Secured securities will comprise the negotiable securities and financial instruments specified in article 2 of the Securities Market Act, deposited with a credit institution in Spain or any other country for safekeeping or registration or for the performance of any type of investment service. Secured securities will, in all instances, include any ceded through repurchase agreements that are still booked or registered as being held by the transferor.
The Fund will cover the non-return of any securities or investments belonging to an investor affected by the situations specified in article 8.2 of Royal Decree 2606/1996 of 20 December. In this particular instance, losses in value of investments or any credit risk will not be covered.
The sum secured for investors depositing securities or financial instruments with a credit institution will be a maximum of EUR 100,000, independent of the limit for secured monetary deposits.
The sum will be calculated at the market value of the securities and instruments on the day one of the events stipulated in article 8.2 of Royal Decree 2606/1996 occurs or on the previous working day if said event occurs on a public holiday, applying the exchange rate for that day if necessary. Secured sums will be reimbursed in their monetary equivalent.
If the securities or instruments are not listed on an official over-the-counter market in Spain or abroad, the sum secured should one of the events stipulated in article 8 of Royal Decree 2606/1996 occur will be calculated as per the following criteria, solely for this purpose:
Any guarantees will be applied per investor, whether they be a private individual or legal entity and irrespective of the number and class of securities or financial instruments they hold with the same institution.
When the securities or financial instruments have more than one holder, the balance thereof will be divided by the number of holders in accordance with the corresponding custodian agreement or, otherwise, into equal parts.
When the holders of a deposit comprising securities act as representatives or agents of third parties, provided they were so before the circumstances described in article 8 of Royal Decree 2606/1996 of 20 December occurred, the cover offered by the Fund will proportionally extend to the third-party beneficiaries of the deposit of securities.
Notwithstanding this, when the representative or agent is one of the entities not entitled to the Fund's cover as per article 4.4.a) of Royal Decree 2606/1996 of 20 December, it will be considered that the deposit of securities belongs to said entity and it will not be secured by the Fund.
Should an institution have its authorisation to provide investment services revoked, the securities or financial instruments held by it will no longer be covered by the Fund three months after the revocation date. During this period, the institution will continue to be required to make the legally enforceable contributions.