Finance & Liquidity Commission is a special financial commission or institution with a clearly defined set of responsibilities. Its major function is to act independently and to be the main decision-maker during the issue resolution procedure. This procedure is usually requested by traders or investors who have their accounts on trading platforms. In order to ensure brokers’ customers of the organization’s credibility, FinLC has created a compensation fund. It is supposed to cover the amounts lost by traders because of the actions of brokers. The money might be directed to participants only in certain cases determined by the financial commission’s guidelines. Here are the key things to learn about this service.
Finance & Liquidity Commission solves the issues if there are requests from complainants. The Forex brokers must acquire membership with FinLC. When the final judgment on the problem is accepted, the money from the fund might be applied. Therefore, it executes the functions of the insurance fund for clients who suffer losses due to unfair actions.
The entire procedure of issuing money to the complainant, in whose favor the issue is resolved, should take no longer than 90 days. The compensation cannot be issued without the personal information of a trader, with which the financial commission board can verify the identity of the customer.
When there is an excessive number of clients, in whose favor the resolution decisions were taken, the compensation fund might lack money. If this happens, FinLC becomes responsible for supplying an equal share of the currently available amounts to all unsatisfied customers.
Every forex broker that has membership with the FinLC institution has to pay a monthly membership fee, which is determined by the rules and guidelines of the organization. The funds, received from these monthly fees paid by members, are directed to cover the operational needs of the institution. 10% of the entire amount is allocated to a special separate bank account, where the compensation fund is later formed.
The major goal of Finance & Liquidity Commission is to make sure that the decision-making process is completely independent. That’s why we don’t look to other sources to finance the compensation fund. All the funds come from fees paid by every member monthly.
To make sure you understand how the compensation system actually works, we need to explain the key points of the coverage policy related to the cases when the fund might be applied. Here are the following:
The amount that might be covered with funds from the compensation fund depends on many aspects of the dispute. In general, the financial commission considers all the requests of clients, no matter what the monetary values of their issues are.
While there are no limitations on the minimum monetary value of the issue, there are limitations on the maximum coverage. The compensation fund cannot cover more than €30,000 per client.
FinLC guarantees to be completely transparent by displaying all the terms and conditions
The team of FinaLC works 24/7 to respond to all the requests received
FinLC puts maximum effort to resolve the disputes as swiftly as possible
Finance & Liquidity Commission doesn’t make any difference between clients and members.
All the benefits of Finance & Liquidity Commission are relevant for both traders and forex brokers that are going to join us. Consider working with FinLC to gain a better status in the forex trading industry.