The Financial Commission (FinaCom PLC LTD) received 550 complaints in the second quarter of 2023, and the amount it recovered for broker member customers more than tripled from a quarter earlier.
According to its latest Complaints Digest, the self-regulatory body made progress across some of its key business drivers. The report shows an increase in various metrics, including the amount sought and awarded to traders, trade-related complaints, and average complaint values.
Specifically, the number of new complaints dropped three percent from the first quarter as a record $13.2 million sought by traders in the April-June period, which is up 350 percent on a quarterly basis.
Likewise, the number of resolved complaints fell 7 percent in the quarter. The quarterly enforcement report further reveals that the majority of complaints the commission received in Q2 were related to financial issues with 51 percent of the total, while trading related disputes accounted for 21 percent.
Other highlights show the amount of total compensation awarded to its brokers’ clients in Q2 increased 170 percent QoQ to $212,983. Further, the value of the average dispute shot higher by 40x to $252,104 due to a rise in high net worth (HNW) value complaints.
FinaCom PLC LTD said the dispute resolution time slowed in the three months through June 2023, which reflects the complexity of submitted cases. In particular, the average timeframe of resolving the complaint was longer by nearly 43 percent to 8 days, influenced by several high-value complaints resolved during the quarter.
Elsewhere, the commission remained steadfast in improving its core business in 2023 with the addition of new approved brokers to its membership roster. The Dispute Resolution Committee (DRC) also managed to reduce the number of carried-over complaint investigations into the second quarter, but average resolution times were affected by the complexity and duration of trading-related investigations.
As part of its mission to protect traders from scams and fraudulent activities online, the Financial Commission placed over 45 websites on its Warning List and issued public warnings about clone websites and fake representatives.
These metrics reflect the changing landscape of retail trading in the second quarter of 2023, influenced by factors such as market volatility, interest rate hikes, and global inflation. While the number of complaints filed and resolved experienced a slowdown, the amounts sought and awarded, as well as average complaint values, saw notable increases. This indicates the growing need for unbiased, independent, and thorough investigation of disputes submitted by retail traders , the statement concludes.
