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

Digital Assets

AAX ranked world’s second largest spot exchange, only behind Binance

Crypto trading volumes experienced their first surge in activity since March as the majority of digital assets began their recovery from the recent grim price action, according to a new report by Cryptocompare.

Digital Assets

Bitpay teams up with Cardlytics to provide 15% cashback rewards

Crypto payment service provider Bitpay announced a partnership with Cardlytics Inc (NASDAQ:CDLX), which it says will offer more rewards for BitPay cardholders on its platform.

Digital Assets

BlackRock digs further into crypto with spot bitcoin private trust

BlackRock, the world’s largest asset manager with almost $8 trillion in AUM, has launched a spot bitcoin private trust for institutional clients in the United States.

Digital Assets

SEC fines Bloom Protocol, orders refund to BLT token purchasers

Blockchain startup Bloom, which raised $30 million in funds via an initial coin offering (ICO), has agreed to return the money to token purchasers and pay a $300,000 fine, the SEC announced.

Institutional FX

FX volume takes step back at Singapore Exchange in July

The Singapore Exchange (SGX), the country’s paramount exchange operator, has released its monthly volumes across its FX, derivatives and commodities segments for July 2022.

Market News

The Week Ahead: 12 August from David Madden, Market Analyst at Equiti Group

There was a spike in volatility last week when the US CPI report ticked down to 8.5% from 9.1%, missing the forecast of 8.7%. The announcement led to chatter the Fed might not carry out a 0.75% interest rate hike in September.

Digital Assets

Pomelo Pay adds crypto payments capabilities from TripleA

According to a June survey conducted by Deloitte, nearly 75% of retailers plan to accept either cryptocurrency or stablecoin payments within the next two years.

Executive Moves

Talos appoints “boss, mentor, and friend” Neal Pawar as strategic advisor

“Foundational technologies are needed for institutions to fully embrace this potential, however, and in my opinion Talos’s platform is steadily becoming the de facto industry standard for digital asset trading.”

Technology

Avelacom enhances Middle East connectivity amid new market trends

Avelacom found that smaller markets in the region were not sufficiently covered by third-party vendors.

<