KUALA LUMPUR: The Financial Markets Ombudsman Service (FMOS) will be established by 2025 to streamline financial dispute resolution for consumers and institutions, says Lim Hui Ying.
The Deputy Finance Minister said Bank Negara Malaysia (BNM) and the Securities Commission (SC) are in the final stages of merging the Ombudsman for Financial Services (OFS) and the Securities Industry Dispute Resolution Centre (SIDREC).
This initiative, expected to be completed by that year, will lead to the formation of the Financial Markets Ombudsman Service (FMOS), she said.
“The merger is expected to enhance the synergy of financial and investment dispute resolution schemes while ensuring the resolution process remains fair, simple, smooth and free for financial consumers and investors,” she told Chong Chien Jen (PH-Stampin) during Question Time on Monday (Dec 2).
Chong had asked the Finance Ministry to state whether the government intends to dissolve or replace the OFS, which has been accused of bias in favour of banking institutions instead of protecting consumers.
Lim said in line with the implementation of this merger and to safeguard the interests of consumers, Bank Negara has conducted a review of the monetary award limits for disputes that will be handled by FMOS.
“This review is to ensure that the financial ombudsman scheme administered and managed by FMOS remains relevant in meeting consumer needs within the rapidly evolving financial ecosystem, which has seen significant growth in digitalisation as well as more complex financial developments and innovations.
“In addition to amending the Financial Ombudsman Scheme Rules to include the new monetary award limits, other proposed amendments aim to enhance FMOS’s governance in the interest of consumers.”
She said the merger of these two entities will result in a more coherent and effective system for protecting financial consumers and investors. “FMOS operations are expected to provide consistent standards and decisions, ensuring that all financial consumers and investors receive the same level of service and protection.
“Users will benefit from a single point of contact for lodging complaints, simplifying navigation without the need to identify various involved bodies.
“Aside from this, a unified dispute resolution scheme can expedite processes, reduce waiting times for financial consumers and investors, and improve complaint resolution efficiency,” she added.
Lim said that clearer rules and guidelines will help users understand their rights and the complaint process in a more clear manner.
“The consolidation of resources and expertise within a single entity will also lead to better training, more effective knowledge sharing, and overall improvements in system efficiency,” she said.
She also noted that with this merger, it can enhance the operational synergy of financial and investment dispute resolution schemes, ensuring greater fairness for financial consumers and investors.
“These same principles will be upheld in the establishment of FMOS. FMOS will serve as an essential, free dispute resolution channel for consumers,” she said.
