Frequently asked questions

Finspection and its affiliates are a new independent organisation specialising in Forex and CFDs to resolve disputes between brokers and clients in the foreign exchange markets.

Finspection is not an arbitration organisation and is not subject to jurisdiction. Transparency and ease of interaction are among the Company’s key values. Finspection’s activities cover a wide range of tasks and do not depend on the amount of the claim. With us, a trader gains protection and confidence in good faith service, and brokers can obtain an opinion and an independent third party response to a questionable claim.

Basic tasks of Finspection:

• unbiased and independent claims handling

efficient investigation of disputes and prompt resolution of doubtful situations, as opposed to long-term proceedings involving government regulators and court proceedings.

The Financial Company receives the complaint and certifies that the broker has read the complaint and has reviewed it. According to Finspection rules, before a claim is considered by the Commission, it must be processed by a contact person within the company who is responsible, among other things, for cooperation with Finspection.

In accordance with the requirements for dealing with disputed situations within the company, each client must receive a reply within 10 days:

• a detailed analysis of the claim
• Indication of the amount of compensation or a reasoned refusal to satisfy the claim.

If the client is not satisfied with the brokerage company’s response, it is allowed to forward the complaint to the Financial Company for independent review, attaching the result of the internal investigation.

Clients of member brokers may submit claims to the Dispute Resolution Committee

The Head of the Dispute Resolution Committee (CRM) checks every complaint received and whether the client’s personal broker has engaged all the mechanisms to resolve the dispute. If there is no consensus between the parties, the claim is referred to the Committee for litigation.

A representative of the cat’s cat asks for full information on the disputed issue, including arguments in favour of both parties, and processes the information. Only after receiving the necessary information in full will the Committee be able to consider the claims and issue its verdict, with a detailed explanation of all points of conclusion, in relation to the client and the party in question.

The management of the committee is independent of brokers, and decisions are made independently and impartially.

Members of the Committee for the Review of Disputes:

• are responsible for reviewing claims and issuing a verdict.
• report exclusively to their superiors.

Finspection’s supreme governing body is the Board of Directors (BoD), its members oversee the work of the Dispute Resolution Committee and ensure the transparency of its activities.

The independence of Finspection is guaranteed by the objectivity and impartiality of the Chairman of the Board and the absence of brokerage companies in the Board, which eliminates conflicts of interest.

Brokerage companies do not influence the work and decision making of Finspection and KRS, and the latter do not cooperate with the organisations that regulate their activities.

Finspection respects confidentiality and does not publish a decision on disputes over open access resources, with the exception of cases where the broker refuses to comply with the Commission’s instructions. All responses to claims are sent to stakeholders, the broker and the client.

There are no such restrictions in our organisation, but if the amount is less than $250, only one committee member will consider the situation, in other cases the investigation will be conducted by three or more committee members.

Compensation Fund (KF) is an insurance policy for customers. The KF holds a special account with a bank, from which funds are used to pay off compensation for clients’ claims, in situations where the broker does not agree to execute Finspection’s order.

The KF is financed by charging 10% of the membership fee on a monthly basis.

The amount of payments from the Compensation Fund does not exceed:

• EUR 20,000 per resolution in favour of a category A client (ability to trade in crypt currency)
• EUR 5,000 for one solution for customers of a category B company (without the possibility of trading in crypt currency).

Payments from the Compensation Fund refund only claims that have been considered by Finspection. If there is insufficient money in the Cash Fund’s account, the amount shall be distributed among the unsatisfied claims proportionally as follows

Finspection is an independent, non-regulatory organisation specialising in resolving ambiguous situations arising in the foreign exchange markets. Finspection is the guarantor of a fair resolution of claims from both clients and brokers. Disputes are resolved professionally, promptly and objectively. Each party to the dispute receives an informed response.

Finspection accepts all claims without exception, regardless of the amount. Traders are protected from the unfair work of brokers, who in turn may ask a third party for their opinion on any of the disputed cases.

Being a part of Finspection allows us to control and manage risks and satisfy the needs of customers who want to trade on the foreign exchange markets honestly, with equal protection of the interests of the parties. By joining Finspection, you publicly guarantee customers trading in the foreign exchange market in accordance with high international standards and declare your readiness to resolve any contentious issues.

Clients receive independent and professional assistance in resolving ambiguous situations.

Finspection members acquire an effective tool to mitigate reputational risks. By applying to the Finspection Dispute Resolution Committee, both the companies and their clients save money and time and receive qualified and reasoned resolution of the situation.

Finspection is one of the top priorities:

• quick and effective regulation of disputed situations
• ensuring access to an impartial environment for resolving claims
• providing financial protection.

A company does not need a regulator to join Finspection, it only needs to submit an application in the prescribed form and prove its financial soundness. The Finspection membership decision is made by the Board of Directors and the Control Department.

The application procedure is simple: the applicant fills in the relevant application form, a copy of which can be requested by e-mail: [email protected]

As soon as a request is received, it is processed within one month. If the BOD and OK have approved your company, you will receive a notice and a number will be assigned to you. The Finspection member’s certificate and welcome pack will be sent by post

The minimum participation period in Finspection is 1 year. Once the application to join Finspection has been approved, the new member pays the fees, which are charged twice a year.

The terms and conditions of membership can be accessed by asking for relevant information at the following e-mail address [email protected]

Finspection offers two categories of membership:

• A – ability to process an unlimited number of claims
• B – number of claims per month is limited.

The amount of the contribution varies depending on the membership category. If the number of claims exceeds the established monthly limit, the fee for additional proceedings is assessed separately.

Contributions can be paid by bank transfer. Payments are not accepted if they are received:

• from third parties
• from credit card funds
• in the form of personal or corporate cheques.

Once a claim has been registered, Finspection representatives will check whether the broker has considered it.

According to the rules of Finspection, each member of the organisation is obliged to file a Complaint for internal proceedings, specify a contact person who is responsible for receiving claims and communicating with the Commission.

Each member of Finspection is obliged to review the claim and give an answer to the client within 10 working days. The document must indicate all aspects of the dispute, the justification for a decision (whether to satisfy the complaint or not) and the amount of compensation for damages. If the client is not satisfied with the option of resolving the disputed situation taken after the internal review of the claim, it is allowed to send the claim to Finspection.

Initially, the Dispute Resolution Committee (DRC) checks whether a claim has been filed and whether the claim has been considered by the client’s personal stockbroker. If the client and broker have not reached a consensus on their own, the dispute is considered by the Financial Committee.

Finspection will process the information provided by the parties regarding the claim, including arguments and evidence from both parties to the dispute.

The client and the respondent are obliged to provide the fullest possible information regarding the disputed situation in order to make an objective decision. Finspection’s verdict on the claim includes a detailed explanation of each point in the report.

Finspection members cannot influence the final decision on claims and the Finspection Board is independent of local regulators and brokerage companies.

The CR representatives report exclusively to the Board of Directors and are responsible for the decision made on a particular issue.

The Board of Directors monitors the activities of the Boards of Directors, ensures transparency in the handling of complaints and the impartiality of Finspection as a whole.

The Board of Directors is chaired by an independent chairman and does not include brokerage companies, which guarantees autonomy and impartiality in the adjudication of claims. Finspection and KRS are not affiliated with any particular brokerage company or regulatory affiliate.

Each Finspection member is obliged to respond to the client’s application within five days if at the end of this period the complaint remains unanswered, the Bohemian’s Committee organises a resolution of the disputed situation without the participation of the member, with possible negative consequences for him/her.

As soon as the customer agrees with Finspection’s decision on the claim, it becomes binding on them. If the customer has not approved Finspection’s decision, he has the right to seek a different decision in various legal authorities.

If the applicant has accepted Finspection’s decision, the members are obliged to comply with it.

Customers sign documents according to which they are obliged to comply with the Finspection decision. In particular, when awarding compensation, the applicant is deprived of the right to compensation from other organisations as well as to claim compensation through third parties.

According to Finspection’s rules of operations, the decision on claims is mandatory for each Member. Member companies of Finspection have no right of appeal or complaint against the Commission’s decision. An exception is if a Finspection Member receives new information on the proceedings that may affect the final decision and files a claim with a court or other state agency.

If a Finspection member refuses to make a decision or does not comply with the terms of an order, the member’s membership in Finspection will be reviewed.

Contradictions that do not relate to the resolution of a claim arising from Finspection members are referred to the Chairman of the Management Board. All disagreements arising in the course of consideration of disputes shall be appealed to and settled through the mediation of the head of the Board of Directors.

Information relating to the handling of claims, including the decision of the catcher, is sent exclusively to the interested parties – the broker and the client. When the respondent refuses to comply with Finspection’s instructions, the information will appear on our website.

Complaints may be submitted for any amount, but a complaint under $250 will be considered by one Finspection member. Applications over $250 are handled by three or more Finspection Members.

At the initial stage, claims must be considered by the broker, then they are forwarded to Finspection.

If the Commission finds that the claims have been abused by the complainant, an explanatory conversation is held with the complainant in order to identify the source that provokes the regular complaints.

Finspection may refuse to accept new claims from the client if an abuse of the system is identified.

The Compensation Fund (CF) acts as an insurance for Finspection Member customers and additionally protects traders. The money is held in a special bank account and is spent when a Member refuses to enforce Finspection’s decision.

It is financed by withholding 10% of the monthly membership fees in favour of the Fund.

The CF applies to all customers of Finspection Members. The Fund’s cash is used when the broker refuses to reimburse the client.

The upper limit for the amount of coverage is EUR 20,000 for a client of A-category companies and EUR 5,000 for a client of B-category companies.

The CF money is used only for compensation payments for claims reviewed by Finspection.

If the money held in the accounts of the CF is insufficient to settle all outstanding decisions, the amount will be distributed proportionally to all uncompensated claims. The Compensation Fund is not used in disputes relating to digital currency trading.