Client information about the security scheme

for Golding Capital Partners GmbH pursuant to Article 31 of the German Investment Firm Act (WpIG) on the investor-compensation scheme.

 

Security scheme

Due to legal obligations, Golding Capital Partners GmbH is subject to the German Compensatory Fund of Secu-rities Trading Companies (Entschädigungseinrichtung der Wertpapierhandelsunternehmen  - EdW). Address: Entschädigungseinrichtung der Wertpapierhandelsunternehmen, Charlottenstrasse 33/33a, 10117 Berlin-Mitte, Germany.

 

Security conditions

The scope of protection of the German Investor Compensation Act (Anlegerentschädigungsgesetz – AnlEntG) only includes those obligations from securities transactions that are part of principal contractual performance obligations (primary obligations to perform) of an investment firm. On the other hand, claims for damages (sec-ondary claims) are ruled out and are not eligible for compensation, in particular those due to incorrect advice and, also, due to incorrect investment. 

The financial services provided by Golding Capital Partners GmbH relate exclusively to the investment broker-age of shares in alternative investment funds (AIF) which are managed by the manager of undertakings for collective investments within the Group. The company is not entitled to procure proprietorship or ownership of monies or securities of clients while providing financial services. Therefore, Golding Capital Partners GmbH does not receive any payments from investors. Instead, Investors’ payments are made directly to the alternative investment funds’ accounts held by partner banks. The partner banks maintaining the accounts and the man-ager of undertakings for collective investments are governed by their own investor-compensation schemes.

 

Asserting claims for compensation

A compensation case within the meaning of the German Investor Compensation Act occurs if the German Fed-eral Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) determines that, for reasons directly related to its financial position, an institution is incapable of meeting liabilities relating to securities transactions and, also, there is no prospect of later fulfilment. Compensation claims of the client pur-suant to the German Investor Compensation Act are based on the amount and scope of liabilities to the client arising from securities transactions, taking into account any offsetting and retention rights of the institution. Liabilities from securities transactions within the meaning of the German Investor Compensation Act are the obligations of an institution to repay monies owed or belonging to investors from securities transactions which are held on their account in connection with securities transactions. This also includes claims by investors to the return of instruments which they own and which are held or kept on their account in connection with securi-ties transactions. The right to compensation only exists if deposits or funds are denominated in the currency of an EU member state or in euro. The amount of the compensation claim per client is limited to 90 per cent of the liabilities from securities transactions and the equivalent of 20,000 euro, including claims for interest. These exist as of the occurrence of the compensation case until repayment of the liabilities, or until the opening of insolvency proceedings at the latest. Calculation of the amount of the compensation claim is based on the amount of funds and the market value of the financial instruments when the compensation case occurs. The claim for compensation is reduced to the extent that the loss of assets suffered by the creditor as a result of the compensation case is compensated for by payments made by third parties. Certain clients are not entitled to compensation (e.g. CRR credit institutions, private and public insurance companies and management compa-nies).