How FDRC Works

How FDRC works

FDRC is an autonomous dispute resolution scheme designed to facilitate the resolution of disputes between consumers and financial service providers. Notably, this scheme is entirely cost-free for consumers seeking its services.

The FDRC features an esteemed Advisory Council, whose composition is the result of appointments made by both members and consumers. Comprising five members in total, this council consists of an impartial chair, two industry representatives, and two consumer representatives, each serving two-year terms.

In adherence to FDRC’s dedication to international dispute resolution best practices, an independent panel is in place to provide expert opinions when deemed necessary by the Scheme Adjudicator. The panel members are meticulously chosen for their specialized expertise within their respective domains. To uphold integrity and prevent conflicts of interest, panel members are barred from practicing in cases where they may have a potential conflict, and they are expected to promptly declare any such conflicts.

Furthermore, FDRC boasts an in-house team of experts who specialize in conflict management, thereby augmenting the scheme’s capabilities in handling disputes effectively.

FDRC offers a comprehensive three-level complaint process meticulously designed to expedite the resolution of disputes while ensuring a thorough examination of all relevant issues.

Disputes within the purview of this scheme encompass services and guidance rendered by a Scheme Member, specifically pertaining to the quality of service and advice received. Notwithstanding, it’s important to note that the scheme does not extend its jurisdiction to adjudicating general policies, practices, or fee-related matters of the Scheme Member. For a comprehensive understanding of the covered domains, kindly refer to the “What’s Covered” page, where additional information is provided.

The initial phases of the dispute resolution process typically succeed in amicably resolving numerous disputes. However, should certain disputes remain unmitigated, they are systematically escalated through the scheme’s three-tiered structure. In cases where a mutual agreement between the involved parties remains elusive, FDRC assumes the responsibility of issuing a formal decision. This decision attains a binding status upon the Scheme Member, provided the consumer in question concurs with its terms. Should a consumer find the outcome unsatisfactory even after the formal decision, they retain the option to pursue their dispute through alternative channels, such as the legal system or the Disputes Tribunal.

FDRC provides a three-level complaint process, which aims to resolve disputes efficiently and thoroughly.

how-it-work-img

Back to top »


The Dispute Resolution Process

Registration

The dispute resolution process commences with a meticulous registration phase. This preliminary stage involves an assessment of the complaint to ascertain its jurisdiction and whether a deadlock has been reached. It is imperative that the complaint has been previously lodged with the Scheme Member and that the Scheme Member has been afforded an opportunity to address the matter. Furthermore, the complaint must pertain to an event occurring subsequent to the date of the Scheme Member’s enrollment in the scheme. A skilled facilitator is engaged to liaise with the involved parties and validate the existence of a deadlock. If the deadlock is confirmed, comprehensive details of the complaint are solicited to enable FDRC to establish jurisdiction. Once it is determined that the complaint falls within the purview of jurisdiction, it is officially accepted and proceeds into the formal dispute resolution process.

Level 1

The initial level involves the collection and exchange of information from all parties involved in the dispute. This phase often culminates in resolution as it allows each party to gain a comprehensive understanding of the other’s position by sharing all pertinent information. However, if resolution remains elusive at this stage, the dispute advances to Level 2.

Level 2

At Level 2, FDRC’s primary objective is to facilitate the parties in reaching a mutually agreeable resolution independently. A proficient mediator collaborates with the parties to gather additional information and explore potential avenues for resolution. Meetings are conducted through various means, including face-to-face interactions, video conferencing, telephone conferences, or email correspondences. In the event that the parties cannot reach an agreement, FDRC undertakes a comprehensive review of all provided information and subsequently proposes a settlement. Should the parties fail to consent to the suggested settlement, the dispute proceeds to Level 3.

Level 3

The culmination of the process transpires in Level 3, which is conducted primarily through a review of the case “on the papers.” All relevant information and submissions furnished by the parties are transmitted to a qualified adjudicator. The adjudicator proceeds to issue a proposed final decision, extending an invitation for comments from the parties involved. If the proposed decision does not garner consensus among the parties, a final decision is rendered. In the event that the final decision is accepted by the consumer, it carries the binding force of compliance upon the Scheme Member. However, should the consumer remain dissatisfied with the final decision, the complaint is formally concluded, affording the consumer the option to pursue the matter through alternative channels, such as the judicial system or the Disputes Tribunal.

Read More: https://fdrc.org.uk/about-fdrc/feedback-about-fdrc/

Back to top »

Latest News

The Financial Dispute Resolution Commission Welcomes Grand Capital as Latest Member Firm

January 20th, 2016 – Hong Kong & New York: FinaCom…[…]

Read More »

The Financial Dispute Resolution Commission Certifies Binary Options Platform from Tools for Brokers Inc.

The Financial Dispute Resolution Commission has successfully completed the certification…[…]

Read More »

The Financial Dispute Resolution Commission Announces Forex Club as Latest Member Firm

26 January 2016 – Hong Kong & New York: FinaCom…[…]

Read More »

THE FINANCIAL DISPUTE RESOLUTION COMMISSION 2015 ANNUAL REPORT

2015 Membership Growth, New Appointments, Key Events and Industry Observations…[…]

Read More »