Claims against the fund.
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109. (1) Where any person claims that-
(a)
a stockbroker, or a member firm or corporate member of a stock exchange, has, by reason of a default committed in the course of or in connexion with the stockbroking business of that stockbroker, member firm, or corporate member, failed to perform a legal obligation owed to that person in relation to any money, securities, or other property to which that person is entitled or in which he has a beneficial interest (whether existing or contingent); and
(b) because of that failure, that person has sustained
pecuniary loss,
he shall be entitled, subject to this Part, to claim compensation from the compensation fund.
(2) Subsection (1) does not entitle any stockbroker, or any member firm or corporate member of a stock exchange, to make a claim against the compensation fund.
(3) Except as otherwise provided in this Part, the total amount that may be paid under this Part to all persons who suffer loss through any default mentioned in subsection (1) shall not in any event exceed $1,000,000 in respect of each stockbroker concerned in or connected with the default; but for the purposes of this subsection any amount paid from the compensation fund shall, to the extent that the fund is subsequently reimbursed in respect of any such payment (not being a deposit made under section 107), be disregarded.
(4) A person shall not have a claim against the compensation fund in respect of a default committed before the commencement of this Part.
(5) Subject to this Part, the amount which any claimant is entitled to claim as compensation from the compensation fund is the amount of the actual pecuniary loss suffered by him (including the reasonable costs of and incidental to the making and proving of his claim) less the amount or value of money or other benefits received or receivable by him in reduction of the loss from any source other than the compensation fund.
(6) In addition to any compensation payable under this Part, interest shall be payable out of the compensation fund on the amount of the compensation, less any amount attributable to costs and disbursements, at such rate as may be determined by the Commission from time to time, which shall be calculated from the
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day on which the default was committed and continue until the day on which the claim is satisfied.
(7) For the purposes of this section-
(a) “stockbroker" includes a person who has been, but, at the time of any default mentioned in subsection (1), had ceased to be, a member of a stock exchange if, at the time when the claimant entered into the transaction of course of dealing giving rise to the claim, the claimant had reasonable grounds for believing that person to be a member of the exchange;
(b) "member firm" includes a firm which has been, but, at the time of any default mentioned in subsection (1), had ceased to be, a member firm of a stock exchange if, at the time at which the claimant entered into the transaction or course of dealing giving rise to the claim, the person claiming compensation had reasonable grounds for believing that firm to be a member firm of a stock exchange:
(c) "corporate member" includes a corporation which has been, but, at the time of any default mentioned in subsection (1). had ceased to be, a corporate member of a stock exchange if, at the time when the claimant entered into the transaction or other course of dealing giving rise to the claim, the claimant had reasonable grounds for believing that corporation to be a corporate member of a stock exchange.
110. (1) If, after consultation with the Council of the Federa- Powers of don and after taking into account all ascertained or contingent Commis
sion to liabilities of the compensation fund, the Commission considers increase than the assets of the fund so permit, it may by notice published payments
made in in the Gazette increase the total amount which may be claimed
respect from the fund under section 109; and from the date of that claims. publication, until the notice is revoked or varied, the amount specified in the notice shall be the maximum amount that may be claimed under that section.
(2) A notice under subsection (1) may be varied or revoked by the Commission by notice published in the Gazette.
111. (1) Notwithstanding anything to the contrary in this Rights of Part, where all persons submitting claims under section 109 have innocent
parinerele. been fully compensated in accordance with the provisions of this in relation Part for the loss sustained by them as a result of the failure of to the fund.
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