The Polish Investor Compensation SystemVersus EU-15 Systems and Model Solutions

The purpose of a compensation system is the protection of small investors. The system shouldincrease investors' confidence in financial market institutions and, therefore, support financialmarket stability. The main objective of Compensation System in the EU is adjusting EU memberstates to Directive ICD requirements. However, compensation systems are not the same in eachcountry. Historical, cultural and social conditions within the EU might differently influencesystem solutions. The subject of this paper is an attempt to develop a model, based on theoreticaland practical considerations, which will capture the development of financial markets and allrisks involved. The model should necessarily undergo modifications and adjustments to the needsof developing EU-wide financial markets.