How FDRC Works

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How FDRC works

FDRC is an autonomous dispute resolution scheme designed to facilitate the resolution of disputes between consumers and financial service providers. Notably, this scheme is entirely cost-free for consumers seeking its services.

The FDRC features an esteemed Advisory Council, whose composition is the result of appointments made by both members and consumers. Comprising five members in total, this council consists of an impartial chair, two industry representatives, and two consumer representatives, each serving two-year terms.

In adherence to FDRC’s dedication to international dispute resolution best practices, an independent panel is in place to provide expert opinions when deemed necessary by the Scheme Adjudicator. The panel members are meticulously chosen for their specialized expertise within their respective domains. To uphold integrity and prevent conflicts of interest, panel members are barred from practicing in cases where they may have a potential conflict, and they are expected to promptly declare any such conflicts.

Furthermore, FDRC boasts an in-house team of experts who specialize in conflict management, thereby augmenting the scheme’s capabilities in handling disputes effectively.

FDRC offers a comprehensive three-level complaint process meticulously designed to expedite the resolution of disputes while ensuring a thorough examination of all relevant issues.

Disputes within the purview of this scheme encompass services and guidance rendered by a Scheme Member, specifically pertaining to the quality of service and advice received. Notwithstanding, it’s important to note that the scheme does not extend its jurisdiction to adjudicating general policies, practices, or fee-related matters of the Scheme Member. For a comprehensive understanding of the covered domains, kindly refer to the “What’s Covered” page, where additional information is provided.

The initial phases of the dispute resolution process typically succeed in amicably resolving numerous disputes. However, should certain disputes remain unmitigated, they are systematically escalated through the scheme’s three-tiered structure. In cases where a mutual agreement between the involved parties remains elusive, FDRC assumes the responsibility of issuing a formal decision. This decision attains a binding status upon the Scheme Member, provided the consumer in question concurs with its terms. Should a consumer find the outcome unsatisfactory even after the formal decision, they retain the option to pursue their dispute through alternative channels, such as the legal system or the Disputes Tribunal.

FDRC provides a three-level complaint process, which aims to resolve disputes efficiently and thoroughly.cil, which is appointed by the members and consumers, to monitor and advise the scheme. The Advisory Council is made up of five members: an independent chair, two industry representatives and two consumer representatives. Members of the Advisory Council are appointed for two years.

As part of FDRC’ commitment to international best practice for dispute resolution, it has an independent panel to call on when an expert opinion is required by the Scheme Adjudicator. Each of the panel members is carefully selected for their expertise in their respective field. To avoid any conflict of interest they must not be practicing, or otherwise declare any potential conflict – in which case they will stand aside on cases where a conflict may arise.

FDRC also has in-house experts specialising in conflict management.

FDRC provides a three-level complaint process, which aims to resolve disputes efficiently and thoroughly.

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Disputes can cover the services and advice that has been received from a Scheme Member, but not the Scheme Member’s general policies and practices or fees. For more information, visit What’s covered page.

Many disputes can be resolved in the initial stages of the dispute process, but those that can’t be resolved are escalated up through the three levels. If an agreement between the parties cannot be reached, FDRC issues a formal decision. If a consumer agrees with the formal decision it becomes binding on the Scheme Member. Consumers who are still not happy with the outcome have the option of taking their dispute through other channels such as the Courts or the Disputes Tribunal.

The Dispute Resolution Process

Registration

The dispute resolution process commences with a meticulous registration phase. This preliminary stage involves an assessment of the complaint to ascertain its jurisdiction and whether a deadlock has been reached. It is imperative that the complaint has been previously lodged with the Scheme Member and that the Scheme Member has been afforded an opportunity to address the matter. Furthermore, the complaint must pertain to an event occurring subsequent to the date of the Scheme Member’s enrollment in the scheme. A skilled facilitator is engaged to liaise with the involved parties and validate the existence of a deadlock. If the deadlock is confirmed, comprehensive details of the complaint are solicited to enable FDRC to establish jurisdiction. Once it is determined that the complaint falls within the purview of jurisdiction, it is officially accepted and proceeds into the formal dispute resolution process.

Level 1

The initial level involves the collection and exchange of information from all parties involved in the dispute. This phase often culminates in resolution as it allows each party to gain a comprehensive understanding of the other’s position by sharing all pertinent information. However, if resolution remains elusive at this stage, the dispute advances to Level 2.

Level 2

At Level 2, FDRC’s primary objective is to facilitate the parties in reaching a mutually agreeable resolution independently. A proficient mediator collaborates with the parties to gather additional information and explore potential avenues for resolution. Meetings are conducted through various means, including face-to-face interactions, video conferencing, telephone conferences, or email correspondences. In the event that the parties cannot reach an agreement, FDRC undertakes a comprehensive review of all provided information and subsequently proposes a settlement. Should the parties fail to consent to the suggested settlement, the dispute proceeds to Level 3.

Level 3

The culmination of the process transpires in Level 3, which is conducted primarily through a review of the case “on the papers.” All relevant information and submissions furnished by the parties are transmitted to a qualified adjudicator. The adjudicator proceeds to issue a proposed final decision, extending an invitation for comments from the parties involved. If the proposed decision does not garner consensus among the parties, a final decision is rendered. In the event that the final decision is accepted by the consumer, it carries the binding force of compliance upon the Scheme Member. However, should the consumer remain dissatisfied with the final decision, the complaint is formally concluded, affording the consumer the option to pursue the matter through alternative channels, such as the judicial system or the Disputes Tribunal.