|
HKMA announces mediation and arbitration services
The Hong Kong Monetary Authority (HKMA) today (Friday) announced that it has made available mediation and arbitration services for helping resolve questions of compensation between investors in Lehman-Brothers-related products and distributing banks. The service is provided by the Hong Kong International Arbitration Centre (HKIAC). The HKMA will co-ordinate referrals and pay the share of the fee for these services on behalf of
A spokesperson for the HKMA said that activation of the mediation process required agreement from both the complainant and the bank in question. "Complainants who have been notified of the referral of their cases to the SFC, or of a finding against a relevant individual or executive officer, and who intend to pursue claims of compensation with the relevant bank will be given information on the mediation service and on the procedure for activating it," the spokesperson said. "Mediation is a form of voluntary dispute resolution which involves appointing a neutral mediator, who will bring the two parties together with the aim of settling claims in a speedy, confidential and amicable way, or of narrowing the issues in dispute," the spokesperson said. "The mediator has no powers of adjudication, but has training and experience in helping parties reach a negotiated settlement," the spokesperson added. If, after mediation, the case remains unresolved, the two parties may agree to appoint an arbitrator with powers to decide the case on the basis of documentary evidence submitted by both parties. The spokesperson stressed that, as with mediation, the initiation of arbitration required the agreement of both parties. The HKMA spokesperson said that the HKIAC had been appointed to provide the service because of its experience and its reputation for independence and effectiveness. Under the arrangement made with the HKIAC, the cost of each case mediated and/or arbitrated following a referral for investigation by the HKMA to the SFC or a finding against a relevant individual or executive officer by either the HKMA or the SFC would be shared equally by the bank involved and the HKMA, paying on behalf of the complainant. "In cases that have not been referred by the HKMA for investigation by the SFC, or have not resulted in a finding against a relevant individual or executive officer by either the HKMA or the SFC, banks and customers who have agreed to settle cases by mediation may approach the HKIAC direct for mediation and arbitration services," the spokesperson said. The spokesperson said that the HKMA would shortly be writing to complainants whose complaints had already been referred to the SFC to inform them of the availability of the mediation service, and of the procedures. A note on the mediation and arbitration processes is attached. Further information may also be found at the websites of the HKMA (www.hkma.gov.hk) and the HKIAC (www.hkiac.org). General enquiries about the Scheme may be made through a public enquiries line (tel: 8100 6448), which will open on Monday, 3 November, or the Scheme email (mediation@hkma.gov.hk).
Annex 1:
Explanatory note on the Scheme
For further enquiries, please
contact:
Hong Kong
Monetary Authority
 |