Legal Floris LLC is a US registered boutique firm, specialized in fund recovery services for victims in bank failure and investment fraud. The objective of our work is to ensure that victims explore their options for fund recovery and ultimately get indemnified or compensated for their loss where this is possible.
Investors can earn a profit or risk their investment. Those very investors who lose their capital due to the failure of the financial adviser or investment firm, not always know where to go and what to do to be compensated for their detrimental losses. A holistic approach to fund recovery, leaves no mechanism untouched. Therefore, as part of our strategy, we negotiate on behalf of large groups of victims in investment fraud and financial failure with regulators and central banks to ultimately trigger a domestic investor compensation scheme that potentially covers losses up to 20.000 Euro. When losses exceed the potentially insured compensation level, or when an insurance claim gets unexpectedly rejected, further recovery stages – as contractually agreed – are advanced to ensure maximum recovery.
The holistic approach towards fund recovery we use includes different strategies. This way we ensure that when a wrong against investors justifies legal action, recovery can come from different ways. Even though not all investment risk results in an attributable offense towards a financial adviser or investment firm, we will carefully study the options available to you and advice you accordingly. To execute our proposal and engage our services to start a recovery procedure, terms and conditions are agreed by contract.
To safeguard the functioning of the internal market, protect investors and maintain confidence in the financial system, the European Parliament has provided the member states with a harmonized and binding Community system of investor compensation for qualifying investors, investing with investment firms. The system follows a European directive and therefore has no direct effect when it comes to the implementation by individual member states, as long as the objectives are met. The goal of the directive is the harmonization of investor compensation up to 20.000 Euro in all member states to protect investors and maintain the integrity of the financial system, specifically where investment firms or credit institutions fail.
Investors can receive external protection by government backed investor compensation schemes when investment firms fail, become insolvent, or are shut down by regulatory intervention. The European Parliament provided the member states in the single market by Directive 97/9/EC (also known as the Investment Compensation Scheme Directive – in short ICD) with protective measures for clients of investment firms as well as clients of credit institutions offering investment services. Although the directive aims to streamline a secure process that leads to a uniform end-result, member states are free to decide how to implement a regulatory framework to ensure investor protection. Yet, each scheme must cover money and financial instruments held by an investment firm in connection with the operations of an investor.
Contrary to investment risk, fraud and malpractice resulting in a winding down of an investment firm or credit institution can be covered by the directive. This means that the thin line between adventurous investing and deceit must be proven to qualify for government backed investor protection, or even trigger criminal investigations by law enforcement.
As with most European directives, the definition of applicable terminology is crucial. It reveals the scope and guarantees of investor protection and clarifies the type of investments and investment firms that are included. Investment services and instruments are Annex, Section A and B of the Council Directive 93/22/EEC. A limitative description of the contents for both Sections is available here. Investment firms are also defined by Council Directive 93/22/EEC, stating that investment firms are (authorized) legal persons whose regular occupation or business is to provide professional investment services to third parties.