Mediating with banks and financial institutions ( Stefano Pavleti ) . - - PowerPoint PPT Presentation

UIA World Forum of Mediation C entres

Prague, June 2013 MEDIATING WITH BANKS AND FINAN C IAL INSTITUTIONS Stefano Pavletič

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Mediating with banks and financial institutions (Stefano Pavletič)

§. MAIN FEATURES – the disputes

• Wide range of possible claims (derivatives and structured products, mis-

selling claims and contractual disputes, debt recovery and insolvency-related disputes, ecc…)

• Large companies involved
• Legislation and regulation in the banking and finance industry is exceptionally
• complex. Technical matters facing privates and/or consumers
• Uneven balance of power
• Widespread interests and mass-products and services at stake

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Mediating with banks and financial institutions (Stefano Pavletič)

• High value of the disputes
• Reputation-threatening matters
• Disputes which may require a decision on technical ground
• The banking and finance sector has come under the spotlight of consumers

and regulators in recent years and has attracted a great deal of negative publicity that has led to an increase in disputes

• Multi-jurisdictional

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Mediating with banks and financial institutions (Stefano Pavletič)

§. MAIN FEATURES – the parties

• B anks and financial institutions may have internal ADR staff and functions

with organisational capability and capacity for resolving conflicts

• Privates and consumers may be represented by associations or gathered in

class actions

• Technical issues may require an active role played by lawyers and experts.

Stronger importance of the consultants’ role in mediation, not always in line with the parties’ interests

• Usually sensitive nature of financial transactions favours the undisclosed

confidentiality of mediation

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Mediating with banks and financial institutions (Stefano Pavletič)

• C orporate subjects may be focused on keeping alive the relationship while

privates/consumers may have other valid alternatives to take

• The parties may rely on an authority figure
• It could be more difficult for the parties to trust the mediator while being

forced to negotiate (in case of compulsory mediation)

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Mediating with banks and financial institutions (Stefano Pavletič)

§. HINTS FOR MEDIATORS

• Mediators are necessarily required to target their activity at the peculiar

aspects of such disputes - as compared to “ordinary disputes” - and to adjust their own mediation style

• A new set of skills and competences has become essential for acting in the
• industry. Mediators could be required to be flexible to tackle both emotional

issues and corporate positions based on company procedures

• Problem-solving attitude is due to become more important than facilitating

role

• A more leading and evaluative approach by the mediator will arguably prove

effective

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Mediating with banks and financial institutions (Stefano Pavletič)

• Mediators’ strategy has to manage the possible uneven power. Mediation

creates an even platform for agreed resolution

• Might be more difficult for the mediator “to earn the trust” of all the subjects

involved, in case of mandatory access

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