The Federal Foundation for the Protection of Investors and Shareholders rights (further – the Fund) was established as a non-profit organization in accordance with Decree № 1157 from 18.11.1995 of the President of the Russian Federation.
The Fund’s activities of the shareholder investors
1. The Fund shall pay compensation to non-qualified investors if their rights have been violated in the financial market in a certain order.
The insured event is liquidation of non-licensed financial organization (economic entity engaged in business activity in the financial market without obtaining a special license issued by the Central Bank of the Russian Federation as such activities in accordance with the current legislation of the Russian Federation does not require an obtainment the license) due to violation of the legislation on the financial market.
Over 19 years since the date of establishment about 2 billion rubles total amount were paid to more than 1.5 million investors (1.1% of population of Russia) by the Fund.
2. The Fund protects the rights of investors in judicial and other authorities, including performing protection of investor’s rights in court.
3. On the regular basis the Fund performs activities for different investors to raise the level of their financial literacy.
For instance, the Fund participates in measures, which are conducted by the Service for the Protection of the rights of consumers of financial services and the minority shareholders in this sphere.
Compensation payments are provided by the Fund by making transfer payments directly to investors' accounts.
The Fund ensures the implementation of the objectives of all private property.
Maximum size of compensation payment is determined by the Foundation Board for certain categories of investors.
Size of compensation payment for a particular investor is determined based on the principal of the investor’s investment. Business or commercial investor's risk is not covered by the Fund.
Investor is entitled to receive compensation only once in lifetime or his heirs in accordance with the established order.
In each one of the subjects of the Russian Federation, and in some regions of the Russian Federation several authorized organizations are operated by the Fund. These organizations provide the registration procedures for investors which are affected in the financial market, collect such information and input the information into the information system of the Fund for the analysis and verification of the decision to pay compensation, in certain cases improve financial literacy of the region, provide operational coordination with the power authorities of the region, judiciary authorities. Thus, the authorized organizations are the territorial authorities of the Fund which are established to ensure effective and efficient compensation operations of the Fund in the subjects of the Russian Federation.
Nowadays 100 authorized organizations are operated by the Fund in different regions of the Russian Federation.