The Financial Services (Financial Ombudsman Scheme) Regulations 2015 and their Islamic equivalent came into force on 14 September 2015. The regulations establish a Financial Ombudsman Scheme (FOS) in Malaysia as part of efforts by Bank Negara Malaysia (BNM) to enhance financial dispute resolution arrangements for consumers and strengthen consumer protection. The FOS will be an alternative to, but will not replace, dispute resolution through the courts.
In 2012, the following orders were also introduced under the Insurance Act 1996 (now repealed and replaced by Financial Services Act 2013) to strength those liberalisation measures:
Insurance (Exemption)(No. 2) Order 2012; Insurance (Exemption)(Amendment) Order 2012; and Insurance (Approved International Marine, Aviation and Transit Insurance Brokers) Regulations 2012
Under the new FSA, policy owner can no longer appoint himself/herself as the trustee of the policy moneys. In the event no trustee is appointed, the beneficiary (or nominee) who is competent to contract will be the trustee. If the beneficiary is incompetent to contract, the parent(s) of the incompetent beneficiary (other than the policy owner) will be the trustee. Only when there is no surviving parent of the incompetent beneficiary, the Public Trustee will then be appointed.