GETTING IT RIGHT:
HOW TO RESOLVE A PROBLEM WITH YOUR FINANCIAL INSTITUTION

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Introduction

This Guide will show you what you can do and who you can turn to for help if you have a problem with a financial product that you have bought or the service standards of a financial institution.

This Guide is made up of two parts:

Part I:      Steps to follow to resolve your problem.

Part II:     When you should report a matter to the Monetary Authority of Singapore (MAS).

Part I:      STEPS TO FOLLOW TO RESOLVE YOUR PROBLEM

The first part of the Guide shows you the steps to take to resolve your problem, and who you can approach for help. There are two easy steps to follow:

Step 1: Resolving your problem with the financial institution.

Step 2: Approaching an independent dispute resolution scheme.

Quick Guide To Resolving A Problem With Your Financial Institution

STEP 1:
RESOLVING YOUR PROBLEM WITH THE FINANCIAL INSTITUTION

Q1: Why should I seek to resolve my problem with the financial institution?

Q2:  What should I do before I contact the financial institution?

Q3:  Who in the financial institution should I contact?

Q4:  What is the best way to contact the financial institution?

Q5:  What else should I take note of?

Q1: Why should I seek to resolve my problem with the financial institution?

A:  You should seek help on your problem with your financial institution first as they have easy access to your records. All financial institutions are expected to deal with consumer problems and feedback fairly, promptly and consistently.

Q2:  What should I do before I contact the financial institution?

A:  You should have a clear idea of what your concerns are and how you would like the financial institution to address these concerns. Get your customer reference number, account or policy number, and other supporting documents ready before you contact the financial institution.

Q3:  Who in the financial institution should I contact?

A:   Speak to the staff who attended to you when you bought the financial product or service. If you do not know the name of the staff, contact the financial institution's Customer Helpline. In many instances, a simple phone call can resolve your problem. If this does not help, you can write a letter to the Quality Service Department or a senior person in the financial institution.

Q4:  What is the best way to contact the financial institution?

A:   There are various ways of contacting the financial institution:

• By telephone. This is good for problems that can be resolved easily or in cases where you are just asking for an explanation. Take notes of your conversation and, if necessary, follow up with a letter on your problem.
  
• In person. This is applicable for problems that can be resolved easily as well as more complicated problems. Keep a record of what happened at the meeting and, if necessary, follow up with a letter to confirm what was said or agreed to at the meeting.
  
• By email. This method is fast and you can print a copy of your email for your own records. However, if you have many documents, you may find it hard to send them through email.
  
• By writing a letter. This is good if it concerns a problem that cannot be addressed simply through the telephone and you have many documents to attach. It is often the best way to resolve your problem since you would need to follow up a phone call or a meeting with a letter if your problem is serious enough.

Q5:  What else should I take note of?

A:   Here are some useful tips:

• Be clear about your problem.
  
• Take down the name of the person you spoke to, and the date and details of your conversation.
  
• Make photocopies of your documents before sending them to the financial institution and keep the originals.
  
• Keep records of emails and letters you have with the financial institution or anyone else you have contacted about your problem.
  
• Follow up with the financial institution if you do not get a response in 2-3 weeks. The Association of Banks in Singapore (ABS), Life Insurance Association of Singapore (LIA) and General Insurance Association of Singapore (GIA) have codes of practice which set out the minimum response times for their member institutions to handle your problems. In general, you should expect a reply from the financial institution in 2-3 weeks. If your problem is complicated, it may take a longer time to resolve. 
  
  

STEP 2:
APPROACHING AN INDEPENDENT DISPUTE RESOLUTION SCHEME

Q6:  What is an independent dispute resolution scheme?

Q7:  How does FIDReC resolve my problem?

Q8:  What type of problems can FIDReC help me with?

Q9:  What type of problems cannot be brought to FIDReC?

Q10:  What is the Panel of Adjudicators and how can they help me?

Q11:  What information do I need to send to FIDReC?

Q12:  If my problem is still not resolved by an independent dispute resolution scheme, who else can I turn to for help?

Q6:  What is an independent dispute resolution scheme?

A:   An independent dispute resolution scheme aims to resolve problems that cannot be settled directly between you and your financial institution. It provides you with a more affordable alternative to taking legal action to resolve your dispute as you do not need to engage a lawyer to use the services of such schemes.

Launched on 31 August 2005, the Financial Industry Disputes Resolution Centre Ltd (FIDReC) provides you with an independent and affordable avenue for resolving your disputes across the financial sector in Singapore. FIDReC took over from the banking industry's Consumer Mediation Unit (CMU) and the insurance industry's Insurance Disputes Resolution Organisation (IDRO). FIDReC also brings capital market transactions, for the first time, under a dispute resolution scheme.

FIDReC will provide you with the convenience of a one-stop centre for resolving disputes relating to your banking, insurance and capital market transactions.

Q7:  How does FIDReC resolve my problem?

A:  FIDReC will only handle your problem after you have tried but failed to resolve it with the financial institution.  FIDReC adopts a two-step process.  First, a FIDReC case manager will mediate the dispute between you and your financial institution. The mediation service of FIDReC is free of charge.   If the dispute is not settled by mediation, you can choose to bring your case to the second stage of adjudication. This is where an adjudicator or a Panel of Adjudicators will decide on your dispute based on the facts and merits of the case. If you choose to proceed to adjudication, a nominal administration fee of $50 will be charged.  FIDReC is only able to assist individuals or sole-proprietors, and not partnerships and corporates.

Q8:  What type of problems can FIDReC help me with?

A:  FIDReC's jurisdiction is as follows:
(1) For claims between insureds and insurance companies: up to S$100,000;

(2) For disputes between banks and consumers, capital market disputes and all other disputes (including third party claims and market conduct claims): up to S$50,000

FIDReC will only make monetary awards at the adjudication stage.

Q9:  What type of problems cannot be brought to FIDReC?

A:  FIDReC does not handle disputes involving the commercial decisions of financial institutions such as pricing policies and other policies such as interest rates and fees; cases that under investigation by any law enforcement agency; cases where the financial institution gave a final reply more than six months ago; complaints arising under a former scheme (e.g. CMU and IDRO) and which have been resolved under that scheme as well as complaints that have been settled privately.

You should check with FIDReC on the types of cases they can handle before you file your case with them.

Q10:  What is the Panel of Adjudicators and how can they help me?

A:  FIDReC's Panel of Adjudicators includes retired judges, senior counsel, senior lawyers and retired industry professionals. The Panel of Adjudicators has the power to order the financial institution to do certain things such as perform their contractual obligations or make monetary awards. These rulings are final and binding on the financial institution, but not on you.  If you are unhappy with the Panel's ruling, you can choose not to accept the decision of the Panel and pursue legal action or other resolution options.

Q11:  What information do I need to send to FIDReC?

A:  You would need to complete and submit a dispute resolution form to FIDReC for them to assess the dispute. You should also submit to FIDReC details of your correspondence with the financial institution, and all other relevant paperwork and supporting documents.

Q12: If my problem is still not resolved by an independent dispute resolution scheme, who else can I turn to for help?

A:  You can approach the Consumers Association of Singapore (CASE), the Singapore Mediation Centre (SMC) or the Small Claims Tribunal (SCT).  These organizations handle disputes across all types of products and services, and not just those on financial matters.  You can also consider whether you should bring your case to court. Taking legal action should be the last resort as it can be a time-consuming and costly process. If you wish to engage a lawyer to take legal action on your behalf, the Law Society maintains a list of all the registered lawyers in Singapore.  You can also seek the help of the Legal Aid Bureau.  However, you have to meet certain conditions before the Legal Aid Bureau will help you.

QUICK GUIDE TO RESOLVING A PROBLEM WITH YOUR FINANCIAL INSTITUTION

If you have a problem with a financial product or service and need help, you should take the following steps:

Part II:      WHEN YOU SHOULD REPORT A MATTER TO MAS

The second part of the Guide explains when you should report a matter to the Monetary Authority of Singapore (MAS) and how you can do so.

As the financial sector regulator, MAS' role is to ensure that financial institutions conduct their businesses in an appropriate manner and in accordance with the law.  MAS is unable to resolve commercial disputes between you and your financial institution, or order the financial institution to pay compensation to you.  We are, however, interested in matters that may raise issues of supervisory concern. These include violations of our rules and regulations, and breaches of other relevant codes of practice and guidelines. This part of the Guide explains when you should report your problem to MAS and how you can do so.

Q13:  When should I inform MAS about my problem?

Q14:  What information should I provide to MAS?

Q15:  Why must I give MAS written consent to forward my letter to the financial institution before MAS can act on it?

Q16:  What will MAS do with my letter?

Q17:  Can MAS tell me what action it has taken against the financial institution or its staff?

Q18:  Can MAS order a financial institution to pay compensation to me?

Q19:  My case has been heard in court. Can MAS still help?

Q13: When should I inform MAS about my problem?

A: If you suspect that a financial institution has committed any wrongdoing, you should report the matter to MAS. The information that you provide to MAS will enable us to take appropriate regulatory action against the financial institution. Your feedback will also help us to monitor industry trends and alert us to problems in the financial services industry. Matters which MAS would be concerned about include:

• Market misconduct issues such as the giving of inappropriate or misleading advice, misrepresentation or lack of disclosure by financial advisers. 
• Inaccurate, late release or failure to disclose market-significant information to the public by listed companies.
• Offences such as fraud, cheating, criminal breach of trust, forgery, fraudulent accounting or corruption by financial institutions.
• Raising of funds from the public without proper disclosure documents.
• Persons engaging in a regulated activity (for example, offering financial advisory services in Singapore) without the proper licence or authorization. The list of financial institutions licensed or authorised by MAS is available on our website at http://www.mas.gov.sg.

Q14: What information should I provide to MAS?

A: You should provide the following information to MAS:

• Your contact details.
• Name of the financial institution and staff concerned.
• Details of your problem. 
• Copies of relevant documents such as account statements, product brochures, the financial institution's reply and other supporting documents.
• Written consent for MAS to forward your letter to the financial institution for their response, if appropriate.

Q15: Why must I give MAS written consent to forward my letter to the financial institution before MAS can act on it?

A:   All letters and documents that MAS receives from members of the public are confidential. It is therefore necessary for us to obtain your written consent before we release your letter to third parties for the purposes of following up on your letter.

Q16: What will MAS do with my letter?

A:   MAS needs to understand the full background of your case before we know what action to take. This means getting an explanation from the financial institution about the issues you have raised. If you have not already written to the financial institution about your problem, where appropriate, we will send your letter to them for their comments. We would normally ask the financial institution to reply directly to you on the issues you have raised, and copy MAS in their reply.  The whole process usually takes 2-3 weeks. If your case is complex, it may take longer.

Q17:  Can MAS tell me what action it has taken against the financial institution or its staff?

A:   For confidentiality reasons, MAS does not inform the public of its dealings with specific financial institutions. We are therefore unable to inform you of the outcome of any investigations or actions we have taken against a financial institution or its staff. This is also the practice of other overseas regulators. 

Q18:  Can MAS order a financial institution to pay compensation to me?

A:   MAS does not have the power to order financial institutions to pay compensation to you. If you are seeking compensation, you should deal directly with the financial institution concerned, approach the independent industry-based dispute resolution scheme or take legal action.

Q19:  My case has been heard in court. Can MAS still help?

A:   MAS is unable to comment on disputes which have already been heard in court or are pending legal action.

CONTACT LIST

The Association of Banks in Singapore (ABS)

10 Shenton Way
#12-08 MAS Building
Singapore 079117
Tel: 6224 4300
Fax: 6224 1785
Website: www.abs.org.sg
Email: banks@abs.org.sg

112 Robinson Road
#05-03 HB Robinson
Singapore 068902
Tel: 6221 8788
Fax: 6227 2051
Website: www.gia.org.sg
Email: feedback@gia.org.sg

Financial Industry Disputes Resolution Centre Ltd (FIDReC)

112 Robinson Road
#13-03 HB Robinson
Singapore 068902
Tel: 6327 8878
Fax: 6327 8488
Website: www.fidrec.com.sg
Email: info@fidrec.com.sg

Life Insurance Association of Singapore (LIA)

20 Cross Street
#02-07/08 China Court
China Square Central
Singapore 048422
Tel: 6438 8900
Fax: 6438 6989
Website: www.lia.org.sg
Email: lia@lia.org.sg

Singapore Exchange Ltd (SGX)

2 Shenton Way
#19-00 SGX Centre 1
Singapore 068804
Tel: 6236 8888
Fax: 6535 6994
Website: www.sgx.com
Email: webmaster@sgx.com

Consumers Association of Singapore (CASE)

170 Ghim Moh Road
Ulu Pandan Community Building
#05-01
Singapore 279621
Tel: 6463 1811
Fax: 6467 9055
Website: www.case.org.sg
Email: complaints@case.org.sg

Singapore Mediation Centre (SMC)

3 St. Andrew's Road
Third Level City Hall
Singapore 178958
Tel: 6332 4366
Fax: 6334 4940
Website: www.mediation.com.sg
Email: enquiries@mediation.com.sg

Small Claims Tribunal (SCT)

2 Havelock Road
#05-00 Apollo Centre
Singapore 059763
Tel: 6435 5937
Fax: 6435 5994 / 6536 4478
Website: www.smallclaims.gov.sg

The Law Society of Singapore

39 South Bridge Road
Singapore 058673
Tel: 6538 2500
Fax: 6533 5700
Website: www.lawsociety.org.sg
Email: lawsoc@lawsoc.org.sg

Legal Aid Bureau

Ministry of Law
URA Centre East Wing
45 Maxwell Road
#08-12
Singapore 069118
Tel: 1800 325 1424
Fax: 6325 1402
Website: http://app2.lab.gov.sg/
Email: mlaw_lab_enquiry@mlaw.gov.sg

This guide is produced by the Monetary Authority of Singapore (MAS).  The information is of a general nature and may not apply to every situation or to your personal circumstances.  This Guide should not be regarded as a substitute for legal advice on any specific issue.