European Forum of Deposit Insurers (EFDI) Publishes Paper on Potential Improvements to EU Investor Compensation Schemes (ICS) Regulatory Framework
Brussels, 28th November 2025
The European Forum of Deposit Insurers (EFDI) is pleased to announce the publication of Paper 3: Potential Improvements to EU ICS Regulatory Framework, a comprehensive analysis aimed at strengthening the resilience and effectiveness of Investor Compensation Schemes (ICS) across the European Union.
This paper addresses key areas for improvement in the EU regulatory framework for ICS, including:
- Harmonisation: advancing consistency in coverage of clients, products, activities, and entities across Member States.
- Cross-Border Case Management: facilitating smoother handling of cross-border cases, including top-up arrangements, and improving retail investor access to information and compensation.
- Crisis Management Efficiency: enhancing ICS roles in insolvency proceedings, ensuring timely access to information, and enabling effective subrogation and recovery.
- Investor Communication: improving clarity and transparency of ICS coverage for investors.
- Operational Capacities: supporting ICS in achieving robust operational capabilities and establishing minimum common rules for procedures.
- Regulatory Updates: reviewing potential updates to the Investor Compensation Schemes Directive (ICSD) and alignment with subsequent EU regulations.
- Learning from DGS Progress: assessing which developments in Deposit Guarantee Schemes (DGS) regulation could be adapted to ICS, considering sector-specific needs.
- Risk Assessment Information: addressing the current lack of data available to ICS and authorities for evaluating covered risks and actual capacity.
- Role of ESMA: exploring ESMA’s potential involvement under Article 26 of Regulation 1095/2010 in supporting these improvements.
This initiative reflects EFDI’s commitment to fostering a more harmonised, transparent, and resilient investor protection framework within the EU.
EFDI extends its sincere gratitude to the Investor Compensation Schemes Working Group (ICSWG) Members for their invaluable contributions, and in particular to Alan de Lacy, leader of the ICSWG, and Ignacio Santillan, Associate Members Observer (AMO), for their leadership and dedication throughout this project.
For any inquiries, please contact [email protected]