THE Financial Industry Disputes Resolution Centre (Fidrec) will proceed with amendments to its terms of reference, including raising the adjudicating award limit per claim to S$150,000.
This comes after its public consultation on the proposed revisions received “broad support” from respondents, with a majority “welcoming the changes”. The consultation, which ended on Feb 29, saw 55 respondents, including individuals, financial institutions and several associations.
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 its process.
On Monday (Jun 24), Fidrec said it will increase the adjudicating award limit per claim to S$150,000, from the current S$100,000. This is in view of the increasing cost of living and rising trend of consumer financial disputes exceeding S$100,000.
Another major revision is the inclusion of small businesses as eligible complainants – currently only individuals and sole proprietors qualify to raise a complaint.
Fidrec highlighted that most respondents supported the revision, with many acknowledging that small businesses need an affordable platform to have their complaints resolved.
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However, some respondents were concerned that small businesses were better resourced than individual consumers and claims brought by them could be more complex and unsuitable for informal dispute resolution.
The institution also noted that it received suggestions from respondents to define small businesses.
In response, Fidrec said it will take more time to study how best to address the concerns raised. The revision to include small businesses is tentatively slated to take effect in January 2025.
Other changes that will be implemented include fixing timelines for completing its process and enforcing them. If the timelines are not complied with after one month, Fidrec said it will have the discretion to close cases or to impose penalties.
Fidrec will also provide an online copy of the adjudicator’s grounds of decision to consumers and financial institutions, who need not attend a hearing at the institution for the decision to be read to them.
Additionally, the institution will implement the mediator’s indication (MI) process for all disputes, except for non-injury motor accident third party claims below S$3,000 where the process is mandatory.
Fidrec noted that no additional cost will be incurred to the parties for the MI process and the case will only proceed if both parties consent to it. It also added that the MI process is without prejudice and Fidrec will not inform the adjudicator of the outcome.
Moreover, Fidrec will also amend the list of exempted complainants to exclude claims that were previously dealt with or disputes that relate solely to investment performance.
The institution will also state selected timelines in business days, instead of calendar days, to account for public holidays to allow for more time to respond to complex cases.
Fidrec’s chief executive officer, Eunice Chua, said: “The upcoming changes to Fidrec’s terms of reference not only incorporate the feedback we have received over time but also international best practices.
“These changes will enable us to serve a wider audience, achieve better outcomes for parties, and improve our processes,” she added.
All the revisions, except the amendment to include small businesses, will be implemented on Jul 1.
