The FinancialSeptember 7th, 2020, The Financial Commission announces its operating metrics for the month of August 2020 as part of its monthly Complaints Digest. The organization recorded an anticipated decrease in new filed complaints due to the traditional summer slowdown while experiencing growth in several key metrics and achieving record performance by posting the fastest overall dispute resolution times in the organization’s Dispute Resolution Committee (DRC).
Key monthly highlights for August 2020:
- New complaints down 20% to 109 new complaints filed
- Total compensation sought by traders up 64% MoM to $766,976
- Total amount awarded to traders up 23% MoM to $27,249
- Average complaints value rose 112% to $7,036
- Average resolution time improved 10% to a new record of 4.6 days
Month Over Month Comparison
Key Takeaways
- The Commission saw a slowdown in newly filed complaints for August 2020 to 109, which represents a 20% decrease from July
- The amount of compensation sought by traders totaled $766,976, which is a significant increase of 63% from the previous month
- Traders of non-member brokers sought 90% more compensation for a total of $408,944, as compared to July 2020
- The average value of complaints filed in August more than doubled to $7,036 from $3,314 in July
- Complaints in August were resolved in a record 4.6 days on average, a 10% improvement from the previous month and a new historic record for the Dispute Resolution Committee (DRC)
Conclusions
Following extreme market volatility and trader activity in the spring and early summer months that led to increased demand for dispute resolution services, the Financial Commission continued to experience a slowdown in new inbound trader complaints as short-term participants exited the markets and went about their summer holidays. Notably, during the same period several key metrics, including average complaints value, amounts sought by traders and complaints categories suggest that cases reviewed by the DRC in August were more complex in substance and valuable than previous months in a shift of “quantity vs. quality”. The financial-related complaints category continued to dominate, indicating that traders are dealing increasingly with issues related to funds withdrawal, rather than trading, as witnessed in previous months. With the decrease in new filed complaints, the DRC was able to achieve its most remarkable average resolution times, coming in at just 4.6 days in August.
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].