Hong Kong Proposes Financial Dispute Resolution Center for Individual Investors

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HONG KONG, Feb. 10 – The Financial Services and The Treasury Bureau has submitted a public consultation paper suggesting plans for a Financial Dispute Resolution Center and Investor Education Council in the territory.

The Financial Dispute Resolution Center will provide a one-stop service venue for resolving monetary disputes between an individual consumer and a financial institution through mediation and if need be arbitration. On the other hand, the Investor Education Council will aim to improve financial literacy by educating the public on the best market products suitable to their needs.

The education drive will involve using regular mass-media campaigns, outreach programs and a self-service website. As for the dispute center, financial institutions licensed by the Hong Kong Monetary Authority and the Securities & Futures Commission will be required to join the center as members.

So far, the proposal suggests the dispute center only handle cases with a maximum claimable amount of US$500,000; the figure covers more than 80 percent of monetary disputes submitted to the Hong Kong Monetary Authority.

A copy of the public consultation papers can be downloaded here. The public is invited to submit their opinions on the document until May 8.  For suggestions on the Investor Education Counci email iec_consultation@fstb.gov.hk and for views on the Financial Dispute Resolution Center email fdrc_consultation@fstb.gov.hk.

For professional advice on doing business in Hong Kong email hongkong@dezshira.com.

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