What is FRACS?

FRACS (Financial Risks and Annuity Compensation Scheme) is an international compensation fund of last resort for customers of approved financial services, annuities and PFR. FRACS provides compensation and protection of the interests of holders of annuities and PFR. Protection of holders of annuities and PFR carried out by the financial bankruptcy of firms that are either not able or likely to be unable to fulfill its contractual obligations to customers. This usually occurs when the company ceased to exist ever been declared insolvent.

Impartiality and independence

FRACS is a non-governmental program and is independent of any government or financial institution. FRACS protects the interests of both companies and private owners of annuities or approved financial services. For individual customer service is free.

What is included in the scope of FRACS

Financial Risks and Annuity Compensation Scheme (FRACS) covers business, which includes only annuities or approved financial services. Any international financial services (approved in their countries relevant regulatory organizations) may also fall within the scope of activities FRACS.

FRACS protects:

  • annuities
  • program of financial rent
  • and other financial services a complete list of which can be viewed on the foundation's Web site.

There are restrictions on the protection afforded FRACS

As a fund of last resort in FRACS there are limitations on possible actions, and in terms of the size of the compensatory amounts paid by the Program.