The Financial Commission (FinaCom), a Hong Kong-based external dispute resolution (EDR) organization, has approved forex broker FXPig as an A-category member. As a result, the broker’s clients are eligible for compensation of up to $20,000 per claim in case of unresolved dispute.
The broker was granted a FinaCom member status effective from 4 April, 2017. The EDR acts as a third-party mediator in case of complaints and disputes between its members and their clients in cases when the involved parties cannot solve themselves. The organization helps facilitate a simpler, swifter resolution process than through typical regulatory channels.
“Financial Commission provides an unmatched dispute resolution process which FXPIG and its customers can now take advantage of,” FinaCom chairman Peter Tatarnikov said.
FXPig is a brand name of Prime Intermarket Group Asia Pacific Ltd., a company registered and regulated in Vanuatu. The broker used to operate under a New Zealand registration, but it moved out of the country in H2 2016 due to its dissatisfaction of the regulatory environment.
“Then there is the simple fact that the FSPR [Financial Services Providers Register] and the FMA [Financial Markets Authority] have several levels of contradicting regulations and like most regulatory bodies no one can provide clear guidance on anything, even when asked very specific questions. The FSPR, under the oversight of the FMA, is now just one big gray area,” the broker said at the time.
“Our primary goal has always been creating the best trading environment possible, part of that is ensuring that we are constantly working toward aligning our interests with that of our clients,” FXPig CEO Kevin Murcko regarding the newly-granted FinaCom membership. “The Financial Commission is the premier EDR in the retail FX industry, and it provides both our company and our valued customers peace of mind, which comes from knowing that any disputes that may arise will be arbitrated professionally and impartially,” he added.
FinaCom’s members are forex and binary option brokers, as well as independent service providers (ISPs). The EDR organization has two membership categories, depending on the amount of compensation to which investors are entitled. Clients of A-category member get up to to $20,000 and those of B-category members receive a compensation of up to $5,000.
The organization’s members include Alpari, Amarkets, Grand Capital RoboForex, Mtrading, Olymp Trade, Forex Club, FXOpen, among others. FinaCom has also certified the trading technologies of a number of entities.