Who Can Claim From The IPF?
To be eligible for compensation, investors must meet specific criteria as outlined in the Securities and Exchange Act.
Registered Investor
You must have been dealing with a securities firm that is registered with the Securities and Exchange Commission of Zimbabwe.
Firm Failure
The registered securities dealing firm must have failed to meet its contractual obligations to you as an investor.
Pecuniary Loss
You must have suffered a financial loss that can be quantified and documented as a direct result of the firm's failure.
Not Covered by IPF
The fund does not compensate for losses resulting from market fluctuations, poor investment decisions, or dealing with unregistered entities. Always verify registration status with IPF.
HOW THE FUND WORKS
Understanding the claims process for investor compensation.
Application for compensation
Any eligible protected investor who wishes to make a claim for compensation must lodge an application for compensation with the Fund Administrator, Minerva Benefits Consulting. In the event of insolvency of a contributor, the Board will publish a notice in at least two newspapers with national circulation and will send a claim form to each customer of the contributor based on the records of the contributor. A protected investor will have to submit a claim form to the Board before the deadline specified on the form and if he or she fails to do so, the Board may:
- extend the time within which a protected investor can file the claim; or
- direct that he or she shall not be paid any compensation.
Maximum amount of compensation
The maximum amount of compensation paid out at any one time does not exceed ten percent of the market value of the Fund's assets at the time the payments become due. In the event of multiple claims the amount paid to each protected investor will be reduced proportionately.
Determination of application for compensation
The claimant must provide proof to the Board that they suffered a loss and the loss was as a direct result of malpractice on the part of the contributor or of the insolvency of the contributor. Upon receipt of the documents the Board will submit them to SECZim for further investigations. Upon completion of investigations, SECZim will provide a report of its findings to the Board for evaluation and judgment. If the Board finds the claim valid, the Board will assess the amount of compensation payable and will settle the payment within three months. In the event of multiple claims emanating from a common contributor the Board will only make an assessment when all claims have been submitted.
Rejection of application for compensation
An application for compensation will be rejected by the Board if:
- it is made twelve months after the malpractice or insolvency unless there is a valid explanation for the delay; or
- the protected investor is responsible for his or her loss; and
- the claim is found to contain inaccuracies or omissions unless the inaccuracies or omissions are not material and not meant to conceal information that would affect the Board’s decision.
The Board may postpone paying compensation where:
- it considers that the protected investor has not fully exhausted compensation from the contributor or other third parties; or
- the protected investor has been indicted with an offence arising from any business with the contributor from which the protected investor has benefited from its involvement and the court is yet to make a judgment.
