Exchange activity developing in the CIS countries, at the beginning of its activity, was spontaneous and uncontrolled. Over time, the question arose about streamlining exchange activities and monitoring the implementation of basic regulations. There is no official regulator today.
However, organizations have appeared in the post-Soviet space that have taken on the role of supervision in this area. One of the organizations of this type is TsROFR . The organization does not set the ultimate goal of making a profit from its activities. All money received by the Settlement Center goes to organizational work for the activities of the center and non-profit partnership. Thanks to this regulator, both Forex brokers and binary options brokers can obtain a license.
File a complaint against a broker
Tasks of the Regulatory Center
The main activity is aimed at monitoring the activities of futures, foreign exchange and other markets, as well as the level of provision of services by binary options brokers and DCs. It is important to note that the founders of the organization do not include entrepreneurs whose occupation is the provision of brokerage services, therefore the possibility of influencing the center’s decision to provide a certificate to one or another person or on resolving controversial issues is excluded.
CROFR takes a mandatory part in resolving disputes that arise between traders and brokers, and also strives to provide traders with a high percentage of security of transactions in markets of any type. All decisions and instructions made by the center must be complied with by licensee companies. The presence of a certificate indicates high professionalism and compliance with all the requirements put forward by the Center for Financial Markets.
Each applicant undergoes a thorough check to ensure full compliance with all regulatory compliance. This includes analysis of documentation, technical equipment, methods of carrying out activities, feedback on the work of the subject.
The main activities of the center take place in several areas:
- Supervision of the work of companies that have been issued a document by the Center for Financial Markets, participating in international financial markets.
- Taking measures to prevent increased risk to participants.
- Development of survey systems according to which it is possible, in the future, to evaluate the work of companies applicants for obtaining a document of compliance.
- Formation of a compensation fund to pay various amounts to injured clients after investing money in a company that has a CROFP certificate.
If the Center, after considering the complaint of the injured trader, decides that the partner company is guilty, the plaintiff receives an amount that corresponds to the amount lost. The activities of the Center for Financial Markets are aimed at ensuring the transparency of the exchange game, the safety of investors from unauthorized actions, and accessibility for any market participant.
Organizations controlled by the Resolution Center
The main subjects that are subject to control by the Center for Financial Markets are Dealing Centers and Brokerage Companies. The services provided may cover the field of binary options or the Forex market. This is of no particular importance and does not affect the issuance of the certificate.
Rules for obtaining a certificate include:
- Creation of an application of the established form.
- Concluding an agreement for certification.
- A package of accompanying documents, which includes general certificates.
- A sample agreement according to which transactions are concluded at the time of filing the application.
- A sample agreement according to which transactions will be carried out after receiving the certificate.
- Receipts for payment of all costs associated with verification and receipt of the document.
Review of the application takes no more than one working week, after which a response is sent to the applicant about the procedure for completing the steps to obtain the document. The center collects dossiers, analyzes documentation, and carries out all activities related to assessing the company’s activities. After this, the final decision is made. A positive response guarantees that at the time of verification, the applicant company fully complies with all the requirements set by the center. After registering the certificate, the company receives documentary evidence of the compliance of its activities.
Requirements for applicants:
- The company must have more than five thousand registered customers.
- The list of active trading accounts must consist of 2500 units.
- Availability of a package of documents that warn and explain the degree of risk for the company’s clients, as well as trade regulations.
- Report on the implementation of effective measures aimed at combating money laundering.
- The company's work experience in the market must be at least two years.
- Registration of representative offices in other cities of the Russian Federation and several countries near and far abroad.
- Availability of systems for effective protection of customer information, incl. banking data.
- Possible, but optional, confirmation of registration with other regulators.
The certificate issued by TsROFR speaks of the company’s professionalism, high level of competence and competitiveness. To get acquainted in detail with all the provisions of the work of the Center for Financial Markets, you can go to the official website.
The process of obtaining a certificate in the field of information
To obtain this type of certification requires reliable news information provided in a broad, comprehensive manner. In addition, it is imperative that the information is relevant and interesting for a wide range of readers. When publishing information articles, mandatory compliance with copyright and access standards adopted in Russia.
Passing certification requires the investment company to have regulatory conditions that reflect the relationship between the consumer and the provider of this type of service. A prerequisite is a paragraph that addresses the issue of the magnitude and possibility of potential risks, as well as the transparency of the information provided about the investment project. All calculations made must be legal and comply with the rules and regulations of this type of work on the territory of the Russian Federation.
Rules governing the process of activities of organizations that have received a certificate of conformity
Obtaining a certificate means that the company’s activities are consistent with all requirements that must continue to be observed, just as strictly. In case of gross and persistent violations, the Center has the right to revoke the license. The basic operating rules are as follows:
- Compliance with all orders of the Center.
- Assisting the Center in processing complaints received.
- Timely payment of fees.
- Give consent to conduct unscheduled inspections at the initiative of the Center, but not more than once a quarter. During unscheduled inspections, provide full assistance in providing the requested information.
- Carry out your practice in accordance with the Charter of the Center and not allow any actions that entail damage to the Center for Financial Markets.
- To prevent cases of abuse of affiliation with the Center, thereby having a negative effect on the reputation of the Center for Financial Markets.
Regular violations of the Charter and Rules, committing actions that harm the activities and reputation of the Center for Financial Markets, the brokerage company, after passing the inspection, may be deprived of the received certificate, as well as the right to re-pass the inspection to receive a new certificate of conformity. The company is blacklisted.
What does a certificate of conformity provide?
Brokerage companies that have passed all stages of certification and received a document of conformity receive guaranteed opportunities:
- Refer to the Center when resolving conflicts during legal proceedings.
- If a company has suffered as a result of unauthorized actions, it can count on compensation.
- Guarantee that the Center provides all services, maintaining the company’s image, ensuring the growth of the target audience.
- A PR move that allows you to once again announce the company from the point of view of enhancing its image.
- Documentary evidence of a high professional level.
Undoubtedly, membership of the Center for Financial Markets provides profitable prospects, opening up the image of a reputable organization for the company.
The nuances of working with traders
Traders or investors, entering into an agreement with a company accepted into the CROFR family, receive a number of advantages.
- Concluding an agreement to receive obviously high-quality services.
- An unbiased attitude towards the investor when resolving conflict situations between a trader and a licensee company providing brokerage services. If the issue is resolved positively in favor of the investor, the amount of losses is compensated by payment from the compensation fund.
- A guarantee of payment of funds to the investor placed on deposit if the broker company is declared bankrupt, having at that time a certificate from the Central Financial Markets Authority.
In case of any force majeure or bankruptcy of a brokerage firm, the trader, in order to receive compensation, must have evidence of the presence of his funds in the account. The center offers, for everyone to familiarize themselves with, a list of unscrupulous companies that, at different times, provided brokerage services in bad faith. This information list is freely available to anyone. Therefore, before making a decision and concluding an agreement, it is worth looking through the list to see if the selected company is on it.
File a complaint against a broker with the Central Financial Markets Service
If a broker licensed by the Center for Financial Markets has committed illegal actions against a trader, the latter has the right to contact the Center to resolve the issue. Making a claim is not difficult. The process is divided into several simple steps that are followed when drawing up requests and resolving any problems and conflict situations. First, you need to reflect basic information about the applicant, indicating the account. After that, briefly state the reason for the appeal. The complaint must be sent to the regulator no later than a month from the date of the event, otherwise it will not be considered.
To resolve the conflict, you need to provide evidence of illegal actions against the applicant. The application review period is one month. After a month, the Center will make a decision and report the results of the inspection. If fraud is proven, compensation will be paid from the depreciation fund. In relation to the broker, a decision is usually made to revoke the license and all his data is moved to the “black list”.
Summarizing
The CROFR regulator, whose activities were described in this article, performs its work responsibly and acts as a guarantor for its participants, providing legal protection. It provides traders with maximum security in the foreign exchange markets by certifying brokers.
TsROFR is:
- Impartial regulator;
- Independent evaluator of brokerage companies;
- A body that carries out the certification process for various types of activities;
- Free access to legal information;
- Prompt response and resolution of disputes.
However, looking at the situation in more detail, it can be noted that most investors prefer other regulators: CySec or BaFin. It is believed that the European Union has developed a more stringent system of requirements. Therefore, companies with a license from the European Union are considered more trustworthy. Undoubtedly, it is the right of investors which brokerage company to choose. Some large companies solve the issue of obtaining a certificate more radically. They go through the procedure and receive a certificate of conformity from several regulators simultaneously.
See also:
How to choose a binary options broker?
The most reliable binary options broker
To leave a comment, you must register or log in to your account.