Protection of client funds

The Guarantee Fund for Depositors and Investors

Saxo Bank is a member of the Guarantee Fund for Depositors and Investors supervised by the Danish Ministry of Economics and Business Affairs. 

In the event that a Danish bank (including Saxo Bank) should suspend its payments or go into bankruptcy, client deposits are guaranteed by the Fund with up to EUR 50,000 for cash deposits. From September 30, 2010, the guaranteed amount will be increased to EUR 100,000. Cash deposits are calculated as the net free deposit after deduction of any debt to the bank. 

As a general rule, securities will not be affected by the suspension of payment or compulsory winding-up and will be returned to the client. In the event that a Danish bank (including Saxo Bank) is unable to return securities held in safe-custody, administered or managed, the Guarantee Fund will cover with up to EUR 20,000 per client.

The Guarantee Fund for Depositors and Investors

For further information on the Guarantee Fund and the coverage as well as an updated list of the Guarantee Fund Members, please click here.

The Danish Act on Financial Stability – The Governmental Guarantee Scheme

As a result of the international financial crisis, the Danish Act on Financial Stability was adopted on 10 October 2008 by the Danish Parliament. 

The Danish Act on Financial Stability launched the Governmental Guarantee Scheme according to which the Danish Government through a limited liability company, the Winding-Up Company, unconditionally and irrevocably guarantees the due payment of all unsecured creditors (except creditors pursuant to hybrid core capital, subordinated loan capital and covered bonds) in Danish banks which are members of the Private Contingency Association. Saxo Bank is a member of the Private Contingency Association and thereby included by the Governmental Guarantee Scheme. 

In the unlikely event that Saxo Bank should fail to fulfill its unsecured and unsubordinated payment obligations when they become due and payable, the Danish Government guarantees the payment of such obligations. Accordingly, any claim, which meets the above re-quirements and which is not covered by other protection schemes, such as the Guarantee Fund for Depositors and Investors, will be honored by the Winding-Up Company.

The Governmental Guarantee Scheme will remain effective until 30 September 2010. Accordingly, if prior to such date Saxo Bank (i) suspends its payments, (ii) goes into bankruptcy, (iii) fails to pay its debt when it becomes due and payable or (iv) fails to meet the capital adequacy requirements set out in the Danish Financial Business Act, the unsecured and unsubordinated creditors of Saxo Bank will be covered by the Governmental Guarantee Scheme.

For more information on the Governmental Guarantee Scheme, please visit the Danish Ministry of Economic and Business Affairs’ website.

The Danish Act on Capitalisation for Credit Institutions

To offset the consequences of the international financial crisis, the Danish Parliament adopted the Danish Act of Capitalisation for Credit Institutions on 3 February 2009 enabling Danish banks and credit institutions to apply for a capital injection funded by the Danish State. Saxo Bank has decided not to apply for such state capital injection.