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INVESTOR COMPENSATION FUND POLICY
INFORMATION TO CLIENTS OF GRACEXFX LTD. REGARDING THE INVESTOR COMPENSATION FUND FOR CUSTOMERS
  1. Introduction
GRACEXFX LTD. (the "Company") is a forex firm incorporated in the Union of Comoros, with registration number 15817. The registered address of the Company is Hamchako Mutsamudu, The Autonomous Island of Anjouan, Union of Comoros. It is authorized and regulated by the Anjouan Offshore Finance Authority under license number L15817/GL.
In accordance with Article 15(1) of the Investment Services and Activities and Regulated Markets Law of 2017, L.87(I)/2017 (the “Law”), a Comoros forex firm (CIF) must be a member of an authorized investor compensation scheme in order to provide investment and ancillary services.
Consequently, the Company is a member of the Investor Compensation Fund (the “Fund”), established under the Law, which covers customers of CIFs and other investment firms (IFs) that are not credit institutions. The primary objective of the Fund is to secure the claims of covered clients against its members through compensation, provided the necessary preconditions are met.
  1. Covered Services
The Fund covers the following investment and ancillary services provided by the Company:
  • Reception and transmission of orders in relation to one or more financial instruments.
  • Execution of orders on behalf of clients.
  • Portfolio management.
  • Dealing on my own account.
  • Safekeeping and administration of financial instruments on behalf of clients, including custodianship and related services such as cash/collateral management.
  • Granting of credit or loans to investors to facilitate transactions in one or more financial instruments, where the firm providing the credit or loan is involved in the transaction.
  • Foreign exchange services related to investment services.
The financial instruments covered by the Fund include:
  • Transferable securities.
  • Money-market instruments.
  • Units in collective investment undertakings.
  • Derivatives such as options, futures, swaps, and forward rate agreements related to securities, currencies, interest rates, financial indices, and other derivative contracts.
  • Financial contracts for differences (CFDs).
  • Derivatives related to commodities, climatic variables, freight rates, and other economic statistics, provided they are either cash-settled or physically settled on a regulated market or MTF.
  1. Covered Clients
The Fund covers all retail clients of the Company, excluding Professional Clients and Eligible Counterparties.
Investor Compensation Fund Policy
Under the provisions of the Regulation, the Fund does not compensate the following categories of investors:
  • Institutional and professional investors, including but not limited to:
  • Investment Firms (IFs).
  • Legal entities affiliated with the Company.
  • Banks and cooperative credit institutions.
  • Insurance companies.
  • Collective investment organizations and their management companies.
  • Social insurance institutions and funds.
  • Investors classified by the Company as professionals upon their request.
  • States and supranational organizations.
  • Central, regional, and local governmental entities.
  • Entities with close ties to the Company.
  • Managerial and administrative staff of the Company.
  • Shareholders owning 5% or more of the Company's capital or partners liable for its obligations.
  • Auditors and financial professionals responsible for the Company’s financial audits.
  • Investors with stakes in businesses affiliated with the Company.
Additionally, the Fund will suspend compensation payments for the aforementioned parties until a final decision is made regarding their eligibility.
  1. Purpose of the Fund
The Fund’s primary objective is to secure the claims of covered customers against the Company by compensating them for any losses resulting from the Company’s failure to meet its obligations. This failure is defined as the Company’s inability to:
a) Repay funds owed to covered customers or hold their funds in connection with investment operations; or
b) Return any financial instruments held, managed, or administered on behalf of covered customers in relation to investment activities.
  1. Preconditions for Initiating Compensation
The Fund will initiate the compensation payment process under the following conditions:
a) The Company is unable to meet its financial obligations to investors due to its financial circumstances, with no foreseeable resolution, or
b) A court ruling suspends the ability of investors to make claims against the Company due to the Company's financial status.
  1. Exclusions from Compensation
The Fund does not compensate the following groups:
  • Institutional and professional investors, including those specified in the section above.
  • Entities not required to prepare a balance sheet according to applicable company law.
In cases where there is ambiguity regarding eligibility (such as for certain individuals or entities closely tied to the Company), the Fund may suspend compensation payments and will notify the interested parties until a final determination is made.