In response to a question posed by MP Stampin Chong Chieng Jen in Parliament on Dec 2, 2024, the Minister of Finance confirmed that the government is taking steps to improve consumer protection in the financial services sector. The minister revealed that Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) are in the final stages of merging the Ombudsman for Financial Services (OFS) and the Securities Industry Dispute Resolution Center (SIDREC). This initiative, expected to be completed by 2025, will lead to the formation of the Financial Markets Ombudsman Service (FMOS).
The merger aims to enhance the efficiency and accessibility of financial dispute resolution services. It is designed to provide a more streamlined and effective process for resolving disputes between financial institutions and consumers. The creation of FMOS is intended to ensure that consumers and investors have access to fair, simple, and free services. As part of the reforms, BNM has conducted a review of the monetary award limits for disputes handled by FMOS, ensuring the scheme remains relevant and effective in addressing the needs of users in an increasingly digital and complex financial landscape.
Further amendments to the Financial Ombudsman Scheme Regulations are also expected. These changes aim to improve the governance of FMOS, ultimately benefiting consumers. The amalgamation of these two entities will result in a more coherent and efficient system, offering consistent standards and decisions to all consumers and investors. The integration will also provide a single point of contact for consumers to lodge complaints, simplifying the system and reducing the need to navigate multiple agencies.
The new structure is expected to expedite the resolution of complaints, cutting down wait times and enhancing the overall efficiency of the process. Clearer regulations and guidelines will also assist consumers in better understanding their rights and the complaints process. The consolidation of resources and expertise into one entity is expected to foster better training, knowledge-sharing, and overall improvements in the system’s effectiveness.
The government’s commitment to these reforms is part of its broader efforts to improve the protection of consumers and investors in Malaysia’s rapidly evolving financial sector.
