Fidrec surplus improves on slashed staff, office costs

Singapore

THE Financial Industry Disputes Resolution Centre (Fidrec) has reversed its fortunes in its tenth financial year - between last July and this June - despite a lower revenue.

The financial mediator posted a surplus before income tax of S$534,408 for the financial year ended June 30, a turnaround from the deficit before income tax of S$29,292 a year ago.

Fidrec's premises in Robinson Road were affected by a flood last May and provision for the flood's cost led to the deficit.

Correspondingly, net surplus for the year was much higher at S$540,268, up from S$4,087 a year ago, due to lower total expenses.

Revenue, which includes levy and case fees from financial institutions that subscribe to Fidrec and consumers, came in at S$3.24 million, down from S$3.71 million previously.

Total expenses fell to S$2.86 million from S$3.78 million for the year-ago period, led by a drop in employee compensation, office rental expenses and damage costs due to the flood.

The lower expenses was partly offset by higher adjudicator fees, which rose to S$180,000 from the previous FY's S$138,700, due to a higher volume of work done, said Ng Wee Jin, the organisation's chief executive officer.

In his outlook, Goh Joon Seng, Fidrec's chairman, said that the centre would ensure that its dispute resolution scheme "remains relevant, effective and affordable".

"We will continually fine-tune our processes and evolve to keep pace with the development of Singapore's financial sector. For example, the Fidrec Accreditation of Mediators (specialised in financial disputes) Scheme ensures the high standards and quality of Fidrec's mediators by setting requirements including that of competence in mediation skills, as well as hands-on experience in mediation and resolution of financial disputes."

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