Published : 2010-10-30

Protection of Investor on Financial Market

Bogna Janik



Abstract

There are two mechanism of investor protection: regulatory and customary. The first one is imposed by domestic supervisor, the other one is derived from good practice of running the business. The purpose of the paper is to present one type of protection regulatory, especially investor protection system. The objective of investor protection system is protecting a small investor. The system should increase investors' confidence in financial market institutions and, therefore, support the stability of this market. The main objective of creating Polish investor protection system, called Compensation System, and EU systems was adjusting EU members to Directive ICD requirements. The experience of the system on the Polish market is very scarce. So far (since 2001) one compensation has been realized - it was connected with bankruptcy of investment institution WGI (2006). Currently, the customers of this investment institutions are fully satisfied due to suitable payouts from the system. (original abstract)

Keywords:

Protection of investors rights, Stock exchange investor, Individual investors, Financial services market



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Janik, B. (2010). Protection of Investor on Financial Market. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 30(30). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1567

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Uniwersytet WSB Merito w Poznaniu
ul. Powstańców Wielkopolskich 5
61-895 Poznań
e-mail: journals@poznan.merito.pl
University
Uniwersytet WSB Merito w Poznaniu / WSB Merito University
ul. Powstańców Wielkopolskich 5
61-895 Poznań

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