S.L. 370.9 Art. 19Claims.

(1) After a determination is made, in terms of regulation 13, the Scheme shall provide for the payment of compensation in respect of claims arising out of a licence holder’s inability to:

(a) repay money owed to or belonging to investors and held on their behalf in connection with licensed business; or

(b) return to investors any instruments belonging to them and held, administered or managed on their behalf in connection with licensed business or, where this is not possible, their monetary equivalent or value.

(2) Notwithstanding the provisions of regulation 17, the Scheme shall also, in accordance with the provisions of article 26(3)(e) of the Arbiter for Financial Services Act, settle any judgment or arbitration award for up to twenty thousand euro (EUR 20,000), in respect of any civil liability which is obtained by an investor against a participant with regard to licensed business in respect of which there is a determination, and such payment shall be made within ten (10) working days from the day when the judgement or arbitration award becomes res judicata: Provided that following the settlement of any such amount by the Scheme, the maximum compensation sum payable to each investor in terms of regulation 17(1) shall be reduced by the amount settled by the Scheme in accordance with this sub-regulation.

(3) The amount of an investoris claim shall be calculated by the Management Committee after taking into account any or all of the following factors:

(a) legal and contractual conditions;

(b) counterclaims;

(c) market value; and

(d) surrender value.