Regulatory organization, The Financial Commission
The Financial Commission is an independent financial Commission, assisting in pre-trial settlement of disputes arising between traders and brokers in the process of Forex trading. The composition of The Financial Commission is constantly updated with new experts – professional traders and lawyers who are not representatives of brokerage companies, and therefore can not influence the decision of disputable situations.
The main objectives of The Financial Commission are:
- the establishment of an independent financial Commission, serving a neutral party in resolving disputes;
- fast and fair processing of claims in contrast to the bureaucratic regulators and long trials;
- legal protection of traders and compensation of their costs from the compensation Fund to $ 20,000 per client.
The claims process is as follows. At the time of the client of the brokerage company The Financial Commission verifies whether a claim previously considered by the broker. For the consideration of the claim to the broker-a member of The Financial Commission is given a period of 10 days, during which the broker is obliged to give a detailed response to the claim of his client. If the trader remained dissatisfied with the decision of the broker, he may appeal to The Financial Commission, detailing the problem. The DRC listens to the arguments on both sides, makes the necessary investigation and make a decision on the claim. If the trader does not agree with the Commission's decision, he may file an appeal, citing irregularities in the process of reviewing claims or providing new information on this issue. The decision on the appeal will be reviewed within 5 days by the Chairman of the Commission.
If the claim made in favor of the trader and the broker-a member of The Financial Commission refuses to compensate the damages, then the Financial Commission whomestic losses of a trader of a private compensation Fund, which is monthly deducted 10% from membership fees. For one claim can be compensated up to $ 20,000 to a customer of the company-member of category A and $ 5,000 to the customer from the company-member of category B. the Financial Commission no minimum amount of claims, however all claims in the amount of $ 250 will be reviewed by one member of the Committee, and claims worth more than $ 250 are always at least three members of the Committee. Typically, as claims traders are such problems as the closing of positions for "non-market prices", requotes and slippages, technical problems (failure of the trading terminal, the failure of delayed or protective orders), lost profits, delay, withdrawal, cancellation of transactions by the broker, the differences in the client agreement, broker etc.
Of course, The Financial Commission in its essence is not a financial regulator. It can't affect the brokers at detection of their violations depend on their membership dues, become a member of The Financial Commission can be virtually any broker, claims and payment from the compensation Fund is possible only under the condition that the trader is a customer of one of the broker members of The Financial Commission, the Commission's decisions are not published on the website. However, the participation of the broker in The Financial Commission is another step for creating a transparent trading environment among brokers from Russia and CIS countries, and the trader gets free legal support and the ability to quickly review the claims without the unnecessary costs of litigation.