Compensation Fund
Prosper Guardian Financial has established an impartial committee dedicated to fairly investigating and resolving complaints. This committee provides an easier and quicker resolution for such complaints compared to market regulators or judicial bodies. In addition, Prosper Guardian Financial offers an additional level of assurance to traders through its in-house "Compensation Fund."
How does the Compensation Fund Work?
The Compensation Fund, held in a seperate bank account, serves as an insurance policy for member clients. In the event that a member organization refuses to comply with a decision made by Prosper Guardian Financial, this fund is utilized to compensate for the investor's losses.
How is the Compensation Fund financed?
Prosper Guardian Financial Compensation Fund is financed by allocation 10% of monthly membership fees to this fund.
Who can benefit from the Compensation Fund?
It is important to note that this fund can only be used to compensate for a decision issued by Prosper Guardian Financial. Therefore, not all clients of a member organization have the opportunity to benefit from this compensation fund.
What is the maximum coverage of the Compensation Fund?
While the Compensation Fund covers decisions up to $35,000 per customer.
In the event of a shortfall in funds depending on the number of decisions related to a member organization, the fund is distributed equally among all complainants.