KUALA LUMPUR: The Ombudsman for Financial Services (OFS) and Securities Industry Dispute Resolution Centre (SIDREC) are in the final process of merger completion towards the full operation of the Financial Markets Ombudsman Service (FMOS) by 2025, according to Deputy Finance Minister Lim Hui Ying.
She said the merger is aligned with the continuous commitment of Bank Negara Malaysia (BNM) and the Securities Commission to boost the dispute resolution scheme’s effectiveness and accessibility for financial consumers and investors.
“In line with the merger’s implementation and to ensure the interest of those using financial institutions continues to be protected, BNM has conducted a review of the monetary awards for disputes to be handled by FMOS.
“The review is to ensure the financial ombudsman scheme administered and operated by FMOS stays relevant to meet the increasingly-complex needs of consumers in the financial ecosystem which has grown rapidly in terms of digital as well as financial development and innovation,” she said in a question-and-answer session in the Dewan Rakyat today.
This was in response to a question from Chong Chieng Jen (PH-Stampin), who wanted to know whether the government intends to dissolve or replace the OFS (formerly the Financial Mediation Bureau) which, according to him, seems to favour the financial institutions.
Lim said that in addition to the amendment of the financial ombudsman scheme regulations to introduce new monetary award limits, other amendments will be proposed to, among others, enhance FMOS’ governance.
She explained that the merger of the two entities is expected to create a more coherent and effective system to protect financial consumers and investors.
“FMOS’ operation is expected to provide consistent standards and decisions, ensuring that all financial consumers and investors receive the same level of service and protection.
“Through the merger, consumers will have a point of reference to submit complaints, allowing them to navigate the system without the need to identify the various bodies involved,” she said.
Lim added that having a single dispute resolution scheme would expedite the process, reduce the waiting time for consumers and investors, and enhance the competency in complaint resolution.
