• Journal of Arbitration Studies
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• v.24 no.2
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• pp.53-80
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• 2014

This article focuses on the Active Plan for Alternative Dispute Resolution(ADR) in financial Dispute. The financial consumers of Korea had suffered greatly from the IMF in 1997 and the global financial crisis in 2008, which also increased financial conflicts significantly. In particular, active financial transaction, due to the development of computer and financial techniques causes frequent consumer financial conflicts. It is beneficial to settle them for judicial economy through an alternative conflict arbitration system instead of lawsuit at the court. Many advanced countries settle financial conflicts through various ADR in their numerous financial conflicts. In the settlement of financial conflict, the ADR system, covering mediation and arbitration, is useful and appropriate. Each governmental institution has various conflict settlement organizations, and it is necessary to operate them effectively. In order to settle financial conflicts properly, it is necessary to study law on financial consumer protection, and it is also necessary to understand practical custom and practical knowledge and to systematize them. Further, it is important to manage financial conflict-related data, to accumulate professional experiences, and to prepare a financial conflict settlement system in order to introduce financial education earlier to the whole nation.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.77
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• pp.69-89
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• 2018

The United States of America is one of the most favoring countries in which mandatory pre-arbitration clauses in the form of adhesion contract have been widely recognized and supported by courts and the Federal Arbitration Act. However, after the financial crisis in 2008 and the National Arbitration Forum scandal in 2009, in enacting the Dodd-Frank Wall Street Reform and Consumer Protection Act ('Dodd-Frank Act'), Section 1028(a) of the Act requires the newly created Consumer Financial Protection Bureau (CFPB) to provide Congress with a report on "the use of agreements providing for arbitration of any future dispute between covered persons and consumers". Section 1028(b) also grants the CFPB the authority to "prohibit or impose conditions or limitations on the use of an agreement between a covered person and a consumer for a consumer financial product or service providing for arbitration of any future dispute between the parties, if the Bureau finds that such a prohibition or imposition of conditions or limitations is in the public interest and for the protection of consumers." Pursuant to the Dodd-Frank Act, the CFPB issued a report entitled "2015 Arbitration Study: Report to Congress 2015 (Report)" in March 2015. This paper examines some major legal issues of the Report and makes a few recommendations for Korean financial institutions which entered into the U.S. financial market or has a plan to do so in the near future.

• Journal of Arbitration Studies
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• v.20 no.3
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• pp.121-145
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• 2010

In the past, ADR has not been used as frequently in Japan as it has in other parts of the industrialized world. However, though litigation is still the most utilized vehicle of dispute resolution by Japanese financial institutions, this will be changing. The New Financial ADR system, which was created by a June 2009 amendment to the Financial Instruments and Exchange Act, is meant to deal with every stage of financial-related disputes and, as such, strives to resolve disputes before they become significant and acts to ameliorate any post-ADR issues that may remain, thereby completing the FIEA's purpose to protect investors. Since the foundation of the New Financial ADR system applies to all related industries, new provisions were set out in 16 business related acts, such as the Banking Act, the Insurance Business Act, and FIEA itself. October 2010 will mark the formal introduction of a new system of financial ADR in Japan. New Financial ADR in Japan will be modeled on the Financial Ombudsman Service in the United Kingdom, but will not feature one comprehensive dispute resolution system in which one dispute resolution institution covers all disputes in the financial field. The New Financial ADR system is merely one step towards a foundation of comprehensive financial ADR such as FOS. It must be noted, however, that this all important first step was over seven years in the making, involving a great deal of discussion, debate, and compromise amongst many parts of Japanese government, business, and society. The New Financial ADR system grants participating parties the ability to stop the clock on any statute of limitations which may correspond to any future possible court cases related to the dispute,13 and further grants the ability to suspend related court proceedings while the parties are utilizing the New Financial ADR system. In addition, where financial institutions have not accepted dispute resolution proceedings or have not accepted a special conciliation proposal, the Ministry of Finance may issue an order compelling compliance if it is found that certain actions are necessary to ensure the appropriate operations of a financial institution's business. In Japan, as best practices have not yet been created.