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1) What is FIDReC and what does it do?
Established in August 2005, the Financial Industry Disputes Resolution Centre (FIDReC) is an independent and impartial institution that resolves consumer financial disputes through mediation and adjudication. Our services are available to consumers who are either individuals or sole proprietors for claims against licensed financial institutions. We offer an alternative for consumers to have their disputes heard in an accessible and affordable manner, instead of going to court.
Our mission is: “To provide an affordable alternative dispute resolution scheme that is independent and impartial, so as to encourage and assist in the resolution of disputes between consumers and financial institutions in an amicable and fair manner.”
2) I am a financial institution, but the Monetary Authority of Singapore (MAS) does not require my institution to subscribe to FIDReC. Can I still subscribe to FIDReC?
Yes, you may do so on an elective basis.
3) What is the subscription process like under FIDReC’s elective scheme?
You may subscribe online here.
FIDReC will then assess your suitability for subscription under the elective scheme.
4) What are the fees involved in subscribing to FIDReC elective scheme?
There is no sign-on/membership/annual fees. The elective financial institutions will not need to pay a general levy under Annex 1 of the Terms Of Reference.
However, the elective financial institutions will need to pay case fees for FIDReC’s mediation and adjudication services. These fees will be assessed on a case-to-case basis depending on the complexity of the dispute, the parties involved, and the time and resources required to be spent by FIDReC in resolving the matter.
FIDReC will only proceed with mediation and adjudication after the elective financial institutions have agreed to the case fees.
5) What are the benefits of subscribing to the elective scheme, and how does FIDReC compare to other dispute resolution options?
Subscription on an elective basis will give financial institutions the benefit of FIDReC’s expertise in consumer financial dispute resolution. FIDReC is the only dispute resolution scheme designated under the MAS (Dispute Resolution Schemes) Regulations 2007.
Compared to other dispute resolution options, such as litigation or arbitration, dispute resolution at FIDReC has the benefit of lower costs and faster resolution whilst maintaining impartiality, fairness and effectiveness.
FIDReC’s statistics show that we close an average of about 75% of claims at mediation. We also generally complete handling 85% of claims within 6 months.
6) What is FIDReC’s jurisdiction?
FIDReC’s jurisdiction is limited to disputes between consumers and licensed financial institutions, including banks, insurance companies, capital markets services licensees, financial advisers, and insurance brokers.
Save for insurance disputes, the disputes must arise out of matters relevant to the consumer being or having been a customer of the financial institution.
The financial institution must have failed to resolve the complaint to the satisfaction of the consumer within 4 weeks of receiving it.
FIDReC can mediate all eligible disputes between consumers and financial institutions, but there is a limit of S$100,000 per claim for adjudication of disputes.
More details about the types of claims that FIDReC can and cannot handle are in the Terms Of Reference. Please click here to find out more.
7) What is FIDReC’s dispute resolution process like?
Our process starts with a consumer filing a complaint against you. A FIDReC Case Manager will then verify if the complaint is within our jurisdiction.
If so, the Case Manager will facilitate discussions between the parties and may arrange for mediation. Mediation may take place over telephone, email, or at a meeting.
If there is no settlement at mediation, the consumer can choose to proceed to adjudication.
At adjudication, all parties will prepare submissions and present their case to an Adjudicator.
There is no appeal from the decision of the Adjudicator. Where an award is made in favour of the consumer, it is binding on the financial institution. The consumer can choose whether or not to accept the award.
Please click here to find out more.
8) How can I contact FIDReC?
Please feel free to send your enquiries to firstname.lastname@example.org
You can also reach us at:
36 Robinson Road
#15-01, City House
Tel: (65) 6327 8878
Fax: (65) 6327 8488/ (65) 6327 1089