Canada Regulator Removes Financial Commission from 'Investor Alert' List

<p>The Canadian Securities Administrators (CSA) has removed the name of the Financial Commission (FinCom), a self-regulatory and dispute resolution body in the financial services industry, from its "Investors Alert" list after resolving "all misunderstandings."
</p><p>Canadian Regulator Clears FinCom's Name
</p><p>As Finance Magnates reported earlier, the Canadian regulator <a href="https://www.financemagnates.com/forex/financial-commission-calls-canada-regulators-waning-a-mistake/">added the Financial Commission</a>, along with ten other names, to its Investors Alert list published on 20 June 2023, labeling them as fake.
</p><p>While most of the added names had no online presence, the Financial Commission and its affiliate, the Blockchain Association, were legitimate organizations with solid reputations in the industry. The blockchain unit of the Financial Commission, the Blockchain Commission, is now dormant.
</p><p>The<a href="https://www.financemagnates.com/tag/financial-commission/"> Financial Commission</a> immediately engaged with legal counsel in Canada to challenge the warning of the CSA. The Canadian watchdog did not reason behind its decision to add and then remove FinCom from its warning list. However, FinCom earlier explained that unknown individuals might have cloned or copied its membership to pursue possible fraudulent activities.
</p><p>FinCom Becomes Transparent
</p><p>"In an effort to avoid any further misunderstanding of the nature of The Financial Commission's business, the organization has updated its website's What We Do section to indicate even more clearly that The Financial Commission is not a governmental regulatory body and does not purport to be," the announcement by FinCom stated.
</p><p>"It is not licensed by any regulator. The organization was established exclusively for the purpose of amicably resolving disputes between FX and CFD traders and brokers in a transparent and efficient manner."
</p><p>Indeed, as members of the Financial Commission, brokers receive several services, including mediation for dispute resolution and access to a compensation fund for disputes resolved by the Commission. The deposit protection provided by the fund is beneficial to member brokers' clients that operate under regulators without such compensation schemes.
</p><p>The organization further maintains strict membership rules and has expelled several brokers over the years for non-compliance. Most recently, <a href="https://www.financemagnates.com/institutional-forex/jdr-securities-adopts-external-dispute-resolution-with-fincom-membership/">JDR Securities</a>, <a href="https://www.financemagnates.com/institutional-forex/fincom-grants-membership-to-ebc-financial-group/">EBC Financial Group</a>, and <a href="https://www.financemagnates.com/forex/financial-commission-grants-dls-markets-membership/">DLS Markets</a> became FinCom members.
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This article was written by Arnab Shome at www.financemagnates.com.