Resolution of Investment Intermediaries Fund

A Resolution of Investment Intermediaries Fund is established, consisting of separate sub-funds:

1. a sub-fund for the purpose of financing the application of resolution tools and powers under this law in respect of the investment intermediaries under Art. 1, para. 1, item 2 of the RRCIIIA, which do not fall within the scope of Regulation (EU) No. 806/2014, and the branches of investment intermediaries from third countries under Art. 1, para. 1, item 6, and

2 a sub-fund for the collection of contributions under Articles 69, 70 and 71 of the RRCIIIA of Regulation (EU) No. 806 / 2014 and their transfer to the SRF (Single Resolution Fund). This sub-fund is created in case an investment intermediary falls within the scope of Art. 2 of Regulation (EU) No. 806/2014.

The Resolution of Investment Intermediaries Fund (the “Fund”, the “RIIF”), established for the purpose of financing the resolution tools, is managed by the Management Board of the Investor Compensation Fund. The Fund’s resources are raised through individual annual contributions from investment intermediaries not covered by Regulation (EU) No. 806/2014 and from branches of investment intermediaries from third countries and may be used following a decision of the FSC, in its capacity as of the resolution authority, for the following:

1. Guaranteeing the assets or liabilities or lending to an investment intermediary under resolution, subsidiaries, a bridge investment intermediary or an asset management company;

2. Purchase of assets of the investment intermediary under resolution;

3. Acquisition of participation in a bridge investment intermediary, bridge financial holding company or by an asset management company;

4. Payment of compensations to shareholders, partners or creditors according to Art. 107 of the RRCIIIA;

5. Contributions to the investment intermediary under resolution where a loss-sharing tool is applied, and the resolution authority has decided to exclude certain creditors from the scope of loss-sharing;

6. Lending to other financing mechanisms on a voluntary basis.

The Fund’s resources cannot be used to directly cover the losses of an intermediary, nor for its recapitalization.

The FSC, as the resolution authority, should determine by March 31 of each calendar year the total amount of the annual installments for the respective year, taking into account the phase of the economic cycle and the corresponding impact on the financial position of investment intermediaries, and by May 1 of each calendar year to determine the amount of the individual annual installments of the investment intermediaries obliged under the RRCIIIA and to notify them thereof.