Financial Services (Dispute Resolution)

The financial services sector facilitates the free flow of capital and liquidity, impacting essentially every individual and company daily. The financial services industry provides a broad array of services including banking, investment, wealth management, insurance, and fintech (online banking, mobile payments, lending, investment platforms). Over the past decade or so, there has been a dramatic increase in rules and regulations applicable to financial services companies and their management arising in part from an ever-shifting political climate and technological developments, with an increasing number of financial institutions including ADR provisions in their contracts.

Financial services companies spend tens of billions of dollars annually on litigation. Claims against financial services companies may be brought by customers, shareholders, regulators, or other financial services companies. Such claims may be straightforward, asserted by a single party alleging breach of contract or violation of a rule or statute (such as a consumer protection rule or law) to complex class and mass actions alleging fraud or some type of “lender liability”, including allegations of fueling the fraud or breach of the duty of good faith and fair dealing. Actions commenced by financial services companies range from basic collection actions against borrowers to complex commercial litigation including claims between financial services companies that may involve challenges to waterfall provisions, lender agent obligations, loan administration, electronic transactions, or lien priority. Regulators, prosecutors and shareholders also commence investigations and actions against financial services companies, alleging violations of rules, regulations or duties. It has been increasingly more common for financial services companies and their senior management to be held accountable by regulators, prosecutors, shareholders, and juries.

The financial services committee will bring together neutrals, inhouse and outside counsel and other stakeholders who serve the financial services industry to discuss regulatory changes, risk trends, and “best practices” in the industry, including the use of ADR to resolve claims and disputes. Potential topics for discussion may include the products offered by financial services companies to their customers and the potential disputes such services may generate (fraud, data and identity protection, use of AI, mobile banking, blockchain/crypto platforms), the use of third-party litigation funding, the shortage of women in senior-level finance positions and its impact on ADR, and investments in intangible or moveable assets (securitizing and protecting such investments).

Join our Financial Services Committee or attend our meetings, presentations, and networking events as a guest to discuss interesting FinServ questions, concerns and solutions.

Committee Co-Chairs

Deborah A. Reperowitz – deborah@justitiaadr.com

Mansi Karol – MansiKarol@adr.org