The investor compensation scheme in Bulgaria was established at the end of 2005, based on the Directive 97/9/EC, which is also the basis for the establishment of similar schemes in the EU member states. The investor compensation schemes decrease the risk of financial losses for retail investors resulting from the investment intermediary's inability to pay out its liabilities to its clients due to reasons related to its financial condition. Some recommendations can be given regarding the organization and the operation of the scheme, namely - widening the scope of the scheme, making the definition of the exceptions to the scheme more precise, changing the basis for calculation of the premiums, changing the management structure of the scheme and its relations with other institutions, taking a more effective approach to collecting and exchanging information as well as solving some legal discrepancies regarding the annual premiums.

Keywords: investor compensation scheme, financial instruments, annual premiums, failures, risks, investment intermediaries, retail investors, investments
JEL: G2

 Mileti Mladenov, Irina Kazandjieva-Yordanova - Investors Compensation Schemes. The Case of Bulgaria - plik pdf; (264 KB)