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Consultation Conclusions on the Review of the Investor Compensation Fund
The SFC today releases the Consultation Conclusions on the Consultation Paper on the Review of the Level and Funding of the Investor Compensation Fund, Broker Defaults since 1998 and the Operation of the Investor Compensation Arrangements.
The Consultation Paper was published on 22 December 2004. It proposed, among other things, to introduce an automatic levy triggering mechanism under which the current investor compensation levies will be suspended if the net asset value of the Investor Compensation Fund (ICF) exceeds $1.4 billion and re-imposed if it falls below $1 billion. The Consultation Paper also recommended maintaining the existing per investor compensation limit of $150,000.
The consultation period ended on 4 February 2005. Twelve submissions were received. The majority of the respondents supported the recommendations. The Consultation Conclusions summarise the comments and set out the SFC's responses.
The SFC is working with the Government to introduce the legislative changes to facilitate the implementation of the proposals.
The Consultation Conclusions paper is available at the SFC office and on the SFC website at
(This news is extracted from the SFC website "Speeches and Publications")