- 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 ‘FI’);
- involves an Eligible Claimant (”EC”);
- is of monetary nature;
- must arise out of a contract between the EC and the FI that was entered into or arose in Hong Kong, or any act or omission of the FI in connection with the provision of a Financial Service to an EC where the FI acted as an agent.
In accordance with Terms of Reference (Jan 2018), the FDRC may handle claims whose date of first knowledge of loss by the claimant falling on or after 1 Jan 2018. The terms in relation to Small Enterprises are effective from 1 Jul 2018.
The claim may be up to HK$1,000,000 and/or within the 24 months limitation period from the date on which the claimant first had knowledge of his/her loss.(”Standard Eligible Disputes”)
Subject to the parties’ consent, the FDRC may handle cases with a claim exceeding HK$1,000,000 and/or beyond the 24 months limitation period. (”Extended Eligible Disputes”)
Terms of Reference (Feb 2014) applies for claims from individuals or sole proprietors, whose first knowledge of loss before 1 Jan 2018. The maximum claimable amount is HK$500,000 and the limitation period is 12 months.
- Cases outside the purview of the FDRC
Situations where the FDRC shall accept 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 EC 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 EC lodges a complaint against the financial institution with the Insurance 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.