Investor protection

Berbank AS transacts its business on the Estonian banking market under the credit institution license issued by the Bank of Estonia on 28 September 1999. Berbank AS is authorised to provide banking and investment services (inter alia, accept and transfer securities, execute Clients’ orders in the name of the Clients, operate the Clients’ current accounts, trade with securities, manage securities portfolios, offer consultations in investment related matters, manage issuing and placement of securities, as well as render other investment related services).

As of 29 March 2012 the core investors of Berbank AS are investors from Ukraine. More detailed information about the shareholders and the management board of the Bank is available on our site in the “About the Bank” section.

Should you have any questions, please contact our staff.

1. Protection of Client’s Securities

Securities owned by the Clients of the Bank do not constitute a part of the assets of Berbank AS. Securities traded on Estonian, Lithuanian and Latvian stock exchanges, as well as any other securities registered in the Estonian Central Register of Securities are held separately on the account opened by the Client.

Any other securities are held on the nominee accounts of the Bank held with foreign brokers. Securities of Clients and of the Bank are always held separately.

Transactions carried out on the Tallinn Stock Exchange are protected by the Guarantee Fund, which is established out of the cash contributions of the members of the exchange.

Resources of the guarantee fund will be applied if a member of the exchange becomes bankrupt or if a member of the exchange has insufficient securities or resources to make a transaction on the exchange.

Investments are guaranteed and indemnified by the Guarantee Fund in the amount of their value on the date of indemnification, however the amount shall not exceed EUR 20 000 per one investor in one investment institution.

Please review the Principles of Holding and Protection of Client’s Assets

2. Protection of Deposits and Moneys

Pursuant to the law deposits are protected by the Guarantee fund. A deposit is indemnified in full, however the amount of the indemnity shall not exceed EUR 100 000 per a depositor in one credit institution.

Please review: Information concerning investor protection set forth in the Guarantee Fund Act.

3. Avoidance of Conflict of Interest

In order to protect Clients’ interest and the investment and ancillary investment services provided by the Bank, internal rules have been established for the personnel of Berbank AS. These rules have made it possible to successfully avoid conflicts of interest.   

Please review the Brief description of the conflict of interest avoidance rules

4. Control of the Bank’s Business

The Bank’s business and the assets of the Bank’s Clients are supervised by the Financial Supervisory Authority (Sakala 4, Tallinn, 15030, www.fi.ee ) that regularly verifies the required adequacy of resources, the compliance with the law, and the overall reliability of the Bank. The business of the Bank as a member of the Tallinn Stock Exchange is supervised by NASDAQ OMX Tallinn (Tartu mnt. 2, Tallinn 10145 www.nasdaqomxbaltic.com ) who monitors the compliance with the rules established by the Stock Exchange for transacting banking business.

5. Language of Communication and Provision of Information

Communication between the Bank and its Clients, as well as record maintenance takes place in the language preferred by the Client, unless the parties have agreed otherwise.

The means of communication between the Bank and the Client are: telephone, telefax, e-mail, the internet-banking system; the Client is also offered a possibility of a personal contact at the central office of the Bank. The above listed means of communication can also be used as channels for transacting with securities.

In accordance with the contract between the Bank and the Client information concerning the provision of investments services is forwarded to the Client by e-mail and/or on paper using the following channels: postal services, electronic mail, internet banking system, the Bank’s website or at the central office of Berbank AS.

Depending on the type of contract(s) concluded with the Client the Client may review any information concerning the performed transaction through our internet banking system, or alternatively the Client can receive a confirmation through a reliable data carrier at the latest on the workday following the date of completing the transaction, or at the latest on the workday following the day when the respective confirmation was received from the third party.

6. Other Important Documents

• General Terms and Conditions of the Framework Agreement on Transactions with Securities
• Principles of Holding and Protection of Client’s Assets
• Best Client Order Handling Policy
• Information about the Guarantee Fund statutory investor protection
• Questionnaire for assessing relevance and suitability of a Client in order to establish the limits of provision of investment services by Berbank AS
• Application to reclassify a retail client into a professional client
• Overview of securities and related risks