The Financial Commission Report

The Financial Commission, a leading independent, non-governmental self-regulatory organization and external dispute resolution (EDR) forum announces its latest operational metrics for the fourth quarter of 2024. The organization experienced mixed results in key metrics attributed, including a noticeable increase in amounts sought and compensation awarded, average complaint values, and others. The forum continues to provide a quick and efficient service, with complaints being resolved on average in just 5.4 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 24 new websites on its Warning List.

Furthermore, the forum added 2 new broker members during the quarter to bolster its membership ranks.

Key highlights for 4Q 2024 vs. 3Q 2024:

New filed complaints slowed by 9%
Total resolved complaints decreased by 19%
Average complaint values rose 76% to $13,489
Compensation sought from all brokers grew 55% to $4.06M
Compensation sought from non-members doubled to $1.710M
Average resolution times improved by 18% to 5.4 days

Quarterly Comparison

Key Takeaways

Lower inbound complaints with stable core metrics
Significant rise in amounts sought from all brokers, including member firms
Increase in the number of HNW ($10K+) complaints by 12%
Complaints resolution times improved

Conclusions

The Financial Commission witnessed a continued slowdown in new complaints filed by traders in the last quarter of the year. Specifically, the organization experienced a 9% drop in new complaints filed, while the total number of complaints resolved in the quarter fell by 19%. At the same time, the total complaints amounts sought grew significantly (55%), as did the amount sought from member and non-member firms. The Commission awarded $110,481 to traders in the 4th quarter, representing a quarterly rise of 8%. Complaints valued at $100-$499 grew 8% during this period, while HNW complaints valued at above $10K grew 12%. Thus, average complaint values also experienced significant growth in the quarter with a 76% increase to $13,489.

During the period, the Dispute Resolution Committee (DRC) resolved complaints 18% quicker than in the previous quarter, with 5.4 days in average dispute resolution time.

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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