The Financial Services and the Treasury Bureau said on Tuesday it wants to establish a financial dispute resolution centre in the wake of complaints about the mis-selling of Lehman Brothers minibonds and other financial products. Treasury Secretary Chan Ka-keung said the new body would resolve disputes between individual consumers and financial institutions.
“At present, outside of the courts, there is no independent mechanism in place to settle a dispute between a consumer and a financial service provider,” explained Chan.
“This will offer an alternative to litigation,” he added.
The government said the centre would be able to handle a maximum claimable amount of HK$500,000. Consumers would be charged HK$500 for using the service, local radio reported.
He said the centre would not have any disciplinary powers against financial institutions.
But Stanley Wong Yuen-fai, an executive director at ICBC (Asia) (SEHK: 0349), was critical of the proposal.
“There are already many channels [for customers to file complaints about financial institutions] under the current system,” he said.
The government is also proposing the creation of an investor education council (IEC) to help enhance the financial literacy of the public. The company would be wholly owned by the Securities and Futures Commission (SFC). No extra levies or charges would be imposed on investors.
Since the global financial crisis hit Hong Kong in late 2008, many small investors have been attempting to recover financial losses incurred from the purchase of minibonds and other financial instruments.
Author:
Regina Leung; SCMP Hong Kong
9th February 2010
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