Overview

The Financial Industry Disputes Resolution Centre Ltd (FIDReC) is an independent and impartial institution that resolves consumer financial disputes through mediation and adjudication. It is a not-for-profit company limited by guarantee.

At present, FIDReC's services are available to consumers, who are individuals or sole-proprietors, for claims against financial institutions. Financial institutions include banks, finance companies, life insurers, general insurers, capital markets services licensees, licensed financial advisers and insurance brokers.

When a consumer cannot resolve a dispute with their financial institution on their own, they can come to FIDReC for help instead of going to court. They must do so within 6 months from receiving a final reply letter from their financial institution.

FIDReC's process is accessible and affordable. No external lawyers are allowed and most disputes are completed within 6 months.

Background

Before FIDReC was established, consumers with banking disputes would turn to the Consumer Mediation Unit (CMU) of the Association of Banks in Singapore and those with insurance disputes to the Insurance Dispute Resolution Organisation (IDRO). In 2003, a working group of capital markets representatives decided it would be more cost-effective to leverage off existing schemes rather than establish a new scheme for the capital markets, given the relatively small number of complaints in the capital markets sector.

In May 2004, the Monetary Authority of Singapore (MAS) formed an Integration Steering Committee to consider creating a one-stop centre for the resolution of all retail disputes with financial institutions. The Committee proposed the setup of FIDReC, which would be governed by an independent Board of Directors and funded through contributions from the financial sector.

FIDReC was launched on 31 August 2005 by Mr Heng Swee Keat, then Managing Director of MAS.