A large number of scams have been evolving out nowadays in the Forex industry. Therefore, it is advisable to keep information handy on how to file complaints against CySEC regulated Forex broker. Here I have outlined some steps to follow.
3 May, 2018, AtoZMarkets – The Forex industry has become popular in the recent years because of the dozens of benefits that this currency market provides. We have seen that when an industry grows, a number of scams evolve as it also attracts the scammers. Therefore, in order to curb scams, there are financial regulators to supervise the financial markets and regulate the Forex brokers.
The Cyprus Securities and Exchange Commission (CySEC) is among the most well-known regulatory entities. It is responsible for regulating the financial markets not only in Cyprus but also in the European Union. Most of us are well aware how to file a complaint against an unregulated Forex broker. Today, we will learn how to file complaints against CySEC regulated Forex broker. Here the catch is a regulated broker. Unfortunately, sometimes even regulated brokers are not exempted from doing frauds and tend to go against the regulations. There are some things that you need to know even before you file complaints against CySEC regulated Forex broker.
Things to do before filing a complaint with CySEC
The moment you smell something fishy in the trading behavior of your broker, it is advisable to take screenshots of your user account and save all the correspondences. Moreover, do not share them on forums or online as this will signal the broker. The broker can, in turn, make changes in the T&C or change the settings. Therefore, we suggest you keep patience and advise you to contact the CySEC first.
Steps to file complaints against CySEC regulated Forex broker
The CySEC suggests always contacting your broker first. It is easy to say than to be done. If your broker is cooperative enough, let them know that you are well aware of your rights. CySEC says that it does not have restitution powers and hence does not investigate individual complaints. However, it is a regulatory entity that supervises all Forex brokers and takes all submitted complaints into consideration. The financial watchdog asks you to follow these three steps to file complaints against CySEC regulated Forex broker.
#1 Contacting the CIF (your broker) first
CySEC proposes to settle the complaint with the CIF first (your broker is licensed as a Cyprus Investment Firm). Your broker will provide you a unique reference number. This number will be useful in all possible future communications with CySEC as well as the Financial Ombudsman. Moreover, it will be like an ID of your complaint. To file a complaint, you will need to fill in this investors CIF complaint form. Bear in mind to mention all your information in detail such as your full name, country, email and/or phone, the reason of complaint, your trading financial product, and unsettled funds. Such approach will not allow the broker to have a chance to escape due to technical problems.
Your broker will be required to acknowledge in writing within 5 days regarding the receipt of your complaint. Then, your broker will have to respond the complaint in writing within 60 days. Moreover, the broker needs to inform you if the complaint has been resolved successfully or not. In addition, they can even request for more time (not more than 3 months from the date of the complaint), but the broker will have to mention the reason for extra time.
#2 Contacting the Financial Ombudsman
In case, you are not happy with the broker’s response or they reject your complaint, the second step is to contact the Financial Ombudsman. You can also contact them if the broker does not reply within 3 months. Financial Ombudsman is responsible for settling disputes between the broker and their clients. It is better to check with the Ombudsman’s office if you are eligible to file a complaint with them. One must keep in mind to contact the Ombudsman within 4 months after receiving a final decision from the broker. Otherwise, the Ombudsman will not be able to resolve your complaint in order to seek mediation for possible compensation.
#3 Taking civil action or contact fund recovery firm
I know it is not good to go for this step as it takes time, money, and mental preparation. Taking civil action or requesting the service of a fund recovery firm, is the last resort that a fraud victim can consider. Especially, if you do not accept the Financial Ombudsman’s decision. You can usually start a civil action in the District Court.
Think we missed something? Let us know if the above information is helpful to you in the comments section below.