The Financial Commission today announced the dismissal of IdealFX from its membership as a result of the broker’s voluntary withdrawal.
IdealFX was expelled from the Financial Commission effective December 28th, 2022, according to a FinaCom statement.
As such, the commission noted that it will not be able to process any new complaints from IdealFX clients, following its expulsion from its roster as of the date of this announcement and moving forward, or until membership is approved again.
“IdealFX clients will not be eligible for reimbursement from the Financial Commission’s compensation fund as a non-member, since the compensation fund can only be used by clients of approved members, and is subject to the ruling by our Dispute Resolution Committee. The Financial Commission notes that it will not be able to process any new complaints from IdealFX clients’, following its expulsion from the Financial Commission as of the date of this announcement and moving forward,” the statement reads.
FinaCom doesn’t process complaints vs. non-members
IdealFX had been a member of the Financial Commission for a couple of years. Traders of a company with this membership status 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 IdealFX 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.
According to its latest quarterly report, the self-regulator made progress across some of its key business drivers. Specifically, the number of new complaints increased 10 percent quarter-over-quarter as compensation sought from broker members rose 57 percent to $3.35 million.