Members FAQ

What is the Finance & Liquidity Commission?

Finance & Liquidity Commission (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.

Finance & Liquidity Commission 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.

Why Join Financial Finance & Liquidity Commission?

Members of Finance & Liquidity Commission have better chances to manage their business efficiently and ensure their clients that they won’t face significant risks of losing funds when trading. Membership with Finance & Liquidity Commission is one of the ways to show your clients that your company is completely focused on meeting safety standards.

If your customers will have some issues with the company, they will be able to receive professional assistance from qualified people who will resolve the situation so as to satisfy the complainant.

Joining FinLC is also a good way to encourage clients to provide better feedback about the company. With this membership, you will avoid many reputational risks and will show your commitment to the resolution of customers’ issues. Additionally, this method doesn’t require a lot of expenditures that are usually spent on promotional campaigns, which have a less positive impact on the company’s reputation.

What are the major goals of Finance & Liquidity Commission?

In any dispute or issue, the goal of Finance & Liquidity Commission 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.

Is regulation by a legal body necessary to become a member of Finance & Liquidity Commission?

Although authorization by any legal body or official jurisdiction is not required, the provider that is willing to join FinLC has to pass diligence and background checks to be approved and enlisted in the institution’s register.

How to become a member of Finance & Liquidity Commission?

In order to acquire membership with the organization, you have to send a special membership application. The paper with all the required data included should be forwarded to our email address.

What happens after I apply for membership?

Finance & Liquidity Commission has to process your application letter within the period of 21 working days. If the application is correct and the candidate is accepted after the diligence check, it will be notified by our Board. After this, the company gets a special Membership Number and a special certificate that approves membership.

Is it expensive to acquire membership with Finance & Liquidity Commission?

To become approved for membership with Finance & Liquidity Commission, every applicant has to make a minimum 1-year commitment. For the first year, monthly membership fees are paid in advance. After the first year, they might be charged semiannually. Before applying, you may request a copy of the membership terms paper.

When paying monthly membership fees, make sure to execute transactions in Euro (€) via wire bank. All the other payment methods won’t be accepted by FinLC.

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

The first thing that Finance & Liquidity Commission 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.

How exactly does Finance & Liquidity Commission 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 Finance & Liquidity Commission 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 Finance & Liquidity Commission?

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

FinLC 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 Finance & Liquidity Commission 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.

What happens if I don’t respond to a client complaint?

As a member of Finance & Liquidity Commission, you have to respond to the organization’s requests within 5 days. If you don’t follow this condition, you won’t be involved in the resolution process. This increases the probability that the decision won’t work in your favor.

Is it obligatory to follow the final decision of Finance & Liquidity Commission?

This depends on the outcome of the resolution and the attitude of the complainant to it. The trader might not accept the final decision made by FinLC. In such cases, the client is offered to solve the issue by other legal methods but without the involvement of the FinLC team.

If the complainant accepts the decision, it’s obligatory for the FinLC members to follow it.

What if I don’t agree with the final decision of Finance & Liquidity Commission?

Every final decision accepted by clients and approved by Finance & Liquidity Commission is mandatory for any member. Such decisions cannot be appealed by any side of the investigation, including the complaint. In case the company does not agree with the decision and fails to follow it, it may be expelled from the FinLC register and deprived of its membership status.

What should I do with the issues with Finance & Liquidity Commission?

If your problem is not related to the recent decision taken after the complaint investigation, you may try to solve the issue you have with the Financial Services Center of Licence Control by appealing to the Chairman of the organization’s Board.

Does Finance & Liquidity Commission 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.

How do I know that the trader does not file complaints about all trading losses?

Finance & Liquidity Commission does not submit all the complaints. Before the organization starts the investigation, the broker has to provide a review of those complaints.

If the FinLC team notices that the client abuses his or her right to send complaints about trading losses, it will take measures in order not to violate the rights of our members. In some cases, some clients who abuse the system might be deprived of the right to file further complaints.

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 Finance & Liquidity Commission to follow the decision.

The Compensation Fund of FinLC is applied only in cases that were resolved by the FinLC. 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 Finance & Liquidity Commission 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 €30,000.