The Investor Compensation Scheme is herewith proposing amendments to the Investor Compensation Scheme Regulations (S.L. 370.09) to revise its current contribution methodology.

The need for a change in the contribution methodology emanates from the necessity to strengthen the financial means of the Scheme, which after extensive analysis, were deemed to be inadequate, particularly in terms of the coverage which the Scheme has to provide to eligible investors in terms of law within the context of a payout. The Scheme is hereby proposing these changes to:

a. Further align the Regulations with the Investor Compensation Scheme Directive (Directive 97/9/EC);

b. Revise the current contribution methodology in a way that achieves a reasonable balance between the regulatory needs of the Scheme and the ability of participating firms to finance the Scheme with a limited impact on their financial resources; and

c. Amend the Regulations further in accordance with the developments described in the Consultation Document.

The Scheme invites the public to contribute to the public consultation process by providing feedback through the online form below.