims with the remaining funds (see information of 10 April 2008).

The finalisation of the database for calculating partial compensation payments or instalments, which was originally expected for July 2008, will be delayed by about two months owing to technical problems in programming.

30.04.2008

Some individuals and groups involved with investor protection have spread the rumour that a statute of limitations on claims against EdW may be looming, prompting an increasing number of investors to submit queries to EdW regarding this issue. The fact is that there is no reason for concern.

Under the law, investors' claims against EdW become statute-barred in five years (section 3 paragraph 3 of the Deposit Insurance and Investor Compensation Act - EAG). EdW has opted for an investor-friendly interpretation of the start of the limitation period. Accordingly, the period begins on the date on which EdW has established the amount and eligibility of the individual claim of the investor (see also our list of frequently asked questions).

In most cases EdW could not yet decide on possible claims (see previous entries), so that the limitation period for these claims that have been submitted has not even begun.

10.04.2008

EdW has started to take decisions in respect of claims submitted by investors.

Work on calculating partial compensation payments or instalments could not yet be finalised as planned (see our information dated 16 November 2007). EdW assumes, however, that this will be done by July 2008.

Nevertheless, in the meantime some claims can be identified that can be decided conclusively. In particular, this applies to claims that are not entitled to compensation. EdW will disburse compensation in few individual cases for which the compensation amount can already be safely calculated.

EdW will decide on the individual claims in the order of their receipt taking into account their state of readiness for decision.

We kindly ask you to refrain from calling us or writing to us regarding the state of processing of your claim. EdW will inform each investor about its decision in writing.

The collection of special contributions to finance the partial compensation payments has been completed. Many institutions affiliated to EdW have appealed against the contribution notifications. The administrative court of Berlin will issue a decision in this regard shortly.

16.11.2007

In its ruling passed on 29 October 2007 the District Court (Landgericht) in Frankfurt / Main granted the appeal by the large Irish creditor Citco Global Custody N.V. (Citco) against the insolvency plan in first instance. The insolvency administrator has announced his intention to appeal this ruling. As a result, no payments to creditors are to be expected from the insolvency estate in the foreseeable future (www.schubra.de).

The reason for the appeal was as follows: Citco contended that a large portion of the insolvency assets are not part of the Phoenix asset pool (approx. EUR 162 million of a total of approx. EUR 230 million) and therefore may not be distributed to investors under the insolvency plan. Citco regards these assets as trust assets that are to be paid out directly to the investors, thus backing their claim to segregation.

Citco finds the insolvency plan disadvantageous and would prefer a direct segregation of its deposits. The company could not, however, show how it calculated its putative claim to the segregation and recovery of assets not belonging to the insolvency estate in relation to the claims of all other creditors, yet it is demanding full recovery of its deposits. Citco claims that the payments it rendered shortly before Phoenix claimed insolvency are still in the Phoenix accounts and are directly attributable to Citco.

If this method of evaluation were to be applied, it would mean that the deposits of those investors who paid in shortly before the fraud at Phoenix was uncovered would be segregated out nearly in full. At the same time, those investors who made their deposit payments early would recover less or none of their deposits when the insolvency assets are distributed.

The District Court did not provide a legal assessment of Citco's position since in its view, the confirmation of the insolvency plan was already rescindable for other reasons (www.schubra.de).

It thus remains unclear whether the investors have a claim to segregation and, if so, how the assets would be distributed among them (distribution method). Both points require clarification through a court. The insolvency administrator has announced that a corresponding court ruling has been applied for.

How will the blocking of the insolvency plan by Citco and the difficulties that have arisen in connection with putative claims for the segregation of assets impact the compensation process at the EdW?

As long as the segregation issue remains unclarified, the EdW remains unable to calculate the exact amount of the compensation claims of all investors.

In order to be able to compensate investors, however, the EdW has started preparing partial compensation payments, or compensation instalments. As a precautionary measure, when the partial compensation amounts are calculated, the putative segregation claims of the investors must first be deducted since according to the laws currently in effect, such claims are not compensable.

The EdW will need about 3-4 months to calculate the deductions for each investor. Such calculations are particularly difficult because various distribution methods need to be taken into consideration and no regulations are in place on how to do so.

The EdW is simultaneously preparing the financing for partial compensation, e.g. it is currently collecting special contributions from its affiliated companies.

22.08.2007

A decision has to be taken by the Frankfurt am Main district court in respect of the three complaints that have now been filed against the confirmation of the insolvency plan. The payments to investors from the insolvency assets originally scheduled for the third quarter of 2007 will therefore be delayed (www.schubra.de).

Our information to date indicates what impact the insolvency plan has on the compensation proceedings conducted by EdW and why, despite the fundamental independence of the compensation proceedings, EdW also has to be involved in the planned procedural steps (see our information dated 31 March 2007 and 20 February 2007).

At this point in time it is therefore still envisaged that the compensation payments will be made after the disbursement from the insolvency assets. However, consideration is still being given to the possibility of starting the EdW compensation payments earlier if there is too long a delay in the disbursement from the insolvency assets.

The EdW still requires documents that are missing from investor documentation to be submitted.

Owing to the large number of claims for compensation, we are unable to confirm receipt of documents that are submitted to complete the documentation.

30.04.2007

EdW will base the start of compensation payments on the decision by the District Court in Frankfurt am Main regarding the complaint by a creditor against the confirmation of the insolvency plan in the insolvency proceedings against Phoenix Kapitaldienst GmbH. We expect the District Court ruling to be passed in a few months (see insolvency administrator's information for creditors dated 20 April 2007 under www.schubra.de).

We kindly request you to submit any information concerning changes in your personal situation (in particular, change of address, change of name or bank account) in writing and to refrain from making individual enquiries on the state of the compensation proceedings by telephone or in writing.

12.03.2007

The start of compensation payments by EdW continues to be based on the insolvency plan procedure on which the insolvency administrator last reported in their information to creditors dated 4 January 2007 (see www.schubra.de).

20.12.2006

The insolvency administrator has provided an overview of the timeframe of the insolvency plan in his latest information for creditors (see www.schubra.de). The start of compensation payments by EdW will continue to follow the timeframe stated in this information.

23.10.2006

The database will soon be finalised. Pending the approval of the insolvency plan, it currently looks as if it will be possible to start making compensation payments in early 2007.

02.06.2006

The representatives of the creditors have assigned the insolvency administrator to draw up an insolvency plan (for more details see also under www.schubra.de). Provided that the insolvency plan has been drawn up and adopted by the end of 2006 (which means that the majority of creditors have approved of the insolvency plan and the insolvency court has confirmed the plan) EdW can presumably start to make compensation payment to the creditors in the first quarter of 2007.

31.03.2006

In the course of March the insolvency administrator, in agreement with the Creditors’ Committee, worked out a basis for decision-making in the insolvency proceedings regarding Phoenix Kapitaldienst GmbH. The aim is to draw up an insolvency plan and, thus, to satisfy the claims of the creditors as swiftly as possible. Creditors’ representatives have already indicated their fundamental willingness to support the planned procedure (see also www.schubra.de).

On the basis of the insolvency plan an amicable solution is to be found to any open legal questions, in particular regarding the size at which creditors’ claims will be assessed. In the next step the modalities for the distribution of the insolvency assets will be determined.

Such an “insolvency plan procedure“ will have impacts on the compensation proceedings pursued by EdW. Although, fundamentally, the compensation proceedings and the insolvency proceedings are different legal matters, EdW has to be involved in all steps planned under the insolvency plan procedure.

In consequence, EdW will not make any compensation payments before the precise insolvency plan has been decided and adopted by the creditors. If EdW were to start making compensation payments before the adoption of the insolvency plan, creditors’ claims would devolve onto EdW in the amount of the compensation payments (§ 5 (5) of the EAG (Deposit Guarantee and Investor Compensation Act)) and this would result in a constant change in the legal position of the other creditors in the insolvency proceedings. This, in turn, would unduly complicate and hamper the drawing up of the insolvency plan.

Thus, in the interest of the creditors, the insolvency plan procedure has to be given priority over the compensation proceedings.

It is scheduled that the insolvency administrator will be assigned in mid-May 2006 by the majority of creditors to finalise the insolvency plan.

In parallel, the works to collect secure data will continue because so far the data bank still has a lot of gaps. Due to the fact that a lot of data has to be entered manually and to unforeseen verifications these works will still take some time. The problems encountered in the establishment of a data bank are due to frequent changes in the bookkeeping and IT systems of Phoenix, as well as entry mistakes in the event of rebookings, currency switches, etc. For this reason EdW will also cooperate with the insolvency administrator in this area and assign additional staff.

20.02.2006

The preparation of facts and figures for processing in a databank at Phoenix is making substantial progress. It is expected that the reliable data can be presented at the end of the first quarter of 2006. EdW again points out that these data are an important prerequisite for all disbursements by both EdW and the insolvency administrator.

On the occasion of the last meeting of the Creditors’ Committee in the insolvency proceedings which was held on February 9, 2006, various approaches to investor compensation were discussed also taking into account different legal aspects. The objective is to achieve a fast disbursement of the funds administered under the insolvency proceedings and to implement the compensation procedure swiftly and efficiently.

Although, fundamentally, the compensation procedure and the insolvency proceedings are different legal matters it became apparent during the discussions on the occasion of the Creditor’s Committee that only joint and coordinated action, especially with regard to the different unclarified legal questions, involving all parties concerned will ensure the rapid start of compensation activities by EdW.

In the context of a possible insolvency plan procedure, the insolvency administrator has been assigned to make preparations for drawing up an insolvency plan (www.schubra.de). The preparations are scheduled to be concluded in the first quarter of 2006.

The procedure practiced by EdW to make compensation must be included in the insolvency plan.

In this respect EdW alone is not able to proceed without observing the regulations agreed in the Creditors’ Committee.

The planned procedural steps are expected to take several months. Only then can disbursements be made.

02.01.2006

EdW ended the old year and began the new year by focusing its efforts on preparing decisions on compensation.

As already mentioned on other occasions, the liability of Phoenix to investors is not necessarily identical to the balance of the investors’ statements from the past few months. The work to bring the databases of Phoenix up to date is still ongoing (see our notice of December 6, 2005).

Not least in order to treat all investors equally, EdW again requests your understanding that an isolated assessment of the growth of the funds of individual investors is not possible at this stage. To ensure that the work proceeds effectively, currently neither instalment nor partial payments are being offered.

EdW also requests investors to refrain from calling or writing to request additional confirmation of the receipt of documents sent in. EdW will conduct a final check of the application documents to verify their completeness during its examination of individual claims and will then contact investors personally if necessary.

06.12.2005

The Creditors’ Committee met on November 28, 2005. EdW takes this as an occasion to make the following points: The Creditor’s Committee is one body involved in the insolvency proceedings. Since the insolvency proceedings are a process that is separated from the compensation proceedings (see our pertaining notice dated September 15, 2005) the investors can obtain more detailed information on the meeting of the Creditors’ Committee only from the internet pages of the insolvency administrator under www.schubra.de .

EdW continues to work intensively – and in close cooperation with the insolvency administrator – on the reconstruction of the development which the Phoenix Managed Account actually took in the years from 1992 to 2005. Investigations conducted up to now have shown that the business documents and electronic data banks of Phoenix Kapitaldienst GmbH are incomplete and flawed. In addition, it is very time-consuming and difficult to collect all relevant data completely and correctly. A prerequisite for being able to evaluate all claims for compensation, however, is that the development of the shares of every investor in the Managed Account is fully transparent and understandable. This includes all information on changes in the amount of the share held by each investor (such as payments made and received, fees, the actual trading result, and identification of fictitious profits). Given the fact that there are 31.000 shares in the Managed Account, these works will still take some time. For this reason it is not possible for the time being to make any concrete statement on when compensation payments will start. Equally, we cannot provide any information today on the amounts of compensation payments presumably to be made.

In some cases the Phoenix Managed Account was used by the regular bank of investors as security for private loans to such investors. EdW will neither make any current assessment of such securities nor is it possible to issue any statements on claims for compensation, if any, and the amount of such claims to investors or banks.

08.11.2005

We have now issued acknowledgements of receipt for almost all claims for compensation received. If in individual cases investors have not received such an acknowledgement of receipt they are kindly invited to contact EdW per e-mail in order to clarify the matter. Meanwhile, EdW continues to examine the completeness of the documents and to request missing documents, if any.

Pursuant to Article 5, paragraph 3 of the EAG there is a one-year deadline for filing claims for compensation. Nevertheless, EdW calls upon all investors who have received a form for filing applications but have not yet returned the form to hand in their documents as soon as possible. In the event of investors who do not want to pursue their claims further EdW would equally appreciate to receive a corresponding written notice.

Since the whole matter is still very complicated we cannot anticipate for the time being when compensation will start.

11.10.2005

We continue to receive a great number of claims for compensation from all over the world. It is foreseeable that a large part of the approximately 31,000 investors that were informed will file a claim and, thus, will participate in the compensation proceedings. EdW is making every effort to shorten processing times and to reduce the period from the receipt of claims until the dispatch of the confirmation of receipt.

On October 05, 2005 the first creditors’ meeting regarding Phoenix Kapitaldienst GmbH insolvency proceedings was held in Frankfurt am Main. The responsible insolvency administrator, Rechtsanwalt Frank Schmitt, reported, among others, about analyses and examinations commissioned on a number of fake documents. However, in agreement with the Frankfurt prosecutors’ office, which conducts a preliminary investigation, no comments were made on any details of the analyses. More detailed information on the first creditors’ meeting and the insolvency proceedings in general may be obtained from the internet pages provided by the insolvency administrator for the creditors of Phoenix Kapitaldienst GmbH under www.schubra.de .

Since the examination of the documents discovered up to now is difficult and protracted and requires a lot of time, the data base available to EdW for a concrete evaluation of individual claims for compensation is still insufficient. In consequence, EdW will only be in the position in a few months time to start with the verification of individual claims (see also our press release dated August 1, 2005).

For given reasons, we urgently call on all investors to avoid making any unnecessary requests, either by phone or in writing (letters, faxes, e-mails), on the state of processing of your claim or on the general state of the insolvency proceedings. Answering the large volume of incoming requests is very time-consuming and keeps the EdW staff from concentrating on the clarification of the matter and from processing claims for compensation already received.

15.09.2005

We still receive a high number of claims for compensation. The period from the receipt of the claims by EdW until despatch of the confirmations of receipt is some weeks.

If the documents handed in are not complete a corresponding notice to investors is enclosed in the letter of confirmation. In the event that the documents additionally requested by EdW are not, or only partially, furnished by the investors, this does not constitute a failure to observe the deadline for making claims and certainly does not constitute a reason for exclusion of the claim from compensation.

Unfortunately EdW frequently receives filled-in forms from investors who want to file claims in the context of the Phoenix insolvency proceedings (yellow form). We would like to point out again that the insolvency proceedings are separate from the compensation proceedings. For this reason we return this form to the investors with the notice that they have to file their claims directly with the insolvency administrator, Mr. RA Frank Schmitt, whose address is indicated on the form.

01.08.2005

EdW has sent the application form to all investors (more than 30,000) in Germany and abroad. For weeks EdW has been receiving applications in great numbers.

A large portion of the claims for compensation has now been entered into the EdW database. Following a preliminary examination of the documents for their completeness many claimants have already been sent an acknowledgement of receipt with additional information on the further proceedings. We would like to point out once more that each claimant will receive a written acknowledgement of receipt from us. For any documents subsequently submitted to the EdW, however, no additional acknowledgement of receipt will be issued.

Before any claims can be examined in detail it will first be necessary to create a reliable database. Given the criminal insolvency of this case this is particularly difficult and is expected to take another several months. Comprehensive ascertainments are currently being made (such as the reconstruction of the accounts and correction of fictitious commercial results over various business years). The data currently being processed by the insolvency administrator must be considered in the compensation proceedings and will enter into the assessment of claims for compensation.

01.07.2005

The insolvency proceedings for the assets of Phoenix Kapitaldienst GmbH were opened today. More information is available under www.schubra.de .

The compensation proceedings conducted by EdW and the insolvency proceedings conducted by the law firm Schultze & Braun (insolvency administrator: Mr Frank Schmitt, attorney at law) are independent proceedings.

Accordingly, claims maybe filed separately with the insolvency administrator

11.05.2005

We expressly point out that EdW will confirm the receipt of the claims for compensation to each investor in writing. As we have received a large number of claims for compensation and have to examine, in each case, if the documents are complete before sending our confirmation of receipt, in order to immediately ask for the missing documents if necessary, you may have to wait a few weeks before you receive our confirmation.

In order to avoid any unnecessary delays in the compensation procedure, we kindly ask you again to refrain from calling us or writing to us regarding the state of processing or the receipt of your claim.

We would also like to point out that we will automatically contact all investors who did not send us any claim for compensation or other notification in a few months again. As the claim for compensation must be filed at EdW within one year starting from the date you were notified about the occurrence of the event of claim, you need not fear, for the time being, that you might fail to observe the deadline if your claim for compensation should actually have been lost in the mail.

In this connection we request you to submit us all statements of your account at Phoenix Kapitaldienst GmbH. Should you have lost some statements of account, we request you to mention this in your claim for compensation.

30.03.2005

On March 15, 2005 the German Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) ascertained the occurrence of an event of claim at Phoenix Kapitaldienst GmbH and published this fact in the Bundesanzeiger (Federal Gazette) No. 54 of March 18, 2005. This means that BaFin has established that Phoenix Kapitaldienst GmbH no longer possesses sufficient financial resources to satisfy its liabilities from securities transactions.

The Phoenix Kapitaldienst GmbH is enrolled in the EdW. EdW compensates the investors according to the Deposit Insurance and Investor Compensation Act (EAG). You can file your claim for compensation at EdW in writing within one year starting from the date you received the notification of the occurrence of the event of claim.

According to Article 3 Paragraph 1 of the EAG you as creditor are entitled, under certain conditions, to compensation from EdW. We would particularly like to point out that claims against Phoenix Kapitaldienst GmbH denominated in US dollars are not eligible for compensation.

We will shortly send you a letter including the form to be filled out if you want to make notification of a claim for compensation. We therefore ask you to abstain from making any requests by phone or in writing.

You may also download the form here. Moreover, we would like to draw you attention to the fact that we will send you the form by mail in any case, even if by that time you have already downloaded the form and submitted it to us.

Download (pdf): Claim for compensation

16.03.2005

Die Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de) hat den Entschädigungsfall bei der Phoenix Kapitaldienst GmbH am 15.03.2005 festgestellt.
Wir haben für Sie die wichtigsten Informationen zu den meistgestellten Fragen zum Entschädigungsverfahren zusammengestellt: