The Scheme’s principle funding arrangement is insurance cover.
The insurance policy currently covers 5 million euros and this would come into effect when the Commissioner declares a participant in default as prescribed by the Act. The insurance policy will provide compensation for eligible claimants of a failed participant to the limits as set by the Act.
Levies on participants.
Each participant contributes annually to the payment of the insurance cover. The Board has established a self-assessment model to determine the most appropriate individual annual levies for firms. The calculation methodology used is based on the category of authorisation and the number of eligible clients a firm holds.
Each year, the GICS board bases the administrative levy upon the costs budgeted for the year. These fees will seek to cover the expected administrative expenses in that year together with any shortfall in previous financial years of receipts over administrative expenses.
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