Government welcomes enhancements to Financial Dispute Resolution Scheme
The Government welcomes the announcement by the Financial Dispute Resolution Centre (FDRC) today (August 29) on the enhancements to the Financial Dispute Resolution Scheme (FDRS).
A government spokesman said, "We welcome the service enhancements which provide greater accessibility to and flexibility of the FDRS. The implementation of the enhanced services should contribute to an important public policy objective of investor protection, thereby reinforcing Hong Kong's status as an international financial centre."
Key enhancements include raising the maximum claimable amount from the current $500,000 to $1 million, and extending the limitation period for claims to be lodged under the FDRS from the current 12 months to 24 months. The enhancements will be implemented in phases from January 1, 2018, onwards.
In operation since June 2012, the FDRC administers in an independent and impartial manner the FDRS, which provides an effective and cost-efficient channel for customers and financial institutions (FIs) to resolve their financial disputes by way of "mediation first, arbitration next". The FDRC is governed by a Board of Directors to oversee its operation and formulate its overall policy and strategy. Board directors include a representative each from the Financial Services and the Treasury Bureau, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC). The FIs regulated by the HKMA and the SFC are obligated to become members of the FDRS. Details of the enhancements to the FDRS and their implementation arrangements can be found at the FDRC's website at www.fdrc.org.hk.
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