FAQ

An Ombudsman is an independent person or body that addresses and solves disputes fairly and speedily away from the courts or other legal means.

The eligible complainant is a financial consumer, a small and medium enterprise, or an investor who uses or has used financial services or products provided by FMOS Members who are the financial service providers or capital market intermediaries.

• A financial consumer who uses or has used financial services or products provided by a Financial Service Provider:

(i) for personal, domestic or household purposes; or

(ii) in connection with small business.

• An individual investor or sole proprietor having a dealing or transaction relating to capital market services or products involving a Member.

FMOS members are financial service providers and capital market intermediaries licensed, registered or approved by Bank Negara Malaysia or Securities Commissions Malaysia.

Our members include commercial banks/Islamic banks, digital banks, insurers/takaful operators, development financial institutions, financial advisers/Islamic financial advisers, insurance brokers/takaful brokers, designated payment/Islamic payment instrument issuers, stockbrokers, unit trust management companies, fund managers, private retirement scheme providers, and distributors.

No. Our service is provided free of charge to financial consumers and investors.

FMOS accepts disputes involving direct financial losses up to RM 250,000.00 on:

• • Banking complaints on loans and advances, Islamic finances, misselling, unauthorised transactions via ATM, Debit/Credit card, internet banking or e-money.

• • Insurance/takaful claims on life, medical, motor, general non-motor, travel, and third-party property damage claims.

• Capital markets products such as securities including shares, unit trusts, warrants, retail bonds, structured products such as structured warrants, etc., derivatives (e.g., futures or options), and Private Retirement Schemes (PRS) or carrying out fund management activities.

There is no minimum amount. FMOS accepts disputes with a claim amount within RM 250,000.

Yes. As long as your dispute or claim concerns a financial or capital market product or service provided to you by an FMOS Member.

1. Claims exceeding the monetary limit of RM250,000 unless agreed in writing by both parties.
2. A dispute arising from commercial decisions within the discretion of the Member, e.g., general pricing/product pricing, fees & charges, product features, credit or margin or underwriting decisions, or applications to restructure or reschedule a loan or financing, save and except in respect of any alleged nondisclosure or misrepresentation/mis-selling by the Member concerning such financial and capital market product or service.
3. A dispute concerning the actuarial standards, tables and principles which the Member applies to its long-term insurance/takaful business (including the method of calculation of surrender values, paid-up policy values, interest rate imposed on Non performing loan (NPL)/Automatic Premium Loan (APL), and the bonus rate applicable to the policy in question) for insurance or takaful claims, except guaranteed payments which are explicitly mentioned in the terms and conditions of the policy.
4. A dispute that has been filed in court or arbitration or has been decided by a court or arbitrator.
5. A dispute that is referred to FMOS after more than 6 months from the date of receipt of the Member’s final decision (except in circumstances where FMOS grants an extension of time).
6. A dispute that has exceeded the relevant limitation periods as provided under the Limitation Act 1953 or Limitation Ordinance (Sabah) (Cap.72) or Limitation Ordinance (Sarawak) (Cap. 49).
7. A dispute for which a final and binding decision has already been given by FMOS (or its Predecessor Scheme) unless new material evidence arises that may affect the earlier decision.
8. A dispute concerning the performance of a product (financial or capital market) or investment save and except for any alleged non-disclosure or misrepresentation/mis-selling by the Member concerning such product or capital market service.
9. A dispute involving more than one Complainant has been referred to FMOS without the consent of the other Complainant, and FMOS is of the view that it would be inappropriate to deal with the dispute without the other Complainant’s consent.
10. A dispute involving claims arising from third-party bodily injury or death.
11. A dispute relating to the payment of policy money under a life policy and personal accident policy or payment of takaful benefits under a family takaful certificate and personal accident takaful certificate made in accordance with the provisions set out in Schedule 10 of the Financial Services Act 2013 and the Islamic Financial Services Act 2013, respectively.
12. A dispute which involves a Member against which a winding up order has been made, or where the Member has been declared to be financially insolvent by a court of law or has been the subject of a declaration of an event of default pursuant to the rules of the Capital Market Compensation Fund Corporation.
13. A dispute involving matters under investigation by the Authorities where the Authorities have issued a directive under the Regulations to FMOS not to proceed with the Dispute Resolution Process.

You must file an official complaint against the FMOS Members. If you are dissatisfied with the outcome of your complaint, you may submit your dispute with FMOS:

• Within 6 months from the date of receiving the Member’s final decision;
  or
• If the Member fails to respond within 60 days from the date the complaint was first submitted to the Member concerned.

A member's final decision must be issued in writing to the Complainant, through a letter/email, informing the Complainant that it is the Member’s final decision for the complaint and stating the availability of FMOS as an alternative dispute resolution channel if the Complainant is dissatisfied with the Member’s final decision.

You need not engage a lawyer or a legal firm throughout the resolution process.

It would be helpful to have complete documents, but you may still come to FMOS for consultation and submit your documents later. You are advised to submit promptly all relevant documents that will help support your claim upon request by FMOS for a speedy dispute resolution process.

You may submit your dispute through our website at www.fmos.org.my. Alternatively, you can contact us or submit your dispute in person at:

Level 14 Main Block
Menara Takaful Malaysia
No. 4 Jalan Sultan Sulaiman, 50000 Kuala Lumpur

Tel: +603 2272 2811

After you submit your complaint, FMOS will assess its eligibility. The case will be registered if your complaint passes the initial vetting stage.

FMOS adopts a two-stage dispute resolution process consisting of Case Management and Adjudication.

Stage 1: Case Management

The eligible will be assigned to a Case Manager. If further information or documents are required, the Case Manager will request them from you. After receiving complete information from you, the Case Manager will write to the Member involved to respond to the dispute.

The Case Manager will work towards a mutual settlement between the disputing parties through mediation, negotiation or conciliation.

The FMOS Case Manager’s role includes but is not limited to:

• Assessment of the eligibility of a dispute lodged with FMOS
• Investigation of issues raised in or relating to a dispute
• Acting as the primary point of contact between the disputing parties and FMOS
• To encourage and facilitate dialogue, provide guidance, assist the parties in clarifying their interests and in understanding differences, and working towards a mutually acceptable settlement
• To conduct conciliation, negotiation, or mediation sessions as they deem fit
• To issue a Recommendation relating to a dispute

If a settlement is not reached, the Case Manager will issue a written Recommendation within 30 days. The dispute is resolved if both parties accept the Case Manager’s Recommendation. Should either party reject the Recommendation, they can refer the matter to the Ombudsman for Adjudication within 30 days.

If you do not respond to the Recommendation within 30 days, the dispute is deemed NOT to have been referred to adjudication. If the Member does not respond to the Recommendation within 30 days, the Member is deemed to have accepted the Recommendation.

Stage 2: Adjudication

The Ombudsman will review the entire matter, including the Case Manager’s Recommendation, and assess it considering all the information provided. During this, he/she may require the parties to supply further documents or make further submissions.

The Ombudsman will review the dispute independent of the Case Manager's findings and issue a final Decision within 14 days of receiving the complete documents from both parties.

In delivering its decision, the Ombudsman may come to the contrary and/or find a different finding from the Case Manager’s Recommendation or may concur.

An Ombudsman shall exercise all powers, duties and responsibilities per the Constitution, FMOS Regulations and these Rules, including adjudicating and issuing an Adjudication Decision on a dispute. The Adjudication Decision issued by the Ombudsman is final.

The Member shall comply with the Adjudication Decision within 14 days from the date the Member is informed of the Complainant’s acceptance of the Adjudication Decision.

A third party may only attend the mediation sessions with prior approval from FMOS. Due to the confidential nature of the proceedings, FMOS generally does not allow for third-party participation. However, in some exceptional circumstances, FMOS may exercise discretion to allow it, for example, if the complainant is elderly and needs assistance.

After lodging his dispute with FMOS, a Complainant is at liberty at any time in the entire dispute resolution process to withdraw the dispute in writing and is free to pursue his/her rights through any other means. The Member cannot withdraw from the dispute resolution process.

The Ombudsman’s Decision is binding only on FMOS Members. If the complainant is unhappy with the Decision, they can explore other avenues to resolve their dispute.

However, if the complainant accepts the Ombudsman’s Decision, they will enter into a settlement agreement with the FMOS Member, which will then become binding on both parties.

No. FMOS Dispute Resolution process ends at the Adjudication stage. You may pursue your rights through other means, e.g. court or arbitration.