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Only the Estonian version is official GUARANTEE FUND ACT[Passed 20 February 2002 (RT1 I 2002, 23, 131), entered into force 1 July 2002;
Chapter 1 § 1. Scope of application of Act This Act provides for objective, the legal status and the bases and procedure for the activities of the Guarantee Fund (hereinafter Fund). § 2. Objective of Fund (1) The objective of the Fund is to guarantee, under the conditions and to the extent provided by this Act, protection of funds deposited by clients of
credit institutions (hereinafter depositors), clients of investment institutions (hereinafter investors), unit-holders of mandatory pension funds
(hereinafter unit-holders) and policyholders of pension insurance contracts signed with insurers (hereinafter policyholders) and thereby to increase the
reliability and stability of the financial sector. (2) In order to achieve its objective, the Fund shall: 2) under the conditions, to the extent and pursuant to the procedure provided by this Act, compensate depositors for deposits placed thereby with credit institutions; 3) under the conditions, to the extent and pursuant to the procedure provided by this Act, compensate investors for their investments; 4) under the conditions, to the extent and pursuant to the procedure provided by this Act, compensate for any damage caused by a pension management company to unit-holders; 41) under the conditions, to the extent and pursuant to the procedure provided by this Act, support the transferring of the insurance
portfolio of pension insurance contracts from one insurer to another; 5) perform other duties arising from this Act. § 3. Legal status of Fund (1) The Fund is a legal person in public law founded by this Act. The passive legal capacity of the Fund arises as of the entry into force of this Act. (2) The Fund is the legal successor of the Deposit Guarantee Fund which operated on the basis of the Deposit Guarantee Fund Act (RT I 1998, 40, 612; 2002, 21, 117) until the entry into force of this Act. (21) The Fund shall be registered in the state register of state and local government agencies pursuant to the procedure provided for in the statutes of the register. (3) The Fund shall operate pursuant to this Act, the statutes of the Fund (hereinafter statutes) and other legislation. The statutes shall be approved and amended by the Government of the Republic on the proposal of the Minister of Finance. (4) The merger, division or transformation of the Fund is not permitted. (5) The Fund is dissolved pursuant to law. § 4. Sectoral funds (1) The Fund shall establish the following
pools of assets (hereinafter sectoral funds) out of the contributions received
by the Fund: (2) The Deposit Guarantee Sectoral Fund shall be established out of the contributions of credit institutions and used in order to guarantee and compensate, under the conditions and to the extent provided by this Act, for deposits placed with credit institutions by persons entitled to receive compensation. (3) The Investor Protection Sectoral Fund shall be established out of the contributions of investment institutions and used in order to ensure that the interests of investors are protected under the conditions and to the extent provided by this Act. (4) The Pension Protection Sectoral Fund shall be established out of the contributions of pension management companies and used in order to ensure that the interests of unit-holders are protected under the conditions and to the extent provided by this Act. (5) The Pension Insurance Contracts Sectoral Fund shall be established out of the contributions of insurers and used in order to guarantee,
under the conditions and to the extent provided by this Act, for the pension benefits of the policyholders according to the pension insurance contracts. § 5. Name (1) The name of the Fund shall be "Tagatisfond"
[Guarantee Fund] and the names of the sectoral funds shall be "hoiuste
tagamise osafond" [Deposit Guarantee Sectoral Fund], "investorikaitse
osafond" [Investor Protection Sectoral Fund], "pensionikaitse osafond"
[Pension Protection Sectoral Fund] and "pensionilepingute osafond" [Pension Insurance Contracts Sectoral Fund]. (2) The Fund has the exclusive right to its own name and to the names of the sectoral funds. (3) If the interests of the Fund are damaged by unlawful use of its name or the name of a sectoral fund, the Fund may demand termination of the unlawful use of the name and compensation for any damage caused thereby.
Chapter 2 Division 1 § 6. Competence of supervisory board (1) The highest directing body of the Fund is the supervisory board of the Fund (hereinafter supervisory board). (2) The supervisory board shall: (3) Members of the supervisory board shall be liable for the consequences of the decisions specified in subsection (2) of this section pursuant to the provisions of § 17 of this Act. § 7. Members of supervisory board (1) The supervisory board shall consist of nine members appointed as follows: (2) The written consent of a person and his or her written confirmation that he or she meets the requirements provided by this Act for members of the supervisory board is necessary for the appointment of the person as a member of the supervisory board. (3) The organisations specified in clauses (1) 5)-8) of this section shall be determined by the Minister of Finance. If such organisations fail to
appoint a member of the supervisory board within thirty days after the Minister of Finance has made the corresponding proposal or if the provisions of this
Act or the statutes are violated upon appointment, the member of the supervisory board shall be appointed by the Supervision Authority. (4) The specific procedure for appointment of the members of the supervisory board shall be provided by the statutes. § 8. Requirements for members of supervisory board (1) A member of the supervisory board shall be an Estonian citizen with active legal capacity who has an academic degree recognised by the state or education corresponding to such level, an impeccable professional and business reputation, and the experience necessary to manage an agency in the financial or public sector. (2) The following shall not be appointed as
members of the supervisory board: (3) The compliance of the members of the
supervisory board specified in clauses 7 (1) 5)-8) of this Act with the
requirements provided by this Act shall be verified by the Supervision
Authority. The Supervision Authority has the right to demand information
necessary for such purpose from the members of the supervisory board. § 9. Term of authority of supervisory board (1) The term of authority of the supervisory board shall be four years as of the date of the first meeting of the supervisory board. (2) Upon expiry of the term of authority, the supervisory board shall continue its activities until the first meeting of the new membership of the supervisory board. During this period, the supervisory board shall avoid adoption of a resolution specified in clause 6 (2) 1), 2), 4)-6), 8)-10), 12)-14) or 16) of this Act unless the resolution is strictly necessary. § 10. Removal of members of supervisory board (1) A member of the supervisory board shall be removed by the person who appointed him or her (hereinafter appointing person). (2) A member of the supervisory board may resign by submitting a corresponding written application to the appointing person. The member of the supervisory board shall send a copy of the application to the Fund. The member of the supervisory board shall be deemed to have resigned as of the date on which the appointing person makes the corresponding decision, but not later than three months after submission of the letter of resignation to the appointing person. (3) A member of the supervisory board shall be removed immediately if: (4) A member of the supervisory board may be removed before the expiry of his or her term of authority if he or she suffers from an illness lasting for more than four months and is unable to perform his or her duties due to the illness. Termination of his or her employment or service relationship or expiry of his or her authority as a member of the Riigikogu or the Government of the Republic may also serve as a basis for removal. (5) If circumstances specified in subsection
(3) of this section appear and the organisations specified in clauses 7 (1)
5)-8) of this Act fail to remove the person appointed thereby from the
supervisory board within thirty days after the appearance of such
circumstances, the member of the supervisory board shall be removed by the
Supervision Authority. (6) Upon the removal, resignation or death of a member of the supervisory board, he or she shall be replaced by a new member whose authority shall commence on the date of his or her appointment and continue until the end of the term of authority of the supervisory board. (7) The specific procedure for the removal and resignation of members of the supervisory board shall be provided by the statutes. § 11. Chairman and deputy chairman of supervisory board (1) The members of the supervisory board shall elect the chairman of the supervisory board (hereinafter chairman) and the deputy chairman of the
supervisory board (hereinafter deputy chairman) from among themselves pursuant to the procedure provided by the statutes. Upon appointment of a new
membership of the supervisory board, a new chairman and deputy chairman shall be elected. During its term of authority, the supervisory board may elect a
new chairman or deputy chairman if this is required by at least five members of the supervisory board. (2) A meeting of the supervisory board deciding on the election of the chairman and deputy chairman has a quorum if all appointed members of the supervisory board participate in the meeting. The chairman shall be elected before the election of the deputy chairman. (3) Upon the removal, resignation or death of the member of the supervisory board who is the chairman or deputy chairman of the supervisory board, a new chairman or deputy chairman shall be elected at the meeting of the supervisory board following the appointment of a new member of the supervisory board. Upon the resignation of a member of the supervisory board from the position of chairman or deputy chairman, the supervisory board shall elect a new chairman or deputy chairman at the meeting of the supervisory board following the resignation. (4) The chairman shall: § 12. Meeting of supervisory board (1) Meetings of the supervisory board shall be held at least once every three months. (2) Meetings shall be convened by the chairman. A meeting of the supervisory board shall be convened if so required by at least two members of the supervisory board or by the Minister of Finance, the President of the Bank of Estonia or the chairman of the management board of the Supervision Authority. (3) The Director shall convene the first meeting of a new membership of the supervisory board within one month after the date of appointment of the last member of the supervisory board. In the absence of the Director or if the Director fails to convene a meeting on time, the meeting of the supervisory board shall be convened by the Minister of Finance. (4) Meetings of the supervisory board shall be closed unless the supervisory board decides otherwise. The Director shall attend the meetings of the supervisory board unless the chairman of the supervisory board decides otherwise. (5) The procedure for announcing and conducting meetings of the supervisory board, and other issues regarding the meetings shall be provided by the statutes. § 13. Resolution of supervisory board (1) Resolutions of the supervisory board shall be adopted at a meeting or without convening a meeting. (2) A meeting of the supervisory board has a quorum if at least six members of the supervisory board are present. (3) Each member of the supervisory board has one vote. Members of the supervisory board do not have the right to abstain from voting or to remain undecided, except in the cases provided for in subsection (4) of this section. (4) A member of the supervisory board shall not participate in a vote by which the commencement or termination of a court action against him or her is decided, and in other cases provided by law. (5) If a member of the supervisory board is personally interested, whether directly or indirectly, in a resolution on an issue to be discussed, he or she shall notify the supervisory board of such interest pursuant to the procedure provided by the statutes. (6) If a relative (a child, parent, sister or brother), spouse or relative by marriage (a child, parent, sister or brother of the spouse) of a member of the supervisory board or a family member residing with him or her is the Director or a person to be appointed Director, the member of the supervisory board shall notify the supervisory board thereof before voting on issues provided for in clause 6 (2) 4) of this Act. (7) A resolution of the supervisory board is adopted if more than one-half of the members of the supervisory board who participate in the voting, but not less than five members of the supervisory board, vote in favour. Upon an equal division of votes, the vote of the chairman governs, and in the absence of the chairman, the vote of the deputy chairman governs.br> [RT I 2008, 48, 269 - entered into force 14.11.2008] (8) A member of the supervisory board who votes against a resolution of the supervisory board has the right to submit his or her dissenting opinion. § 14. Adoption of resolutions without convening meeting (1) The supervisory board has the right to adopt resolutions without convening a meeting of the supervisory board if all members of the supervisory board hold a certificate for giving digital signatures issued pursuant to the Digital Signatures Act (RT I 2000, 26, 150; 92, 597; 2001, 56, 338; 2002, 53, 336; 61, 375). (2) The supervisory board does not have the right to adopt resolutions on issues specified in clauses 6 (2) 1)-5) and 8)-15) of this Act without convening a meeting of the supervisory board. (3) Upon adoption of a resolution of the supervisory board in the manner provided for in subsection (1) of this section, all proposals, positions and resolutions shall be certified by digital signatures. (4) The chairman shall send a draft resolution of the supervisory board to all members of the supervisory board and specify the term by which the members of the supervisory board are to present their positions. An explanation concerning the draft resolution and the reasons why the resolution is to be adopted without convening a meeting shall be annexed to the draft. (5) The provisions of § 13 of this Act apply to the adoption of resolutions. If a member of the supervisory board does not submit a written reply by the due date specified by the chairman of the supervisory board, he or she shall be deemed to have voted against the draft resolution. (6) Voting results shall be documented in a voting record (hereinafter voting record) which shall be sent promptly to all members of the supervisory board and to the Director. § 15. Minutes (1) Minutes shall be taken of the meetings of the supervisory board. The information to be recorded in the minutes and other requirements for the minutes of a meeting shall be provided by the statutes. (2) Minutes shall be signed by the chairman and the person taking the minutes at the request of the chairman. Voting records shall be signed by the chairman and the Director. (3) Written dissenting opinions submitted by the members of the supervisory board shall be annexed to the minutes. A notation shall be made in the minutes concerning the annexing of a dissenting opinion, and the member of the supervisory board who submitted the opinion shall confirm the notation by his or her signature. (4) The Fund shall preserve minutes of meetings of the supervisory board and voting records indefinitely. The preservation of minutes and annexes thereto shall be organised pursuant to the Archives Act (RT I 1998, 36/37, 552; 1999, 16, 271; 2000, 92, 597; 2001, 88, 531; 93, 565; 2002, 53, 336; 61, 375; 63, 387; 82, 480). The Director shall be responsible for preservation of the minutes. § 16. Remuneration of members of supervisory board Members of the supervisory board shall receive monthly remuneration in the amount of the minimum monthly wage. The member of the supervisory board
appointed by the Government of the Republic shall not receive remuneration. § 17. Liability of members of supervisory board (1) Members of the supervisory board shall be solidarily liable for damage caused to the Fund by violation of Acts, the statutes and other legislation and by failure to perform their obligations. (2) Members of the supervisory board who cause damage to a creditor of the Fund by failing to perform their obligations or by performing their obligations inadequately shall be liable to the creditor solidarily with the Fund. (3) A member of the supervisory board shall be released from liability to the Fund or to a creditor if he or she was against the resolution which was the basis for the corresponding activity and submitted a written dissenting opinion or if he or she did not participate in the adoption of the resolution. (4) The limitation period for assertion of claims against a member of the supervisory board shall be five years from the occurrence of the violation or the end of the violation.
Division 2 § 18. Competence of Director (1) The Fund shall be managed and represented by the Director. (2) The Director shall: (3) The Director is also competent to decide on matters regarding activities of the Fund which are not specified in subsection (2) of this section and are not within the competence of the supervisory board or any other body pursuant to law, the statutes, other legislation or a resolution of the supervisory board. (4) The Director shall be subordinate and report to the supervisory board. The activities of the Director shall be based on the resolutions of the supervisory board. (5) The Director shall immediately notify the supervisory board of any deterioration in the financial situation of the Fund and of other material circumstances related to the activities of the Fund. § 19. Requirements for Director (1) The Director shall be an Estonian citizen with active legal capacity who has an academic degree recognised by the state or education corresponding to such level, an impeccable professional and business reputation and a total of at least five years' work experience in the field of internal control, auditing, finance or law or as a public servant in a position relating to such fields. (2) The following persons shall not be appointed as Director: (3) The Director may be a member of the supervisory board or management board of a company or work for another employer only with the consent of the supervisory board. § 20. Agreement with Director (1) The Director shall enter into an agreement prescribing the rights and obligations of the Director and the remuneration for performing the duties of Director. (2) Before entry into the agreement, a
candidate for the position of Director shall submit the following to the supervisory board in writing: (3) The Director shall notify the chairman immediately of any material changes in the information specified in subsection (2) of this section and of any circumstances which would preclude his or her right to work as Director. § 21. Term of authority and substitution (1) The term of authority of the Director shall be three years. (2) The authority of the Director shall commence as of the date provided for in the resolution on his or her appointment. (3) In the absence of the Director and, upon expiry of his or her term of authority, until the appointment of a new Director, the duties of the Director shall be performed by an employee of the Fund appointed by the chairman. (4) The provisions of §§ 18, 19 and 23 of this Act concerning the Director apply to an employee of the Fund performing the duties of the Director. § 22. Removal of Director (1) The Director shall be removed before the end of his or her term of authority within one month after he or she has submitted a corresponding written application. (2) The Director shall be removed immediately if: (3) The Director may be removed before the expiry of his or her term of authority if he or she suffers from an illness lasting for more than four months or there is any other good reason why he or she is unable to perform his or her duties. (4) Upon the removal or death of the Director, the supervisory board shall immediately appoint a new Director. § 23. Liability of Director (1) The Director shall be liable for any damage he or she causes to the Fund by violating law or the statutes or by failing to perform his or her obligations. (2) If the Director causes damage to a creditor of the Fund by failing to perform his or her obligations or by performing his or her obligations inappropriately, he or she shall be liable to the creditor solidarily with the Fund. (3) The limitation period for assertion of claims against the Director shall be five years from the occurrence of the violation or the end of the violation.
Chapter 3 Division 1 § 24. Deposit (1) For the purposes of this Act, a deposit refers to claims arising from the settlement contract of a depositor against the credit institution managing the account of the depositor and to claims arising from the settlement or loan contract of a depositor against the borrowing credit institution. (2) For the purposes of this Act, a deposit also means a sum for the transfer of which depositors or other persons have issued a corresponding payment order for their own account but the credit institution has not executed the payment order by the date on which deposits become unavailable. (3) Non-transferable registered acknowledgements of obligation pertaining to deposits (deposit certificates) are also deemed to be deposits. (4) For the purposes of this Act, a joint deposit is a deposit which belongs to two or more persons jointly. § 25. Level of guarantee of and compensation for deposits (1) Deposits of depositors of credit institutions registered in Estonia (hereinafter in this Chapter credit institutions) and Estonian branches of foreign credit institutions (hereinafter in this Chapter branches) shall be guaranteed and compensated for out of the Deposit Guarantee Sectoral Fund (hereinafter in this Chapter the Sectoral Fund) in accordance with the provisions of this Act. (2) Deposits, together with the interest thereon as at the date on which the deposits become unavailable, shall be guaranteed and compensated for to
the extent of their value but not more than in the amount of 50,000 euro per depositor in any one credit institution. (3) For the purposes of compensation for a joint deposit, each owner of the joint deposit shall be deemed to be a depositor. (4) Interest on a deposit shall be calculated on the basis of the rates provided for in the settlement or loan contract specified in subsection 24 (1) of this Act or, in the absence of a written agreement, on the basis of the rates provided for in the standard depositing terms valid in the credit institution on the date on which the deposits become unavailable. § 26. Date on which deposits become unavailable (1) For the purposes of this Act, the date on
which deposits become unavailable is one of the following dates, whichever occurs first: (2) On the date on which deposits become unavailable, the due date for repayment of deposits shall be deemed to have arrived. (3) The Fund is required to compensate for deposits under the conditions and pursuant to the procedure provided by this Act as of the date on which the deposits become unavailable. (4) The Supervision Authority shall immediately notify the Fund about performing an act or about discovering an event or an act specified in
subsection (1) of this section. If another institution or person has the information specified above before the Supervision Authority, then such
institution or person shall immediately notify the Fund and the Supervision Authority. § 27. Guarantee of deposits in branches (1) Deposits of the depositors of a branch (hereinafter deposits in branches) which, under a guarantee scheme of the home country of the credit institution, are guaranteed to the same or a higher level than prescribed by this Act shall not be guaranteed on the basis of this Act. For the purposes of this Act, the home country of a credit institution is the state where the credit institution is registered and the competent authority of which has issued the authorisation of the credit institution. (2) In cases not specified in subsection (1) of this section, deposits in a branch shall be guaranteed on the basis of this Act. (3) The Supervision Authority shall decide whether the guarantee scheme of the home country of a credit institution complies with the conditions
provided for in subsection (1) or (2) of this section on the basis of a corresponding application of the credit institution within thirty days after
submission of the application. If there is insufficient information regarding a guarantee scheme or the reliable functioning thereof, the scheme is
presumed not to be in compliance with the conditions provided for in subsection (1) of this section. § 28. Guarantee of deposits in Estonian branches of credit institutions of Contracting States (1) Deposits in the Estonian branch of a credit institution of a state which is a Contracting Party to the European Economic Area Agreement (hereinafter Contracting State) shall be guaranteed pursuant to this Act only to the extent that such deposits are not guaranteed under a guarantee scheme of the home country of the credit institution. (2) In order to guarantee deposits pursuant to subsection (1) of this section, a credit institution of a Contracting State shall submit a corresponding application to the Fund. The list of information to be submitted upon application and the procedure for submission and review of the application shall be provided by the statutes. (3) The supervisory board shall decide on the conditions for satisfaction of an application within two months after submission of the application. (4) If a credit institution of a Contracting State fails to pay contributions to the extent and within the terms prescribed by the supervisory board pursuant to this Act, the supervisory board may decide that the deposits of the Estonian branch of the credit institution shall not be guaranteed by the Fund. (5) A resolution specified in subsection (4) of this section enters into force not earlier than twelve months after submission of a notice
specified in subsection 93 (5) of this Act to the corresponding supervisory body of the Contracting State. § 29. Guarantee of deposits in foreign branches of Estonian credit institutions (1) Deposits in a foreign branch of an Estonian credit institution which are guaranteed under a guarantee scheme of the host country of the branch to the same or a higher level than prescribed by this Act shall not be guaranteed pursuant to this Act. (2) The provisions of subsection (1) of this section do not apply to deposits in branches of Estonian credit institutions located in Contracting States. (3) A decision that the deposits in a branch of an Estonian credit institution which is located in a foreign state are not subject to guarantee on
the basis of this Act pursuant to subsection (1) of this section shall be made by the Supervision Authority on the basis of a corresponding application of
the credit institution within thirty days after submission of the application. Information to prove that the guarantee scheme of the host country of the
branch meets the conditions provided for in subsection (1) of this section shall be submitted upon application. § 30. Deposits not subject to guarantee and compensation (1) Deposits belonging to any of the following
Estonian or foreign persons as at the date on which the deposits become
unavailable shall not be guaranteed or compensated for out of the Sectoral Fund: (2) The following deposits shall not be
compensated for out of the Sectoral Fund: (3) Funds left at the disposal of a credit institution which are recorded under the own funds of the credit institution pursuant to § 72 of the
Credit Institutions Act shall not be guaranteed or compensated for out of the account of the Sectoral Fund. (4) Deposits in connection with which a judgment of conviction has been made for money laundering shall not be guaranteed out of the Sectoral Fund. Compensation for a deposit in connection with which a criminal proceeding relating to money laundering has been commenced shall be suspended until the entry into force of the court judgment. (5) Deposits owned by a legal person shall not
be guaranteed out of the Sectoral Fund if, on the basis of the latest approved
annual report, at least two of the following three economic indicators of the person exceed the following: (6) Deposits with an interest rate which is significantly higher than the interest rate of other deposits with similar conditions and amounts in the same credit institution shall not be compensated for out of the Sectoral Fund. The maximum interest rate above which deposits are not subject to compensation shall be determined by the supervisory board in each specific case of compensation for deposits. § 31. Obligations of credit institution (1) A credit institution shall notify depositors of the level of guarantee and the conditions and procedure for compensation for deposits provided for in this Act. (2) Credit institutions shall not use the deposit guarantee provided by this Act for advertising purposes.
Division 2 § 32. Contributions and types thereof (1) The contributions to the Sectoral Fund are the single contribution and quarterly contributions. (2) Contributions shall be paid to the Fund. Contributions shall not be paid in the cases provided for in subsections 27 (1) and 29 (1) of this Act. (3) Contributions shall not be refunded to credit institutions unless otherwise provided by law. § 33. Single contribution (1) The size of the single contribution shall be 3,200 euros. (2) A credit institution shall pay the single contribution within one month after notification of the resolution to issue authorisation to the credit institution. (3) In the case provided for in subsection 27 (2) of this Act, a foreign credit institution is required to pay the single contribution within one month after authorisation to found a branch in Estonia is granted to the credit institution. (4) In the case provided for in subsection 28 (1) of this Act, a credit institution of a Contracting State shall pay the single contribution within ten days after the applicant is notified of the resolution specified in subsection 28 (3) of this Act. § 34. Quarterly contribution (1) A credit institution or a branch shall pay quarterly contributions on a regular basis by the 15th day of the second month of each quarter. (2) The collection of quarterly contributions may be suspended on the basis of a resolution of the supervisory board if the assets of the Sectoral Fund constitute at least 3 per cent of the total amount of the deposits provided for in subsection 35 (1) of this Act. § 35. Size of quarterly contribution (1) The size of a quarterly contribution (hereinafter in this Division contribution) shall be
calculated on the basis of the total amount of the deposits of a credit institution or branch as on the
last banking day of the quarter preceding payment of the contribution. Deposits of the depositors specified
in clauses 30 (1) 1)-9) and subsections 30 (3)-(5) of this Act and deposits in the branches specified in
subsections 27 (1) and 29 (1) of this Act shall not be included in the total amount of deposits. The
amount of deposits nominated in foreign currencies shall be converted into euros on the basis of the
official daily rate of the European Central Bank. (2) The size of a contribution shall be calculated by multiplying the total amount of deposits provided for in subsection (1) of this section by the contribution rate. (3) The total amount of deposits provided for in subsection (1) of this section and the size of a contribution to be paid shall be calculated by the credit institution. The credit institution shall submit a report to the Fund on the size of the contribution pursuant to the procedure provided for in subsection 92 (2) of this Act. § 36. Contribution rate (1) The supervisory board shall establish the contribution rate as a percentage of the total amount of deposits provided for in subsection 35 (1) of this Act and it shall not exceed 0.125 per cent. (2) A uniform contribution rate shall be applied to all credit institutions and branches unless otherwise arising from subsection (3) of this section. (3) In the case specified in subsection 28 (1) of this Act, a separate contribution rate shall be established for each branch, calculated pursuant
to the necessity to guarantee compensation for deposits out of the Sectoral Fund to the extent not guaranteed under the guarantee scheme of the host
country of the branch. (4) Any amendment of a contribution rate shall enter into force as of the beginning of a quarter, but not earlier than three months after adoption of the corresponding resolution of the supervisory board.
Division 3 § 37. Giving notification to depositors Within three working days after the date on which
deposits become unavailable, the Fund shall publish a notice in at least two
daily national newspapers on at least two occasions setting out at least the
following information: § 38. Procedure for granting compensation (1) Not later than within twenty-four days
after the date on which deposits become unavailable, the trustee in bankruptcy,
moratorium administrator or liquidator of a credit institution (hereinafter in
this Division trustee) is required to: (2) The President of the Bank of Estonia shall establish the exact list of information to be submitted pursuant to clause (1) 2) of this section and the procedure for submitting such information. (3) Depositors have the right to submit their positions regarding the correctness of the balance of their deposits to the trustee within sixty days after publication of the last notice specified in § 37 of this Act. (4) If a deposit is compensated for before receipt of the position of the depositor in an amount not corresponding to the amount subject to compensation, the Fund shall compensate for the deficit within the term specified in subsection 41 (2) of this Act or collect the overpaid amount from the person. § 39. Grant of compensation (1) The Fund shall determine the deposits subject to compensation and the amount of compensation payable to each depositor under the conditions and pursuant to the procedure provided for in this Act on the basis of the information submitted by the trustee. (2) Deposits in a branch shall not be compensated for to the extent that such deposits are compensated for under a guarantee scheme of the home country of the credit institution. (3) Deposits in a foreign branch of an Estonian credit institution shall not be compensated for to the extent that such deposits are compensated for under a guarantee scheme of the host country of the branch. (4) Compensation for joint deposits shall be paid to the depositors in equal amounts unless otherwise provided for in the settlement or loan contract. § 40. Payment of compensation (1) Compensation shall be paid in cash or, on the basis of a written application of the depositor, in the form of a non-cash settlement through one or several Estonian credit institutions specified in a resolution of the supervisory board. (2) The Fund shall open an account in a credit institution specified in subsection (1) of this section for payment of compensation and submit the information regarding the compensation to be paid to the credit institution not later than three working days before commencement of the payment of compensation pursuant to the provisions of subsection 41 (1) of this Act. (3) Fees relating to the payment of compensation in cash or by bank transfer shall be paid by the depositors unless otherwise agreed upon between the Fund and the credit institution making the payments. If the fee payable by a depositor for payment of compensation in cash or by a bank transfer is higher than or equal to the amount of compensation, the compensation shall not be paid. The fee charged for payment of compensation shall not exceed the ordinary fee charged by the credit institution for similar services. (4) Compensation for deposits nominated in foreign currencies shall be paid in euros according to
the official daily rate of the European Central Bank as at the date on which the deposits become
unavailable. (5) Compensation for deposits seized pursuant to the procedure prescribed by law shall be paid after the entry into force of the corresponding judgment or ruling by a court or any other competent authority. § 41. Term of compensation (1) Payment of compensation shall be commenced not later than thirty days after the date on which deposits become unavailable. (2) Payment of compensation shall be completed within three months after the date on which deposits become unavailable. The supervisory board of the Fund may extend the term for payment of compensation under extraordinary circumstances and with good reason. The term may be extended by up to three months at a time, but not for more than a total of nine months. (3) Amounts of compensation not paid within the term specified in subsection (2) of this section shall be deposited by the Fund in a credit institution in accordance with a resolution of the supervisory board. (4) If the Fund fails to pay compensation within the term specified in subsection (2) of this section or pays less compensation than prescribed, the depositor has the right to file a claim against the Fund. The limitation period for filing a claim shall be five years.
Chapter 4 Division 1 § 42. Investment (1) For the purposes of this Act, an investment
is a claim which is based on an agreement between the parties or on legislation
and pursuant to which an investment institution is required to: (2) For the purposes of this Act, a joint investment is an investment which is jointly owned by two or more persons. (3) For the purposes of this Act, the value of an investment is the value of the money and securities specified in subsection (1) of this section, determined pursuant to the methods established by the Minister of Finance mainly on the basis of the market value of the money and securities. § 43. Investment institution and investment service (1) For the purposes of this Act, the following
are investment institutions: 3) management companies which have been granted the right specified in clause 13 (1) 1) or 3) of the Investment Funds Act. [RT I 2008, 13, 89 - entered into force 15.03.2008] (2) For the purposes of this Act, an investment service is the service specified in § 43 and clause 44 1) of the Securities Market Act. § 44. Level of guarantee of and compensation for investments (1) Investments made through an investment institution registered in Estonia (hereinafter in this Chapter investment institution) or the Estonian branch of a foreign investment institution (hereinafter in this Chapter branch) shall be guaranteed and compensated for the investors out of the Investor Protection Sectoral Fund (hereinafter in this Chapter the Sectoral Fund) in accordance with the provisions of this Act. (2) Investments subject to compensation on the basis of §§ 52 and 53 of the Estonian Central Register of Securities Act (RT I 2000, 57, 373; 2001, 48, 268; 79, 480; 89, 532; 93, 565; 2002, 23, 131; 63, 387) shall not be guaranteed or compensated for on the basis of this Act. (3) Investments shall be guaranteed and compensated for pursuant to the provisions of this Act to the extent of their value as at the
compensation date but not more than in the amount of 20,000 euro per investor in any one investment institution. (4) For the purposes of compensation for a joint investment, each owner of the joint investment shall be deemed to be an investor. § 45. Guarantee of investments in branches (1) Investments of the investors of a branch (hereinafter investments in branches) which under a guarantee scheme of the home country of the investment institution are guaranteed to the same or a higher level than prescribed by this Act shall not be guaranteed on the basis of this Act. For the purposes of this Act, "home country of an investment institution" means the state where the investment institution is registered and the competent authority of which has issued the activity licence of the investment institution. (2) In the cases not specified in subsection (1) of this Act, the investments of a branch shall be guaranteed on the basis of this Act. (3) The Supervision Authority shall decide whether the guarantee scheme of the home country of an investment institution is in compliance with the conditions provided for in subsection (1) or (2) of this section on the basis of a corresponding application of the investment institution within thirty days after submission of the application. If information regarding a guarantee scheme or the reliable functioning thereof is not sufficient, the scheme is presumed not to be in compliance with the conditions provided for in subsection (1) of this section. § 46. Guarantee of investments of Estonian branches of investment institutions of Contracting States (1) Investments of the Estonian branch of an investment institution of a Contracting State shall be guaranteed pursuant to this Act only to the extent that such investments are not guaranteed under a guarantee scheme of the home country of the investment institution. (2) In order to guarantee investments pursuant to subsection (1) of this section, an investment institution of a Contracting State shall submit a corresponding application to the Fund. The list of information to be submitted upon application and the procedure for submission and review of the application shall be provided by the statutes. (3) The supervisory board shall decide on the conditions for satisfaction of an application within two months after submission of the application. (4) If an investment institution of a Contracting State fails to pay contributions to the extent and within the terms prescribed by the supervisory board pursuant to this Act, the supervisory board may decide that the investments of the Estonian branch of the investment institution shall not be guaranteed by the Fund. (5) A resolution specified in subsection (4) of this section enters into force not earlier than twelve months after submission of a notice specified in subsection 93 (5) of this Act to the corresponding supervisory body of the Contracting State. (6) The provisions of subsections (1)-(5) of
this section do not apply to branches of investment institutions specified in
clause 43 (1) 3) of this Act. § 47. Guarantee of investments of foreign branches of Estonian investment institutions (1) Investments of a foreign branch of an Estonian investment institution which are guaranteed under a guarantee scheme of the host country of the branch to the same or a higher level than prescribed by this Act shall not be guaranteed pursuant to this Act. (2) The provisions of subsection (1) of this section do not apply to investments in branches of Estonian investment institutions specified in clauses 43 (1) 1) and 2) of this Act and located in Contracting States. (3) A decision that the investments of a branch of an Estonian investment institution which is located in a foreign state are not subject to
guarantee pursuant to this Act pursuant to subsection (1) of this section shall be made by the Supervision Authority on the basis of a corresponding
application of the investment institution within thirty days after submission of the application. Information to prove that the guarantee scheme of the
host country of the branch meets the conditions provided for in subsection (1) of this section shall be submitted upon application. § 48. Investments not subject to guarantee and compensation (1) Investments belonging to professional
investors or any of the following Estonian or foreign persons as at the date
specified in subsection 55 (1) of this Act shall not be guaranteed or
compensated for out of the Sectoral Fund: (2) For the purposes of this Act, a professional investor is an investor specified in subsection 6 (2) or (4) of the Securities Market Act. (3) An investment the owner of which has outstanding liabilities to the same investment institution shall not be compensated for out of the Sectoral Fund to the extent of such liabilities. (4) Investments in connection with which a judgment of conviction has been made for money laundering shall not be compensated for out of the Sectoral Fund. Compensation for an investment in connection with which a criminal proceeding relating to money laundering has been commenced shall be suspended until the entry into force of the court judgment. (5) Investments owned by a legal person shall
not be guaranteed out of the Sectoral Fund if, on the basis of the latest
approved annual report, at least two of the following three economic indicators
of the person exceed the following: § 49. Obligations of investment institution (1) An investment institution shall notify investors of the investor protection scheme and the level of guarantee and the conditions and procedure for compensation for investments provided for in this Act. (2) Investment institutions shall not use the investment guarantee provided by this Act for advertising purposes.
Division 2 § 50. Contributions and types thereof (1) The contributions to the Sectoral Fund are the single contribution and quarterly contributions. (2) Contributions shall be paid to the Fund. Contributions shall not be paid in the cases provided for in subsections 45 (1) and 47 (1) of this Act. (3) Contributions shall not be refunded to investment institutions unless otherwise provided by law. § 51. Single contribution (1) The size of the single contribution shall be 1,300 euros. (2) An investment institution shall pay the single contribution within one month after notification of the resolution to issue an activity licence or grant the corresponding right to the investment institution. (3) In the case provided for in subsection 45 (2) of this Act, a foreign investment institution is required to pay the single contribution within one month after authorisation to found a branch in Estonia is granted to the investment institution. (4) In the case provided for in § 46 of this
Act, an investment institution of a Contracting State shall pay the single contribution
within ten days after the applicant is notified of the resolution specified in
subsection 46 (3) of this Act. § 52. Quarterly contribution (1) An investment institution or a branch shall pay quarterly contributions on a regular basis by the 15th day of the second month of each quarter. (2) The supervisory board may, by a resolution thereof, grant investment institutions and branches the right to defer payment of up to one-third of a quarterly contribution if the investment institution assumes the obligation to pay the deferred part of the contribution immediately upon submission of a corresponding request by the Fund. The Fund shall submit a request for payment of the deferred part of the contribution when the obligation arises to compensate for the investments guaranteed out of the Sectoral Fund. (3) The Fund may require an investment institution to insure performance of the obligation specified in subsection (2) of this section or to secure performance of the obligation by a third party acceptable to the supervisory board. The total amount of contributions deferred on the basis of subsection (2) of this section by one investment institution or branch shall not exceed four times the total amount of contributions calculated on the basis of the limits provided for in subsection 54 (1) of this Act. (4) The Fund shall suspend the collection of
quarterly contributions on the basis of a resolution of the supervisory board
if all of the following conditions are complied with: § 53. Size of quarterly contribution (1) The size of a quarterly contribution (hereinafter in this Division contribution) shall be calculated by multiplying the indicators provided for in subsection 54 (1) of this Act and which characterise the volume of the investment services provided by an investment institution or branch (hereinafter in this Chapter volume of investments) by the corresponding contribution rates. (2) Investments of professional investors, investments specified in subsection 44 (2), clauses 48 (1) 1)-4) and subsection 48 (5) of this Act and
investments of the branches specified in subsections 45 (1) and 47 (1) of this Act shall not be included in the volume of investments for the purposes of
calculating the size of a contribution. (3) The size of a contribution shall be calculated by totalling the amounts payable on the basis of the volume of investments. (4) The size of a contribution shall not be less than 50 euros per investment institution or
branch. If the requirements provided for in clauses 52 (4) 2) and 3) of this Act are not met, the size of
a contribution shall not be less than 255 euros. (5) The size of a contribution shall be calculated by the investment institution. The investment institution shall submit a report on the size of the contribution to the Fund pursuant to the procedure provided for on the basis of subsection 92 (2) of this Act. (6) The Minister of Finance shall establish the specific bases and procedure for calculating the size of a contribution. § 54. Contribution rate (1) The supervisory board shall establish
separate contribution rates for different volumes of investments and they shall
not exceed the following: (2) The volume of investments specified in subsection (1) of this section and the value of money and securities shall be calculated pursuant to the procedure established by the Minister of Finance. (3) Uniform contribution rates shall be applied to all investment institutions and branches. In the case specified in subsection 46 (1) of this Act, separate contribution rates shall be established for each branch, calculated pursuant to the necessity to guarantee compensation for investments out of the Sectoral Fund to the extent not guaranteed under the guarantee scheme of the host country of the branch. (4) The limits provided for in subsection (1) of this section do not apply to the payment of a part of a contribution deferred by the investment institution pursuant to subsection 52 (2) of this Act. (5) Any amendment of a contribution rate shall enter into force as of the beginning of a quarter, but not earlier than one month after adoption of the corresponding resolution of the supervisory board.
Division 3 § 55. Date of compensation (1) In the case of the investments of credit
institutions providing investment services, the obligation of the Fund to
compensate for the investments under the conditions and pursuant to the
procedure provided for in this Act arises on the date on which deposits become
unavailable and, in the case of the investments of other investment
institutions, on one of the following dates, whichever occurs first
(hereinafter in this Division the compensation date): (2) In addition to the provisions of subsection (1) of this section, the Supervision Authority may, by a resolution thereof, deem the compensation date to have arrived if an investment institution fails to return the securities or money belonging to investors to such investors or if circumstances become evident which indicate the insolvency of the investment institution. (3) The Supervision Authority shall immediately notify the Fund and the investment institution of a resolution on the revocation of an activity licence or authorisation specified in clause (1) 2) or 3) of this Act and of a resolution specified in subsection (2) of this section. The Supervision Authority shall immediately notify the Fund of the circumstances specified in clauses (1) 1)-4) of this section. (4) If another institution or person has information about any event or act specified in subsection (1) of this section before the Supervision
Authority, then such institution or person shall immediately notify the Fund and the Supervision Authority. § 56. Giving notification to investors Within three working days after receipt of a notice
specified in subsection 55 (3) of this Act, the Fund shall publish a notice in
at least one daily national newspaper setting out at least the following information: § 57. Procedure for granting compensation (1) Not later than within forty-five days after
the date of compensation, a member of the management board, trustee in
bankruptcy, moratorium administrator or liquidator of an investment institution
(hereinafter in this Division trustee) is required to: (2) The Minister of Finance shall establish the exact list of information to be submitted on the basis of subsection (1) of this section and the procedure for submitting such information. (3) Investors have the right to submit their positions regarding their investments and the value thereof to the trustee within five months after publication of the notice specified in § 56 of this Act. If their position differs from the information submitted on the basis of clause (1) 2) of this section, the trustee shall immediately notify the Fund of the difference and submit its own position. § 58. Grant of compensation (1) The Fund shall determine the investments subject to compensation and the amount of compensation payable under the conditions and pursuant to the procedure provided for in this Act on the basis of the information submitted by the trustee. (2) The amount of compensation shall be determined on the basis of the value of the investment on
the compensation date. The value of a foreign currency and securities nominated in a foreign currency shall
be converted into euros on the basis of the official daily rate of the European Central Bank as at the
compensation date. The Minister of Finance may establish more detailed bases and the procedure for
granting compensation. (3) Investments of a branch shall not be compensated for to the extent that such investments are compensated for under a guarantee scheme of the home country of the investment institution. (4) Investments of a foreign branch of an Estonian investment institution shall not be compensated for to the extent that such investments are compensated for under a guarantee scheme of the host country of the branch. (5) Compensation for joint investments shall be granted to the investors in equal parts unless otherwise agreed upon between the investment institution and the investors. § 59. Payment of compensation (1) Compensation shall be paid in money by a bank transfer to the account indicated by the investor. Compensation shall be paid through one or several Estonian credit institutions specified in a resolution of the supervisory board. (2) The Fund shall open an account in a credit institution specified in subsection (1) of this section for payment of compensation and submit the information regarding the compensation to be paid to the credit institution not later than three working days before commencement of the payment of compensation pursuant to the provisions of subsection 60 (1) of this Act. (3) Investors shall pay for the transfer of compensation unless otherwise agreed upon between the Fund and the credit institution making the payments. If the fee payable by an investor for the transfer is higher than or equal to the amount of compensation, the compensation shall not be paid. The fee charged for the transfer of compensation shall not exceed the ordinary transfer fee charged by the credit institution. (4) Compensation for investments seized pursuant to the procedure prescribed by law shall be paid after the entry into force of the corresponding judgment or ruling by a court or any other competent authority. § 60. Term of compensation (1) Compensation shall be paid to an investor not later than within one month after determination of the value of the investment subject to compensation, but not before the investor has submitted the position specified in subsection 57 (3) of this Act or the term for submission has expired. (2) Payment of compensation shall be completed within six months after publication of the notice specified in § 56 of this Act. (3) The Fund may extend the terms specified in subsections (1) and (2) of this Act under extraordinary circumstances and with good reason. A term may be extended by up to three months at a time, but not for more than a total of twelve months. (4) Amounts of compensation not paid within the term specified in subsections (2) and (3) of this section shall be deposited by the Fund in a credit institution in accordance with a resolution of the supervisory board. (5) If the Fund fails to pay compensation within the term specified in subsections (2) and (3) of this section or pays less compensation than prescribed, the investor has the right to file a claim against the Fund. The limitation period for filing a claim shall be five years.
Chapter 5 Division 1 § 61. Loss subject to compensation (1) Loss caused to the unit-holders of a mandatory pension fund (hereinafter in this Chapter loss and pension fund respectively) for which the unit-holders have not been compensated by the pension management company pursuant to §§ 32-36 of the Funded Pensions Act (RT I 2004, 37, 252) by the due date established by the Supervision Authority shall be compensated for out of the Pension Protection Sectoral Fund (hereinafter in this Chapter the Sectoral Fund) under the conditions and pursuant to the procedure provided for in this Act. (2) For the purposes of this Act, loss is the loss
provided for in subsections 32 (1) and (2) of the Funded Pensions Act. § 62. Loss not subject to compensation Compensation for loss shall not be paid out of the
Sectoral Fund to a unit-holder who at the time of incurring the loss is: § 63. Level of compensation A unit-holder shall be compensated in full for loss subject to compensation out of the Sectoral Fund in the amount of up to 10 000 euro per specific loss event of the unit-holder. Any loss exceeding 10 000 euro per specific loss event of a unit-holder shall be compensated for to the extent of 90 per cent. § 64. Obligations of pension management company (1) A pension management company shall notify the unit-holders of the pension protection scheme and of the conditions and procedure for compensation for loss provided by this Act. (2) Pension management companies shall not use compensation for loss pursuant to this Chapter for advertising purposes.
Division 2 § 65. Contributions and types thereof (1) The contributions to the Sectoral Fund are the single contribution and quarterly contributions. (2) Contributions shall be paid to the Fund. (3) Contributions shall not be refunded to pension management companies unless otherwise provided by law. § 66. Single contribution (1) The size of the single contribution shall be 1,000 euros per pension fund managed by a
pension management company. (2) A pension management company shall pay the single contribution within one month after registration of the pension fund rules by the Supervision Authority. § 67. Quarterly contribution (1) A pension management company shall pay quarterly contributions on a regular basis by the 15th day of the second month of each quarter. (2) The supervisory board may, by a resolution thereof, permit deferral of the payment of up to one quarter of a quarterly contribution if the pension management company assumes the obligation to pay the deferred part of the contribution immediately upon submission of a corresponding request by the Fund. Such permission may be granted to one, several or all pension management companies, bearing in mind the share of the pension fund units held by them and the number of loss events provided for in § 32 of the Funded Pensions Act. The Fund shall submit a request for payment of the deferred part of the contribution when the obligation arises to pay compensation out of the Sectoral Fund. (3) The total amount of contributions deferred on the basis of subsection (2) of this section by one pension management company shall not exceed 0.2 per cent of the total amount of the net asset values of the pension funds specified in subsection 68 (1) of this Act. (4) The Fund may require a pension management company to insure performance of the obligation specified in subsection (2) of this section or to secure performance of the obligation by a third party acceptable to the supervisory board. (5) On the basis of a resolution of the
supervisory board, the Fund shall suspend the collection of quarterly
contributions if all of the following conditions are met: § 68. Size of quarterly contribution (1) The quarterly contribution (hereinafter in this Division contribution) shall be calculated on the basis of the net asset value of all pension funds managed by a pension management company as on the last day of the quarter preceding payment of the contribution. (2) The size of a contribution shall be calculated by multiplying the total amount of the net asset values of the pension funds specified in subsection (1) of this section by the contribution rate. (3) The size of a contribution shall be calculated by the pension management company. The pension management company shall submit a report on the size of the contribution to the Fund pursuant to the procedure provided for on the basis of subsection 92 (2) of this Act. § 69. Contribution rate (1) The supervisory board shall establish a uniform contribution rate for all pension management companies as a percentage of the net asset values of the pension funds specified in subsection 68 (1) of this Act, and it shall not exceed 0.1 per cent. If the requirements provided for in clauses 67 (5) 2) and 3) of this Act are met, the contribution rate shall not exceed 0.025 per cent. (2) The maximum contribution rate provided for in subsection (1) of this Act does not apply to the payment of a deferred part of a contribution pursuant to subsection 67 (2) of this Act. (3) Any amendment of a contribution rate shall enter into force as of the beginning of a quarter, but not earlier than two months after adoption of the corresponding resolution of the supervisory board.
Division 3 § 70. Date of compensation for loss and grant of compensation (1) The obligation of the Fund to compensate, under the conditions and pursuant to the procedure provided for in this Act, for any loss caused to unit-holders arises ten working days after expiry of the term specified in clause 33 (2) 3) of the Funded Pensions Act if the pension management company fails to comply with a precept. (2) Immediately upon expiry of the term
specified in clause 33 (2) 3) of the Funded Pensions Act, the Supervision
Authority shall send a notice to the Fund and to the registrar of the Estonian
Central Register of Securities (hereinafter registrar) setting out information
regarding the following: (3) The application specified in subsection 34 (1) of the Funded Pensions Act shall be annexed to the notice submitted pursuant to subsection (2) of this section. (4) The Fund shall determine the amount of compensation to be paid to each person on the basis of the information submitted by the Supervision
Authority, pension management company, registrar and other persons, pursuant to the provisions of §§ 61-63 of this Act. § 71. Giving notification to unit-holders (1) Within three working days after the date of
receipt of the notice specified in subsection 70 (2) of this Act, the Fund
shall publish a corresponding notice in a daily national newspaper on at least
two occasions. The notice shall contain at least the following information: (2) After determination of the compensation, the Fund shall, at the request of a unit-holder, notify the unit-holder of the amount of compensation granted to him or her and of the related circumstances. § 72. Term of compensation (1) Not later than within forty-five calendar
days after receipt of the notice specified in subsection 70 (2) of this Act,
the Fund shall: (2) The registrar shall compensate for loss pursuant to the procedure provided for in § 73 of this Act within ten working days after receipt of the information and money specified in subsection (1) of this section. (3) At the request of the Fund or the registrar, the Supervision Authority may extend the terms specified in subsection (1) and (2) of this section with good reason. (4) If the Fund fails to compensate an entitled person for loss within the period prescribed in this section, the person has the right to file a claim against the Fund. The limitation period for filing a claim shall be five years. § 73. Procedure for compensation (1) The registrar shall, for the amount of compensation granted to a unit-holder, acquire for the unit-holder the maximum whole number of units of the pension fund to which the unit-holder makes mandatory funded pension contributions at the time of payment of the compensation. (2) If a unit-holder has entered into an insurance contract for a mandatory funded pension or if the unit-holder is dead, units shall be acquired for
him or her from the existing pension fund of which he or she last acquired units. If all the pension funds of which the unit-holder has acquired units have
been liquidated, the units of the pension fund indicated by the unit-holder or his or her successor shall be acquired for the compensation. (3) Upon acquisition of units pursuant to the procedure provided for in subsections (1) and (2) of this section, the issue fee shall not be charged. (4) The registrar shall refund the money not used for payment of compensation within the term specified in subsections 72 (2) and (3) of this Act to the Fund, accompanied by explanations.
Chapter 51 Division 1 § 731. Bases for guaranteeing the obligations arising from pension insurance contracts (1) For the purposes of this Act, pension insurance contract is an insurance contract for obligatory funded pension as provided in Division 8 of Chapter 2 of the Funded Pensions Act. (2) Continuing performance of obligations arising from pension insurance contracts shall be guaranteed out of the Pension Insurance Contracts Sectoral Fund (hereinafter in this Chapter the Sectoral Fund) to the extent provided in this Act, supporting transfers of an insurance portfolio of pension insurance contracts managed by an insurer or the Estonian branch of an insurer of a state which is a Contracting Party to the European Economic Area Agreement, except Estonia (hereinafter in this Chapter the Contracting State and a branch, respectively). (3) The Supervision Authority shall determine whether a transfer of an insurance portfolio of pension insurance contracts managed by an insurer or a branch is necessary to be supported out of the Sectoral Fund and shall make the respective proposal to the supervisory board of the Fund. (4) A transfer of an insurance portfolio of pension insurance contracts to another insurer may be supported out of the Sectoral Fund if the total
amount of technical provisions and financial obligations related to the pension insurance contracts of the insurer exceeds the insurer's committed assets
related to the insurance portfolio of pension insurance contracts and: § 732. Pension insurance contracts not subject to guarantee A transfer of a pension insurance contract of a policyholder to another insurer shall not be supported out of the Sectoral Fund if the policyholder having
signed the pension insurance contract is at the time of incurring the situation provided for in clauses 731 (4) 1)-4) of this Act any of the following
persons: § 733. Extent of support amount (1) The support amount shall be calculated by subtracting the committed assets related to the insurance portfolio from the technical provisions and financial obligations related to the insurance portfolio. (2) The amount of the technical provisions and financial obligations shall be calculated on the following basis: (3) Performance of obligations arising from pension insurance contracts shall be guaranteed for to the full extent up to the monthly pension
benefits in the amount of the national pension as provided for in the State Pension Insurance Act and to the extent of 90 per cent of the amount exceeding
this. § 734. Obligations of insurer (1) An insurer or a branch shall notify the policyholders of the existence of the Pension Insurance Contracts Sectoral Fund provided for in this Act and the conditions and procedure for guarantees for transfers of insurance portfolios of pension insurance contracts. (2) An insurer or a branch shall not use the support for transfers of insurance portfolios of pension insurance contracts provided by this Act for
advertising purposes.
Division 2 § 735. Contributions and types thereof (1) The contributions to the Sectoral Fund are the single contribution and quarterly contributions. (2) Contributions shall be paid to the Fund. (3) Contributions shall not be refunded to insurers or branches unless otherwise provided by law. § 736. Single contribution (1) The size of the single contribution shall be 1,280 euros. (2) An insurer shall pay the single contribution within one month after signing the first pension insurance contract. § 737. Quarterly contribution (1) An insurer or a branch shall pay quarterly contributions on a regular basis by the 15th day of the second month of each quarter. (2) On the basis of a resolution of the supervisory board, the Fund shall suspend the collection of quarterly contributions if all of the following
conditions are met: § 738. Size of quarterly contribution (1) The quarterly contribution shall be calculated on the basis of the total amount of all insurance payments related to all pension insurance contracts of an insurer or a branch, collected by the insurer or the branch during the quarter preceding payment of the contribution. (2) The size of a contribution shall be calculated by multiplying the total amount of insurance payments specified in subsection (1) of this section by the contribution rate. (3) The total amount of insurance payments and the size of a contribution shall be calculated by the insurer or the branch. The insurer or the
branch shall submit a report on the size of the contribution to the Fund pursuant to the procedure provided for on the basis of subsection 92 (2) of this
Act. § 739. Contribution rate (1) The supervisory board shall establish the contribution rate as a percentage of the total amount of insurance payments related to pension insurance contracts and it shall not exceed 0.5 per cent. (2) A uniform contribution rate shall be applied to all insurers and branches. (3) Any amendment of a contribution rate shall enter into force as of the beginning of a quarter, but not earlier than two months after adoption
of the corresponding resolution of the supervisory board.
Division 3 § 7310. Supporting transfers of insurance portfolios (1) Immediately upon any of the events specified in subsection 731 (4) of this Act taking place, the Supervision Authority shall send a notice to the Fund about the event and the insurer or branch related to the event. (2) The Supervision Authority shall conduct a procurement for the transfer of the insurance portfolio, setting out in the procurement conditions the information necessary for making a tender for receiving the insurance portfolio, including information about the amount of the committed assets related to the insurance portfolio and the information specified in clauses 733 (2) 1)-4) of this Act. (3) An insurer participating in the procurement for receiving the insurance portfolio shall present the amount of technical provisions and financial obligations related to the insurance portfolio which shall conform to §§ 732 and 733 of this Act, the calculation for the required solvency margin and the support amount necessary for receiving the insurance portfolio. (4) The insurance portfolio shall be transferred to the insurer to whom the least support amount out of the Sectoral Fund would be payable according to the tender for receiving the insurance portfolio, on the prerequisite that the solvency margin and committed assets of that insurer conform to the requirements specified in the Insurance Activities Act after receiving the insurance portfolio. (5) Immediately upon making a decision determining the insurer receiving the insurance portfolio, the Supervision Authority shall send a notice to
the Fund about the decision, setting out information regarding the following: (6) The transferor and the receiver of the insurance portfolio and the Fund shall sign an agreement for transferring an insurance portfolio pursuant to § 89 of the Insurance Activities Act. (7) Subsection 88 (8), second sentence of subsection 89 (1), subsection 89 (3) and §§ 90 and 91 of the Insurance Activities Act shall not apply to
transfers of insurance portfolios specified in this Act. § 7311. Term of paying support amount (1) The Fund shall pay the support amount no later than within one month after receipt of the notice specified in subsection 7310 (5) of this Act. (2) At the request of the Fund, the Supervision Authority may extend the term specified in subsection (1) of this section with good reason.
Chapter 6 § 74. Assets of Fund (1) The Fund shall possess, use and dispose of its assets pursuant to the procedure prescribed by this Act and the statutes. (2) The Fund shall use its assets only for the purposes provided by this Act. (3) The Fund shall not assume any obligations not arising from this Act. § 75. Separation of assets (1) The assets of the Fund are divided into the rights to be exercised and obligations to be performed out of each sectoral fund (hereinafter assets of a sectoral fund), and other assets of the Fund. (2) The Fund shall keep separate accounts for the assets of each sectoral fund. (3) Rights or obligations to be acquired or transferred out of one sectoral fund shall not be acquired or transferred out of another sectoral fund. (4) The Fund may use the assets of a sectoral fund to perform the obligations to be performed out of another sectoral fund (hereinafter obligations of a sectoral fund) only pursuant to the provisions of this Act. § 76. Sources of sectoral funds A sectoral fund is formed of: § 77. Fine for delay on contributions If a fund participant fails to pay a contribution or does not pay a contribution in full by the due date provided for in §§ 33, 34, 51, 52, 66, 67,
736 or 737 of this Act, the Fund shall charge a fine for delay in the amount of 0.2 per cent of the outstanding amount per day. § 78. Right of claim (1) Upon payment of compensation to depositors, investors, unit-holders and other entitled persons, the right of claim against a fund participant shall transfer from such persons to the Fund to the extent of the amount paid. (11) Upon supporting a transfer of insurance portfolio of pension insurance contracts, the right of claim against a fund participant
shall transfer from policyholders and beneficiaries included in the insurance portfolio to the Fund to the extent of the support amount paid. (2) The claims of entitled persons against a fund participant which have not been compensated for by the Fund shall be satisfied pursuant to the Bankruptcy Act and other Acts. § 79. Budget of Fund (1) The Fund may use its assets to pay compensation pursuant to this Act and to cover the operating expenses of the Fund according to the budget approved by the supervisory board. (2) The Director shall submit the budget to the supervisory board for approval not later than forty days before the beginning of each financial year. All the income and expenses of the Fund shall be recorded in the budget. § 80. Operating expenses of Fund (1) The operating expenses of the Fund are divided into the expenses of each sectoral fund and the general expenses of the Fund. (2) Separate accounts shall be kept for the expenses of each sectoral fund and the general expenses of the Fund. (3) The expenses of a sectoral fund consist of the following: (4) The general expenses of the Fund are such operating expenses of the Fund as are not directly related to the performance of the obligations of only one sectoral fund and which cannot be divided between the sectoral funds on the basis of any reasonable criteria. (5) The general expenses of the Fund shall be covered out of appropriations from the assets of the sectoral funds. § 81. Investment of assets of Fund (1) The assets of the Fund which are not used pursuant to subsection 79 (1) of this Act may be invested pursuant to the procedure provided by this Act, the statutes and the resolutions of the supervisory board. (2) Separate accounts shall be kept for investment of the assets of each sectoral fund and other assets of the Fund. (3) The following shall decide on investment of the assets of the fund: § 82. Asset manager (1) The Fund may organise the investment of its assets directly or through an asset manager. The asset manager shall be elected and the principal
conditions of the agreement concluded with him or her shall be approved by the supervisory board. The provisions of the Public Procurement Act do not apply
to the selection of the asset manager. (2) The asset manager may be: (3) The asset manager shall not be a fund participant or a company belonging to the same consolidation group as a fund participant. § 83. Limitations on investments (1) The Fund may invest its assets only in the
following securities and deposits unless otherwise provided by this Act: (2) The supervisory board shall establish limitations on the management of the financial risks of the Fund relating to the types of instruments, currency structure, duration of instruments and investments, risks associated with one issuer, and other investment indicators. (3) The Fund shall not acquire securities issued by a fund participant or companies belonging to the same consolidation group as a fund participant or invest any assets in the deposits of a credit institution which is a fund participant, except in the cases and pursuant to the procedure provided for in § 85 of this Act. § 84. Other restrictions (1) The Fund shall not grant loans or secure the performance of debt obligations by other persons. (2) The Fund shall not be a partner in a general partnership or a general partner in a limited partnership. (3) The Fund shall not be a bankrupt. § 85. Bank accounts of Fund (1) The Fund may open an account for the receipt of contributions, payment of compensation and other settlements connected with its activities (hereinafter account) in one or several credit institutions operating in Estonia. (2) An account shall be opened in a credit institution designated by a resolution of the supervisory board. (3) The contributions received in an account shall be invested pursuant to the provisions of §§ 81-83 of this Act not later than within three working days after receipt thereof. § 86. Sources for compensation (1) The Fund shall pay compensation payable to entitled persons on the basis of this Act out of the corresponding sectoral fund. (2) If the assets of a sectoral fund are not
sufficient to perform the obligations of the sectoral fund, the Fund may, on
the basis of a resolution of the supervisory board: (3) The supervisory board shall not adopt a resolution arising from clause (2) 2) of this section if this may cause significant damage in respect of achieving the objectives and performing the obligations of the Fund out of the sectoral fund the financial resources of which are intended to be used. The money used out of another sectoral fund and the interest thereon shall be refunded under the conditions and by the due date determined by the supervisory board. § 87. State loan and state guarantee If, according to a resolution of the supervisory board, the funds provided for in subsection 86 (2) of this Act are not sufficient to perform the obligations of a sectoral fund, the supervisory board may apply for a state loan or a state guarantee for a loan taken by the Fund.
Chapter 7 § 88. Accounting (1) The Fund shall organise its accounting pursuant to the Accounting Act, other legislation and the statutes. (2) The Fund shall organise its accounting in a manner which ensures that the assets of the sectoral funds are separated in the accounting and reporting and upon preparation of the budget, investment of assets and payment of compensation. (3) The content and the procedure for
preparation of the annual reports of the Fund shall be established by the
Minister of Finance. § 89. Financial year The financial year of the Fund begins on 1 January and ends on 31 December. § 90. Audit The Fund shall be audited by the State Audit Office and an auditor. § 91. Auditor of Fund (1) The supervisory board shall appoint an internationally recognised auditor to audit the activities of the Fund and to assess the accuracy of the annual report. (2) An auditor may be appointed for a single audit or for a specified term. (3) The auditor of the Fund shall not be a member of the supervisory board or management board or an employee of the Fund, a fund participant or a company belonging to the same consolidation group as a fund participant.
Chapter 8 § 92. Right of Fund to obtain information (1) The Fund has the right to obtain information from the Supervision Authority, fund participants, companies belonging to the same consolidation
group as the fund participants, the registrar, depositaries of pension funds, depositors, investors, unit-holders, policyholders and the trustees specified
in subsections 38 (1) and 57 (1) of this Act to the extent necessary for performance of the duties of the Fund. (2) The fund participants and the trustees
specified in subsections 38 (1) and 57 (1) of this Act shall submit reports to
the Fund through the Supervision Authority as follows: § 93. Giving notification to other persons (1) The Fund is required to submit information to the Supervision Authority, the Ministry of Finance, the Bank of Estonia and the registrar to the extent necessary for performance of their duties. (2) At the request of depositors, investors or unit-holders, the Fund shall notify them of the amount of compensation granted to them and of other circumstances related to compensation. (21) At the request of policyholders, the Fund shall notify them of the insurer having received the insurance portfolio, of the support
amount paid and of other circumstances related to support payment. (3) The Fund shall immediately notify fund participants and the trustees specified in subsections 38 (1) and 57 (1) of this Act of any resolutions
adopted on the basis of clauses 6 (2) 8), 11), 111) and 13) of this Act. (4) If a fund participant fails to pay a contribution by the due date or to perform any other obligation arising from this Act, the Fund shall immediately notify the Supervision Authority of such failure. (5) If a branch of a credit institution, investment institution or insurer of a Contracting State fails to pay a contribution or to perform any other
obligation arising from this Act, the Supervision Authority shall notify the competent authority of the Contracting State which exercises supervision over
the fund participant. § 94. Publication (1) The following shall be published on the web site of the Fund: (2) An approved annual report shall be disclosed not later than on 30 June of the following year. (3) Resolutions of the supervisory board shall be disclosed not later than within five working days after adoption thereof. § 95. Obligation to maintain confidentiality (1) Members of the supervisory board, the Director, the employees of the Fund, persons engaged by the Fund and all persons acting on behalf and in the interests of the Fund shall maintain indefinitely the confidentiality of any confidential information which has become known to them in connection with the performance of their duties, unless otherwise provided by law. (2) Persons specified in subsection (1) of this section shall not use any confidential information which has become known to them in connection with the performance of their duties in their personal interests. § 96. Participation in international co-operation The Fund shall participate in international co-operation in the field of deposit guarantee, investor and pension protection and life insurance contracts
support to the extent determined by the supervisory board.
Chapter 9 §§ 97-107. [Omitted from this text]
Chapter 10 § 108. Obligations of supervisory board and Director General of Deposit Guarantee Fund (1) Until the first meeting of the first membership of the supervisory board of the Guarantee Fund, the duties of the supervisory board of the Guarantee Fund shall be performed by the supervisory board of the Deposit Guarantee Fund appointed on the basis of the Deposit Guarantee Fund Act. (2) Until the appointment of the Director of the Guarantee Fund by the supervisory board of the Guarantee Fund, the duties of the Director shall be performed by the Director General of the Deposit Guarantee Fund appointed on the basis of the Deposit Guarantee Fund Act. § 109. Assets of Deposit Guarantee Fund The securities, deposits and other rights and obligations belonging to the Deposit Guarantee Fund at the time of the entry into force of this Act shall be registered as the assets of the Deposit Guarantee Sectoral Fund unless otherwise decided by the supervisory board. § 110. Specifications for application of guarantee limit (1) Upon the entry into force of this Act, the guarantee and compensation limit for deposits and investments provided for in subsections 25 (2) and 44 (3) of this Act (hereinafter limit) shall be 40,000 kroons instead of 20,000 euro. (2) The limit shall correspond to the limit provided for in subsections 25 (2) and 44 (3) of this Act by 31 December 2007 at the latest. Until this date, a limit of 100,000 kroons applies as of 31 December 2003 and a limit of 200,000 kroons applies as of 31 December 2005. § 111. Specifications concerning limits applicable to branches operating in Contracting States (1) The specifications provided for in § 110 of
this Act do not apply: (2) In the case of the deposits and investments specified in subsection (1) of this section, the limit guaranteed by the Fund shall be 20,000 euro or the limit guaranteed under the corresponding guarantee scheme of the host country of the branch if the latter is less than 20,000 euro. (3) Upon determination of the size of quarterly contributions payable by the credit and investment institutions specified in subsection (1) of this section, the Fund shall take into account the difference in the size of the limit applicable to the deposits and investments specified in the same subsection. (4) The provisions of subsections (1)-(3) of this section do not apply to a branch of an Estonian credit or investment institution operating in a Contracting State if the difference in the level of guarantee arising from the limits provided for in subsection (2) of this section and § 110 of this Act is guaranteed under a guarantee scheme of the host country of the branch. (5) A credit or investment institution shall notify the Supervision Authority and the Fund of any application of the provisions of subsection (4) of
this section and of the conditions thereof. § 112. Specifications concerning application of limit to branches of institutions of Contracting States (1) If a guarantee scheme of the home country of a credit or investment institution of a Contracting State which has a branch in Estonia prescribes a limit applicable to deposits or investments which is lower than the limit provided for in § 110 of this Act, the credit or investment institution is required to make contributions to the Deposit Guarantee Sectoral Fund and the Investor Protection Sectoral Fund to the extent necessary to guarantee compensation for deposits and investments according to the limits provided for in § 110 of this Act. (2) The provisions of § 28 and subsections 46 (1)-(5) of this Act apply to the guaranteeing of the deposits and investments provided for in
subsection (1) of this section. § 113. Specifications concerning payment of single contribution (1) All investment institutions and branches of foreign investment institutions which operate in Estonia at the time of the entry into force of this Act and whose investments are subject to guarantee and compensation by the Fund pursuant to §§ 44 and 45 of this Act shall pay the single contribution provided for in subsection 51 (1) of this Act to the Fund within one month after the entry into force of this Act. (2) Pension management companies which have established a pension fund the rules of which have been registered with the Supervision Authority before the entry into force of this Act shall pay the single contribution provided for in subsection 66 (1) of this Act within one month after the entry into force of this Act. (3) Estonian credit institutions and foreign credit institutions with a branch in Estonia which have paid the single contribution specified in subsection 21 (1) of the Deposit Guarantee Fund Act to the Deposit Guarantee Fund in full before the entry into force of this Act are not required to pay the single contribution provided for in subsection 33 (1) of this Act. § 114. Temporary specifications concerning guarantee of investments Until 1 January 2004, investments made by investors who are legal persons shall not be guaranteed out of the Investor Protection Sectoral Fund nor included in the volume of investments for the purposes of determining the size of a contribution. § 115. Rates of quarterly contributions (1) Until 1 January 2003, the rate of the quarterly contribution payable to the Deposit Guarantee Sectoral Fund shall be 0.1 per cent of the total amount of the deposits taken as provided for in subsection 21 (3) of the Deposit Guarantee Fund Act in force until the entry into force of this Act. (2) Until 1 January 2004, the rate of the quarterly contribution payable to the Pension Protection Sectoral Fund shall be 0.02 per cent of the net asset value of all pension funds managed by a pension management company. (3) The supervisory board shall establish the rate of the quarterly contribution payable to the Investor Protection Sectoral Fund not later than by 15 October 2002. (4) The first quarterly contribution for the Investor Protection Sectoral Fund and the Pension Protection Sectoral Fund shall be paid by 15 November 2002. (5) Until 1 January 2019, the rate of the quarterly contribution payable to the Pension Insurance Contracts Sectoral Fund shall not exceed 0.05
per cent of all insurance payments of all pension insurance contracts signed by an insurer. § 116. [Repealed - RT I 2010, 22, 108 - entered into force 01.01.2011] § 117. Entry into force of Act (1) This Act enters into force on 1 July 2002. (2) Section 28, subsection 29 (2), § 46, subsection 47 (2) and §§ 111 and 112 of this Act enter into force upon Estonia's accession to the European Union. (3) Sections 97, 98, 100, 101, 103, 105 and 106 of this Act enter into force on the date following publication in the Riigi Teataja. RT = Riigi Teataja = the State Gazette |