The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has expelled forex brokerage EGMarkets from its membership, according to a FinaCom statement.
The membership status of EGMarkets was terminated following a breach of contractual obligations, the self-regulator explains.
Eagle Global Markets (EGMarkets) is the trading name of Eagle GM Limited, a company registered in Nigeria. The company operates as an offshore provider of financial services. It is not licensed by any financial regulator, and it doesn’t claim any regulatory status in any jurisdiction.
EGMarkets was expelled from the Financial Commission effective April 13, 2022. The move was taken due to failure to adhere to membership rules and after it was given numerous opportunities to rectify its shortfalls.
As such, the commission noted that it will not be able to process any new complaints from EGMarkets clients, following its expulsion from its roster as of the date of this announcement and moving forward, or until membership is approved again.
“Effective April 13th, 2022, EGMarkets were expelled from membership with the Financial Commission due to repeated violations of the membership Rules and Guidelines specific to the payment of membership dues,” the statement reads.
FinaCom doesn’t process complaints vs. non-members
EGMarkets was a member of the Financial Commission. Traders of a company with this category membership can be eligible for compensation of up to €20,000 per complaint, as well as having access to all dispute resolution services offered by the Commission. All clients of member companies are protected by the Compensation Fund, which acts as an insurance policy.
In cases when complaints are filed against a member firm, the Financial Commission uses a proven method to process complaints and a decision is delivered by the Dispute Resolution Committee (DRC). The Financial Commission cannot process complaints against non-members, and no further action is taken.
The Financial Commission has been actively expanding its list of members in recent months. The expulsion of EGMarkets from membership is an important step as it adds credibility to the Financial Commission and encourages companies that are already members to adhere to the highest standards of operation.
In addition to providing dispute resolution and certification services to the participants of the Forex and derivatives markets, Financial Commission extends its coverage to the crypto community and blockchain startups.