The Hong Kong International Arbitration Centre has been appointed to provide mediation and arbitration services to help investors in Lehman-Brothers-related products resolve compensation issues with banks.

The Monetary Authority today said it will co-ordinate referrals and pay the share of the fee for these services on behalf of two types of investors.

They include investors whose complaints have already been referred by the authority to the Securities & Futures Commission, and investors whose complaint has resulted in a finding against a relevant individual or executive officer by either the authority or the commission.

Mediation process

Activation of the mediation process requires agreement from both the complainant and the bank in question, the authority said.

Complainants who have been notified of the referral of their cases to the commission, or of a finding against an individual or executive officer, and who intend to pursue claims of compensation with the bank will be given information on the mediation service and on the procedure for activating it.

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 cost of each case mediated and arbitrated will be shared equally by the bank involved and the authority, paying on behalf of the complainant.