Key Information

inSight
Speeches
Speeches by Speaker
Norman T.L. Chan
Peter Pang
Eddie Yue
Arthur Yuen
Zeti Akhtar Aziz
Raymond Li
Edmond Lau
Esmond Lee
Meena Datwani
Vincent W.S. Lee
James Lau
Joseph Yam
Y K Choi
William Ryback
David Carse
Tony Latter
Andrew Sheng
Hans Genberg
Simon Topping
Michael Taylor
The Honourable Donald Tsang
Chen Yuan
Dai Xianglong
Don Brash
Jaime Caruana
Andrew Crockett
Mario Draghi
David Eldon
Stanley Fischer
Timothy F. Geithner
Stephen Grenville
Kenneth G. Lay
William McDonough
Ernest Patrikis
Glenn Stevens
Jean-Claude Trichet
Tarisa Watanagase
Zeti Akhtar Aziz
Carmen Chu
Alan Au
Press Releases
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Press Releases by Category
Bogus Voice Message Phone Calls
Banking in Hong Kong
Fraudulent Websites, E-mails and Telephone System, and other fraud cases
Granting of Banking Licences
Exchange Fund
Table of Multiples of Notes and Payments for Allotted Amount under non-competitive tender
Table of Multiples of Notes and Payments of Application Amount under non-competitive tender
Tender of Exchange Fund Bills and Notes
Tender Results of Exchange Fund Bills and Notes
Tentative Issuance Schedule for Exchange Fund Bills and Notes
Appointments and Departures
HKMA Pay Review
HKMA Publications
Speeches
The Hong Kong Mortgage Corporation
Hong Kong Note Printing Limited
Hong Kong Institute for Monetary Research
Exchange Fund Investment Limited
Others
Hong Kong Financial Infrastructure
International Relations
Investment Products Related to Lehman Brothers
Monetary Policy
Notes and Coins
Renminbi business
Credit Card Lending Survey
Monetary Statistics
Residential Mortgage Survey
Year 2000
Others
Guidelines and Circulars
Guidelines
Circulars
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
515.5995

Press Releases

HKMA announces mediation and arbitration services
for Lehman-Brothers-related cases

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

  • investors whose complaints in relation to the sale of the products have already been referred by the HKMA to the Securities and Futures Commission (SFC) for it to decide whether to take any further action, or
  • investors whose complaint has resulted in a finding against a relevant individual or executive officer by either the HKMA or the SFC.

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
Annex 2: Frequently asked questions

For further enquiries, please contact:
Hing-fung Wong, Manager (Press), at 2878 1802 or
Thomas Chan, Senior Manager (Press), at 2878 1480

Hong Kong Monetary Authority
31 October 2008

Last revision date: 1 August 2011
ABOUT THE HKMA
The HKMA
Tender Invitations
Careers@HKMA
Legislative Council Issues
Links
The HKMA Information Centre
KEY FUNCTIONS
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
PUBLICATIONS & RESEARCH
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
Research
MARKET DATA & STATISTICS
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
KEY INFORMATION
Press Releases
Speeches
Guidelines & Circulars
Forthcoming Events
inSight
OTHER INFORMATION
Information in Other Languages (Bahasa Indonesia, हिन्दी, नेपाली, ਪੰਜਾਬੀ, Tagalog, ไทย, اردو)
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery