Consumer financial disputes fall for S’pore banks, rise for life insurers and financial advisers

Singapore's market conduct claims against banks and finance companies have dropped over the past three financial years, according to the Financial Industry Disputes Resolution Centre (FIDReC). In contrast, claims against life insurers and licensed financial advisers have risen. FIDReC chief executive Eunice Chua spoke about this trend at the Association of Financial Advisers (Singapore) annual conference.

Market conduct disputes typically involve issues such as improper financial advice, false statements about products, or insufficient disclosure of necessary information. For the financial year ending June 2026, FIDReC handled 432 market conduct claims, a decrease of 9.5% compared to the previous year. Of the 432 claims, 191 were against banks and finance companies, indicating a decline in such disputes.

Chua suggests that banks are improving their sales supervision and complaint-handling processes through checklists, verification, and callbacks. Banks are also strengthening oversight of the sales and advisory process, providing regular training for sales professionals, and being transparent about fees and product features. This transparency helps build customer trust.

However, claims against life insurers and financial advisers have increased. Life insurers saw a 36.1% rise in claims, while financial advisers had an 30.8% increase. This rise is largely due to the complexity of investment-linked policies, which can result in financial losses if investments underperform.