The FinancialThe Financial Commission, a leading independent, non-governmental self-regulatory organization and external dispute resolution (EDR) forum announces its latest operational metrics for the second quarter of 2024. While the organization did experience a drop in new complaints filed for the quarter, it experienced increases in several key operational metrics, including total amounts sought from traders, amounts awarded to traders, average complaint values, and quicker dispute resolution times, with complaints being resolved on average in just 4.8 days as part of its quarterly Complaints Digest.
As part of its founding core principles to protect traders from possible scams, Ponzi schemes, and fraudulent activities online, The Financial Commission placed over 20 new websites on its Warning List.
Furthermore, the forum added 3 new broker members during the quarter and bolstered its Dispute Resolution Committee (DRC) with a new expert.
Key highlights for 2Q 2024 vs. 1Q 2024:
- New filed complaints dropped 18%
- Total resolved complaints dropped 5%%
- Non-member complaints increased 9%
- Average complaint values up 53% to $12,769
- Compensation sought from all brokers rose 25% to $4.584M
- Compensation awarded to traders totaled $161,360
- Average resolution times improved by 13% to 4.8 days
Quarterly Comparison
Key Takeaways
- Lower inbound complaints due to summer slowdown and rangebound markets
- Significant rise in total amounts sought from all brokers and non-members
- Significant growth of average complaint values
- Complaints resolution times improved
Conclusions
The Financial Commission witnessed a slowdown in new complaints from traders amid a continued summer slowdown and range-board price action on financial markets. Specifically, the organization experienced an 18% drop in new complaints filed, while the total number of complaints resolved in the quarter fell by 5%. At the same time, total complaints amounts sought and awarded and average complaint values all increased by 25%, 1%, and 54% respectively. In complaint categories, financial-related complaints made up the lion’s share of all complaints for 2Q 2024. Complaints valued at $100-$499 also jumped 79% during this period. A noticeable uptick was also witnessed for non-member complaints, which rose 9% Q/Q.
During the period, the Dispute Resolution Committee (DRC) managed to shorten the average dispute resolution time by 15% for efficient complaints handling in just over 4.8 business days.
About Financial Commission
The Financial Commission is an independent external dispute resolution (EDR) organization for consumers/traders who are unable to resolve disputes directly with their financial services providers who are members of the Financial Commission. The Financial Commission initially set out to provide a new approach for traders and brokers alike to resolve any issues that arise in the course of trading electronic markets such as Foreign Exchange, and then expanded into CFDs and related derivatives, in addition to certifying technology platforms used for trading.
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