How are the securities of an investor who is an individual business owner guaranteed?
If an individual business owner (craftsman, merchant, self-employed professional, etc.) conducts business through a separate legal entity, for example a one-person limited liability company (EURL), or under the status of limited liability individual business owner (EIRL), the securities and associated cash held in their business accounts are covered separately from their personal accounts.
The investor compensation scheme therefore covers the business owner’s securities accounts and cash held in the name of the EURL or EIRL, on the one hand, and their personal accounts, on the other.
How does the investor compensation scheme work for a joint signatory account or a partners' account?
- A “joint signatory account” is an account that belongs to a group of people (“undivided co-ownership”), none of whom may act independently of the others or claim ownership of a portion of the account so long as the undivided co-ownership exists.This type of account may include both securities and cash.
The guarantee covers the undivided co-ownership and not the portion belonging to each of its individual members.
- Account holders that have rights as partners of a company, members of an association or a similar group, and are not legal entities (for example, undeclared partnerships and similar groups), are treated as a separate investor.
They benefit collectively from a second compensation ceiling, in addition to the ceiling applicable to them individually.