The Financial Commission, an independent dispute resolution organization operated by FinaCom PLC, has made a decision to expel one of its members. The institution has suspended the membership of EQMarkets.
The move reaffirms the commitment of the Financial Commission to serve as an unbiased middleman between brokers and their clients. According to the rules of membership, companies that provide financial services need to strictly adhere to the high standards and decisions of the organization.
EQ Markets Permanently Expelled
The Dispute Resolution Committee (DRC) of the Financial Commission heard two cases brought forward by clients of EQMarkets. The traders lost funds due to wrongdoing by the broker. After a case was brought forward and the DRC asked the broker to reimburse clients, EQMarkets failed to uphold the ruling and adhere to the decision of the organization.
EQMarkets was expelled from the Financial Commission on the 7th of March 2017. The move was taken after repeated violations and the failure to adhere to membership rules. The organization gave the company numerous opportunities to rectify its shortfalls.
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Compensation Fund to Help Reimburse Clients of EQ Markets
The Financial Commission will use its compensation fund to reimburse clients of the brokerage. The total amount owed to the two affected clients is more than $18,000.
EQ Markets was a Category B member with the Financial Commission, which limits the payout from the compensation fund to a maximum of five thousand dollars per person. One of the clients of the brokerage will receive the full $5,000 with the claim amounting to about $16,000, while the other customer will get a full reimbursement of $2,082.
Crucial Step in the Evolution of the Financial Commission
The Financial Commission has been actively expanding its list of members in recent months. The expulsion of EQMarkets from membership is an important step. The move adds credibility to the Financial Commission and encourages companies that are already members to adhere to the highest standards of operation.
“The Financial Commission is committed to assisting new and existing firms to comply with their membership obligations. Yet the Financial Commission will not tolerate when members fail to uphold their obligations,” the self-regulatory organization explained in a statement.
With recent regulatory changes in Europe materially affecting the industry, an organization like the Financial Commission can help maintain a high quality of protection for clients. Brokers that have a difficult time with adhering to all the regulatory requirements in Europe may turn to an already existing dispute resolution mechanism like the one operated by FinaCom PLC.