How the IPF protect Investors?

Compensation is provided by Fund only when an administrative liquidation decision is made for an intermediary institution by Capital Market Board or a bankruptcy decision is made for an intermediary institution by the court.

It is a special liquidation process for intermadiary institutions. Fund takes over the management of the intermadiary institution. It gives priority to investors where regular liquidation gives priority to other claimers. First advances from the Fund are paid to the investor, then assets of the intermediary institution are liquidated by the Fund. Liquidation balance is used to meet the claims of the investors, government and of the Fund respectively. The period of liquidation is shorter than the period of regular liquidation.

Stocks and cash arising from stock transactions are covered by the Fund. Investors, whose stocks in custody accounts or cash arising from stock transactions were misappropriated by an intermediary institution are compensated by the Fund up until TL 63,701 (The value is set for the year 2011 and revalued each year with reference to “revaluation coefficient” released by the Ministry of Finance).