Being the life vein of modern economy, the financial markets are often impacted by escalated conflicts and disputes. Due to various factors including the emergence of complicated financial products, misunderstanding of the needs of customers and miscommunication, disputes between financial institutions and their customers are not uncommon in any financial markets.
In Hong Kong, mediation has become more popular in recent years as an alternative dispute resolution process. The Judiciary encourages litigants to consider mediation and many civil disputes including financial disputes have been successfully resolved through mediation. Various mediation schemes had been administered by non-governmental organisations and they have recorded up to a 89% settlement rate.
Following the inception of Financial Dispute Resolution Centre (FDRC), the use of mediation and arbitration of disputes in the financial and securities sector will become more easily accessible.