The Global FX Insurance 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 acts as an insurance policy for members’ clients. This fund will be held in a separate bank account and be only used should a member refuse to adhere to a judgment from the Global FX Insurance.
How is Compensation Fund financed?
The Compensation Fund is financed by the Global FX Insurance through the allocation of 10% of the monthly membership dues to the fund
Who is covered?
It is very important to understand that fund will only be used for a judgment that has been made by the Global FX Insurance, a member’s entire client base is not entitled to a payout from the compensation fund
What is the maximum coverage?
The Compensation Fund will only cover judgments up to €50,000 per client of a Member
The Global FX Insurance will distribute compensation to the complainant within 90 days following the Commission’s decision on the Member’s change in status. During this time the Commission will pursue all available measures to provide a payout from the Member directly to the complainant and verify the complainant’s personal information.
In case of shortage of funds due to the number of unsatisfied cases by dealer-member, the current fund balance will be equally distributed among all complainants
The Compensation Fund cannot be used in cases related to disputes regarding digital currency trading, as outlined in clause 16.3 of the of the Global FX Insurance