The Financial Commission

The Financial Commission (FinaCom) is an international forum dedicated to resolving disputes within the financial services industry and the Forex market. It is an independent external dispute resolution (EDR) forum for consumers and traders who are unable to resolve disputes with their financial services provider. Traders of Financial Commission member firms are protected by the Commission’s Compensation Fund.

Overview

The Financial Commission was founded in 2013 by Peter Tatarnikov and Alex Pavlenko. It was established in response to the growing need for a neutral and independent forum for resolving disputes between Forex and CFD brokers and their clients. Its broker members, who pay annual membership dues, fund the forum.

Headquartered in Hong Kong, The Financial Commission takes a new approach for traders and brokers alike to resolve any issues that arise in the course of trading the Forex market. It is a non-governmental forum focused on promoting transparency and ethical practices in the financial markets. The forum hears a wide variety of disputes of monetary values up to $1M and gives traders a voice so they feel they are treated fairly, providing brokers with a means to respond to any complaints that may have been unfairly lodged against them.

The Financial Commission’s main objective is to ensure that traders and brokers are getting their disputes resolved in a quick, efficient, unbiased, and authentic manner while making sure they walk away with a well-founded answer, thus contributing to their overall knowledge about Forex and CFDs. Services offered by The Financial Commission include alternative dispute resolution, external dispute resolution, trading and investment technology, and education, providing certifications. It offers certifications for trading technology providers, investment platforms, such as copy trading/PAMM. By obtaining certification, technology and education providers ensure their products conform to industry best business practices, as well as ensure that investors and traders are operating on a level playing field by using their services.

Compensation Fund

The forum’s Compensation Fund plays the role of an insurance policy for members’ clients when such members fail to pay monetary compensation prescribed in a dispute resolution made by the Dispute Resolution Committee (DRC). It is financed by The Financial Commission through the allocation of 10% of the monthly membership dues to the fund. The Compensation Fund is only used for a judgment that has been made by The Financial Commission of up to €20,000 per case. A member’s entire client base is not entitled to a payout from the Compensation Fund.

Dispute Resolution Committee

As part of its dispute resolution service, The Financial Commission united independent industry professionals and created the Dispute Resolution Committee (DRC), which ensures that traders and brokers are getting their disputes resolved in an unbiased and authentic manner. Between the Financial Commission Board of Directors and the DRC, the forum has over 75 years of experience both working for brokers and with traders.

Dispute Resolution Process

All parties to a dispute follow the established Dispute Resolution Process, which requires that complaints be lodged no later than 45 days after the time of the incident and allocates time to each party to respond with facts and information prior to issuing a decision on the complaint.