The FinancialDecember 15th, 2020, The Financial Commission announces a steady rise in values of submitted complaints, as well as compensation sought from traders for the month of November 2020 as part of its monthly Complaints Digest. The organization recorded a slight decrease in newly filed complaints for the month while experiencing growth in compensation sought, average complaints values, and several other key metrics while achieving an average dispute resolution time of just 6.8 days.
Key monthly highlights for November 2020:
- New complaints down 16% to 122 total complaints filed
- Total compensation sought $621,342; up 1% MoM
- Non-member compensation sought doubled to $313,721
- Average resolution time decreased by 13% to 6.8 days
Month Over Month Comparison
Key Takeaways
- The Commission experienced a slight drop in newly filed complaints in November 2020 to 122, which represents a 16% decrease from October
- The amount of compensation sought by traders was slightly higher in November at $621,342, which is an increase of 1% from October
- The total amount awarded to traders fell to $7,626 from $83,016 in October as a significant amount of complaints remained unresolved at month-end
- The average value of complaints filed in November was 15% higher than October at $5,092
- Complaints in November were resolved in 6.8 days on average, which is a slight improvement of 13% from the previous 7.8 days in October
Conclusions
The US Elections have come and gone with a renewed focus in the financial markets on Covid-19 vaccinations and additional stimulus measures. Traders have returned to global markets in healthy numbers and the increased trader activity in global markets, including equities and Contracts for Difference (DRC) has supported the demand for dispute resolution services, as highlighted by the improvements in several key metrics, including total amounts sought, average complaints values and non-member compensation sought. While financial-related complaints continued to dominate, trading related complaints accounted for 22%, suggesting investors are back to finding trading opportunities following recent market uncertainties. At the same time, the Dispute Resolution Committee (DRC) was able to rule a significantly higher number of complaints in favor of brokers in November, as a large number of complex disputes remained unresolved at the end of the November statistical period.
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].