Financial Commission expels Lotas Capital but broker still claims to be a member

Rick Steves

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.

FX and CFD brokers must go multi asset: Join free webinar from TraderEvolution to learn how

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.

Compensation Fund: YOU ARE NOT PROTECTED
Date of Expulsion: 31.12.2021
Membership status: Expelled
Contact Financial Commission

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.

Read this next

Executive Moves

Stash appoints Liza Landsman as CEO to further grow investing app

Stash is an investing and banking app with over 2 million active subscribers. Its subscription plans start at just $3 a month, and offer a range of products including investing, banking, education, and advice.

Institutional FX

Invast Global ramps up its offering with 10 soft commodity CFDs

Sydney-based prime-of-prime provider Invast Global has expanded its offering with the addition of ten soft commodity CFDs, which increases their index and commodity CFD offering to 35 instruments.

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

Crypto Insider

Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

Executive Moves

Financial Commission Adds Sam Low to Dispute Resolution Committee

The Financial Commission (FinaCom PLC), a dispute resolution service that caters to the financial services industry, has appointed Sam Low as the newest member of its Dispute Resolution Committee (DRC).

Digital Assets, Uncategorized

De-facto owner of Bithumb exchange arrested in South Korea

South Korean prosecutors have arrested Kang Jong-Hyun, the anonymous chairman and owner of the country’s largest cryptocurrency exchange, Bithumb, on charges of embezzlement and stock manipulation.

Retail FX

Interactive Brokers volumes snap three-month losing streak

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes rose in January, an indication that investor confidence in the financial markets is rebounding after having been fairly mixed over the past few months.

Digital Assets

VVF invests $5 million in Everscale, a potential Layer 2 solution for Venom blockchain

“For us, this is a strategic investment aimed at the technological development of projects and teams around technologies that we focus on and actively develop. In particular, we are talking about the Venom blockchain project and its ecosystem, which is planned to be launched soon and for which Everscale is a potential Layer 2 solution.”

Institutional FX

FXSpotStream volume ends string of declines on January rebound

Trading volumes on institutional FX platforms surged in January as traders increased their bets on central bankers’ policy with evidence mounting that inflation and economic growth are both losing momentum.

<