The Financial Commission (FinaCom), a Hong Kong-based external dispute resolution (EDR) organization, has permanently expelled as a member forex broker EQMarkets for failing to uphold its obligations and reimburse clients as ruled by the EDR.
The FinaCom has examined the cases of two EQMarkets clients who complained against their broker. The EDR did not disclose the essence of their complaints. It said, however, that its Dispute Resolution Committee (DRC) awarded monetary awards to the two traders in the amount of more than $18,000. Yet the broker failed to uphold the DRC’s ruling and reimburse those customers.
The EDR noted that “emergency action will be taken to help protect two EQMarkets’ clients affected”.
| Effective March 7, 2016, EQMarkets was expelled from membership with the Financial Commission due to repeated violations and failures to adhere to membership rules and numerous opportunities given to EQ Markets to rectify its shortfalls,” the FinaCom said in a statement.
Traders to get reimbursed under FinaCom’s compensation fund
The FinaCom will compensate EQMarkets’ two clients with proceeds from its compensation fund. The broker held a B-category membership, which means its customers are eligible for compensation of up to $5,000 each. One of the traders will receive $2,082, which is the amount of its claim, while the other one will get the full compensation amount of $5,000 since their claim was for more than triple that.
FinaCom acts as a third-party mediator in case of complaints and disputes between its members and their clients. The organization helps facilitate a simpler, swifter resolution process than through typical regulatory channels.
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.