Investor Compensation Fund

1. General

1. In accordance with Law 87(I)/2017, Financial Express Group Limited (Trustful) is a member of the SEHK and the HKFE.
2. The SEHK's purpose is to safeguard the claims of the covered clients against those Hongkong Investment Firms which belong to the SEHK, by paying these clients compensation in the case that a SEHK is unable, due to financial circumstances that are not likely to be improved in the near future, to:
   • Return funds owed to its covered Clients, or funds belonging to them but are being withheld by the SEHK in the context of providing investment services to the said Clients.
   • Deliver to the covered Clients financial instruments which belong to them and that are kept and managed on their account by the SEHK in question.
3. The SEHK serves to cover Retail Clients of SEHKs. This excludes Professional Clients and Eligible Counterparties.
4. Covered Clients of an SEHK's member company can receive a total payable compensation of no more than 20,000 EUR or 90% of the covered investor’s claim, whichever is lower, regardless of the number of accounts held, currency and place of offering the investment service.

2. Non-Covered Clients

1. Under applicable Regulation the Fund does not compensate the following investor categories:
   1. The following categories of institutional and professional investors:
      • Investment Firms (IFs)
      • Legal entities associated with the member of the Fund and, in general, belonging to the same group of companies
      • Banks
      • Cooperative credit institutions
      • Insurance companies
      • Collective investment organizations in transferable securities and their management companies
      • Social insurance institutions and funds
      • Investors characterized by the member as professionals, upon their request, in accordance with articles 14 and 15 of the Code of Professional Conduct of IFs.
   2. States and international organizations
   3. Central, federal, confederate, regional and local administrative authorities
   4. Enterprises associated with the Company
   5. Managerial and administrative staff of the member of the Fund
   6. Shareholders of the member of the Fund, whose participation directly or indirectly in the capital of the member of the Fund amounts to at least 5% of its share capital, or its partners who are personally liable for the obligations of the member of the Fund, as well as persons responsible for the carrying out of the financial audit of the member of the Fund as provided by the Law, such as its qualified auditors
   7. Investors involved in enterprises connected with the member of the Fund and, in general, of the group of companies, to which the member of the Fund belongs, positions or duties corresponding to the ones listed in paragraphs (5) and (6)
   8. Second-degree relatives and spouses of the persons listed in paragraphs (5), (6) and (7), as well as third parties acting for the account of these persons
   9. Apart from the investors convicted of a criminal offence pursuant to the Prevention and Suppression of Money Laundering Activities Law of 2007, as amended or replaced, Investors-Clients of the Company responsible for facts pertaining to the Company that have caused its financial difficulties or have contributed to the worsening of its financial situation or which have profited from these facts.

   10. Investors in the form of a company, which due to its size, is not allowed to draw a summary balance sheet in accordance with the Companies Law or a corresponding law of a Member State of the European Union.

2. In the cases of paragraphs 2.1 [(5), (6), (7) and (8)], the Fund suspends the payment of compensation informing the interested parties accordingly, until it reaches a final decision as to whether such cases apply.