Member Firms FAQ
Member Firms FAQ
- 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.
- Are there any safeguards in place to ensure a client doesn’t file complaints for all trading losses?
- If the commission sees a pattern of abuse from one particular client, the commission will try to speak with the client and the member to figure out the root issue as to the nature of the consistent complaints. In addition The Financial Dispute Resolution Commission reserves the right to refuse future complaints if the commission feels the client is abusing the system.
- 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 FDRC. Any complaint over $250, will be heard by a minimum of 3 members of the FDRC.
- 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 These will not be published unless the member does not comply with the judgment.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 have an issue with The Financial Dispute Resolution Commission?
- Any issues that you may have with The Financial Dispute Resolution Commission that are not related to a complaint decision may be brought to the Chairman of the Board of The Financial Dispute Resolution Commission for evaluation. Any issues with a decision from the FDRC must be appealed and handled through the Head of the FDRC as previously stated.
- What happens if I don’t accept a decision handed down from The Financial Dispute Resolution Commission?
- If you don’t accept the decision you can appeal to the Head of the FDRC with any new information which could change the outcome of the resolution or point out a flaw in the decision making process. If you refuse to accept the decision and or comply with the judgment your status as a member of The Financial Dispute Resolution Commission will be reviewed.
- 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 files 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 FDRC’s decision per the membership agreement.
- Am I bound by a decision from The Financial Dispute Resolution Commission?
- The Financial Dispute Resolution Commission’s decision is only binding on a complainant if the complainant accepts it. If the complainant does not accept The Financial Dispute Resolution Commission’s decision, the complainant is at liberty to pursue any other remedies available to them in the courts or any another forum. The Financial Dispute Resolution Commission’s decision is binding on its members once a complainant has accepted the decision of The Financial Dispute Resolution Commission. The complainant will also sign a binding document stating that they will abide by The Financial Dispute Resolution Commission’s decision and should they be awarded compensation, they are not entitled to seek restitution with any other legal or regulatory body.
- What happens if I don’t respond to a client complaint?
- If as a member of the FDRC, you do not respond to a complaint made to The Financial Dispute Resolution Commission within 5 days, the FDRC will provide a resolution without your input which may be detrimental to you in its final decision.
- 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
- How exactly does the Dispute Resolution Committee work?
- A complaint is filed with the FDRC. The FDRC 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 FDRC. The FDRC 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 FDRC 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 FDRC 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 FDRC, as well as a final decision and resolution to the complaint.
- 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
- What are the fees associated with becoming a member of The Financial Dispute Resolution Commission?
- What happens after I apply for membership?
- Once your application has been received, it will be processed within 21 business days. You will receive a notification from our Board of Directors and will be provided with your Membership Number. Once approved, a welcome pack will be sent to you along with your Membership Certificate.
- How do I apply to become a member of The Financial Dispute Resolution Commission?
- To apply to become a member, please fill out The Financial Dispute Resolution Commission membership application. To have a copy of the application emailed to you please send an email to: email@example.com
- Do I need to be regulated by any other entity to join The Financial Dispute Resolution Commission?
- No you do not need to be regulated, however you will need to apply for membership and pass a due diligence and background check. Membership is subject to approval by the Board of Directors and Compliance Department.
- 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.
- Why Should I Join The Financial Dispute Resolution Commission?
- Joining The Financial Dispute Resolution Commission effectively allows you to manage your risks and satisfy customers to reassure that they will be doing business in a fair and balanced environment. Membership with The Financial Dispute Resolution Commission is an opportunity to demonstrate your commitment to upholding the highest standards of commercial honor and best business practices in conducting your business. Your clients will have access to independent, experienced, and professional staff to assist them in resolving any complaint they may have with you. Being a member is also a cost effective means to mitigate reputational risk, such as traders complaining on forums creating negative news and feedback. By resolving the complaint through an independent and impartial committee such as The Financial Dispute Resolution Commission, you will reduce the costs associated with litigation and alleviate the stress and difficulty that process entails.
- 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.
Welcome Our Latest Authorised Member – Bitord Limited
August 21st, 2018 – The United Kingdom: The Financial Dispute…[…]
Welcome Our Latest Authorised Member – JLLA Holding Group Limited
August 20th, 2018 – The United Kingdom: The Financial Dispute…[…]
Welcome Our Latest Authorised Member – MPB Bank Ltd
July 27th, 2018 – The United Kingdom: The Financial Dispute…[…]