In the field of financial disputes, traditionally banks have preferred litigation to arbitration, as in most cases the claims were simply related to money. However, in recent years arbitration has gained momentum as a way to settle—among others—financial disputes. The reasons for such change are related to the globalisation of the capital markets industry; the relatively high costs of court litigation; and the fact that arbitration may prove a relatively flexible tool to meet the necessity of financial markets participants. Mediation of financial disputes, on the other hand, seems to still be unknown territory and has received little attention in scholarly literature. It is hence necessary to provide some insights on this and try to fill the gap. As regards the domain of financial disputes, in 2012 a new institution was launched with the aim of taking a pivotal role: PRIME Finance. This institution has released arbitration and mediation rules particularly suitable for settling financial disputes through arbitration and mediation. The latter will be the subject of attention. The article will discuss the reasons behind the turning point from litigating to arbitrating financial disputes, and will then address mediation. The importance of various techniques to enforce mediated settlement agreements, along with the role of the EC Directive 2008/52 on mediation and the UNCITRAL Model Law on conciliation, will be underlined; attention will be given to the PRIME Finance rules on mediation. Finally, the article will try to answer the question whether mediation of financial disputes should be seen as complementary to arbitration and litigation or whether it should be a standalone instrument.
|Number of pages||9|
|Journal||Journal of International Banking Law and Regulation|
|Publication status||Published - 2015|
- Dispute resolution; Financial services; Mediation