Key Things to Note About the FIDReC Fast-Track Dispute Resolution Processes for Disputes relating to the Lehman Minibond Programme, DBS High Notes 5, Merrill Lynch Jubilee Series 3 LinkEarner Notes and Morgan Stanley Pinnacle Series 9 and 10 Notes

1.  Who is FIDReC?
FIDReC is an independent and impartial institution.
It was set up to resolve disputes between financial institutions (FIs) and consumers.

The adjudicators in FIDReC are highly qualified and credible professionals with relevant experience and expertise. They comprise retired judges, lawyers including senior counsel and retired industry professionals.

2.  When can I go to FIDReC?
If you have a dispute with your FI that you haven't been able to resolve or that hasn't been resolved to your satisfaction, you could approach FIDReC.

If you intend to do that, you should approach FIDReC within 6 months of your receiving the final reply from the FI.

You can file your complaint online at www.fidrec.com.sg.   If you have any queries, you can contact FIDReC at

- Telephone: 6327 8878
- Fax: 6438 1523
- Email fcc@fidrec.com.sg
- Address: 112 Robinson Road #04-04  Singapore 068902

FIDReC’s opening hours are Mondays to Fridays, 9 am to 6 pm.

3.   I received a settlement offer from the FI, and am not sure if I should accept the offer.   Can FIDReC advise me?

As an independent and impartial institution which also adjudicates on financial disputes between consumers and financial institutions, FIDReC is unable to advise consumers whether to accept or reject any specific offer made to them by a FI.

You will have to assess any settlement offer made to you from the FI, and decide whether you wish to accept the offer or not. Should you decide to reject the offer, you can approach FIDReC to lodge a formal complaint.  However, it is important to note that should you decide to refer your case to FIDReC, any settlement offered by the FI may no longer be available to you. You must keep in mind that the outcome from the FIDReC process may be more or less favourable to you.

4. What information do I need to send to FIDReC if I want to file a complaint?

You have to complete FIDReC's Dispute Resolution Form and submit all relevant documents. 

Any written statement by consumers setting out the facts of their case or the circumstances in which the sales transaction took place will be given careful and due consideration by FIDReC regardless of whether or not the statement was given under oath.

Such a statement can be prepared by the consumers themselves and need not be statements under oath or in the form of an affidavit.
 
There is a fast track process for complaints on the sale of the Lehman Minibond Programme, DBS High Notes 5 and Merrill Lynch Jubilee Series 3 Linkearner Notes and Morgan Stanley Pinnacle Series 9 and 10 notes by any of the following financial institutions:

• DBS
• ABN Amro
• Maybank
• Hong Leong Finance
• CIMB GK Securities
• DMG & Partners Securities
• Kim Eng Securities
• OCBC Securities
• Phillip Securities
• UOB Kay Hian

The process will also apply to any other products sold by other financial institutions as may be announced by FIDReC from time to time.

Under the fast track process, the FI is required to help you prepare a written statement, taking guidance from a checklist of questions (which incorporates inputs from FIDReC).

Similarly, the representative/RM who sold you the product is also required to give a written statement, again taking guidance from a checklist (incorporating inputs from FIDReC).

If you are not satisfied with the outcome of the FI's review process and wish to lodge a formal complaint at FIDReC, both written statements will be provided to FIDReC.

In assessing the complaint, FIDReC will take into consideration these statements together with all other relevant evidence. FIDReC’s decisions bind the FI but not the consumer. Consumers need only pay a nominal administrative fee of S$50 per claim if their case proceeds to adjudication. All fees are subject to prevailing GST.

5. Do I need to engage a lawyer to help me with my complaint at FIDReC?

No.

In fact, parties are required to present their case themselves. However, if you so require, you may be assisted and accompanied by a nominee. The nominee can be a family member, a relative, a friend or a colleague.

6. How much would it cost to have my case heard at FIDReC?

Filing a complaint is free of charge.

Where your case is resolved by mediation, this is still free of charge to you.

However, if mediation is unsuccessful in resolving the matter, you can choose to have your complaint proceed to adjudication at FIDReC. In such an event, you need only pay a nominal administrative fee of S$50 per claim.  FIs pay a substantially higher amount.

All fees are subject to prevailing GST.

7.  How can FIDReC help me?

FIDReC is an affordable avenue for consumers who do not have the resources to go to court or who do not want to pay legal fees which could be substantial.

The FIDReC process is made up of two stages:

• First stage: Mediation.
  The complainant and the FI are encouraged to resolve their dispute amicably.  This stage is free of charge for consumers.
  
• Second stage: Adjudication.
  Where mediation is unsuccessful, the case is adjudicated by a FIDReC adjudicator. Consumers need only pay a nominal administrative fee of S$50 per claim.
  If there is no prospect of a settlement through mediation, the consumer may request that mediation be dispensed with and the case referred to adjudication.
  The duration of the FIDReC process varies with the complexity of each case. FIDReC seeks to resolve all disputes as expeditiously as possible.

8.  What factors would FIDReC consider when assessing my case?

FIDReC will consider the merits of the case including all relevant evidence (both written and oral) presented by the parties and their witnesses (if any).

The role of the parties is to present all relevant facts and full information to FIDReC and the Adjudicator as any omission or inaccuracies may be detrimental to their case

9.   What is Adjudication? 
 
At adjudication, parties and their witnesses (if any) attend an adjudication hearing conducted by a FIDReC Adjudicator.

The written arguments and documents of both parties are exchanged before the Adjudication hearing. Both parties are given time to review the arguments and documents before the adjudication hearing. At the hearing, parties present their case and are afforded adequate opportunities to address questions to the other party.

The Adjudicator hears all relevant evidence presented (both written and oral), assesses the case and comes to a decision based on the facts and merits of each case. The Adjudicator will also ask both parties relevant questions to elicit relevant facts so that he or she can arrive at a fair and impartial decision. After the Adjudicator has made a decision, the grounds of the decision will be read to both parties.

FIDReC's adjudicators include retired judges, lawyers including senior counsel and retired industry professionals.
The decision of the Adjudicator is binding on the FI, but not on the consumer.
If you are not satisfied with the outcome, you are free to pursue other avenues including legal recourse.

10.  Can I engage a lawyer to help me with my case at FIDReC?  Can the FI engage a lawyer to help them with their case at FIDReC?

In order to ensure that its process remains affordable and accessible to the consumer, FIDReC does not allow the parties (whether the consumer or the FI) to be represented by lawyers acting on retainer or charging a fee for their professional services.

Accordingly, in-house counsels are employees of the company and are not precluded from being the representative of the company since they are not acting on retainer or charging a fee. Similarly, a consumer may also be assisted by a friend or family member who is a lawyer, but is not acting on retainer or for a fee.  

It is important to highlight that neither party (whether the consumer or the FI) is disadvantaged by reason that the other party's representative is, or is assisted by a lawyer. The FIDReC Adjudicator will address questions to both parties to elicit relevant facts and documents, and ensure that he or she will arrive at a fair and impartial decision.

In addition, the decision of the Adjudicator is final and binding on the financial institution but not on the consumer. If the consumer is not satisfied with the decision of the Adjudicator, he or she is free to reject it and pursue his or her complaint through other avenues.

11.  Why are the proceedings and discussions at FIDReC confidential?

As an alternative dispute resolution institution, confidentiality is a crucial cornerstone of FIDReC’s work and processes. The obligation of confidentiality is shared by both the consumer and the FI. This serves to ensure and maintain a conducive and variable environment for the amicable resolution of disputes by allowing disputants to openly discuss their expectations and issues. If confidentiality is not observed, FIDReC’s handling of disputes may be affected and this would be detrimental to both consumers as well as financial institutions.

12.  I don't speak English. Can my case still be heard at FIDReC?

Even if you are not conversant in the English language, you can still lodge your complaint at FIDReC and have your case mediated and adjudicated, if necessary.  You can appoint a nominee to assist you in your case and in any translation. The nominee can be a family member, a relative, a friend or a colleague. Many consumers have made use of this option.

13. How much can I claim?

The jurisdiction of FIDReC is as follows:

• For claims between insureds and insurance companies: up to S$100,000 per claim
  
• 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 per claim.

Claim limits are set to help ensure that FIDReC’s services can be kept affordable for consumers who may not have the resources to go to court. This is in keeping with FIDReC’s aim of providing an affordable avenue for consumers who do not have the resources to go to court or who do not want to pay hefty legal fees.
At present, FIDReC's services are available to all consumers who are individuals or sole-proprietors.

14.  If I purchased several structured notes from one financial institution, how will the claim limit apply?

The claim limit of $S$50,000 mentioned in Q9 applies to each series of structured notes purchased by an investor.  For example, if an investor purchased four products as illustrated in the table below, FIDReC’s jurisdiction is up to S$50,000 per product.

15. What if my claim is in excess of FIDReC’s jurisdiction?

In the case of a claim against a bank, finance company or capital markets services licensee, FIDReC’s jurisdiction is up to S$50,000.

However, FIDReC can handle the claim if:

(i) the consumer agrees to limit his claim to the maximum claim amount within FIDReC’s jurisdiction; or

(ii) the FI agrees to submit to FIDReC’s jurisdiction for the whole claim amount, and agrees to allow FIDReC to hear the claim.  If however the financial institution does not agree to do so, the consumer may wish to consider other options for recourse, such as seeking legal advice.

16. What if I am not satisfied with FIDReC's ruling?

The decision of the Adjudicator is final and binding on the financial institution, but not on you.

This means that if you accept FIDReC's ruling, the FI is bound by FIDReC's decision and it has no right of appeal.

However, if you are not satisfied with the decision, you are free to reject it and pursue your complaint through other avenues.

Should you decide to refer your case to FIDReC, any proposal offered by the FI may no longer be available to you. You must keep in mind that the outcome from the FIDReC process may be more or less favourable.