Financial Commission Publishes Case Examples Highlighting Use of Compensation Fund

/Financial Commission Publishes Case Examples Highlighting Use of Compensation Fund

April 11, 2018, The Financial Commission, a leading independent member-driven external dispute resolution (EDR) organization for international online brokerages that participate in global foreign exchange (forex), derivatives, and cryptocurrency markets, today published case examples on its website highlighting two particular client-broker disputes that resulted in the use of the Commission’s Compensation Fund to award customers losses incurred during trading.

The Financial Commission regularly publishes case examples for the trading community and brokers to review in order to understand the issues that often arise as a result of trading and the ways in which the Commission resolves such issues between brokers and their customers. The publicly available information is valuable in both educating traders, as well as improving the services and products offered by brokers.

Cases involving Compensation Fund awards

The cases published today highlight the issues faced by customers of a particular broker member of the Commission and the way in which the Dispute Resolution Committee (DRC) accepted the complaint, conducted the investigatory and determination phases and ultimately reached a judgement.

Each case is important in its own right, but both illustrate the ways in which the Commission handles situations where the broker member refuses to honor the DRC’s decision and/or pay the client an award as part of the judgement. Particularly, the actions the Committee took after informing the parties of its decision ensured that the customers were compensated for their losses and that the trading community was informed of the broker’s change in membership status with the Commission.

To review the new published cases, please click here and here.

What is the Compensation Fund?

The Compensation Fund acts as an insurance policy for members’ clients. This fund is be held in a separate bank account and be only used should a member refuse to adhere to a judgment from the Financial Commission. The Compensation Fund is financed through the allocation of 10% of the monthly membership dues to the fund.

For more information regarding the Compensation Fund or the free services the Commission provides for traders, please contact us on info@financialcommission.org or visit www.FinancialCommission.org.

2018-04-11T18:26:09+00:00 April 11th, 2018|