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'.

Canadian Regulator Clears FinCom's Name

As Finance Magnates reported earlier, the Canadian regulator added the Financial Commission, along with ten other names, to its Investors Alert list published on 20 June 2023, labelling them as fake.

While most of the added names had no online presence, the Financial Commission is a well-known organization that has gained industry reputation. The blockchain unit of the Financial Commission, the Blockchain Commission, is now dormant.

The Financial Commission immediately engaged with legal counsel in Canada to challenge the warning of the CSA. The Canadian watchdog did not provide any reason for the decision to list the External Dispute Resolution (EDR) body. Nor, for that matter, for its removal, in what appears to be a fallout of a clone scam. In the said schemes, fraudsters are using fake details of legitimate financial services firms to deceive unsuspecting investors. Social media has amplified and increased such cases, Finance Magnates reported earlier this month.

Serving Brokers and Traders Alike

Brokers who join as members of the External Dispute Resolution body are entitled to 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.

Furthermore, the organization maintains strict membership rules and has expelled several brokers over the years for non-compliance. Most recently, JDR Securities, EBC Financial Group, and DLS Markets have become FinCom members.