KUALA LUMPUR: Bank Negara Malaysia (BNM) and the Securities Commission (SC) will establish an integrated dispute resolution scheme (IDRS) to be known as the Financial Markets Ombudsman Service (FMOS) for the financial and capital market sector, said the Finance Ministry (MOF).
In a written response posted on Parliament’s website on Thursday, the ministry said IDRS will be established in 2025 via a merger between the Ombudsman for Financial Services (OFS) and the Securities Industry Dispute Resolution Centre (SIDREC), offering alternative dispute resolution services for the capital market sector under SC regulation.
IDRS aims to increase the level of effectiveness of dispute resolution for the financial consumer and investor.
“This merger is expected to increase the operational synergy of the scheme while ensuring that the resolution process is made easier, smoother and free,” the MOF said in response to Chong Chieng Jen’s (PH-Stampin) question whether the government intends to dissolve the OFS due to its lack of effectiveness to protect the rights of those using financial institutions and its failure to raise public confidence in the Malaysian financial system.
MOF said OFS resolved nearly 32,000 disputes free of charge in 19 years.
In 2023, OFS received 1,246 disputes; 62 per cent were related to the banking industry and 33 per cent to the insurance and takaful industry. – Bernama