The fundamental principle of asset segregation, enshrined in Article L.533-10 of the Code monétaire et financier, requires investment service providers to safeguard clients' rights over financial instruments belonging to them and to prevent their use for proprietary purposes, except with express consent.

The Fonds de Garantie des Dépôts et de Résolution (FGDR) is the central body in the French compensation scheme. It plays a crucial role in protecting investors in the event of failure of a financial institution.

European Directive 97/9/EC establishes a harmonised framework for compensation schemes, setting a minimum guarantee level for investors. This minimum level is important for ensuring basic protection across Europe.

According to the Fonds de Garantie des Dépôts et de Résolution (FGDR), the securities guarantee covers all financial instruments up to €70,000 per client per institution. This information is crucial for understanding the protection available to investors in the event of failure of a financial institution.

The deposit guarantee in France protects current accounts, term accounts, savings accounts, etc., up to €100,000 per depositor per institution. This information is essential for understanding the protection offered to clients in the event of bank failure.

It is essential to distinguish between different types of guarantees to understand the protection offered to clients. The deposit guarantee covers bank accounts, while the securities guarantee protects financial instruments.

Central government bodies, as well as banks and investment firms, are excluded from the guarantee. This exclusion is designed to primarily protect individuals and small businesses.

Under Directive 97/9/EC, branches of investment firms established in other Member States are covered by the scheme of the home country, not the host country. This ensures consistent protection for investors across Europe.