The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has suspended the membership of forex brokerage Dragon Leader Services Ltd (DLS), according to a FinaCom statement.
The membership status of DLS was terminated following a breach of contractual obligations, the self regulator explains.
DLS is managed by Dragon Leader Services Ltd and is a provider of foreign exchange and binary options services in Asia – the group has established multiple service centers across the Asia-Pacific (APAC) region. The company itself is based out of Australia, holding a principal’s license in the Republic of Vanuatu.
DLS was expelled from the Financial Commission on November 8th, 2017. The move was taken due to failure to adhere to membership rules, including non-payment of dues.
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As such, the commission noted that it will not be able to process any new complaints from DLS clients, following its expulsion from its roster as of the date of this announcement and moving forward, or until membership is approved again.
DLS was a Category A member with the Financial Commission. Traders of a company with this category membership can be eligible for compensation of up to $20,000 per complaint, as well as having access to all dispute resolution services offered by the Commission. All clients of member companies are protected by the Compensation Fund, which acts as an insurance policy.
In cases when complaints are filed against a member firm, Financial Commission uses a proven method to process complaints and a decision is delivered by the Dispute Resolution Committee (DRC). Financial Commission cannot process complaints against non-members and no further action is taken.
The Financial Commission has been actively expanding its list of members in recent months. The expulsion of DLS from membership is an important step as it adds credibility to the Financial Commission and encourages companies that are already members to adhere to the highest standards of operation.
In addition to providing dispute resolution and certification services to the participants of the forex and derivatives markets, Financial Commission recently extended its coverage to the crypto community and blockchain startups seeking to launch initial coin offerings (ICOs).