KUALA LUMPUR (July 18): Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (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 Ministry of Finance (MOF).

In a written response posted on the Parliament website on Thursday, the ministry said the 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.

The IDRS aims to increase the level of effectiveness of dispute resolution for financial consumers and investors.

"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 (Pakatan Harapan-Stampin) question whether the government intends to dissolve the OFS due to its purported lack of effectiveness to protect the rights of those using financial institutions, and failure to raise public confidence in the Malaysian financial system.

The MOF said the OFS had resolved nearly 32,000 disputes free of charge in 19 years.

In 2023, the OFS received 1,246 disputes, of which 62% were related to the banking industry, and 33% to the insurance and takaful industry. 

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