Ombudsman for financial services starts Oct 1

The Overnight Policy Rate (OPR) will be maintained at 3.25%, Bank Negara Malaysia announced at its Monetary Policy Committee (MPC) meeting on Thursday.

KUALA LUMPUR: Financial consumers seeking to resolve disputes with financial service providers can now seek the help of the Ombudsman for Financial Services, according to Bank Negara Malaysia (BNM).

The central bank said on Wednesday the ombudsman, which is an independent redress mechanism for financial consumers, will start operations on Oct 1.

BNM, which had given its approval for the ombudsman under the Financial Services Act 2013 and Islamic Financial Services Act 2013, said the body will provide a fair and efficient avenue for financial consumers to resolve disputes against financial service providers.  

“Its services are an alternative to, and not a replacement for legal actions taken in a court of law. The services of the Ombudsman for Financial Services are offered free of charge to financial consumers,” it said. 

BNM said the Ombudsman for Financial Services will operate in accordance with the principles of independence, fairness and impartiality, accessibility, accountability, transparency and effectiveness. 

The ombudsman is governed by a board of directors, led by  Tan Sri James Foong, a retired Federal Court Judge, who has been appointed the chairman of the Ombudsman for Financial Services. 

Jeremy Lee, Chief Executive Officer of the Ombudsman for Financial Services said: “The introduction of the new financial ombudsman scheme is timely.  It further strengthens the financial consumer protection framework in an environment of increasing diversity with competitive offerings of financial products and services.  

“In operating the scheme, the Ombudsman for Financial Services incorporates enhanced governance and operational arrangements which is in line with international best practices to promote fair, effective and independent dispute resolution."

Financial consumers can refer eligible disputes involving banks, insurance companies, takaful operators, development financial institutions, designated payment instrument issuers, insurance and takaful brokers, and financial advisers, to the ombudsman for resolution. 

Disputes filed with the ombudsman  must not exceed RM250,000.  Lower limits apply for disputes on motor third party property damage insurance claims and unauthorised transactions involving payment instruments and payment channels.  

Further information on eligible disputes covered by the financial ombudsman scheme and procedures for bringing a dispute to the financial ombudsman scheme is available on the Ombudsman for Financial Services’ website at www.ofs.org.my.  

Members of the public can also contact the Ombudsman or walk in during office hours (8.30am to 5.30pm Monday to Friday). Its address is Level 14, Main Block, Menara Takaful Malaysia,
No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur

Its telephone number is 03-2272 2811 while the fax number is 03 2272 1577. Email: [e-mail]