July 14th 2022, The Financial Commission today announces increases in amounts awarded to traders in resolved disputes, as well as improved dispute resolution times as part of its quarterly Complaints Digest. The organization also experienced a rise in amounts sought from non-member brokers, while the number of complaints not yet resolved fell sharply, indicating swift operations of the external dispute resolution (EDR) service.
Key highlights for 2Q vs. 1Q 2022:
- New filed complaints down 17% to 774
- Resolved complaints fell 11% to 781
- Compensation sought from members totalled $1,141,299
- Compensation awarded increased 47% to $58,531
- Average resolution time improved to 5.2 days
Quarter Over Quarter Comparison
- Slowdown in newly filed complaints for 2Q 2022 due to seasonality
- Decrease in the amount of compensation sought by 32% QoQ to $2,284,666
- Rise in the total amount awarded to traders by 47% to $58,531
- Complaints valued between $500-$1K increased by 17%
- Complaints resolved in 5.2 days on average, 17% faster QoQ
Seasonal changes in trading behavior among investors impacted several key metrics of the Financial Commission in the second quarter of 2022. A decrease in newly filed complaints and increases in resolved complaints suggest traders may be taking advantage of the warmer summer months in light of the negative impact to such asset classes as digital currencies. Nonetheless, the Dispute Resolution Committee continues to receive and process a significant amount of complaints as compared to previous periods in 2021 and earlier. In 2Q 2022 the DRC was able to award a larger amount of compensation to traders than in the previous quarter while experiencing a jump in the amounts sought by traders from non-member brokers during this time. At the same time, the total amounts sought from broker members decreased, including a lower value of such complaints for the quarter. There was little change in the complaints topics for the period, with financial and non-trading complaints accounting for 24% and 64% of all new complaints for the period. Complaints listed in the value category $500-$1K jumped 17%, highlighting the continued importance of the organization to investigate complaints with varying monetary values. During the quarter, the DRC was able to resolve complaints more efficiently than in the previous period with less complaint investigations and decisions carrying over into 3Q 2022, while improving already exceptional average resolution times, which still continue to outpace alternative EDR services.
About Financial Commission
The Financial Commission has conducted dispute resolution services specifically for FX and CFD traders and broker member firms since 2013 as an independent, non-governmental self-regulatory organization and external dispute resolution (EDR) forum. For more information, click here or email us at [email protected].