Understanding dispute resolution mechanism in the investment market (1)

"Dispute is a common factor in every human environment. However, the mechanism for resolution of disputes shows the fairness, responsiveness and responsibility of the system to all stakeholders

From unauthorised trades to non-receipt of dividends, delay in receipt and payment of cheque, wrong lodgement, errors in details, wrong posts to absolute frauds, the capital market grapples with hundreds of disputes every year. For instance, the Nigerian Stock Exchange (NSE) received of 417 complaints against stockbrokers in 2009. It had carried over some 249 unresolved complaints into the year too.

 These all fall within the investor-broker dispute segment. There are other dispute segments including broker-broker, operator-regulator, investor-regulator and regulator-government disputes, which all indicate that the market must have a robust dispute resolution mechanism to address all grievances in a way to uphold the integrity of the marketplace. As a trust-driven system, integrity is the backbone of the capital market and the main driver of investors’ confidence. Beside ensuring that the victim in a dispute is duly compensated for any infraction, the dispute resolution system must eschew rancor, undue negative attention and partisanship just as it must be fast, efficient and accessible.

Dispute resolution is an all-embracing concept and it entails not only the formal legal channels but also informal alternative semi-legal channels."

Select the link to read more from this article. 

Web-link: http://www.thenationonlineng.net/2011/index.php/business/personal-finance/34166-...
Source: The Nation
Language: English
Contact: Taofik Salako