September 14th 2021, The Financial Commission today announces increases in newly filed complaints, resolved complaints, as well as amounts awarded to traders for August 2021 as part of its monthly Complaints Digest. The organization also experienced a slight slowdown in already swift average dispute resolution times, with 7.6 days average for the month.
Key monthly highlights for August 2021:
- New monthly complaints up 9% to 245
- Resolved complaints increased to 241 or 55% MoM
- Compensation sought by traders declined 24% to $741,545
- Compensation awarded to traders jumped 9x to $135,866
- Trading related complaints increased by 21%
- Average resolution time slowed to 7.6 days
Month Over Month Comparison
- The Commission experienced another uptick in newly filed complaints for August with 245 complaints filed
- The amount of compensation sought by traders decreased in August to $741,545 or 24% MoM
- The total amount awarded to traders increased significantly to $135,866
- The average value of complaints filed in August was 36% lower than July at $3,026
- Complaints in August were resolved in 7.6 days on average, evidencing a 17% slowdown month over month
Trades continued to rely on external dispute resolution services (EDR) in the late summer as highlighted by the growth of several key metrics of the Financial Commission for August 2021. Increases in new filed and resolved complaints suggest traders are continuing to try and take advantage of market opportunities with the Dispute Resolution Committee (DRC) continuing to process a large number of complaints. The DRC was able to award a significantly larger amount of compensation to traders in August despite a lower total amount sought in all submitted complaints. At the same time, a little over 22% of all new complaints filed with the DRC in August were valued between $1,000-$10K+, highlighting the continued importance of the organization to investigate complaints with a significant monetary value. During the month, the DRC was able to resolve 55% more complaints than in July with additional operational resources, while the complexity of cases and communication times led to an uptick in 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].