The Financial Commission is almost a regulator with a compensation fund of 10,000$

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The Financial Commission The industry in CIS countries belongs to one of the poorly regulated segments of financial markets. The temporary absence of clear and understandable normative-legal base, regulating the activity of brokerage companies, still, alas, generates many claims to brokers. This situation has led to the creation of informal organizations, the activities of which, in one way or another, are aimed at streamlining the functioning of foreign exchange market . One of them is The Financial Commission. It should be understood that, in fact, The Financial Commission is not a full-fledged regulator, because its functions and tasks are aimed at solving a non-broad range of problems, and the opportunities to put pressure on the participants in case of disputes are limited by a voluntarily adopted agreement.

Official data

Full name: The Financial Commission
Official website: http://financialcommission.org/ru/
Year founded: 2013
Head Office: USA, Hong Kong
Contact phone: +852 81 711 723 (Hong Kong); +1 212 655 5493 (USA) e-mail: info@financialcommission.org
Financing: membership fees of the participants

What is The Financial Commission?

The Financial Commission is an independent association of leading experts in various areas of the financial industry, the number of which is constantly growing. All experts have professional experience and knowledge in the correct functioning of financial markets, which allows them to understand and make decisions in the most complex disputes between traders and brokers.

Aims and purposes of the Finance Commission

The main purpose of The Financial Commission's activities - extrajudicial settlement of a wide range of traders' claims against its member brokerage companies, which are providers of financial services on the foreign exchange market, CFD, binary options and cryptocurrencies.

At the same time it is declared that she:

is a neutral party;
ensures that claims are handled fairly and professionally;
Its services are a simpler, more affordable and faster way to resolve disputes than going to court or going to regulatory organizations.

The main task - ensuring high standards of business conduct by all participants in the commission.

For traders, the services of The Financial Commission are free of charge. In the Commission's practice, the most frequent complaints from traders are about:

closing a trading position by the broker at "non-market quotes",
technical problems - about trading or protective orders not triggering at an exactly specified price in case of strong volatility on the market and losses incurred,
lost profits,
requotes,
delays with the withdrawal of funds,
delayed execution of pending orders,
of cancellation of transactions by the broker,
questions regarding the broker's client agreement
and so on.

Membership in The Financial Commission

Any brokerage company wishing to become a member can join this organization. To do so, it is enough to submit an application, pay the registration fee, and, after passing the screening and approval by the Commission, the membership fees. The Commission offers two types of membership: A and B. The difference is in the monthly limit of the number of claims of the category B member and the absence of similar restrictions for the category A member. However, the dues for these two types of membership are different.

Structure of the Commission

Perth Tatarnikov, The Financial Commission The organization is headed by a Board of Directors headed by Pyotr Tatarnikov.

Structural Units:

Claims Resolution Committee (DRC).
Arbitration Committee under the leadership of Zach Johnow.

To protect the rights of the client, the structure has a dedicated compensation fund. Its purpose is to ensure the execution of decisions to compensate the broker's financial obligations to the applicant (if necessary). The fund is formed by deducting a share (10%) of membership fees. Payments to the applicant are made when a member does not agree with the decision of the Financial Committee and refuses to pay the proposed compensation. Monetary compensation is limited and amounts to 5 and 10 thousand USD per applicant.

Complaint Handling Procedure

Claims against participating brokers The Financial Commission Complaints are accepted no later than 45 days after the date of the dispute, only in writing. The content of complaints is prepared according to a certain scheme, according to the form on the company's website. It must reflect:

The essence of the claim and its details;
The result of the preliminary application to the brokerage company;
Required Compensation;
The applicant must also provide copies of all documents allowing for an objective review of the conflict situation.

The time for consideration of the complaint is 21 days. After that, the Committee makes a decision of partial or full satisfaction of the complainant's claim or refuses to satisfy it. If one of the parties does not agree with the decision of the Committee, there is an opportunity to appeal, but no later than 10 days. The decision on the appeal, which is carried out by the head of the Finance Committee within 5 days is final.

Bottom line

The positive moment of your broker's participation in The Financial Commission is the possibility to solve the conflict situations between the trader and the broker more quickly and less expensively, as well as the sufficient size of the compensation fund, beyond the limits of which it may not be necessary to go. The disadvantages are the actual absence of real legal mechanisms of influence on the brokerage company that made a violation (according to the Charter the broker pays a compensation to the complainant only in case of its agreement with the Commission's decision), except the possibility to revise the participant's status by expelling him from his organization. The Financial Commission can hardly be called a full-fledged regulator, but it is still better than a broker not regulated by anyone or regulated somewhere very far away.

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