In addition to the Securities Giro Act, securities are protected by the Investor Compensation System. This scheme protects individuals and small businesses that have entrusted money or financial instruments (for example, shares or bonds) to a licensed bank or investment firm. In the event of fraud, mismanagement or bankruptcy, you can make a claim under this scheme.
The maximum compensation is EUR 20,000 per person. If an account is held in two people’s names, both named parties can claim for a maximum of EUR 20,000 each.
The Investor Compensation Scheme does not cover other reasons for losses made on investments.
More information about the Investor Compensation Scheme can be found on the website of De Nederlandsche Bank.