DPM azović, Director of European Forum of Deposit Insurers Dirk Cupei: Protection of investors guarantees stability

Podgorica, Montenegro (20 May 2014) – Deputy Prime Minister Vujica Lazović met earlier today with Director of the European Forum of Deposit Insurers Dirk Cupei, who presented the model for protection of investors, as an instrument for reaching financial stability.

According to the European legislation, the Investor Protection Fund guarantees to small investors the compensation at the financial market in the amount of EUR 20.000, which reduces risk in case of bankruptcy of an investment company or a credit or non banking institution.

The European Forum of Deposit Insurers aims to contribute to the stability of financial systems throughout the promotion of European and international cooperation in the fields of deposit insurers, resolving crisis, investor compensation fees and exchange of information related to the issues of common interest.

Deputy Prime Minister Lazović highlighted that regaining trust of small investors in a situation when capital market is inactive, is extremely important. Before launching this model at the financial market, it could be very useful to do a feasibility study, he concluded.