Bank Negara issues concept paper on financial ombudsman system

PETALING JAYA: Bank Negara Malaysia has issued a concept paper on the financial ombudsman scheme (FOS) for public consultation, on the proposals for the establishment of a FOS.
In a statement released last Friday, the central bank said the establishment of the FOS is part of the central bank's efforts to enhance dispute resolution arrangements for users of financial services.
In this regard, it said the existing Financial Mediation Bureau (FMB), which is currently operating under a voluntary arrangement, will be transformed into a FOS approved under the Financial Services Act 2013 (FSA) and Islamic Financial Services Act 2013 (IFSA).
Bank Negara said the provision for the approval of a FOS for purposes of ensuring effective and fair handling of complaints and for the resolution of disputes against financial service providers (FSPs) is provided for under the FSA and IFSA.
As part of the transformation, it said the governance and operational arrangements of the FMB will be enhanced in line with international best practices, and have its services expanded and commence operations in the second half of 2015.
The services of the FOS will not be chargeable to users of financial services.
The central bank said members of the public, industry players and related stakeholders are encouraged to provide written feedback on the concept paper which can be downloaded from the central bank's website.
The deadline for the submission of feedback and comments is Sept 29.