The Financial Commission has terminated the memberships of two brokerage members in July, VNC Brokers, and HDForex. It also announced that it approved MTrading (ServiceComSvg Limited) to rejoin the Financial Commission as category A member. The Belize brokerage firm originally joined the Financial Commission back in 2014.
The self-regulator explained that the membership status of VNC Brokers has ceased following a voluntary withdrawal. However, the membership of HDForex was terminated following a breach of contractual obligations.
“VNC Brokers had met its obligations as a Financial Commission member in all cases where complaints had been brought forward against the broker up until July 6, 2018 when its membership was effectively withdrawn,” says the FineCom.
Meanwhile, HDForex was expelled from the Financial Commission on July 3, 2018. The move was taken due to failure to adhere to membership rules and after it was given numerous opportunities to rectify its shortfalls.
How to Prepare for CySEC’s New Tiered LeverageGo to article >>
The statement further states: “HDForex had not met its contractual obligations as a Financial Commission member and was expelled for non-payment of its dues, starting from June 21, 2018 when company’s membership was ceased.”
No more actions
HD Forex re-joined Financial Commission’s roster of existing online brokerages and independent services providers as a category B member back in September 2017. HDForex has in the past gained official status as a member of the Financial Commission for more than a year, from March 2015 through September 2016.
HDForex is one of a few brokerage firms that offer forex and binary options in the Georgian market, where it operates under the trading name Tbilisi Traders Club LLC. The company is licensed by the National Bank of Georgia and first launched its operations back in 2014.
As such, the commission noted that it will not be able to process any new complaints from clients of the two brokers, following its expulsion from its roster as of the date of this announcement and moving forward, or until membership is approved again.
HDForex was a Category A member of 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, but the Financial Commission cannot process complaints against non-members, and no further action is taken.