Local and foreign funds designed to protect securities investors in the event of brokerage failures are expected to merge by July, industry sources said Tuesday.
The domestic safety net, with 240 member brokerages, and the foreign fund, with 50 members, will form an entity with 50 billion yen in funds, the sources said.
If investors become unable to collect their share certificates deposited at a failed brokerage, the envisioned protection fund is expected to pay up to 10 million yen per investor in compensation.
The two funds were created in 1998 after the now-defunct Yamaichi Securities Co. went bust.