THE Financial Markets Ombudsman Service (FMOS) that will be set up by 2025 will streamline financial dispute resolutions for consumers and institutions, says Lim Hui Ying.
The Deputy Finance Minister said Bank Negara Malaysia and the Securities Commission Malaysia are in the final stages of merging the Ombudsman for Financial Services (OFS) and the Securities Industry Dispute Resolution Centre (SIDREC).
“This initiative will lead to the formation of FMOS.
“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 said in reply to a question from Chong Chien Jen (PH-Stampin) during Question Time.
Chong had asked the Finance Ministry whether the government intends to dissolve or replace OFS, which was accused of being in favour of banking institutions instead of protecting consumer rights.
Lim said in line with the merger and to safeguard the interests of financial institution users, Bank Negara has conducted a review of the monetary award limit for disputes that will be handled by FMOS.
“This review is to ensure 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’ governance in the interest of consumers,” she said.
Overall, she explained that 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,” Lim added.
