Zeti Akhtar Aziz: Launch of the Financial Mediation Bureau Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the launch of the Financial Mediation Bureau (FMB), Kuala Lumpur, 20 January 2005. *  *  *  Bismillahirrahmanirrahim, YB Tan Sri Dato’ Seri Haidar bin Mohamed Noor, Pengerusi, Biro Pengantaraan Kewangan Dif-dif kehormat Tuan-tuan dan Puan-puan hadirin sekalian Assalamualaikum warahmatullah dan salam sejahtera Our financial landscape is continuously being redefined. The objective is the development of a financial system that best serves our nation. To achieve this, a comprehensive approach has been adopted, addressing all the key elements and building blocks in the respective components of the financial system so as to form a solid foundation on which an effective, efficient and resilient financial system could be progressively built. An important component in the system that has not been neglected has been the consumer protection framework. The requirements and expectations of consumers are changing rapidly in tandem with increased education levels, growing wealth and greater affluence. Consumers are becoming more discerning and demand better product choices, more efficient delivery channels and more customer centric practices from financial institutions. These trends have become important in reinforcing the more competitive environment in the financial services sector. Tuan-tuan dan puan-puan, Antara komponen utama Pelan Induk Sektor Kewangan ialah usaha meningkatkan kesedaran dan kefahaman pengguna tentang produk dan perkhidmatan kewangan, di samping mewujudkan infrastruktur sokongan untuk melindungi pengguna, serta mengukuhkan rangka kerja kawalselia untuk meningkatkan tahap ketelusan.
These include specific initiatives to strengthen the regulatory framework governing market practices by financial service providers as well as enhanced minimum disclosure requirements and standards for credit card issuers, and on fees and charges for financial products. At the same time, ongoing efforts to raise the level of professionalism have also been intensified. BIS Review 4/2005  1  In 2004, the Bank introduced measures relating to sales practices in the insurance industry. Life insurance agents are also required to adopt best advice practices in the sale of life insurance products. To facilitate comparisons by consumers through enhanced disclosures, the Bank introduced mandatory disclosures of commissions, fees and charges for insurance products with savings and investment features that are sold through banking institutions. To ensure equitable treatment of policyholders, the Bank further strengthened the regulations on claims settlement practices and enhanced the controls over bonus reductions by life insurers to ensure reasonable returns to participating policyholders. More recently, the industry, together with the Ministry of Transport, implemented the e-cover notes system, which will effectively eliminate forged motor insurance cover notes. This represents an important development towards protecting the interests of both vehicle owners as well as road accident victims. The Bank also expects to license financial advisers in 2005. Following the enactment of the relevant legislation, financial advisers will be licensed and regulated by Bank Negara Malaysia to provide professional advisory services on insurance to consumers in relation to their financial planning needs.