- Disputes that can be brought before the FDRC
According to the Terms of Reference, the FDRC will only handle a dispute that fulfills all of the following conditions (known as ‘Eligible Disputes’) –
- the financial services provider involved in the dispute must be a member financial institution of the FDRS (known as a ‘financial institution’);
- the dispute must be brought by an individual or a sole proprietor having or who had a customer relationship with a financial institution or who has been provided with a Financial Service (known as an ‘Eligible Claimant’);
- before a dispute is lodged with the FDRC, an Eligible Claimant has filed a written complaint to the relevant financial institution and received a final written reply issued by the financial institution; or it has been more than 60 days from the date he filed the complaint but has not received any final written reply from the relevant financial institution;
- the dispute must be of a monetary nature not exceeding HK$500,000 (including any interest on any amount alleged to be a loss) or the foreign currency equivalent; and
- the dispute must arise out of a contract between the Eligible Claimant and the financial institution that was entered into or arisen in Hong Kong or any act or omission of the financial institution in connection with the provision of a Financial Service to an Eligible Claimant where the financial institution acted as an agent.
- Cases outside the purview of the FDRC
Situations where the FDRC shall admit or reject an Application are set out in the FDRS Guidelines on Intake Criteria of Cases at Annex II of the TOR. Generally –
- all disputes which have not first been raised by an Eligible Claimant with the relevant financial institution so as to give the financial institution an opportunity to resolve it directly, if submitted to the FDRC, shall be rejected.
- the FDRC shall also discontinue handling a dispute if, after the Application is lodged with the FDRC, the Eligible Claimant lodges a complaint against the financial institution with the Insurance Claims Complaints Bureau; and
- the FDRC shall discontinue handling a dispute if the FDRC knows that the dispute has been the subject of court proceedings where there is a decided judgment or the Eligible Claimant commences legal proceedings against the financial institution after the Application is lodged with the FDRC. There is an ongoing obligation on the part of the Eligible Claimant to inform the FDRC whether any such complaint or legal proceedings against the financial institution in respect of the subject matter of the Eligible Dispute has been initiated.