The Financial Industry Disputes Resolution Centre Ltd (FIDReC) is extending its jurisdiction to encompass small businesses and charities, starting 1 July 2025. This significant expansion allows over 200,000 small businesses and 2,000 charities to address financial disputes with licensed financial institutions without resorting to costly legal proceedings.
Eunice Chua, CEO of FIDReC, highlighted the challenges faced by small businesses and charities in Singapore’s volatile economy, noting that these organisations often struggle with financial disputes. “Our 2024 public consultation showed strong support for making FIDReC accessible to small businesses,” Chua stated, emphasising the alignment of this move with Singapore’s broader efforts to support small businesses and the non-profit sector.
FIDReC’s expanded jurisdiction will now cover a wider array of claims, including disputes over employee medical insurance, insurance claims for company-owned vehicles, business banking services, and loan agreements. This development is expected to level the playing field for small entities in their dealings with financial institutions, reinforcing Singapore’s reputation as a fair and inclusive financial hub.
Ho Kai Weng, Chief Executive of the General Insurance Association of Singapore, expressed support for the inclusion of small businesses and charities, citing the benefits of FIDReC’s efficient and low-cost dispute resolution. Ong-Ang Ai Boon, Director of the Association of Banks in Singapore, echoed this sentiment, noting the move strengthens trust and transparency in the financial ecosystem.
Since its inception in August 2005, FIDReC has resolved over 23,000 claims, providing an impartial platform for financial dispute resolution. This expansion marks a pivotal step in ensuring that all parties, regardless of size, have access to fair and independent dispute resolution services.
“`
