April 20th 2022, The Financial Commission today announces increases in new filed and resolved complaints, as well as amounts sought from broker members as part of its quarterly Complaints Digest. The organization also experienced a slight uptick ini already swift average dispute resolution times, with a 6.3 days average for the quarter.
Key highlights for 1Q 2022:
- Newly filed complaints increased 10% to 938
- Resolved complaints rose 3% to 875 QoQ
- Compensation sought from broker members rose 57% to $2,433,523
- Compensation awarded to traders decreased to $39.918
- Financial related complaints jumped 40% to 209
- The average resolution time slowed to 6.3 days
Quarter Over Quarter Comparison
- A healthy uptick in newly filed complaints for 1Q 2022 with 938
- Decrease in the amount of compensation sought by 25% QoQ to $3,352,298
- Decrease in the total amount awarded to traders by 50% to $39,918
- Significant rise in complaints valued at $10K or more rose significantly at 70%
- Complaints resolved in 6.3 days on average, evidencing a 5% quarterly slowdown
Demand for retail trading continued to impact several key metrics of the Financial Commission in the first quarter of 2022. An increase in newly filed complaints and increases in resolved complaints suggest traders are continuing to try and take advantage of market opportunities with the Dispute Resolution Committee (DRC) continuing to process a significant amount of complaints in the first quarter of the year. The DRC was able to award a smaller amount of compensation to traders than in the previous quarter while experiencing a jump in the amounts sought by traders from broker members during this time. Financial-related complaints increased by 40%, which indicates a significant rise in disputes related to funds withdrawal. At the same time, complaints listed in the most valuable category ($10K+) jumped 70% in 1Q 2022, highlighting the continued importance of the organization to investigate complaints with a significant monetary value. During the quarter, the DRC was able to resolve 3% more complaints than in the previous period with fewer complaint investigations and decisions carried over into 2Q 2022, while maintaining exceptional average resolution times, which still continue to outpace alternative EDR services.
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].