Bold Prime expelled from FinaCom, clients no longer have protection of up to €20,000
Membership status with the Financial Commission allows traders to be eligible for compensation of up to €20,000 per submitted claim and have access to all dispute resolution services offered by the commission.
Bold Prime has been expelled from membership in the Financial Commission following numerous failures to comply with the external dispute resolution (EDR) organization’s Rules & Guidelines.
As a result of the expulsion, The Financial Commission will not be able to process any new complaints from Bold Prime clients’, and such clients will also not be eligible for reimbursement from the organization’s Compensation Fund.
A firm’s integrity and adherence to rules must be strictly upheld
FinaCom’s compensation fund can only be used by clients of approved members and is subject to the ruling of its Dispute Resolution Committee.
The Financial Commission is an industry-supported self-regulatory organization (SRO) whose enforcement of member compliance is reflected entirely within its membership standings: a firm’s integrity and adherence to rules must be strictly upheld in order for membership to be maintained.
This was not the case with Bold Prime, which resulted in the broker’s expulsion from the organization after being a member for only six months.
Financial Commission’s Compensation Fund acts as an insurance policy
The Financial Commission is an independent international service that offers the resolution of disputes with the aim of resolving trader-broker conflicts. The commission is supported by the Dispute Resolution Committee (DRC), which in turn is comprised of recognized industry professionals. It operates as an independent international service that helps facilitate a simpler resolution process than through typical regulatory channels, such as arbitration or local court systems.
Membership status with the Financial Commission allows traders to be eligible for compensation of up to €20,000 per submitted claim and have access to all dispute resolution services offered by the commission.
All clients of members of the Financial Commission are protected by the Compensation Fund which acts as an insurance policy.
The Financial Commission also issues execution certifications for approved brokers as the industry-specific association attempts to reduce the number of execution-related disputes that occur before they progress into formal complaints.
Due to the price verification capabilities, brokers who implement the service would be able to settle price disputes internally, by inducing evidence on asset prices at any given time, from an impartial party. And in case the client claims that he is consistently getting poor execution, the analysis results will facilitate handling execution-related trade disputes.
