Broker-status 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 Broker-status.
How is Compensation Fund financed?
The Compensation Fund is financed by Broker-status 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 Broker-status, 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 €20,000 per client of an A-Category Member and up to €5,000 per client of a B-Category Member.
*Broker-status 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.