NAGA Adds €1 Million Client Insurance, but Total Cover Is Undisclosed

AI summary of the source article

NAGA has launched a private insurance policy underwritten by Lloyd's for clients of its CySEC-regulated entity, Naga Markets Europe Ltd, valid through September 30, 2027. The policy supplements Cyprus's €20,000 statutory Investor Compensation Fund, offering up to €1 million per eligible claimant for missing cash, shares, ETFs, and margin cash resulting from insolvency, fraud, or theft. However, NAGA has not disclosed the policy's total aggregate limit across all claims, meaning payouts could be proportionally reduced in a major failure. The cover excludes trading losses and does not apply to non-European entities such as NAGA Capital in Seychelles.

Why it matters

While the insurance raises protection above statutory compensation caps, the undisclosed aggregate limit means clients may receive significantly less than the advertised €1 million maximum in a major failure.

Key facts

• The Lloyd's policy covers up to €1 million per eligible client at Naga Markets Europe Ltd until September 30, 2027.
• The coverage supplements the €20,000 Investor Compensation Fund but excludes CFD positions, trading losses, and non-European group entities.
• NAGA has not disclosed the overall aggregate limit across all claims, which could proportionally reduce individual payouts.