OREANDA-NEWS. April 25, 2008. IC ROSNO and IC IT Invest have prolonged the contract for comprehensive insurance of stockmarket participant liability, reported the press-centre of ROSNO.

IC ROSNO and IC IT Invest, one of the largest Russian e-brokers providing its clients direct access to the Russian and US stock markets, have prolonged the contract for comprehensive insurance of stockmarket participant liability. The insurance coverage limit per one client has been raised to 3,500,000 roubles.

This contract was first concluded in 2006. Just as before, the contract contemplates provision of insurance coverage of IT Invest’s liability to all of its clients who have brokerage accounts.

The insurance contract covers such risks as unintentional errors, negligence or omissions of the brokerage company’s employees, willful misconduct of employees; unlawful conduct in relation to computer data and technical means of communication.

In accordance with world practice, market risk insurance is not included in this list.

In 2008, ROSNO’s liability limit per client in insurance coverage of this set of risks was raised to 3,500,000 roubles.

Mr. Vladimir Tvardovsky, Chairman of the Management Board of IC IT Invest, commented on the contract prolongation as follows: "Insuring accounts of investors operating on the stock market is a usual practice of the developed markets covered by the state insurance program like SIPC in America. We do nothing unusual in this respect. This is just a natural motion towards a civilized market, providing additional guarantees to our clients".

Dmitry Chugunov, ROSNO’s project manager, notes: "This type of insurance is a reliable instrument for protection of financial interests of investors and professional stockmarket participants. Its relevance is evidenced by our practical work, and its efficiency can be seen from the settled insurance accidents and legal provisions enabling organizations to lower the level of equity if insurance coverage is provided".