MAS moves to make FIDReC dispute scheme mandatory for payment institutions
MAS wants to close a gap left since the Payment Services Act commenced in 2020, when payment firms were exempted from the independent dispute-resolution requirement that binds other retail-facing financial institutions. This consultation extends FIDReC membership to major and standard payment institutions, flags stablecoin issuers for later inclusion, and sets out how onboarding fees, case fees and levies will be worked out through 2027.
- All MPI and SPI licensees under the Payment Services Act 2019 would be required to subscribe to FIDReC under a new limb in Part 1 of the Second Schedule to the DRS Regulations.
- MAS-regulated stablecoin issuers will be added as a further amendment after the stablecoin regulatory framework comes into force; MPI/SPI members who later acquire a stablecoin licence need not reapply.
- Money-changing licensees are excluded because of simple business models, smaller sums handled and complaints that typically concern service and exchange rates rather than financial loss.
- Subscribing PSPs will pay an initial onboarding fee, case fees per eligible dispute and an annual general levy, with the framework to be settled with industry over 2027.
- Since the Shared Responsibility Framework took effect to 30 June 2026, FIDReC received 416 claims against e-wallet providers and handled 141, of which 99% concluded at mediation and 1% required adjudication.