The Monetary Authority of Singapore (“MAS“) is proposing that payment service providers (“PSPs“) holding a major payment institution (“MPI“) or standard payment institution (“SPI“) licence under the Payment Services Act 2019 (“PS Act“) be required to subscribe to the Financial Industry Disputes Resolution Centre (“FIDReC“), allowing their customers to bring eligible disputes against them for mediation and adjudication. MAS has released a consultation paper seeking feedback on its proposal. Feedback should be submitted to MAS by 30 November 2026.
Current Position and Context
When the PS Act commenced in 2020, MAS did not require PSPs to subscribe to FIDReC, to accommodate their transition into the new regime. Subsequently, in 2024, with the formalisation of the Shared Responsibility Framework (“SRF“) jointly established by MAS and the Infocomm Media Development Authority to prevent and mitigate phishing scams, PSPs offering electronic wallets that store e-money (“e-wallet service providers“) were required to subscribe to FIDReC as part of the dispute resolution mechanism under the SRF.
Scope of PSPs to Subscribe to FIDReC
To provide eligible complainants within FIDReC’s jurisdiction with an avenue for meaningful dispute resolution, MAS has proposed to extend the requirement to subscribe to FIDReC to all MPI and SPI licensees generally.
Holders of the new MAS-regulated stablecoin issuance licences which MAS has indicated it intends to introduce in its recent Consultation on Proposed Amendments to the Payment Services Act for Stablecoins Regulation issued on 1 September 2026 would also be required to subscribe, within an appropriate timeframe after the stablecoin regulatory framework comes into force.
MAS does not intend to extend the requirement to subscribe to FIDReC to money-changing licensees, as MAS considers it overly burdensome given their simple business models and small risk surface.
Fee Structure
MAS and FIDReC will engage the industry to determine a framework for the payment of the initial onboarding fee, for example, via a fixed fee to be shared equally by all onboarding PSPs, i.e. excluding e-wallet service providers that are already subscribed to FIDReC. MAS’s guiding principles are fairness, budgeting certainty and an incentive for early resolution. MAS and FIDReC will engage industry on the fee structure and implementation timelines over the course of 2027.
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