Pepperstone joins FinaCom as demand for dispute resolution grows
The Financial Commission has approved Pepperstone Markets Limited as its newest approved member, the self-regulatory organization announced.
The move reinforces the trend toward independent external dispute resolution (EDR) services among FX industry participants.
The retail FX and CFD brokerage signed up the Pepperstone Bahamas regulated entity as a FinaCom member, following the approval of its membership application by the Financial Commission.
Membership – which took effect today, June 1, 2022 – provides several benefits for the company and its customers, including protection for up to €20,000 per client, backed by the Financial Commission’s Compensation Fund.
Trusted, regulated and committed to doing what’s right
Nikolai Isayev, Chief Operations Officer at Financial Commission, said: “We are pleased to welcome such an accomplished company and internationally recognized brand into our membership ranks, once again highlighting the fact that our services can benefit traders and brokers in all regions of the world.
Tyrone Fitzgerald, Chief Executive Officer at Pepperstone Bahamas, commented: “We’re pleased with the approval of Pepperstone’s status as an Approved Broker Member of the Financial Commission. At Pepperstone, we’re focused on ensuring that our clients, partners, suppliers and employees are proud to be part of an organisation that is trusted, regulated and committed to doing what’s right to improve experiences.”
FinaCom acts as an unbiased third party mediation platform for brokers and their customers to help resolve complaints in instances when parties are unable to directly come to an agreement over disputes. The service provides a swifter resolution process than through typical regulatory channels such as arbitration or local court systems.
The independent external dispute resolution organization welcomes members operating CFDs and leveraged foreign exchange (forex), and cryptocurrency businesses.
FinaCom received record of 938 complaints in Q1 2022
In April, the Financial Commission reported a record of 938 complaints in the first quarter of 2022, an increase of 10% QoQ as compensation sought from broker members rose 57 percent to $3.35 million.
The enforcement report revealed that the majority of complaints were related to non-trading issues ,with 65 percent of the total, while trading related disputes accounted for 12 percent and financial claims were 209 or 22 percent. The most popular topics for complaints dealt with funds withdrawal agreement breach, price check and account blocking.
Other highlights show the amount of total compensations awarded to broker member clients in the first quarter decreased to $39.918. Further, the value of the average complaint dropped 33 percent to $3,573.