Clients FAQ

What is the Finance & Liquidity Commission?

The Finance & Liquidity Commission or FinLC is an institution focused on external dispute resolution. The organization provides its services to clients who experience issues with brokers or other categories of financial providers that are included in the membership list of FinLC.

Finance & Liquidity Commission is determined to find a new way of resolving issues between traders and companies that would be efficient, fast, and satisfying for both parties of the Forex trading activity.

The FinLC has already solved a number of disputes related to different values of different significance. The institution provides each part of the argument with equal rights to express their opinions and to provide their arguments related to complaints of the counterpart.

Does FinLC supervise forex brokers?

FinLC wasn’t created to supervise or regulate any aspect of the forex brokers’ activity. The Regulator was initially started as a self-relying resolution body with the goal of solving problems, occurring in the activities of the brokers and their clients, by applying transparent resolution methods.

In our register, clients of financial services providers can find more data related to the regulatory statuses of our members. They can check out the information related to the conditions and terms of regulation provided to certain companies.

If the arguments claimed by traders don’t correspond to the Guidelines of the Finance & Liquidity Commission. The major function of our institution is to resolve issues that are claimed by clients of the companies that have a membership with FinLC.

What are the major goals of FinLC?

In any dispute or issue, the goal of FinLC is to find a fair resolution that would correspond to the policies of the organization. Hence, FinLC executes the functions of a neutral committee that is committed to reviewing issues independently. The main goal is to accelerate the resolution and make it correspond to the legal norms.

What happens if the trader files a complaint with the Finance & Liquidity Commission?

The first thing that FinLC does when it receives a complaint from a client is to ensure that the broker is aware of it and verify whether the member is able to resolve the issue with its own dispute resolution mechanisms.
Having a complaints contact person and an Internal Dispute Resolution Procedure are the major conditions to follow when acquiring membership with FinLC.
The Internal Dispute Resolution Procedure of a broker includes responding to clients’ complaints within 10 working days. The answer to the complaints should:

  • acknowledge the complaint;
  • propose compensation if necessary;
  • provide a fair reason for complaint rejection.

The clients should contact FinLC if they are not satisfied with the outcomes of the Internal Dispute Resolution provided by a broker.

Will my complaint work against a non-member broker?

FinLC doesn’t accept and process requests of traders whose complaints are related to those brokers who are no longer members of FinLC.

This is also impossible to file complaints against companies that are officially members of FinLC but have their status ‘under review’. In such cases, the only way for traders to solve the issue with their providers is to file a complaint to the regulatory institutions in the countries where the brokers are registered.

If these regulatory bodies will need our assistance to resolve the dispute, we will consider it after we will receive and get acquainted with an appropriate request.

How exactly does FinLC work?

First of all, the client files a complaint if the circumstances of it correspond to our guidelines. Then, FinLC checks whether the broker has taken the internal dispute resolution procedure to handle the issue. If the internal dispute mechanism was activated but it didn’t satisfy the client or broker, FinLC starts investigating the issue.

The first step taken by FinLC is to collect all the necessary information to see what are the intentions of a client and member.

After this, FinLC studies the information received from both sides of the dispute. If FinLC needs more, it will send proper requests either to a member or to a trader who has filed a complaint.

Finally, when all the findings are made, FinLC drives its final decision and provides a detailed description and explanation of an issue resolved.

Can something impact the decision made by FinLC?

Neither members nor organizations that operate within the same jurisdiction, can impact the decision for the dispute resolution provided by FinLC.

Fins SCLR is fully responsible for the process of the external dispute resolution process. The organization is accountable only to the FinLC Board, which takes the responsibility for the operations taken within FinLC and for ensuring that the decision provided to clients and members correspond to the organization’s guidelines and are completely independent of the external aspects.

Where to look for the information about the financial services provider that was expelled from the FinLC register?

You can find this information by checking the section on the website where the basic findings of FinLC about brokers are provided. To find out more detail, contact the broker itself or the authority responsible for the company’s regulation.

According to the guidelines of FinLC, we cannot share information on the business operation of either current or former members of FinLC. Despite that, we might provide all the necessary detail if they are officially requested by regulatory bodies and authorities that are responsible for supervising the activities of our members.

Does FinLC publish its decisions?

The information about the final decision of the dispute resolution process is available only to the sides of the dispute. The decision might be published only if the member complies with the judgment.
Despite that, FinLC preserves the right to publish some cases that are anonymized. In such cases, we guarantee to secure all personal and sensitive information. Such decisions may be published for educational purposes, and they are completely anonymous.

What is the minimum monetary value for a complaint?

FinLC doesn’t have a limitation on monetary values – the organization considers the requests of every participant. If the monetary value of the complaints is lower than $250, it’s considered by one member of the committee. All the other requests are processed by at least 3 members.

What is the compensation fund and how does it work?

The Compensation Fund executes the functions of insurance. This fund is applied only if the member rejects the judgment of FinLC to follow the decision.

The Compensation Fund of FinLC is applied only in cases that were resolved by the Finance & Liquidity Commission. If the trader loses money when trading and there is no reason to accuse the broker of the trader’s losses, the fund cannot cover them.

The Guidelines of FinLC state that the compensation fund does not cover the losses related to trading non-market financial products.

The money for the fund is provided by FinLC and collected from 10% of the monthly membership dues. All the funds are stored in a separate bank account and cannot be accessed for financing purposes other than determined in the guidelines.

The maximum amount that might be covered by the Compensation Fund for a single client is €20,000.