The investors affected by the collapse of the securities company Esfera Capital they begin to receive their compensation. The Investment Guarantee Fund (Fogain) has begun the process of paying up to 100,000 euros per customer and account, as reported on Tuesday.
Fogain has explained that has already received “various requests” from clients of Capital Sphere. However, due to the mobility restrictions that are still in force with the state of alarm, the fund has enabled a telematic system to claim compensation from its website.
This guarantee covers all Esfera Capital investors, except for the cases expressly excluded by the regulations, such as clients that are financial entities or related persons to Capital Sphere.
The start of this coverage comes after the National Securities Market Commission (CNMV) certified the impossibility of fulfilling the obligations contracted with investors of the securities agency Esfera Capital. As a result of this assessment, it approved the activation of the Fogain on April 30.
The Fogain has highlighted that the first indemnities have been executed “in less than a month”, after carrying out “the corresponding verifications”. Fogain offers clients of its affiliated entities coverage for compensation in the event that they enter bankruptcy or insolvency by the CNMV.
A ‘hole’ by derivatives
Fogain is nourished by the contributions of its affiliated entities, which are currently 180, in order to attend compensation before lack of availability or restitution of securities or cash entrusted to one of its affiliated entities in custody or management and does not cover investment risk or credit risk.
The CNMV announced on March 20 the intervention of this securities agency at the request of the entity itself after having detected “a heritage mismatch” of about 6 million euros, derived from “an incident related to the management of derivative positions of a limited number of clients”.
Just a couple of days after the intervention of the parent company of Esfera Capital Agencia de Valores, the private bank Andbank Spain announced a principle of agreement with the Esfera Capital group to acquire 100% of the management company of the firm, Esfera Capital Gestión.
The operation, which is still pending the obtaining of the corresponding authorizations, aims to “guarantee the continuity of the services that the management company had been providing to date after the intervention of the parent company, which is not affected by this operation. “