Malaysia unveils centralized dispute centre for financial matters

The central bank has also raised the monetary limit for eligible disputes to MYR250,000.

The Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) have jointly launched the Financial Markets Ombudsman Service (FMOS), which serves as a centralised dispute resolution centre for financial consumers and investors.

FMOS is a merger between the Ombudsman for Financial Services (OFS) and the Securities Industry Dispute Resolution Center (SIDREC).

BNM has also streamlined the monetary limit for eligible disputes involving financial accounts or transactions to MYR250,000.

The joint oversight by BNM and SC is expected to help FMOS operate more effectively by aligning regulatory standards whilst safeguarding the interests of consumers, investors and the financial industry.

FMOS serves as an alternative to the judicial system, through the provision of independent and impartial mediation and adjudication services. This is expected to enable quicker and transparent resolutions.

“This initiative not only strengthens consumer confidence but also reinforces the integrity and accountability of financial and capital market service providers, ultimately contributing to a more robust and trusted ecosystem,” Bank Negara Malaysia Governor Dato’ Seri Abdul Rasheed Ghaffour said, commenting on FMOS’ launch.