Danske Bankas - Deposit and liabilities to investors insurance system

All deposits and assets intended for purchasing financial instruments and held at Danske Bank A/S Lithuania Branch are subject to compulsory insurance in The Guarantee Fund for Depositors and Investors (Danish Kingdom).

What is the Guarantee Fund for Depositors and Investors?

The Guarantee Fund for Depositors and Investors (hereinafter – the fund) means the body established by the act of Parliament of the Kingdom of Denmark. Within certain limits, the fund reimburses losses incurred by clients of Danish banks, mortgage banks or investment companies, where a bank, a mortgage bank or an investment company is subject to compulsorily dissolution. This protection also applies to all clients of Danske Bank A/S Lithuania Branch (hereinafter – the bank) (private individuals and legal entities).

How much is reimbursed by the fund?

Funds

The fund can pay compensation of up to EUR 100,000.for deposits or funds in the client's bank account in any currency

Securities

The fund also compensates the loss incurred by an investor if the investor's securities managed, or administered by the bank, or held in an investor securities account are not returned by the bank. The amount of compensation is EUR 20,000 per investor.

How is the compensation calculated?

Funds

The amount of loans and other financial obligations to the bank is deducted from the total sum of cash deposits held by the client at the bank and the balance held in his/her bank accounts. The client is paid a positive balance of funds up to EUR 100,000.

Securities

Generally, suspension of the bank's payments or compulsorily dissolution has no effect on securities, because even in such cases investors usually recover their securities.

However, sometimes, securities cannot be returned to the investor. In such cases, the fund reimburses the loss because securities were not recovered in the amount of up to EUR 20,000 per investor less any debts to the bank. However, the compensation cannot exceed the market value of outstanding securities.

Funds and securities in joint accounts

Where several people jointly hold funds or securities each of them is deemed to be an individual investor or depositor only if s/he is registered as a deposit or securities account holder. Each depositor or investor is entitled to receive compensation of up to EUR 100,000 for the funds and compensation of up to EUR 20,000 or the equivalent in another currency for securities.

How can I apply for compensation?

Not later than within one month after suspension of the bank's payments or compulsorily dissolution, the depositor or investor will receive a full statement of his/her bank accounts in the bank. Information will also be provided as to what actions should be taken (for example, an instruction will be given to contact another financial institution, through which a claim must be submitted to the fund). AfterAfter the fund verifies and confirms the claim, but not later than within 20 workdays after the suspension of the bank's payments or compulsorily dissolution, the compensation will be paid into the depositor's or investor's bank account at his/her selected bank. At the request of the fund, the Danish Financial Supervisory Authority may extend the payment term, but for no longer than a nine-month period.

Got any questions? Call the Contact center at 1636 (from outside Lithuania dial +370 5 215 6666) or send us an enquiry.

Deposits