Fidrec seeks feedback from public on changes to terms of reference

The Financial Industry Disputes Resolution Centre (Fidrec) is seeking feedback on proposed amendments to its terms of reference, including raising the adjudicating award limit per claim to S$150,000 from the current S$100,000.

Fidrec’s terms of reference, which have been in place since the institution’s inception in 2005, set out the financial-dispute institution’s scope and jurisdiction, as well as the responsibilities of complainants and subscribers, among others. All complainants and subscribers agree to be bound by these terms when making use of Fidrec’s process.

On Monday (Jan 8), Fidrec noted that the number of claims exceeding S$100,000 has risen to reflect a higher quantum of losses suffered by retail consumers due to their higher income levels and cost of living.

It added that such cases – with claims relating to scams, hospitalisation, surgical reimbursement or market conduct as examples – have constituted about 10 per cent of all claims handled by the institution over the past three financial years.

Another major proposal is to expand “eligible complaints” under the terms of reference to include small businesses with an annual turnover of no more than S$1 million, as eligible complainants are currently limited to individuals and sole proprietors.

This is because such small businesses may have limited resources or abilities to manage disputes with their financial institutions like sole proprietors, said Fidrec.

Expanding the institution’s scope to include small businesses would allow Fidrec to handle disputes such as employee medical insurance claims, third-party motor insurance claims involving company-owned vehicles, disputed corporate account transactions and business loan disputes.

Other suggested changes include amending the list of expected complainants to exclude previously handled disputes, and disputes related solely to investment performance. 

Fidrec also recommends stating selected timelines in business days, instead of calendar days, to account for public holidays to allow for more time to respond to complex cases.

“The proposed changes are meant to better reflect the current landscape, especially the nature of financial disputes that have evolved over the years. They will also allow Fidrec to address feedback it has received over time and incorporate international best practices,” said chief executive Eunice Chua.

The consultation paper is available to the public to read and offer their views on Fidrec’s website from Jan 8 to Feb 29.

Fidrec plans to issue its response to the paper in Q2 2024 after considering the feedback, together with any plans for its implementation of the proposed amendments. 

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