RESOLUTION OF THE NATIONAL COMMISSION ON THE FINANCIAL MARKET OF THE REPUBLIC OF MOLDOVA

of June 16, 2014 No. 32/2

About approval of the Regulations on Fonda of compensation to investors

Based on Art. 130 of the h. (2), Art. 131-1, of Art. 132 of the h. (1) and h. (5), Art. 146-1 of the h. (13) the Law No. 171 of 11.07.2012 "About the capital market" (The official monitor of the Republic of Moldova, 2012, No. 193-197, the Art. 665) the National commission on the DECIDES: financial market

1. Approve Regulations on Fonda of compensation to investors according to appendix.

2. This resolution becomes effective from 1.11.2014.

Appendix

to the Resolution of the National commission on the financial market of the Republic of Moldova of June 16, 2014 No. 32/2

Regulations on Fonda of compensation to investors

This Provision partially realizes the Directive No. 97/9/EU of March 3, 1997 of the European Parliament and Council about schemes of compensation to investors, published in the Official magazine of the European Communities No. L 84 of March 26, 1997.

Chapter I. General provisions

1. This Provision provides operating conditions of Fund of compensation to investors, procedure for determination and payment of fees, and also payments of compensation according to provisions of the Law on the capital market (further – the Law on the capital market).

2. From the effective date this provision the Fund of compensation to investors which is controlled by the National commission on the financial market and is used according to its decisions is created.

3. The fund of compensation to investors is created for the purpose of compensation in accordance with the terms of this provision to physical persons clients of members of Fund in case of their inability to return the money and/or financial instruments of clients transferred to members of Fund during rendering investment and adjacent services. The fund is used for compensation to clients of trustees who, due to the lack of information in registers of clients, did not transfer assets in real ownership (further – trustees) as it is stipulated in Clause 1311 the Law on the capital market.

4. The terms and expressions used in this Provision correspond to the determinations provided in the Law on the capital market. For the purposes of this provision the following terms and expressions have the following determinations:

a) NKFR – National commission on the financial market;

b) compensation – the cost of the compensated investment which is paid by Fund to the investor, to the amount of the member of Fund equal to total amount of the obligation to the investor, but no more than the limit set in this Provision. In case of clients of trustees, compensation is the asset cost (valuable papers / shares) and the money which is on accounting of customer account according to the recovered information from registers of clients of trustees;

c) the joint investment account – the investment performed into the account of two or several member investors of one partnership, one association or investment to which the rights of two or several investors with the status of members of one partnership, one association expressed by right to sign of one or several of the above-stated investors extend;

d) the initial contribution – the non-refundable obligatory amount calculated according to Item 10 which is initially paid by members of Fund;

e) annual fee – the non-refundable obligatory amount calculated according to Items 11-13 which is annually paid by members of Fund;

f) special fee – the non-refundable obligatory amount paid by members of Fund in cases of insufficiency of the means which are available for Fund for obligation fulfillment for payment of compensations in the amount of and in time, certain NKFR;

g) Fund – Fund of compensation to investors;

h) the investor – the physical person – the client which entrusted money and/or financial instruments to investment society during rendering investment financial services;

i) compensation limit – the maximum amount of compensation for each investor;

j) transaction price – the price at which security transactions on the Stock exchange of Moldova during one trading session are concluded;

k) SPBOD – Service according to the prevention and anti-money laundering;

l) the trustee's client – the physical person specified in the degree of jurisdiction of information recovered and confirmed with the final resolution from registers of clients of trustees.

Chapter II. Fund

5. Fund is created for the account:

a) initial contributions;

b) annual fees;

c) special fees;

d) investment incomes of the financial resources provided by subitems a), b), c), e), g) and h);

e) income from payment of penalty fee for delay;

f) the income from return of the debt obligations compensated by Fund;

g) donations, subsidies, assignments;

h) the means transferred based on Art. 146-1 of the h. (13) Law on the capital market.

6. NKFR opens the separate account for accumulating of financial resources of Fund and keeps financial accounting separately on each category of the means provided in Item 5.

7. Fund can be used only for compensation of damage to investors or clients of trustees and for covering of expenses on activities of Fund.

8. The expenses connected with management and functioning of Fund become covered at the expense of the means specified in and NKFR in the form of annual fee on administration and functioning of Fund of compensation to investors according to the Law on the National commission on the financial market No. 192/1998 and the resolution of the NKFR Administrative board on the amount of the charges and payments established for the corresponding year are levied annually, and for compensation of damage to investors all available funds specified in Item 5 are used. For compensation to clients of trustees the means specified in the subitem h) Item 5 are used.

9. The investment societies and the allowed persons which received the status of members of Fund shall participate in forming of fund by payment of the following fees: the initial contribution, annual fees and depending on circumstances special fees.

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