Investor protection and deposit guarantee
Lysa is obliged to keep your holdings separate from its own assets. The same applies to the money Lysa receives with an obligation of record-keeping, which we receive in connection with the portfolio management - i.e., deposits to Lysa that are yet to be invested in fund units. Since your holdings and money must be separate from Lysa's assets, you are entitled to them if Lysa enters into bankruptcy. Once a year, Lysa's external auditor verifies that our measures and procedures to preserve the separation between your and our assets are appropriate and suitable.
The assets of an individual fund (i.e. the underlying holdings) cannot be used by Lysa or the fund company in the event of a bankruptcy. The assets of a fund are jointly owned by the fund's unit holders (i.e., the customers) and are stored at a depositary. Lysa’s depositary is Danske Bank. When your fund units are registered on a deposit account with Lysa, they are nominee registered with the fund company and also registered in Lysa’s unit holder register. Here, Lysa differentiates your holdings from other customers’ holdings. Hence, we maintain the necessary separation so that you obtain your holdings in the event of Lysa’s bankruptcy.
State-provided investor protection for your holdings
To summarise the above, Lysa is obliged by law to separate your holdings from the company's holdings - meaning that you are entitled to them even if we would go out of business. Lysa has measures and procedures in place to ensure this. Also, an external auditor checks annually that these are sufficient and that we are compliant with them. Therefore, it is unlikely that Lysa would be unable to dispense your property in the case of bankruptcy. Nevertheless, we have an obligation to inform you about, and also think it is important that you know that you are entitled to compensation from the Swedish state-provided investor protection should that situation occur. The compensation is limited to SEK 250,000 per customer and institute, and the protection does not apply to changes in the value of shares and other securities.
The Swedish state-provided investor protection is regulated in the Swedish Act (1999:158) on Investor Protection. It entails that the state protects your securities during transactions or when they are stored at a bank or investment firm, such as Lysa. The right to reimbursement also applies to money associated with requirements of record-keeping received by the institute from customers, i.e., money that must not be mixed with the institution's own assets. This translates to the money that you deposit to your Lysa account that is yet to be invested.
More information on the investor protection can be found on the website of the Swedish National Debt Office, www.riksgalden.se.
State-provided deposit guarantee for your money
Lysa receives money from customers with an obligation of record-keeping. This means that your liquid assets, i.e., all deposits to your account at Lysa, must be kept separate from Lysa’s assets. You are thereby entitled to your money in the event of Lysa’s bankruptcy.
Lysa keeps your money in a client funds account, currently with Danske Bank A/S, Denmark (the “Credit Institution”). Your money is protected under the Danish deposit guarantee called the Guarantee Fund (Dan. Garantiformuen). It provides protection for an amount equivalent to EUR 100,000 per depositor.
A client funds account is an account where money has been deposited on behalf of several customers on the same account. The general rule for client accounts is that the underlying owners of the funds, that is, each customer at Lysa, can each receive compensation from the deposit guarantee up to the maximum amount.
If the Credit Institution fails, i.e., goes bankrupt, the Guarantee Fund in Denmark will within seven working days repay your deposits with up to the maximum amount of EUR 100,000 by sending a payment order to the institution in your home country that administers the deposit guarantee fund, in Sweden the National Debt Office, which will then make the payment. Compensation is given in the local currency.
More information about the Guarantee Fund can be found on the Guarantee Fund’s website, www.garantifonden.dk.