In today’s world, where financial markets are more interconnected than ever before, it’s critical to have an effective and efficient mechanism for resolving disputes between clients and financial service providers. The Financial Commission is an independent, self-regulatory organization that was created to provide external dispute resolution services to consumers and businesses in the financial services industry.
The Financial Commission was established in 2013, and since then, it has helped resolve thousands of disputes between traders and their Forex and CFD brokers. The organization operates globally and has its headquarters in Hong Kong.
One of the main benefits of the Financial Commission’s dispute resolution services is that they are free for consumers. Financial service providers who are members of the organization are required to pay an annual membership fee, which covers the costs of running the dispute resolution process. This means that consumers who have a dispute with a member of the Financial Commission can access an independent dispute resolution process without having to pay anything.
The Financial Commission’s dispute resolution process is designed to be quick and efficient. Once a consumer files a complaint, the Financial Commission’s Dispute Resolution Committee (DRC) will review the complaint and determine whether it falls within its jurisdiction. If the complaint is accepted, the DRC will work with both parties to try and reach a resolution. In many cases, disputes are resolved within a few weeks of being filed.
The Financial Commission’s dispute resolution process has been highly effective in resolving disputes between consumers and financial service providers. According to the organization’s annual report for 2022, it received a total of 3,026 complaints during the year. Of those, 6% were resolved in favor of the consumer, and the average time to resolve a dispute was 5.6 days.
In addition to providing dispute resolution services, the Financial Commission also works to promote transparency and best practices in the financial services industry. The organization provides its broker Members with a set of best practices guidelines that cover issues such as client onboarding, risk management, and complaint handling. Members are required to adhere to these guidelines, which helps to promote a higher level of professionalism and transparency in the industry.
In conclusion, the Financial Commission has played a vital role in providing external dispute resolution services to consumers and businesses in the financial services industry. The organization’s quick and efficient dispute resolution process, combined with its promotion of best practices and research into key industry issues, has helped to promote transparency and professionalism in the industry. With the continued growth of the financial services industry, the Financial Commission’s services will undoubtedly continue to be in high demand.
