FinCom Expels Trading Platform Orfinex From Membership
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The Financial Commission (FinCom) has announced that Orfinex is no longer its member. The external dispute resolution body stated that the decision to expel Orfinex was reached after several breaches of its rules and regulations by the company. According to the announcement, the decision will take effect on August 23, 2024.
Following the expulsion of Orfinex, clients of the company will not be having access to the commission’s Compensation Fund.
The financial services dispute regulator stated that the fund is only open to clients from companies that are members of Orfinex. The fund is controlled by the Dispute Resolution Committee of the Financial Commission.
FinCom Says It Will Expel Any Company That Doesn’t Follow Its Rules
As an independent organization, FinCom offers its dispute resolution services to traders and consumers who are not able to resolve financial disputes from financial services providers.
One of the main goals of the commission is to bring both parties together and find a long-lasting solution for their issues after evidence has been brought. It is using distinct ways to settle disputes in electronic markets such as Foreign Exchange.
The FinCom has its own powers to enforce compliance among its members. The self-regulatory body has rules and guidelines its members must follow for their clients to enjoy the benefits of such an association. To maintain membership status with the organization, member firms need to adhere to established rules and maintain integrity.
Orfinex Was Granted Membership Approval In April 2024
Orfinex was a member of the organization for only a few months. FinCom approved the firm as a member in April 2024, granting the company an Approved Broker status on April 17, 2024.
But FinCom said the commission started receiving a series of complaints from customers of the company. FinCom says it started investigating a fraudulent activity involving fake representatives disguising themselves as staff to scam traders.
According to the investigation, the scammers targeted individuals who were facing withdrawal issues or had lost funds with illegitimate brokers. They were offering chargeback services false funds recovery, and collecting fees for these services. They are also using names of fake firms and contact details of digital service providers to trick their victims into believing they are genuine.
FinCom warned that it doesn’t offer such services and always communicates clearly to its members. The Commission advised users to verify any unsolicited communication always looking up the companies and contacting FinCom for enquiry before making any decision.
