The Financial Commission was established to be a neutral 3rd party committee to fairly review and resolve complaints in an effort to facilitate a simpler, swifter resolution than through industry regulators and the legal system. Besides that, Commission also provide additional protection for the traders by Commission’s Compensation Fund.
How does it work?
The Compensation Fund acts as an insurance policy for members’ clients. This fund will be held in a separate bank account and be only used should a member refuse to adhere to a judgment from the Financial Commission.
How Compensation Fund is financed?
The Compensation Fund is financed by the Financial Commission through allocation of 10% of the monthly membership dues to the fund.
Who is covered?
It is very important to understand that fund will only be used for a judgment that has been made by the Financial Commission, a member’s entire client base are not entitled to a payout from the compensation fund.
What is the maximum coverage?
The Compensation Fund will only cover judgments up to $20,000 per client of an A-Category Member and up to $5,000 per client of a B-Category Member.