The Système d’indemnisation des investisseurs Luxembourg (SIIL, Investor Compensation Scheme Luxembourg) covers eligible clients of investment firms and banks. It also covers eligibe clients of management companies and alternative investment fund managers (AIFM) whose authorisation extends to the provision of investment portfolio management services on an individualised and discretionary basis. All these institutions are members of the SIIL.
Deposits are not covered by the SIIL, the Fonds de garantie des dépôts Luxembourg (FGDL, Luxembourg Deposit Guarantee Fund) is in charge of covering them. In the event of failure of a member of the SIIL, financial instruments such as securities held on behalf of clients do not fall within the liquidation assets, and must be returned to the client. However, it may turn out that some of these financial instruments have vanished due to e.g fraud or administrative negligence.
Coverage
In this case, the SIIL covers the compensation of clients up to an amount of EUR 20,000 per person and per institution. Clients must be compensated as soon as possible and no later than three months after the amount and entitlement to reimbursement have been established.
To benefit from the SIIL guarantee, aggrieved clients are required to contact the SIIL at the postal address
Protection des déposants et des investisseurs
LFS
L-2991 Luxembourg
or by email ([email protected]) within 10 years of the date on which the LFS determined that the institution does not seem to be able to fulfil its obligations resulting from claims of investors, or when the Tribunal d’arrondissement (District Court) in Luxembourg sitting in commercial matters ordered the suspension of payments or the winding-up of the failing institution. It should be noted that the SIIL does not hedge the market value loss of financial instruments.
Joint investment operations
The SIIL takes into account in the calculation of the coverage of each client’s share. In the absence of specific provisions, receivables are distributed equally among clients.
Claims relating to a joint investment transaction in which at least two persons have rights in their capacity as shareholders of a company, member of an association or any group of a similar nature, not having legal personality, shall, for the purpose of calculating the indemnity, be grouped and treated as if they resulted from an investment made by a single investor and only one indemnity shall be payable under the cover.
Operational Fees
Payments received by LFS may be required, at LFS's sole discretion, to be paid to a "Trustee" or other persons in connection with such proceedings.
Distributors of services shall repay any commissions if the services were not provided fully and the customer did not receive a refund and/or if LFS rejects, cancels, adjusts, or compromises any order or invoice.
The commission for LFS services will be determined at LFS's sole discretion but will not exceed 10% (ten percent) of the reimbursement amount.
