KUALA LUMPUR: The revised policy document on product transparency and disclosure sets standards for digital platform operators to disclose key information to consumers throughout the product life cycle, said a Bank Negara Malaysia (BNM) spokesperson.
She said that digital platforms need to ensure promotional materials are clear and not misleading, while also outlining product-specific disclosure requirements for financial products.
"Three key disclosure principles are that disclosure must be timely, clear and simple; information disclosed must be accurate, relevant and sufficient; and disclosure must be consistent and comparable," she said during the BNM Media Workshop on "Raising the Bar for Consumers: Stronger Protection and Fair Conduct Reforms" at Sasana Kijang today.
She also highlighted that the amendments to product transparency and disclosure policy include the introduction of digital disclosure requirements, which aim to ensure that all product disclosures via digital channels are compatible and optimised for the medium used.
"This includes ensuring consumers are adequately assisted in the digital environment, such as through hotlines, live chat and other interactive tools.
"Another highlight is the enhanced requirements for sharing customer information for marketing and promotional activities aimed at giving consumers greater control and protecting their privacy," she added.
She explained that financial service providers (FSPs) must also obtain a consumer's prior written consent before disclosing their information to group entities or third parties for marketing purposes.
"Such consent must also be specific, voluntary, explicit and revocable," she said.
Another highlight of the amendments is the strengthening of requirements for the Product Disclosure Sheet (PDS), ensuring key product features, risks, and terms are presented clearly and concisely.
"FSPs must take adequate, risk-based measures to ensure consumers read and understand the PDS before entering into a contract.
"Lastly, a standardised PDS template ensures uniformity and ease of comparison for consumers across different FSPs, with FSPs required to follow the prescribed PDS format and comply with the parameters set out," she said. - Bernama
