Singapore small businesses and charities to get access to financial dispute resolution from July 1

SINGAPORE - More than 200,000 small businesses and 2,000 charities here will be able to file complaints against licensed financial institutions to the Financial Industry Disputes Resolution Centre (Fidrec) from July 1.

Small businesses refer to companies registered and operating in Singapore, with group annual sales of $1 million or less in each of the past two financial years.

Fidrec, which handles consumer financial disputes, said it will also cover a wider range of claims under the expanded scope. These include disputes over employee medical insurance, insurance for company vehicles, business banking services, corporate card accounts and loan agreements.

Fidrec chief executive Eunice Chua said small businesses and charities often face the same difficulties as individual consumers when dealing with financial disputes, on top of their day-to-day operations.

“Our 2024 public consultation showed strong support for making Fidrec accessible to small businesses, although we delayed implementing this change to address the concerns voiced,” she said. 

“This expansion is aligned with Singapore’s broader push to strengthen support for small businesses and build a more resilient non-profit sector.”

Mrs Ong-Ang Ai Boon, director of the Association of Banks in Singapore, said Fidrec’s expansion to include small businesses and charities is a welcome move for the banking sector.

“These segments, which often rely on banking services, now have greater access to fair and independent dispute resolution, further strengthening confidence in the broader financial ecosystem,” she said.

Fidrec is the only financial dispute resolution institution in Singapore, helping consumers resolve disputes with licensed financial institutions, including banks, life insurers and advisers, through mediation or adjudication. The independent body has handled more than 23,000 claims since its launch in 2005.