A compensation fund for people seeking redress when companies they invest in go bust is grossly underfunded.

The annual accounts for 2012 showed that the Investor Compensation Scheme, which is different from the depositors’ scheme for banks, has assets worth just over €2 million, up from €1.8 million the year before.

Set up 11 years ago to provide a means of protection for investors, the fund’s precarious state was highlighted during court proceedings involving a financial services company that went bust.

The scheme is run by an independent committee appointed by the Malta Financial Services Authority and has 48 participating companies that are obliged to deposit money in the reserve.

More in the Times of Malta and the e-paper on timesofmalta.com http://4880faf42e112ca059e3-09ba9aac8abe8fbba30bbeb11b64daad.r13.cf3.rackcdn.com/850db9afff23f63ad56958abd5a74bb7.pdf

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