FDR – Financial Dispute Resolution Presented by: Stuart Ayres and Derek Pullen Stuart Ayres, Scheme Manager Derek Pullen, Scheme Adjudicator

FDR - Financial Dispute Resolution Don’t go there! Avoid disputes Not complaints

The Process Register L1 Facilitate L2 Conciliate L3 Adjudicate No result? Decision Customer Scheme Member F D R Receive Investigate Resolve Deadlock? Acknowledge Complaint Deadlock Disputes Tribunal? Courts? Complaint enquiry direct to FDR?

FDR – Registration Registration Receive Complaint Consider Complaint Accepted? Outside of Jurisdiction yes Complainant contacts F D R Ascertain reason, deadlock Acknowledge 2 working days <6 mths. for written complaint FDR contacts Scheme Member Veracity, issues, status, concerns Written/ response from SM Within jurisdiction? Expertise required? no

FDR – Level 1 L1 Early Settlement Facilitate Early Settlement Agreement? Written complaint to Scheme Member Response required in 10 w/days Parties consider information and asked to consider settlement offer FDR can accept dispute direct from SM Conciliation? Accelerate to L3? Accelerate to L 3-Adjudication? Conciliation yes no Issue formal settlement agreement

FDR – Level 2 Conduct Conciliation Both parties need to agree Further investigations/information Independent investigations, experts Information shared Settlement must proceed unless unanimous agreement otherwise Issue formal settlement agreement Make recommendation No agreement = Conciliator issues recommended settlement Expert opinion may be called upon Any new information shared Opportunity to settle remains open Parties given 5 w/days to consider L 2 Conciliation Agreement? Issue formal settlement agreement Agreement? no yes no 10 days

FDR – Level 3 Propose final decision Agreement not reached (both parties) Parties can provide more information, further clarification and or expert opinion may be sought Scheme Adjudicator proposes final decision Issue formal settlement agreement Issue final decision Scheme Adjudicator issues final decision Complainant must accept or decline Binding on SM if complainant accepts If complainant declines then process ends Formal settlement agreement issued Outline of the settlement reached Binding and enforceable Complaint ends L 3 Adjudication yes no Agreement? yes no 15 days 1 day 15 days