In a recent set of proposed regulations, the Financial Commission (FinaCom PLC), an industry-specific dispute resolution service that caters to the financial services industry, is planning new voice risk disclosure requirement to protect investors from being misled.
In the drive to improve investor confidence in the Commission’s role, the enhanced disclosure requirement has revisited and updated the principles outlined in its Rule 6.2 of Membership Rules and Guidelines.
Pointing out that the self-regulator’s rules places responsibility on each member to notify traders about risks associated with advisory service, FinaCom will lead a task force that will develop additional voluntary financial risk disclosure to ensure that such risks are reflected in the corporate statements.
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Since it considers disclosure of trading risks a crucial component of a functioning financial market, the operator of FinancialCommission.org requires the forex and binary options industry, as well independent technology providers to provide clients with verbal or oral disclosure that ensures they understand the risks posed by online trading.
In particular, the new rules require the commission’s members to obtain a written and voice acceptance from each client to acknowledge that he is aware of relevant risks of relying on or considering investment advice.
The suggested disclosures should be made before January 25th 2017 and members seeking to build trust and transparency must adopt new Voice Risk Disclosure Requirements till that date.
Financial Commission is an external dispute resolution organisation which is supported by the Dispute Resolution Committee (DRC), which in turn is comprised of recognized industry professionals. FinaCom is an independent international service that guarantees honest and timely resolution of any disputes with the aim of resolving trader-broker conflicts.