The Financial Commission has expelled Orfinex from membership in the organization as of August 23, 2024.
As a result of the expulsion, The Financial Commission will not be able to reimburse using the organization’s Compensation Fund since clients of approved members can only use the compensation fund and is subject to the ruling of its Dispute Resolution Committee.
This means that Orfinex users are no longer protected by up to €20,000 per complaint.
Orfinex joined Financial Commission in April
The move follows repeated violations of Financial Commission Rules and Guidelines by Orfinex, a retail FX/CFD broker that only recently joined FinCom’s roster of broker members.
Orfinex joined the ranks of The Financial Commission as an Approved Broker Member on April 17th, 2024. It’s been only four months and Orfinex is already out.
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The broker’s institutional arm operates under the trade name of Orfinex Prime Ltd, which is licensed by the Financial Services Commission in Mauritius. The retail operation operates under the regulation of the Financial Sector Conduct Authority (FSCA) with FSP No. 53184.
The Financial Commission is an independent international service dedicated to resolving disputes and aims to simplify the resolution process, providing an alternative to arbitration or local court systems.
Supported by the Dispute Resolution Committee (DRC), which includes recognized industry professionals, the commission also helps reduce execution-related disputes by providing execution certifications for approved brokers. Additionally, all clients of member firms are covered by the Compensation Fund, which acts as an insurance policy against broker disputes.
The Financial Commission continues to expand its membership, reflecting the growing demand for independent, unbiased dispute resolution in the financial trading sector. Earlier this year, the regulator published several case studies from 2023, revealing key themes and outcomes in disputes between traders and financial service providers.
