PROTECTION OF CLIENT FUNDS

Saxo Bank is a member of the Guarantee Fund for Depositors and Investors supervised by the Danish Ministry of Economics and Business Affairs.

Should Saxo Bank run into a suspension of payments or compulsory winding-up, client funds are guaranteed by the Fund up to DKK 300,000 (approx. EUR 40,000) for cash deposits. Cash deposits are calculated as the net free deposit after deduction of any debt to Saxo Bank.

As a general rule, securities will not be affected by the suspension of payment or compulsory winding-up and will be returned to the client. In the unlikely event that Saxo Bank is unable to return securities held in safe-custody, administered or managed, the Guarantee Fund will cover with up to EUR 20,000 per client.

For further information on the Guarantee Fund and the cover it provides, please read the brochure published by the Guarantee Fund, available here.

Additional Guarantee Scheme agreed between the Danish financial sector (through its vehicle, the Private Contingency Association ("Det Private Beredskab")) and the Danish Government

On 5 October 2008, the Danish Government and the Private Contingency Association ("PCA"), which was established in 2007 and comprises virtually all Danish banks extended a safety net and agreed on a bailout fund so that all claims by creditors (not covered by other means such as the above Guarantee Fund for Depositors and Investors) and senior debt (unsecured unsubordinated debt including but not limited to deposits, senior unsecured bonds or interbank deposits) to any creditor are fully covered. Risk capital and other forms of hybrid capital will not be covered.

The banks participating in the PCA will fund up to DKK 35 billion of the bailout fund and the Danish government has provided an additional two-year unlimited guarantee for all deposits with and unsecured claims against banks and saving banks who are members of the PCA. This will safeguard financial stability by contributing to facilitate the resumption of interbank lending.

Saxo Bank has joined the PCA on October 7, 2008 and thus all our client funds will be fully protected. This means the limitations of DKK 300,000 and EUR 20,000 of the ordinary Guarantee Fund do not apply during the two-year term of the agreement, but instead all client funds as well as other creditors will be protected regardless of the amount. The additional guarantee will be in effect until 30 September 2010, but may be extended if deemed necessary to secure financial stability.

For further information about the PCA guarantee, please click here.