April 6th, 2020, The Financial Commission today announces its operating metrics for the first quarter of 2020. The organization continues to operate normally amid the current global disruptions caused by the COVID-19 virus while experiencing a rise in complaints and inquiries from traders around the world. The organization has achieved exponential growth in key metrics, with significant increases in the amount of resolved complaints, compensation awarded to traders and values of complaints.
Key quarterly highlights vs 1Q 2019:
- New complaints up 31%
- Financial related complaints up 75%
- Compensation sought up 400% to $3.4M
- Compensation awarded up 820% to $203,715
- Average complaint value up 33%
- Average resolution time down to 6.2 days
1Q 2020 complaints statistics
The Financial Commission processed and resolved a total of 258 complaints in 1Q 2020, a 27% increase from the same period last year. Total complaints received totaled 278 for the quarter, up 31% from 1Q 2019. Within the different complaints categories, the Commission noted a significant increase of 74% in financial complaints and 42% for non-trading complaints in the first three months of 2020, as compared to 2019.
The percentage of complaints resolved in the first quarter of 2020 was 93%, compared with 96% in 2019, indicating that the Dispute Resolution Committee continues to effectively process and resolve complaints in light of significant increases in the number of complaints and inbound inquiries from traders.
The organization saw exponential growth in the amount of compensation that was sought by traders, both those of member brokers and those of non-members. The most significant growth was in total compensation awarded, which increased 820% as compared to 1Q 2019 for a total of $203,715. Compensation sought by traders of member brokers increased 525% for a total of $2,154,315, while total compensation sought by all traders increased 395% to $3,417,203.
The average value of all submitted complaints also rose exponentially by 300% with the average complaint value of $15,968 in 1Q 2020, as compared to $5,295 in 1Q 2019.
Despite experiencing a 31% rise in submitted complaints, the organization’s Dispute Resolution Committee (DRC) continued to operate efficiently in the first quarter of 2020. Average resolution time, a key performance indicator for the organization, has improved to 6.2 days, as compared to 7 days on average in 2019. As such, the DRC continues to provide swift complaint investigations and resolutions to assist traders.
About Financial Commission
Founded in 2013, the Financial Commission is a leading independent member-driven external dispute resolution (EDR) organization for international online brokerages, exchanges and Blockchain firms that participate in global foreign exchange (forex), derivatives, CFD and digital asset markets.
The Financial Commission provides efficient compliance solutions to its members, alongside its External Dispute Resolution (EDR) mechanism that serves as an effective channel for processing complaints from clients of member firms.
For more information please contact us at [email protected].