The amount of compensation
If the value of a claim supported by the investment contract corresponds to the data in the records of an IPF member, the IPF ascertains the amount of compensation in line with the corresponding values.
When calculating the amount of compensation due, all of the claims that an investor has arising from the provision of investment services of a member of the IPF must be consolidated.
The IPF indemnifies investors in cash. The amount of compensation paid against securities is calculated on the basis of the average market price of the securities during a period of 180 days before the first day of liquidation. If stock exchange or OTS market prices are not available, the Board of Directors of the IPF will determine the price to be used for calculating the indemnity and will rely on consultants in doing, if necessary.
If the conditions precedent to disbursing compensation are satisfied, the IPF will pay compensation subject to a consolidated cap of HUF one million per investor. The amount of compensation increases to HUF 2 million as of 1 January 2005, and to EUR 20 thousand as of 1 January 2008, and to EUR 100 thousand as of 1 January 2016 provided that the IPF will only pay 90% of the portion of a claim above HUF 1 million, and the investor will bear the remaining 10% of the claim as if it were a form of deductible.
In the case of jointly held securities, the compensation cap is calculated separately for each party specified in the contract that constitutes the basis for compensation claims.