Section 215 Investments and Securities Act

Section 215 of the Investments and Securities Act 2025 is about Claims against an investor protection fund. It is under Part XIV (Investor Protection Fund) of the Act. It provides as follows:

(1) Subject to the provisions of this Part, a person who suffers pecuniary loss as provided in section 213 of this Act shall be entitled to claim compensation from the investor protection fund established for the exchange to which the defaulting member company or dealing member firm belongs.

(2) A claim for compensation shall first be made to the defaulting capital market operator who committed the defalcation.

(3) Where the capital market operator is unable to satisfy the claim, a claim for compensation under this Part shall be made to an exchange which shall within 90 days verify every claim and determine the amount or extent, if any, to which the claim shall be allowed.

(4) Subject to fulfilling such preconditions for compensation as may have been prescribed by the board of trustees, a verified claim shall be paid by the investor protection fund to an investor within 14 days of such verification by the exchange.

(5) The provisions of subsection (3) shall be without prejudice to the power of the Commission or the Tribunal to direct or order the payment of compensation in accordance with the provisions of this Act.

(6) Subject to subsections (3) and (4), a person shall not have any claim against an investor protection fund in respect of a defalcation concerning money or other property which, prior to the commission of the defalcation, had in the due course of the administration of a trust ceased to be under the control of the director or directors of the dealing member firm concerned.

(7) Subject to this Part and any limit that may be determined by the exchange and approved by the Commission, the amount which any claimant shall be entitled to claim as compensation from an investor protection fund shall be the amount of the actual pecuniary loss suffered by the person, including the reasonable cost of disbursement incidental to the making and proving of the claim, less any amount or value of all money or other benefits received or receivable by the person from any source other than the investor protection fund in reduction of the loss.

(8) In addition to any compensation payable under this Part, interest shall be payable out of the investor protection fund concerned on the amount of the compensation, less any amount attributable to costs and disbursements, at a rate to be determined by the board of trustees.

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