The FinancialComplaint Matter
Ms. XXX has lodged his complaint with Financial Commission on the following grounds:
The Client used trading account #XXXXX for trading operations on the Forex and CFD market. Having had little to no experience trading the markets, the Client used the services of an investment consultant (a representative of the broker XXXX).
The Client states that she believes her trading account deposit was lost due to the deliberate actions of the investment consultant. In the words of the Client in the beginning of the process of working with the consultant, the Client did not conduct any self-directed trades as they relied on the consultant to place trades on her behalf in the trading account using a remote access program called TeamViewer. After the trading account lost considerable equity (approximately $2000) the client was introduced to another investment consultant of the Broker, who conducted a series of trades with metals contracts, as instructed by the Client herself. As a result, the subsequent trades in the account led to the Client losing her full initial deposit amount.
The Client is requesting the Broker to return funds in the amount of the initial deposit less $150, which was withdrawn from the account on December 13th 2016 ($2082). The documentary evidence provided by the Client includes a trading account statement for account #XXXXXX, as well as screenshot of an electronic message from the investment consultant with instructions on downloading the TeamViewer program.
The Broker believes the Client’s complaint is not justified and does not take any responsibility for the losses incurred on the Clients’ account, because, as stated by the Broker, the Client was made aware of all risks involved in trading leveraged products on the financial market. The appropriate risk disclosures were provided to the Client in electronic format during the account opening process.
Moreover, the Broker indicated that all trades conducted on the Client’s account were made either directly by the Client or by the investment consultant after receiving verbal confirmation from the Client.
Following the Dispute Resolution Committee’s decision in the case, the Broker did not satisfy the DRC’s decision to compensate the client within 28 days, according to the Rules and Guidelines of the Financial Commission.
Because the Broker failed to satisfy the decision, the Commission took emergency action to assist the Client and invoked the use of the Compensation Fund to compensate the Client for their losses identified in the DRC decision. As a result, the Client was awarded $2082 from the Compensation Fund.
Furthermore, the Commission took action and expelled the Broker’s membership with the Financial Commission
| Complainant | Broker | |||
| XXX | YYY | |||
| Financial Commission Complaint | #ZZZ | |||
| Complaint Raising Date | Complaint Filing Date | |||
| 16/12/2016 | 04/01/2017 | |||
| Complaint response:
The decision for this complaint is based on the information provided by the Client and the Broker. To ensure an objective investigation of the incident, the Dispute Resolution Committee of the Financial Commission closely examined the documentary evidence provided by the parties to the dispute. Having analyzed the materials of the complaint, the Dispute Resolution Committee has come to the following conclusions:
7.1 The Company does not consult the Client on the benefits of any specific trade order or otherwise provide any other consulting regarding investments, and the Client agrees that the services do not include investment consultations on financial instruments, base markets or equity. The Client makes trading decisions exclusively of their own accord, including to place trading orders. 7.2 The Company is not required to provide any legal, tax or other advise associated with any trades. If the Client wishes, they can consult with an independent party on such matters before executing a trade.
Risk Warning: Trading leveraged products such as CFD’s involves substantial risk of loss and may not be suitable for all investors. Trading such products is risky and you may lose all of your invested capital. Please click here to read full Risk Disclosure. Safekeeping and Brokerage services are provided by XXXX. with license number YYYY, address in ZZZZ. XXXX does not establish accounts to residents or passport holders of certain jurisdictions including Canada and USA.
As such, having reviewed all the facts and circumstances of the dispute, the DRC has come to unanimous agreement that all the trades conducted on trading account #XXXXX should be deemed invalid. Given this determination, the Broker must compensate the Client for all losses incurred on the account in the sum of $2082. This complaint was reviewed by the members of the Dispute Resolution Committee of the Financial Commission and was processed by the Head of the Committee. |
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| Ruled in Favor | Compensation | |||
| Client | $ 2082 | |||
| If you have any questions regarding this investigation, please send them to the following address [email protected] | ||||
| Acknowledgement | ||||
| I certify that all information was considered by the Dispute Resolution Committee of the Financial Commission and hereby confirm that the decision was made fairly, impartially and without interference. I am confident that the information provided in the document is true. | ||||
| Signature | Designation | Date | ||
| Anatoly Bulanov |
Head of DRC |
March 7th 2017 | ||