'Our goal is ensure a fair process for all' - Peter Tatarnikov, Financial Commission Founder

Peter Tatarnikov

Current Job:  Financial Commission Board Member, Managing Partner and CEO at Global Futures and Forex Consultants Inc
Education: National Commodities Futures Examination, RSUH, TÜV Thüringen

Peter Tatarnikov has 12 years experience in the Forex Industry. He started his career as trading desk assistant back in 1999 and in 2003 he filled a Chief Dealer position in one of the largest retail Forex broker in Russia . In-depth knowledge of FX operations and high managerial skills brought Peter to a COO position at Forex Club USA in 2006 and in 2010 he earned a CEO chair. During his career, Peter designed and held over 200 seminars on Forex Trading. His professionalism and commitment has made him a well known FX market commentator and spokesperson for the retail FX industry. Currently he is the Financial Commission Board Member.

The post-2008 crisis financial landscape saw a significant increase in complaints from investors against brokers. There are various national organizations which deal with financial regulation and securities arbitration, but with more and more complex global financial rules being implemented of late, a need for a cross-border dispute settlement body has become increasingly urgent. Will the Financial Commission be an answer to that need? We speak to one of the external dispute resolution organization´s founders Peter Tatarnikov.

Financial CommissionWhat induced you to establish the Financial Commission?
The Financial Commission was formed because we felt it was time to fill a void in the Forex industry. There are regulatory bodies and dispute resolution organizations that currently exist but none of them focus specifically on Forex and or specialize in Forex trading. Our organization has over 50 years combined experience in the industry and we think we can do a great job servicing both traders and brokers with an alternative way to handle any disputes that may arise in the course of trading the Forex market.
In what way will the Financial Commission be different from other securities arbitrators (FINRA, NFA, FSA)? Will it become a member of the International Organization of Securities Commissions (IOSCO) or will it rather remain an independent body?
The Financial Commission intends on remaining an independent body. The other organizations mentioned above are regulatory agencies that have certain legal and governmental agencies they serve. FinCom is independent so the only people we answer to are our members and their traders. This will enable us to provide a resolution in a more timely manner and we also feel our market experience will be more fair to the interests of the brokers and traders.
Will the Financial Commission's rulings be legally binding and enforceable for both the broker and the client? What mechanisms will the Commission have to enforce its decisions?
The Financial Commission’s rulings if accepted by Member and complainant will be legally binding between the Member and it’s client. Each will sign a settlement agreement agreeing that they accept the Financial Commission’s decision and that it is final.
What would be the complaints handling procedure?
The complainant would first try and resolve his dispute by contacting his broker to see if a resolution can be met. If they cannot reach a resolution they will file a complaint with the Financial Commission. This will then be heard by our Dispute Resolution Committee (DRC) The DRC will review the complaint, ask any necessary questions or request any further information and then make a decision passing on their resolution and reasoning for their decision.
What would the basis for accepting a claim be?
A claim will be accepted if and only if there has been a proper attempt from the client to resolve the issue with the broker. In addition the broker must be a Member of the Financial Commission otherwise we cannot review the complaint.
How many people will be responsible for each arbitrage?
Each complaint will be heard by between 1 and 5 people depending on the size and complexity of the complaint.
You indicate on your website that the disputes would be resolved more quickly than in the case of a traditional regulator or a judicial review. Within what period of time is a complaint expected to be resolved?
We hope to have a complaint reviewed with a resolution in 2-4 weeks. Each complaint will be different some should be resolved in less time some may take more depending on the complexity of the complaint.
Will the complaints against brokers and/or the outcome of mediation be shared publicly? Is there going to be a public record (like NFA) showing all the complaints, and their outcomes even those regarding brokers not registered with the Commission?
The complaint decisions will be shared with the broker/member and the complainant. Our goal is not to publicly humiliate or ridicule the broker but to make sure the traders are being treated fairly and or the broker is not being falsely accused or unfairly accused of bad practices. Our goal is ensure a fair process for all. The broker/member or complainant can choose to make the decision public if all parties agree to do so.
Which brokers will fall under its spectrum? Only those registered with the Commission?
The Financial Commission will only hear complaints pertaining to It’s members.
What about brokers/clients with legal addresses in fiscal paradises/not registered with the Commission?
We will accept members from all provinces regardless of regulation. We hope to work with a lot of unregulated firms to help them provide a dispute resolution process to their clients in the absence of any regulator or oversight organization in that country.
How will the Commission handle local laws?
We are not concerned with local laws simply because we are not a legal organization or regulatory body. We are a voluntary dispute resolution organization who needs both parties to accept our ruling in order for it to be binding. We will not be violating any local laws and we will also be following all local laws pertaining to our organization where our company is registered which is Hong Kong.
Have any brokerage firms already expressed their interest in becoming a member of the Financial Commission?
We have approximately 10 firms that have expressed interest and we are in discussions with them to bring them on as members.
Has the trading environment become more or less secure over the recent years? What is your opinion of trading regulations implemented during that time?
We feel the regulators have had good intentions trying to make traders more secure but a lack of relevant industry experience has brought about decisions and regulations which do not benefit the traders. In addition the new regulations have forced brokers to non-regulated provinces so they can run their brokerage as they see fit instead of having to deal with the constant fear of heavy fines and potential to put their company out of business.

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