Investor protection

To maintain the stability of the European single market and ensure confidence in the financial system, member states of the European Union have implemented both depositor insurance for banks and investor protection for retail investors. This website has a focus on investor protection for retail investors in combination with alternative strategies to ensure maximum compensation for our clients in a cost efficient manner.

Investor protection in the European Union is discussed in the Investment Compensation Scheme Directive (ICD). To ensure financial stability and provide a uniform framework for investment protection in the EU, the member states codified the ICD in their local regulation. The objective of the ICD is to protect investors against the risk of losses in the event of an investment firm’s inability to repay money or return assets held on their behalf. The ICD ensures a swift resolution but does not replace traditional insolvency and bankruptcy procedures.

Retail investors can find themselves exposed to different investment risks. Such risks may include theft, embezzlement and other types of fraudulent acts. The ICD might cover losses in case of default by the investment firm. Yet, excluded from investor protection via the ICD are bad advice and third party losses. Since the ICD is the last resort for investor protection and loss recovery, duped investors can address several national laws to achieve justice and further compensation.

Following the passporting rules of the European Union and the corresponding maximum harmonization, MiFID (Directive 2014/65/EU) created a legal framework for securities markets, investment intermediaries and trading venues. The framework therewith increases competition and investor protection whilst ensuring a uniform level playing for market participants. The directive defines investment services as a regulated activity. As a consequence, market participants can refer to a regulator and national law to protect its investment.

Victims of investment fraud, or default and failure of an investment firm enter a lengthy and often frustrating process of fund and asset recovery. To ensure a smooth recovery process and retrieve the investment sum, staged actions trigger maximum results. Therefore, Legal Floris LLC guides its customers through a holistic recovery process that leaves no action untouched.