The Financial Commission has announced the expulsion of DeltaFX from its membership. DeltaFX, a financial services firm, was removed after repeatedly failing to comply with the organization’s established rules and guidelines.

The Financial Commission, which functions as an external dispute resolution body within the financial services sector, emphasized that its decision was based on DeltaFX’s inability to uphold required compliance standards.

Financial Commission Expels DeltaFX

With this expulsion, DeltaFX clients will no longer be eligible for compensation under the Financial Commission’s Compensation Fund. The Compensation Fund is only available to clients of approved members and depends on the rulings of the Financial Commission’s Dispute Resolution Committee.

Finance Magnates reached out to DeltaFX for a comment on the Financial Commission’s decision to drop them from membership. The company provided the following response.

"DeltaFX decided to end its cooperation with the Financial Commission as of April 11th. This decision was made entirely at DeltaFX's discretion and was not the result of any contract breach or misconduct,” Omid Asefi, CEO of DeltaFX.

“Since we have not engaged in any misconduct, the reason behind this financial commission announcement is unclear to us. We hope they show more integrity in future statements, as such news can seriously harm a company's reputation," he added.

Expanding Regulatory Scope

As an industry-supported self-regulatory organization, the Financial Commission enforces compliance through membership status. To retain membership, firms must adhere to rules and maintain the required integrity standards.

“The Financial Commission initially set out to provide a new approach for traders and brokers alike to resolve any issues that arise in the course of trading electronic markets such as Foreign Exchange , and then expanded into CFDs and related derivatives, in addition to certifying technology platforms used for trading,” the organization states.

Investigation Targets Imposter Representatives

The Financial Commission has updated its investigation into a scam involving individuals impersonating its representatives, as reported by Finance Magnates. This fraudulent scheme aims to deceive traders and steal funds. A warning about this group was previously issued on December 15, 2023.

Investigations reveal that these impostors target traders experiencing losses or blocked withdrawals from fraudulent brokers such as Umarkets and TPG Deals. They claim to offer funds recovery services for a fee, demanding payments and issuing fake letters of guarantee from bogus legal entities.

The Financial Commission emphasizes that it does not provide funds recovery or chargeback services and does not initiate contact through cold calls or emails. Traders should consult the organization's member list and use the official Dispute Resolution Form for inquiries, verifying any unsolicited communications before sharing personal information.