The Inspector Finance was established to be a neutral 3rd party committee to fairly review and resolve complaints in an effort to facilitate a simpler, swifter resolution than through industry regulators and the legal system. Besides that, Commission also provides additional protection for the traders through Commission’s Compensation Fund.
How does it work?
The Compensation Fund is a fund that acts as an insurance policy for members’ clients, but is only used should a member refuse to adhere to a judgment from the Inspector Finance or if a member is removed from the Inspector Finance without paying under a judgment that was awarded against it.
Who is covered?
It is very important to understand that the fund will only be used for a judgment that has been issued by the Inspector Finance. The fund does not cover traders’ possible losses incurred while engaging in self-directed trading and does not apply to a broker member’s entire client base should the broker become insolvent.
How is Compensation Fund financed?
The Compensation Fund is financed by the Inspector Finance through the allocation of 10% of the monthly membership dues to the fund which are held in a separate bank account and cannot be used to finance operations or other activities of the organization.
What is the maximum coverage?
The Compensation Fund will only cover judgments up to €20,000 per client of a Member
