An Arbitrator writes about . . .
FOR IMMEDIATE RELEASE
HKIAC Successfully Mediates First
Lehman Brothers-Related Investment Products Case
Hong Kong．22 December 2008 – The Hong Kong International Arbitration Centre
(“HKIAC”) announced today that the first mediation of a dispute involving a Lehman
Brothers-related investment product was successfully concluded. The mediation took
place on 10 December 2008 and lasted for five hours. The mediation ended with the
signing of a settlement agreement between the investor and the bank.
Dr. Michael MOSER, Chairman of the HKIAC, said: “We are very pleased to see that the
HKIAC’s new ‘med-arb’ scheme, introduced just over a month ago, is already up and
running and producing results. This is a good start which, hopefully, will persuade others
of the benefits of the scheme.”
On 31 October 2008, the HKIAC launched a special dispute settlement scheme to deal
with Lehman Brothers-related investment products. The scheme provides for voluntary
mediation and arbitration proceedings by experts recommended or appointed by the
HKIAC. It was designed with the support of the Hong Kong Monetary Authority (“HKMA”)
to provide an economical and efficient means for resolving disputes between investors
and banks that sold investment products backed by the failed US investment house.
As of 17 December 2008, a total of 63 cases have come to the HKIAC for settlement
under the scheme based on referrals made by the HKMA to the Securities and Futures
Commission (“SFC”). A number of the cases were subsequently settled by direct
negotiation between the parties prior to the commencement of mediation proceedings.
Apart from cases referred by the HKMA and the SFC following complaints by investors,
the HKIAC itself receives cases directly.
“We are glad to have the first dispute settled by means of mediation successfully and
efficiently. Investors and banks welcome the introduction of the mediation and
arbitration services for settling finance-related disputes. We also see their sincerity to
settle the disputes as soon as it can.” said Mr. Gary SOO, Secretary-General of the Hong
Hong Kong International Arbitration Centre
Address: 38/F Two Exchange Square, 8 Connaught Place, Central, Hong Kong
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Kong International Arbitration Centre.
HKIAC expects more cases will be coming through mediation. “Investors and banks
show their eagerness to source a suitable, efficient and effective dispute resolution
method for the disputes.” Mr. SOO continued. “We are well prepared to receive more
cases in relation to the Lehman-Brothers-related investment products disputes and we
have more than 100 mediators on the list ready for this.”
Mr. CHAN Bing Woon, Chairman of Hong Kong Mediation Council said: “We receive
many enquiries in relation to mediation everyday. We highly recommend investors to
learn more about mediation, especially understanding of mediation as well as preparation
required prior to mediation meeting, before deciding the best channel for their disputes.
About Hong Kong International Arbitration Centre
Hong Kong International Arbitration Centre (HKIAC) was established by a group of the
leading business and professional people in Hong Kong to be the focus for Asia of dispute
resolution in 1985. It has been generously funded by the business community and by
the Hong Kong Government but it is totally independent of both and it is financially self
sufficient.
HKIAC aims to assist disputing parties to solve their disputes by arbitration and by other
means of dispute resolution. It places great emphasis in providing online dispute
resolution services in a wide variety of areas including intellectual property and
information technology.
To learn more about HKIAC, please visit <www.hkiac.org>.
Media Contact
Hong Kong International Arbitration Centre
Ms. Esther LAI
Tel: (852) 2525 2381
Fax: (852) 2524 2171
Email: