Operating offshore, in jurisdictions like St. Vincent and the Grenadines where forex trading brokerage activities are not licensed, can often raise concerns about trust and security among traders. This is where the role of the Financial Commission becomes crucial.
The Financial Commission announced today that Vittaverse has joined the independent EDR organization as its newest approved member, once again reflecting the growing interest in independent external dispute resolution (EDR) services within the FX industry.
Effective from January 18th, 2023, Vittaverse’s approval as a member allows both the company and its customers to access a wide array of services and benefits, including protection for up to €20,000 per submitted complaint, under the backing of the Financial Commission’s Compensation Fund.
How the Financial Commission’s Compensation Fund works
The Compensation Fund acts as an insurance policy for members’ clients and is financed by the Financial Commission through the allocation of 10% of the monthly membership dues to the fund. These funds are segregated, held in a distinct bank account, and are strictly earmarked for the Compensation Fund. They are not utilized for the organization’s operational expenses or any other activities.
It is crucial to understand that the fund is exclusively deployed for judgments issued by the Financial Commission. It does not extend to cover any trading losses incurred by traders in their independent trading activities. Moreover, the fund’s protection is not blanket coverage for all clients of a broker member in the event of the broker’s insolvency.
The fund offers a maximum coverage limit of €20,000 per client of a member firm. In instances where a member firm is either non-compliant with a judgment or is removed from the Financial Commission without fulfilling a judgment, the Compensation Fund steps in.
The Financial Commission ensures the distribution of compensation to eligible complainants within 90 days following the decision on the member’s status change. During this period, the Commission exhausts all feasible measures to secure direct payout from the member to the complainant and confirms the complainant’s personal details.
In scenarios where the Compensation Fund faces a shortfall due to numerous unresolved cases by a dealer-member, the available funds are distributed equally among all eligible complainants.
It’s important to note that the fund has its limitations. For instance, it does not entertain complaints related to management account trading, trading of synthetic, non-market financial products, or digital currency markets, as stipulated in clause 16 of the Rules and Guidelines of the Financial Commission.
Vittaverse is an offshore CFD broker offering MT5 and cTrader
Vittaverse operates as an offshore broker, providing a comprehensive CFD brokerage offering. This includes exposure to various financial instruments like currencies, commodities, ETFs, cryptocurrencies, stocks, and indices. The broker facilitates trading through popular platforms such as cTrader and MetaTrader 5 and also offers Copy Trading options.
Vittaverse is registered with the SVGFSA (Financial Services Authority St. Vincent and the Grenadines) under the entity VITTAVERSE LTD, holding registration number 26879. This registration is as a BC-Business, active since October 21, 2022, with EURO-CARIBBEAN TRUSTEES LTD. acting as its agent.
However, it’s important to note that since mid-2023, the SVG FSA no longer issues Forex broker licenses. This change implies that activities such as those involving international banks, forex and stock brokers, mutual funds, pension management, insurance companies, and related financial activities must obtain their respective licenses from jurisdictions other than St. Vincent and the Grenadines.
Financial Commission membership is vital for offshore brokers
The registration of Vittaverse, an offshore broker, with the Financial Commission is a significant aspect, particularly considering the nature of its operations. Operating offshore, in jurisdictions like St. Vincent and the Grenadines where forex trading brokerage activities are not licensed, can often raise concerns about trust and security among traders. This is where the role of the Financial Commission becomes crucial.
The Financial Commission serves as an independent external dispute resolution (EDR) body. For offshore brokers like Vittaverse, membership in such an organization is vital for several reasons:
Building Trust: By aligning with the Financial Commission, Vittaverse demonstrates a commitment to adhering to certain standards and practices that are essential in the financial trading world. This helps in building trust with traders who might be cautious about the regulatory environment of offshore brokers.
Dispute Resolution: The Financial Commission provides a platform for unbiased dispute resolution between traders and brokers. For Vittaverse’s clients, this means they have access to a third-party mediator to address and resolve any conflicts that might arise, which is particularly important given the absence of regulatory oversight in the broker’s jurisdiction.
Compensation Fund: Membership in the Financial Commission grants Vittaverse’s clients access to the Compensation Fund. This fund acts like an insurance policy, offering an additional layer of protection to the clients. It becomes particularly relevant in scenarios where the broker fails to comply with a judgment or is removed from the Commission.
Enhancing Credibility: For offshore brokers, being part of a recognized external organization like the Financial Commission can enhance their credibility. It shows a willingness to operate transparently and maintain high standards of conduct.
