Financial Commission Reports 25% Membership Growth and Saves $1.5M to Traders
The Financial Commission – an independent self-regulatory organization and external dispute resolution, reveals its 2020 Annual Report highlighting several records in key operation metrics
During the year the organization achieved several records in its operations metrics including the number of filed complaints (1340 complaints – 32% increase YoY), amount of compensations souпре by traders ($10.9M sought by all traders – 48% increase YoY), and awards to traders ($1,495,474 awarded to traders – 148% increase YoY) while keeping one of the fastest dispute resolution timeframes in 6.97 days per dispute
Other key metrics & accomplishments in 2020
- $8,812 average complaints value – 20% growth YoY
- $8.1M sought from member brokers – 248% growth YoY
- 31% YoY increase in complaints ruled in favor of traders
- 6.97 days average dispute resolution time – 3% increase from 2019
The Financial Commission keeps expanding its international presence with the addition of 12 new approved broker members to its membership ranks and certification of a new education provider, while also adding a new member to its Blockchain Association. In 2020 the organization also set several strategic partnerships with The Industry Spread media portal and one of the biggest liquidity providers – Advanced Markets. The Commission’s Dispute Resolution Committee was also strengthened by two new experts from Europe and Turkey
The organization further expanded in the Middle East, with several new Turkish broker members, as well as the addition of a Turkish expert on the Dispute Resolution Committee. The organization’s free dispute resolution service to traders gained popularity in Asia, the Middle East, and Africa with new complaints from these regions growing 202%, 15%, and 14% respectively in 2020. The Financial Commission also saw a 17% decrease in complaints from Russia and former Soviet republics, as local market restrictions impeded the normal online trading operations FX and CFD traders have come to expect.
The majority of complaints received by the FinaCom in 2020 were related to financial issues with 55% of the total, while trading related disputes accounted for 25%. The most popular topics for complaints dealt with funds withdrawal (31%), agreement breach (17%), price check (14%), and account blocking (6%). Of all resolved complaints, 52% were resolved “in favor of the broker” and 18% resolved “in favor of the client”, while 30% were found to be outside the organization’s jurisdiction.
About Financial Commission
Founded in 2013, the Financial Commission is a leading independent member-driven external dispute resolution (EDR) organization for international online brokerages, exchanges, and Blockchain firms that participate in global foreign exchange (forex), derivatives, CFD, and digital asset markets.
The Financial Commission provides efficient compliance solutions to its members, alongside its External Dispute Resolution (EDR) mechanism that serves as an effective channel for processing complaints from clients of member firms.