March 9th 2021, The Financial Commission announces increased amounts sought and awarded to traders, as well as average complaints values for February 2021 as part of its monthly Complaints Digest. The organization recorded a decrease in new complaints filed, but maintained a steady rate of resolved complaints, percentage awarded and several other key metrics while achieving an average dispute resolution time of just 8.3 days.
Key monthly highlights for February 2021:
- New complaints down 41% to 101 total complaints filed
- Compensation sought by traders rose 50% to $1,554,267 MoM
- Compensation awarded increased 66% to $23,540 MoM
- Average complaints value up 152% to $15,388
- Average resolution time increased by 46% to 8.3 days
Month Over Month Comparison
- The Commission experienced a noticeable slowdown in newly filed complaints for February 2021 to 101, which represents a 41% dip from January 2021
- The amount of compensation sought by traders grew significantly again in February at $1,554,267 which is a rise of 50% from the previous month
- The total amount awarded to traders grew by 66% to $23,540
- The average value of complaints filed in February was 152% higher than January at $15,388
- Complaints in February were resolved in 8.3 days on average, which is a slowdown of 46% from the previous 5.7 days in January
The recent trading frenzy in equities has supported the demand for external dispute resolution services (EDR), as highlighted by the growth of several key metrics of the Financial Commission in recent months, with a noticeable slowdown in February as a result of markets returning to range-bound trading in some areas. Nonetheless, compensation amounts sought by traders, as well as average complaints values and the awards to traders in February 2021 by the Dispute Resolution Committee (DRC) highlight a persistent demand for EDR services. Financial-related complaints were beaten out by non-trading complaints in February, suggesting investors are having more issues with such things as bonus policies, account blocking and customer service-related issues. During the month, the DRC was able to maintain a steady rate of total resolved complaints, down just 8% from January 2021 and in doing so resolved complaints at a speed of 8.3 days, albeit increasing this metric 46% MoM, but still keeping it well below other comparable dispute resolution services available to 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].