Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 8

Local laws and regulations should ensure that there is segregation of client assets from the principal assets of their custodian; and no possible claim on client assets in the event of custodian bankruptcy or a similar event. Regulators and markets, to further improve investor protection, should work:

• to ensure clarity on the applicable law on cross border transactions
• to seek international agreement on a legally enforceable definition of finality in a securities transaction
• to ensure that local law fully protects the rights of beneficial owners
• to strengthen securities laws both to secure the rights of the pledgee and the protection accorded to client assets held in Securities Systems.

1.	Under local rules and regulations, what are the segregation requirements for keeping client assets and custodian assets in the depository?	There exist compulsory segregation of accounts at the level of end-investors, which are considered to be the sole owners of the accounts and the securities kept in these accounts. The accounts are held with CSD, as Law 24395/96 specifies that ownership of securities is proven by the recordings into the books of the CSD.
2.	How are clients' assets protected in the event of insolvency of a custodian or depository?	Client assets, custodian assets and CSD assets are completely kept in completely segregated accounts, held with CSD.
3.	Does local law recognise the existence of beneficial owners who may differ from the legal owner of a security?	No. In the Greek legal system there is no difference between beneficial and legal owner of a security. The owner of a security has legal title as well as the benefits deriving from it.
4.	Does local law clearly define the point of time when a settlement, both for the security and the cash involved, achieves finality and thus cannot be unwound?	Yes. According to Law 2789/2000 which incorporated EC Directive 93/22, finality of settlement is achieved directly following the transfer of cash and securities during the settlement cycle.
5.	Does a pledgee have an absolute right to realise their security at all times?	There exist no specific provisions in the Greek Law. It can be agreed contractually between the parties involved.
6.	Does the depository have loss sharing provisions in its rules, and how would these be applied?	No special provisions exist. CSD is a societe anonyme established under Greek Law and relevant provisions for the loss sharing among the shareholders of the company apply.