- What is the Financial Dispute Resolution Commission?
- The Financial Dispute Resolution Commission is an external dispute resolution (EDR) organization for consumers/traders who are unable to resolve disputes with financial services providers that are members of the Financial Dispute Resolution Commission. The Financial Dispute Resolution Commission set out to provide a new approach for traders and brokers alike to resolve any issues that arise in the course of trading the Forex market. The Financial Dispute Resolution Commission hears a wide variety of disputes of all monetary values. We give traders a voice so they feel they are treated fairly and we provide brokers a means to respond to any complaints that may have been unfairly lodged against them.
- What are the objectives of the Financial Dispute Resolution Commission?
- The Financial Dispute Resolution Commission was established to be a neutral 3rd party committee to fairly review and resolve complaints in an effort to facilitate a simpler, swifter resolution than through industry regulators and the legal system.
- What happens when a customer files a complaint with the Financial Dispute Resolution Commission?
When the Financial Dispute Resolution Commission receives a complaint the first step is to ensure the complainant has approached the member to try and resolve it through the member’s own Internal Dispute Resolution process.
The Financial Dispute Resolution Commission’s Rules state that every member must have a complaints contact person and an Internal Dispute Resolution (IDR) Procedure in place.
The IDR Procedures require you to give a substantive response to a complaint as soon as possible but must be within 10 business days. A substantive response shall include:
- Acknowledging the customers complaint and
- Where appropriate offering compensation, or
- Reject the complaint, providing a reason for the decision
- How exactly does the Financial Dispute Resolution Committee work?
- A complaint is filed with the Financial Dispute Resolution Committee. The Financial Dispute Resolution Committee will verify that the proper procedures have been taken and that the client has tried to mediate the complaint with the member first. If the member and client cannot reach an agreement, the complaint will come to the Financial Dispute Resolution Committee. The Financial Dispute Resolution Committee will collect information from both the member as well as the client to hear their justification for why they feel the resolution should be in their favor. Once the Financial Dispute Resolution Committee has collected information from both sides they will review the information provided, if they need additional information they will contact the member and or client for follow up questions. After the Financial Dispute Resolution Committee has reviewed everything they will issue a decision. This decision will include a description of the complaint, a detailed explanation of the findings of the Financial Dispute Resolution Committee, as well as a final decision and resolution to the complaint.
- What is the Dispute Resolution Fund and how does it work?
- The Dispute Resolution Fund is a fund that acts as an insurance policy for members. This fund will be held in a separate bank account and will only be used shall members fail to resolve a dispute with the member’s client. The Dispute Resolution Fund is financed by the Financial Dispute Resolution Commission through allocation of 10% of the monthly membership dues to the fund. The Dispute Resolution Fund will only cover dispute resolution costs up to €20,000 per client of an A-Category Member and up to €5,000 per client of a B-Category Member. This fund will only be used for a dispute that has been made by the Financial Dispute Resolution Commission, a member’s entire client base are not entitled to a pay-out from the Dispute Resolution Fund. In case of shortage of funds due to number of unsatisfied cases by dealer-member, current fund balance will be equally distributed among all complainants.
- Is there a minimum monetary value for a complaint?
- The Financial Dispute Resolution Commission will hear complaints of all monetary values. Any complaint that is for less than €250, it will be heard by 1 member of the Dispute Resolution Committee. Any complaint over €250, will be heard by a minimum of 3 members of the Dispute Resolution Committee.
- Is the Financial Dispute Resolution Commission independent of all brokers and regulatory organizations?
The decision-making process and administration of Dispute Resolution Committee are independent of its members and sectors of the industry which fall within its jurisdiction and which provide its funding.
The Dispute Resolution Committee are:
- Entirely responsible for the handling and determination of Complaints; and
- Are accountable only to the Financial Dispute Resolution Commission Board.
- An independent Chairman; and
- No Dispute Resolution Committee member brokers
- Does the Financial Dispute Resolution Commission publish their decisions?
- The complaints and decisions will be supplied to the member and the complainant. These will not be published unless the member does not comply with the judgment. Note: The commission may from time to time publish anonymized random complaints for educational and comparative purposes, with any personal identifiable information removed.
- What if I am not satisfied with the result of a decision from the Financial Dispute Resolution Commission?
- If you are unsatisfied with the result, you can file an appeal with the Financial Dispute Resolution Commission. This appeal must present new information or point out any flaws in the decision making process. The appeal must be filed within 10 business days of the original ruling. The appeal will be reviewed by the Chairman and a final decision will be handed down within 5 business days. Once the appeal is heard the decision will stand and you are required to abide by the Dispute Resolution Committee’s decision per the membership agreement.
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