The following shall not be subject to deposit insurance:
1) deposits of other credit institutions held at their own expense and on their own behalf;
2) other "Luminor" funds;
3) deposits in relation to which a conviction judgement has been passed in a criminal case concerning money laundering;
4) deposits of financial institutions;
5) deposits of management companies;
6) deposits of financial brokerage companies;
7) deposits of unidentified owners (deposits held in anonymous and encrypted accounts);
8) deposits of insurance and reinsurance companies operating according to the Law on Insurance of the Republic of Lithuania;
9) deposits of collective insurance undertakings;
10) deposits of pension funds;
11) deposits of State and municipal institutions and agencies as defined under the Law on Public Services of the Republic of Lithuania, except those funds owned by other persons and held in the accounts of such institutions and agencies;
12) deposits of the Bank of Lithuania;
13) debt securities and obligations issued by "Luminor" related to bank acceptances and promissory notes;
14) electronic money and funds received by electronic money institutions from holders of electronic money for the purpose of exchange into electronic money.
Restrictions on the disbursement of deposit insurance benefits
1. No deposit insurance benefits are paid with respect to:
Luminor Bank AB (hereinafter – "Luminor") is a participant of the obligations to investors insurance system of the Republic of Lithuania.
The State enterprise Indėlių ir investicijų draudimas insures obligations to investors under the conditions and pursuant to the procedure set forth in the Law on Insurance of Deposits and Investments of the Republic of Lithuania.
A maximum insurance benefit amount (no more than 22,000 Eur) is applied to a single investor. The amount of the insurance of obligations to investors is equal to the obligations assumed by "Luminor" as of the date of the insured event; however, it may not be greater than 22,000 Eur. Insurance benefits with respect to deposits and insurance benefits with respect to obligations to investors shall be calculated and disbursed separately.
The investor shall become entitled to the insurance benefit as of the date of the insured event related to the obligations to investors, where "Luminor" is not in a position to fulfil the following obligations to the investor, assumed according to legal acts or contracts:
1) repay to the investor the funds owned thereby or on their behalf that were transferred to "Luminor" in order to make use of the investment services provided by the Bank;
2) repay to the investor the financial instruments owned by the investor or held, managed or handled on their behalf, and transferred to "Luminor" in order to make use of the investment services provided by the Bank.
Insured event – instigation of bankruptcy proceedings with respect to "Luminor", or a decision by the supervisory authority recognising the Bank to be insolvent, where the Bank, due to reasons related to its financial standing, is not able to fulfil its obligations to investors and there is also reason to believe that it will not be able to do so in the near future.
The financial instruments of an investor, irrespective of the currency of their denomination, and/or funds in all currencies are subject to insurance of obligations to investors.
An investor is a natural person or legal entity, or other organisation, that has transferred funds and/or financial instruments, intending to use the investment services provided by the Bank, or, in the case of a joint investment, each joint holder of the funds or financial instruments transferred to the Bank (a natural person or legal entity, or other organisation).
Obligations to the following investors are not subject to insurance:
1. Bank of Lithuania;
2. credit institutions;
3. financial brokerage companies;
4. financial institutions;
5. insurance and reinsurance companies operating according to the Law on Insurance of the Republic of Lithuania;
6. pension funds;
7. collective investment undertakings.
Investment risk is not subject to insurance.
No deposit insurance benefits shall be paid to the following investors:
1. investors, the obligations in respect of which assumed by "Luminor" are not subject to insurance;
2. investors in respect of whose financial instruments and/or funds a conviction judgement has been passed in criminal proceedings concerning money laundering;
3. Heads of bank administration, members of the Board (Supervisory Board) or the Council, persons holding no less than 5% of the authorised capital of "Luminor", persons carrying out an independent audit of the Bank (who have carried out an audit no later than one year prior to the insured event), close family members acting on behalf of the persons indicated in the present Item, and third parties.
Examples of circumstances or claims for which the insurance system is not applicable.
1. Investment risk is not subject to insurance: in the event the issuer does not redeem debt securities, or the value of an acquired financial instrument has decreased – this does not become an object of insurance of obligations to investors.
2. The insurance of obligations to investors is applied to the obligation of "Luminor" to return financial instruments (in the meaning of the Law on Markets in Financial Instruments (hereinafter – LMFI). Savings bonds of the Government of the Republic of Lithuania are not financial instruments within the meaning of the LMFI; therefore, in the event "Luminor" fails to fulfil its obligation to return savings bonds, no insurance will be applied to the obligation to investors.
The insurance benefit in relation to the obligations to investors shall be calculated by summing up all the funds and financial instruments of the investor that "Luminor" is not in a position to repay to the investor; however, the total amount of the benefit may not exceed 22,000 Eur.
The amount of the insurance benefit to an investor shall be calculated on the basis of the market value of the financial instruments of the investor on the day of the insured event. The amount of the insurance benefit with respect to obligations to investors in a foreign currency shall be calculated according to the euro-foreign currency exchange rate published by the European Central Bank on the date of the insured event, or, in the event the European Central Bank does not publish said exchange rate, according to the most recent reference exchange rate published by the Bank of Lithuania.
In the event a group of people (shared investment) has a claim to funds and/or financial instruments, then each person is considered to be an investor and the funds and the financial instruments shall be distributed to each investor in equal shares, unless the contracts from which the claim arises or court ruling provides otherwise.
This means that, for the purpose of determining the amount of the insurance benefit, the shared financial instruments and funds are allocated to each investor according to the share they are entitled to. However, all financial instruments and funds of a single investor shall be cumulated, and the total amount shall be subject to a limit of 22,000 Eur.
The State enterprise Indėlių ir investicijų draudimas shall insurance benefits within 3 months of the insured event. The Board of the State enterprise Indėlių ir investicijų draudimas may extend this term for a period no longer than 3 months.
In the event no insurance benefit is paid to the customer within the terms indicated above, the customer should contact the State enterprise Indėlių ir investicijų draudimas, because the investor’s entitlement to an insurance benefit remains valid for 5 years after the insured event, following which the investor may lose their right to claim the insurance benefit.
In the cases provided by the Law of the Republic of Lithuania on Deposit Insurance and Insurance of Liabilities to Investors (for more details please visit iidraudimas.lt), the pay out of the deposit insurance benefit may be postponed, e.g. in case of the lack of data to evidence the right to the deposit insurance benefit or due to the ongoing legal proceedings about the deposit, or in case the right to dispose of the deposit is restricted to the depositor.
Insurance benefits are paid to investors in euro.