The Financials Commissions

Compensation Fund

The Financials Commissions was established to be a neutral 3rd party committee to fairly review and resolve complaints in an effort to facilitate a simpler, swifter resolution than through industry regulators and the legal system. Besides that, Commission also provides additional protection for the traders through Commission’s Compensation Fund.

How does it work?

The Compensation Fund is a fund that acts as an insurance policy for members’ clients, but is only used should a member refuse to adhere to a judgment from the The Financials Commissions or if a member is removed from the The Financials Commissions without paying under a judgment that was awarded against it.

How is Compensation Fund financed?

The Compensation Fund is financed by the The Financials Commissions through the allocation of 10% of the monthly membership dues to the fund which are held in a separate bank account and cannot be used to finance operations or other activities of the organization.

Who is covered?

It is very important to understand that the fund will only be used for a judgment that has been issued by the The Financials Commissions. The fund does not cover traders’ possible losses incurred while engaging in self-directed trading and does not apply to a broker member’s entire client base should the broker become insolvent.

What is the maximum coverage?

The Compensation Fund will only cover judgments up to €20,000 per client of a Member

The Financials Commissions will distribute compensation to the complainant within 90 days following the Commission’s decision on the Member’s change in status. During this time the Commission will pursue all available measures to provide a payout from the Member directly to the complainant and verify the complainant’s personal information.

In case of shortage of funds due to the number of unsatisfied cases by dealer-member, the current fund balance will be equally distributed among all complainants

The Compensation Fund cannot be used in complaints regarding management account trading, trading of synthetic, non-market financial products or digital currency markets as outlined in clause 16 of the Rules and Guidelines of the The Financials Commissions