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.

According to BERNAMA News Agency, Lim stated that Bank Negara Malaysia has conducted a review of the monetary awards for disputes to be handled by FMOS. This review aims to ensure the financial ombudsman scheme remains relevant to meet the increasingly complex needs of consumers in the rapidly evolving financial ecosystem, characterized by digital and financial development and innovation.

This announcement was in response to Chong Chieng Jen (PH-Stampin), who questioned whether the go
vernment intends to dissolve or replace the OFS, formerly known as the Financial Mediation Bureau, due to concerns that it favors financial institutions. Lim clarified that alongside the amendment of financial ombudsman scheme regulations to introduce new monetary award limits, other amendments would be proposed to enhance FMOS’ governance.

She elaborated that the merger is expected to create a more coherent and effective system for protecting financial consumers and investors. FMOS’ operation aims to provide consistent standards and decisions, ensuring uniform service and protection for all financial consumers and investors.

Lim emphasized that through the merger, consumers would have a single point of reference for submitting complaints, simplifying the process by eliminating the need to identify various involved bodies. She added that a unified dispute resolution scheme would expedite the process, reduce waiting times for consumers and investors, and improve competency in complaint resolution.