BNM, SC launch centralised centre to solve financial disputes up to RM250,000
17 Jan 2025, 01:21 pm
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(From left) Securities Commission Malaysia chairman Datuk Mohammad Faiz Azmi, Financial Markets Ombudsman Service chairman Tan Sri Foong Cheng Yuen, and Bank Negara Malaysia's deputy governor Datuk Jessica Chew Cheng Lian officiating the centralised dispute resolution centre on Friday.

KUALA LUMPUR (Jan 17): Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) have teamed up to jointly launch a centralised dispute resolution centre to safeguard the interests of financial consumers and investors in the country.

Dubbed the Financial Markets Ombudsman Service (FMOS), it is a merger between the Ombudsman for Financial Services (OFS) and the Securities Industry Dispute Resolution Centre (Sidrec).

In a joint statement on Friday, BNM and the SC said the joint oversight by the central bank and the SC will help the FMOS operate more effectively by aligning regulatory standards while safeguarding the interests of consumers, investors and the financial industry.

"The FMOS serves as an alternative to the judicial system, through the provision of independent and impartial mediation and adjudication services. The streamlined and consistent dispute resolution process would also enable quicker and transparent resolutions for consumers and investors," they noted.

Recognising the increased trend of the average value of financial transactions by consumers, BNM has streamlined the monetary limit for eligible disputes involving financial accounts or transactions to RM250,000.

The central bank said this limit broadens the scope of protection, ensuring that more consumers can access free dispute resolution services. "This is consistent with the existing eligible monetary limit for disputes involving investment accounts and transactions offered by capital market service providers regulated by the SC. The change aligns with the FMOS’ commitment to adapting to the evolving financial landscape, where transactions or account values may be higher."

SC chairman Datuk Mohammad Faiz Azmi said the FMOS simplifies the resolution process for financial consumers and investors by providing a trusted one-stop platform.

"This is especially important as the lines between financial and capital markets blur. The FMOS also promotes consistent standards and decisions, strengthening trust in the system," he added.

BNM governor Datuk Seri Abdul Rasheed Ghaffour concurred, adding that this initiative not only strengthens consumer confidence, but also reinforces the integrity and accountability of financial and capital market service providers, ultimately contributing to a more robust and trusted ecosystem.

Edited ByKang Siew Li
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