Complaints Handling and Redress Mechanisms

The HKMA requires banks to put in place appropriate and effective mechanisms and procedures to handle customer complaints fairly, consistently and promptly.  The key elements of effective complaint handling by banks are set out in a guidance note on Complaint Handling Procedures.  Failure to have in place effective arrangements to handle customer complaints may call into question whether a bank continues to satisfy the authorization criteria in the Seventh Schedule of the Banking Ordinance.

The Enforcement divisions in the HKMA are responsible for handling customer complaints about banking products or services and, through the process, may identify issues of supervisory or disciplinary concern that require appropriate follow-up actions.  Useful insights identified from complaint cases including the latest complaint trends, emerging topical issues and good practices are shared with banks through the periodic newsletter “Complaints Watch” to help promote proper standards of conduct and prudent business practices among banks.

The HKMA and the Securities and Futures Commission have worked closely with the Government to establish the Financial Dispute Resolution Centre which provides financial consumers with an independent and affordable avenue for mediation and arbitration to resolve monetary disputes with financial institutions.