The Financial Commission has permanently suspended the membership of forex brokerage Clear Point Finance Limited (CPFX) from its membership, according to a statement from the organization that is engaged in the resolution of disputes within the financial services industry.
The membership status of CPFX was terminated following a breach of contractual obligations, the self-regulator explains.
CPFX was expelled from the Financial Commission on June 7, 2018. The move was taken due to failure to adhere to membership rules and after it was given numerous opportunities to rectify its shortfalls.
CPFX provides online trading services across multiple asset classes although the broker is not regulated in any specific jurisdiction.
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The offshore brokerage was a Category B member of the Financial Commission. Traders of a company with this category membership can be eligible for compensation of up to €5,000 per complaint, as well as having access to all dispute resolution services offered by the Commission.
As such, the commission noted that it will not be able to process any new complaints from CPFX clients, following its expulsion from its roster as of the date of this announcement and moving forward, or until membership is approved again.
In cases when complaints are filed against a member firm, the Financial Commission uses a proven method to process complaints and a decision is delivered by the Dispute Resolution Committee (DRC). The 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 CPFX 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 forex and derivatives markets, Financial Commission recently extended its coverage to the crypto community and blockchain startups seeking to launch initial coin offerings (ICOs)