What is ADR?

Alternative Dispute Resolution (ADR) refers to dispute resolution processes conducted outside the formal court system. In contrast to protracted litigation, ADR offers a structured, impartial, and timely approach that is provided at no cost to consumers.

The collaborative nature of ADR supports the continued maintenance of professional relationships between consumers and financial service providers following the resolution of disputes.

Knowing Your Rights as a Financial Consumer

Before seeking a resolution, understand your fundamental entitlements as a consumer in Malaysia:

Clear Information: Accurate, easy-to-understand product details.
Fair Treatment: Professional and ethical practices that do not disadvantage you.
Complaints Process: A clear internal channel to raise concerns with your provider.
Independent Redress: An impartial external review if the response is unsatisfactory.

The Role of FMOS in Shaping Consumer Redress

The consumer protection landscape in Malaysia underwent a significant transformation on 1 January 2025 with the establishment of the Financial Markets Ombudsman Service (FMOS). Formed through the consolidation of the Ombudsman for Financial Services (OFS) and the Securities Industry Dispute Resolution Center (SIDREC), FMOS operates as a unified, one-stop dispute resolution body, offering consumers a clear and streamlined path for redress.

FMOS bridges the gap between everyday Malaysians and financial institutions and capital markets intermediaries, levelling the playing field through:

Accessibility: No legal representation is required.
Affordability: Free for consumers and investors.
Speed: ADR is structured to ensure the timely resolution of disputes, offering a faster alternative to protracted litigation.
Fairness & Impartiality: The outcome reflects fairness, reasonableness, and adherence to applicable law and industry practices.

Your Options for Redress

FMOS handles disputes involving direct financial losses up to RM250,000. This includes:

Banking/Islamic Banking: Loans, credit/debit cards, internet/mobile banking, and e-wallets related complaints
Insurance/ Takaful: Life, medical, motor, and travel claims related complaints
Capital Markets: Unit trusts, shares, warrants and private retirement schemes, and fund management related complaints

How the FMOS Dispute Resolution Works

When facing a dispute, the FMOS redress process is a clear, two-stage redressal process comprising Case Management followed by Adjudication.

STEP 1: The FMOS Referral

You must first lodge a formal complaint with the financial institution. If you are dissatisfied with their Decision, you have 6 months to refer the case to FMOS.

STEP 2: Complaint Assessment

The complaint will be assessed to determine whether it falls within FMOS’s jurisdiction. If eligible, the complaint will be formally registered.

STEP 3: Case Management

The Case Manager will investigate the matter and facilitate negotiations between the disputing parties with a view to reaching a mutually acceptable settlement. Failing which, a recommendation will be issued. Acceptance of the recommendation by both parties will conclude the dispute.

STEP 4: Adjudication

If you do not accept the Case Manager’s recommendation, you may refer the matter for adjudication within 30 days from the date of the written recommendation. During adjudication, an Ombudsman will independently review the case and issue a final decision. If you accept the decision, it will be binding on the financial institution.

If you do not accept it, the adjudication process ends, and you remain free to pursue other available avenues.

“We don’t take sides. We weigh the facts, guided by the law, and find the fair way forward.’’

A Smarter Way Forward

A final rejection from your service provider is not the end. FMOS can independently review your case if you are dissatisfied with your provider’s outcome.

Your FMOS Filing Checklist

To help expedite your case, please ensure you have the following items:

Final Decision Letter: The formal rejection from your service provider (Compulsory).

Identification: A copy of your NRIC or Passport.

Chronology of Events: A summary setting out the sequence of events.

Supporting Evidence: Account statements, insurance policy, police/medical reports, or email/text correspondence.

Official Website: www.fmos.org.my
File Your Dispute: complaint.fmos.org.my
General Line: +603-2272 2811
Visit us: Level 14, Main Block, Menara Takaful Malaysia, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur.
Operating hours: 8:30am – 5:30pm, Monday–Friday

This content is provided by Financial Markets Ombudsman Service (FMOS)

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

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