In this article, you will learn about the liquidation process in the event of EXANTE's closure, the insurance of funds in EXANTE’s accounts, and the preventive measures taken to protect clients' funds.
What will happen if EXANTE is closed?
Procedure
When an investment firm goes out of business, it is common practice that the court appoints an administrator to oversee the liquidation process once it begins.
The firm's office should be closed, and all operations should be terminated. During this time, the administrator and the firm will thoroughly review all documents, records, and books.
The relevant supervisory authority will oversee the process. If the firm's records are accurate, the supervisory authority and the administrator will make provisions to transfer client accounts to another brokerage firm.
Customers will be notified of the account transfer and can continue with the new broker or select another service provider. Clients may also be required to file a claim with the appointed administrator to recover their assets.
Are my funds insured?
In some cases, if a client is protected by an investor compensation fund, their assets may be directly repaid within the limits set by the fund. This is an out-of-court process.
What is the amount of insurance coverage for my account?
The amount of insurance coverage depends on the jurisdiction where the client is registered. In the event of the investment firm's bankruptcy, the client can apply to the regulator for compensation through the Investor Compensation Fund.
Compensation amounts for different jurisdictions are the following:
EXT LTD - The Investor Compensation Fund (ICF) only covers Retail Clients of the Company. It does not extend to Professional Clients and Eligible Counterparties. The maximum compensation payable to covered clients for their total claims is €20,000, which includes co-beneficiaries of joint accounts.
XHK LTD - The Investor Compensation Fund (ICF) covers all clients except Institutional Professional Investors (Financial Institutions). The maximum compensation payable to covered clients for their total claims is HKD 500,000.
LHCM LTD - Eligible consumers receive free protection, up to GBP 85,000 per person/authorized firm. This coverage doesn't include investment performance, but eligible investors who use the platform may be entitled to compensation if LHCM becomes insolvent.
XNT LTD - XNT LTD is not a member of the Investment Compensation Scheme as the activities of this firm fall beyond the scope of the Investor Compensation Scheme.
EXANTE encourages you to regularly verify EXANTE's legal status and licenses in state registries. Additionally, please keep organized records of your assets and accounts by maintaining either hard copy or electronic records of holdings, account statements, and trade confirmations.
What measures does EXANTE take to protect clients' funds?
EXANTE is a fully licensed investment company and, as an EU company, adheres to MiFID II (Markets in Financial Instruments Directive).
We separate clients’ and Company's assets in line with MiFID II requirements. Clients' assets are held in segregated accounts at our trusted custodians (more than 25 major banks), and EXANTE has no access to these assets.