Financial Commission expels Lotas Capital but broker still claims to be a member
For reasons unknown, Locas Capital still claims to be a member of the Financial Commission, with its users being protected up to €20,000 in case of a dispute with the FX and CFD broker.
External dispute resolution (EDR) organization Financial Commission has dropped Lotas Capital as a member following a breach of contractual obligations.
The membership status was canceled because Lotas Capital failed to strictly adhere to the rules all members agree to comply with, which are part of the many prerequisites for initial membership approval and to maintain good standing.
Lotas Capital expelled from December 31st, 2021
Lotas Capital was expelled starting from December 31st, 2021 when the company’s membership with the Financial Commission was ceased.
This means that the FX broker’s clients are not eligible for reimbursement from the Financial Commission’s compensation fund since that right is only reserved for approved members of the EDR organization and is subject to the ruling by its Dispute Resolution Committee.
“The compensation fund is funded by the Financial Commission from a portion of membership dues and is designed to help protect members’ clients in exceptional cases.
“Financial Commission notes that it will not be able to process any new complaints from Lotas Capital clients’, following its expulsion from the Financial Commission as of the date of this announcement and moving forward.”
An updated list of current and prior members, including members that have been expelled, can be found here.
Lotas Capital still claims to be member of the Financial Commission
Lotas Capital, which can be found online through www.lotascapital.com, is a retail FX and CFD broker serving 106 products including currency pairs, CFDs, stocks, cryptocurrencies, and has an entity registered in Vincent & the Grenadines.
For reasons unknown, Locas Capital still claims to be a member of the Financial Commission, with its users being protected up to €20,000 in case of a dispute with the broker.
“Lotas Capital is a recognized member of International Financial Commission. This commission is an independent and international external dispute resolution body dedicated specifically to Forex that ensures that traders are getting their disputes resolved in a quick manner which also protects their rights for their investments worth up to 20.000 Euro’s per case.”
It could merely be that the website is outdated, but it cannot be trusted for the time being. Following the link provided in that image – https://financialcommission.org/lotas-capital/ – users will find out that they are not protected.
Lotas Capital has been expelled from the Financial Commission as of 31.12.2021
Financial Commission, a leading external dispute resolution (EDR) organization catering to the financial services industry announced the membership status of Lotas Capital has ceased following a breach of contractual obligations.
In order to maintain membership with the Financial Commission, member firms must strictly adhere to membership rules and all members agreed to comply with Financial Commission rules as one of the many prerequisites for initial membership approval and to maintain good standing.