Membership Rules and Guidelines

This organisation functions autonomously and is primarily dedicated to addressing and resolving conflicts within the financial sector. Because it is self-regulated, it operates without oversight from external authorities and is not required to be registered as an EDR body.

Membership is open to both individuals and entities engaged in financial activities. The organisation sets its own rules and guiding principles, which all Members are obligated to follow.

The key objectives of the Company include:

• Offering clients an alternative means of resolution when participants fail to reach an agreement.
• Acting as a neutral, independent intermediary to ensure fair dispute settlement.
• Providing support and guidance to Member-brokers and their clients in resolving conflicts.

In the case of getting the membership status, it is their duty to provide the relevant evidence of their professional trading activities (at least 3 years). This ensures that every Member of our organisation possesses a solid background in the financial markets.

Brokers with less than 3 years of experience may still be considered if they complete a verification process. This involves providing a letter of recommendation from a senior manager at a reputable firm that has operated in the financial sector for a minimum of 3 years. The Company maintains multiple membership tiers, each defined by specific factors such as commission rates, the volume of complaints reviewed, and other distinguishing criteria.

A complaint is considered when the Applicant reports the following violations by a Member-broker:

• A breach of one of the provisions of the Agreement concluded between the broker and the client.
• A breach of one of the widely accepted standards for the provision of services in the financial sector.
• Discriminatory or unfair actions against the Applicant.

Obligations to provide reporting information are imposed on Members at all or some levels. Information about such obligations is always posted on the Company’s website.

The Dispute Resolution Committee members may only be appointed by the Company. The Committee’s responsibilities are listed below:

• A comprehensive assessment of the complaints filed in accordance with their jurisdiction, and their complete analysis in agreement with existing rules and regulations adopted subsequently.
• Issuance of resolutions in accordance with the decisions taken.
• Issuance of directives for the implementation of decisions in agreement with resolutions.

In the event of any unforeseen circumstances, the Member is obliged to quickly restore its work processes to ensure the continuity of service to its clients. To this end, it is required to have a Recovery Plan. An additional function of this Plan is to enhance the Member’s reputation. The Plan must clearly define the following points:

• data on additional establishments;
• algorithm for the recovery process;
• step-by-step instructions in case of third-party failures;
• every year testing data;
• description of the information transfer process to the Company;
• methods of communication with third parties;
• specifications of backup connection ways.

The funds are reserved exclusively for 2 purposes: maintaining the Company’s operational stability and replenishing the Compensation Fund. Under no circumstances may these funds be distributed among Members.

The Company is required to allocate a fixed contribution to the Compensation Fund, which serves as a safeguard for clients in the event of disputes. This Fund must be held in a dedicated account. Beyond the Company’s own contribution, it is supplemented by a set percentage of brokers’ monthly membership payments. The Fund may establish compensation limits in advance, and should the total amount of claims exceed them, the Fund has no obligation to cover them in full.

All compensation amounts are provisional and may be revised as needed. Any such changes will be publicly disclosed on the Company’s website. The Company retains the authority to draw from the Compensation Fund to reimburse clients for verified losses when a complaint has been filed and the Member does not comply with the Committee’s instructions. Termination of membership does not entitle a former Member to any portion of the Compensation Fund, which remains the exclusive property of the Company. If the maximum limit of resources is insufficient to cover all claims in full, it is distributed proportionally among the Applicants.

The Company reserves the right to charge determined fees or commissions to Members of certain or all levels. Information about such obligations is always posted on the official website.

The Company is completely self-regulating, and its decisions are not subject to the influence of Members.

Since the Committee deals with dispute resolution, it:

• is fully responsible for all processes related to the consideration and resolution of complaints;
• is required to report only to the Board of Directors.

The Board of Directors is responsible for overseeing the Committee’s activities and personnel. Company representatives may not serve on the Committee or the Board of Directors, as the Company is an independent organisation.

Filing a complaint by the Applicant initiates a process that begins with the Company verifying whether the broker against whom it is filed has membership status. If the answer is yes, it is processed accordingly. If the answer is no, it is automatically dismissed.

The dispute resolution procedure rules state that the complaint must be reviewed within 10 days. This time is given to the Member-broker to provide full information regarding the situation.

In cases where the Applicant disagrees with the response received from the broker, they have the right to forward the complaint directly to the Company, which will send it to the Dispute Resolution Committee.

The Company reserves the right to regularly audit brokers with Member status. During these audits, which are conducted annually, the Company ensures that all Members comply with the existing rules.

It is the responsibility of each broker with membership status to fully cooperate with these audits, which includes providing the Company with access to its property, employees, and other assets.

Member status is granted to a broker as a result of passing a comprehensive check and obliges them to include a clause in each subsequent contract regarding the client’s right to file a complaint against them.