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Home > Publications > Consultation


Proposals to Enhance the Financial Dispute Resolution Scheme


I. Consultation Paper


The full version of Consultation Paper and the List of Questions for Consultation are available in the right column for your downloading and perusal.

Executive Summary

  1. After several years of operation since June 2012, the FDRC proposes to further enhance its services to better serve the community by improving the terms of the FDRS.
  2. All proposals in this paper are arrived at after due consideration of: (a) the experience of the FDRC accumulated over the past years of operation; (b) comments from various stakeholders of the FDRS; and (c) reference to the prevailing practices at other overseas jurisdictions.
  3. The FDRC proposes to enhance the service features of the FDRS on the following aspects:
    1. To raise the maximum claimable amount from HK$500,000 to HK$3,000,000;
    2. To extend the limitation period for lodging Claims from 12 months to 36 months from the date of purchase of financial instrument or the date of first knowledge of loss, whichever is the later;
    3. To enlarge the scope of EC by incorporating SEs1 which have/had a customer relationship with an FI; and
    4. To accept applications of Claims which are under current court proceedings.
  4. In addition to the above amendments to the existing terms of the FDRS2, the FDRC proposes to deal with the following particular circumstances subject to a prior mutual agreement of the parties involved:
    1. A financial dispute with a claimable amount in excess of the amended maximum claimable amount;
    2. A financial dispute exceeding the amended limitation period for lodging Claims;
    3. When there is a financial dispute between an EC and an FI, the FI may refer the financial dispute to the FDRC, subject to the consent of the EC; and
    4. When there is a Claim by an EC against an FI, the FI with a counter-claim may lodge the counterclaim to the FDRC, subject to the consent of the EC.
  5. It is considered that for cases that are beyond the Intake Criteria and subject to mutual agreement, if the FDRC’s rules and procedures are more flexible, there would be more room for both parties to make use of the FDRC for dispute resolution. It is thus proposed to offer two more options in (b) and (c) below, in addition to the standard FDRS rules and procedures, as follows:
    1. Standard FDRS rules and procedures (Mediation First, Arbitration Next);
    2. Modified FDRS rules and procedures (Mediation only); and
    3. Modified FDRS rules and procedures (Arbitration only).
  6. With the proposed amendments to the FDRS, there would be a need to revise the FDRC’s fee schedule accordingly. Of particular relevance to the fees would be the claimable amounts. A revised fee scale is proposed with reference to the local market conditions and comparison with the mediation cost figures published by the Judiciary.
  7. According to Section B(10) of the Intake Criteria, the FDRC shall reject an application if the subject matter of the Claim has previously been considered or excluded by the FDRC. In light of the proposed amendments above, it is proposed that all previous rejected applications could re-apply for consideration by the FDRC, if they now fall within the amended Intake Criteria.



1SE means a limited company or a partnership having an annual turnover / revenue of not more than HK$50 million or its equivalent. If it is a subsidiary of a group or holds a subsidiary, the group’s consolidated annual turnover / revenue should not exceed HK$50 million.

2ToR is available at http://www.fdrc.org.hk/en/html/aboutus/aboutus_tor.php .

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II. Illustrative Diagrams


The proposed amendments to the FDRC Terms of Reference in the Consultation Paper are summarized in the illustrative diagrams which are available in the right column for your downloading and perusal.

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III. Written Submission Received


Industry Associations – Banking

30 Dec 2016 DTC Association, The (“DTCA”)

9 Dec 2016 Hong Kong Association of Banks (“HKAB”)

Industry Associations – Securities

30 Dec 2016 Chinese Securities Association of Hong Kong (“CSHK”)
30 Dec 2016 Hong Kong Securities Association Limited (“HKSA”)
20 Nov 2016 Hong Kong Securities & Futures Employees Union (“HKSFEU”)
30 Dec 2016 Hong Kong Securities Professionals Association (“HKSPA”)
31 Dec 2016 Institute of Securities Dealers (“ISD”)

Chambers of Commerce

29 Dec 2016 The Chinese General Chamber of Commerce (“CGCC”)
29 Dec 2016 Federation of Hong Kong Industries (“FHKI”)

29 Dec 2016 Hong Kong General Chamber of Commerce (“HKGCC”)
30 Dec 2016 Hong Kong General Chamber of Small and Medium Business (“HKGCSME”)

Consumer Protection / Education

23 Dec 2016 Consumer Council (“CC”)

22 Dec 2016 Investor Education Centre (“IEC”)


18 Jan 2017 Department of Justice – Joint Dispute Resolution Strategy Office (“DoJ”)

Professional Bodies - Financial Services

30 Nov 2016 Hong Kong Society of Financial Analysts (“HKSFA”)
30 Dec 2016 Institute of Financial Planners of Hong Kong (“IFPHK”)

Professional Bodies - Legal, Mediation and Arbitration

10 Jan 2017 Hong Kong Bar Association (“Bar Association”)

3 Jan 2017 Hong Kong Mediation Centre (“HKMC”)

11 Jan 2017 International Chamber of Commerce – HK Arbitration &ADR Committee (“ICC”)
30 Dec 2016 Joint Mediation Helpline Office (”JMHO”)

29 Dec 2016 The Law Society of Hong Kong (“Law Society”)


9 Dec 2016 Mr Nicholas CHENG

29 Dec 2016 Dr Billy MAK

23 Dec 2016 Mr YEUNG Man-sing

19 Dec 2016 Anonymous Individual 1

20 Dec 2016 Anonymous Individual 2

Other Organisations

6 Jan 2017 Clifford Chance

22 Dec 2016 Conflict Change Consulting Limited

22 Dec 2016 Interactive Brokers Hong Kong Limited

30 Dec 2016 Serica Partners Asia Ltd

11 Nov 2016 Anonymous Organisation 1

23 Dec 2016 Anonymous Organisation 2

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IV. Consultation Conclusions


The full version of Consultation Conclusion are available in the right column for your downloading and perusal.

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