Discretionary Portfolio Management

The Fund was established to the benefit of the holders of the individual investment portfolios managed by SAI ERSTE Asset Management SA

What is the Investor Compensation Fund?

S.C. Fondul de Compensare a Investitorilor S.A. is a legal person established as a joint-stock company which issues nominative shares, in accordance with the provisions set forth in Law no. 31/1990 on companies, as amended and supplemented, Title II, chapter IX of Law no. 297/2004 on the capital market, and CNVM Regulation no. 3/2006, art. 5, para. 1.

The Fund’s shareholders are the intermediaries and the management companies which have as their regular business the management of individual investment portfolios. Market operators, the central depository and other entities regulated and supervised by FSA (Financial Supervisory Authority) may become shareholders of the Fund. 

Who benefits from the Fund?

The Fund compensates the investors equally and fairly up to a limit of 20.000 eur, equivalent in lei.The compensation limit is set up gradually to reach the amount of 20,000 Euro, as follows:

a) at the date of the authorisation of the Fund: the “lei” equivalent of EUR 1,000 per individual investor;

b) from the 1st of January 2006: the “lei” equivalent of EUR 2,000 per individual investor;

c) from the 1st of January 2007: the “lei” equivalent of EUR 4,500 per individual investor;

d) from the 1st of January 2008: the “lei” equivalent of EUR 7,000 per individual investor;

e) from the 1st of January 2009: the “lei” equivalent of EUR 9,000 per individual investor;

f) from the 1st of January 2010: the “lei” equivalent of EUR 11,000 per individual investor;

g) from the 1st of January 2011: the “lei” equivalent of EUR 15,000 per individual investor;

h) from the 1st of January 2012: the “lei” equivalent of EUR 20,000 per individual investor.

The investor categories below will be outside the scope of compensation:
a) professional investors and institutional investors, including:
- investment firms, within the meaning of the legal provisions concerning credit institutions and capital adequacy;
- credit institutions, within the meaning of the legal provisions concerning credit institutions and capital adequacy;
- financial institutions, within the meaning of the legal provisions concerning credit institutions and capital adequacy;
- insurance undertakings;
- collective investment undertakings;
- pension funds.
Other professional and institutional investors referred to in the regulations of the regulatory authority (FSA):
b) international organisations, governments, and other central government administration authorities;
c) regional and local government administration authorities;
d) directors, including executive officers, managers or other relevant persons, persons in charge of auditing Fund members, the shareholders thereof whose holdings exceed 5% of the share capital, as well as similar investors in other companies within the same group as the Fund members;
e) spouses and 1st degree relatives and in-laws, as well as persons who act on behalf of the investors referred to in sub-paragraph d);
f) legal entities within the same group as Fund members;
g) investors who are liable for or have benefited from certain circumstances associated with a Fund member, which resulted in the Fund member’s financial distress or could have caused the deterioration of the Fund member’s financial position;
h) companies which, due to their size, are not allowed to prepare abridged balance sheets, in accordance with the applicable accounting regulations.
The Fund will pay compensation within the maximum limit set by regulations within the shortest time possible, but no later than 3 months from the preparation of the Payment List, according to the procedures laid down in the regulations in force.

In accordance to applicable legal regulations, SAI Erste Asset Management (SAI Erste) is authorised to provide individual investment portfolio management services under the applicable legal regulations. As part of this activity, SAI Erste must assess the client's suitability, so that the client should benefit from adequate protection and fair treatment, and SAI Erste should act to their best interest.

Definition: Suitability assessment means the entire process of gathering relevant information about the client, and the subsequent assessment of a financial instrument appropriateness for that client.

At the request of SAI Erste, the client should provide accurate and sufficient information, including without limitation: knowledge, experience, financial position, objectives, etc., so that SAI Erste may recommend suitable services in line with the client's profile. To this end, the client will complete a form made available by SAI Erste. The client should update the data provided in the form at least once in every 1 (one) year .

SAI Erste will also inform the client of the definition of investment risk and the relationship between risk and reward.

Taking into consideration all the above-mentioned information, SAI shall consider the nature and scope of the service to be provided to the client, according to their knowledge, experience, financial position and social status.