This revised policy document is an enhanced version of the Policy Document on Fair Treatment of Financial Consumers (FTFC) issued by Bank Negara Malaysia (BNM) in November 2019. It sets out existing requirements and guidance for financial service providers (FSPs) to treat financial consumers fairly by adopting high standards of responsible and professional conduct and embedding a culture where the interests of financial consumers are an integral part of FSP’s business strategies and operations.

This revised policy document introduces a new principle and specific requirements for FSPs to consider and respond to the interests and needs of vulnerable consumers in conducting its business and operations. FSPs are expected to provide the appropriate support to vulnerable consumers, consistent with fair treatment of financial consumer outcomes. Throughout the revised policy document, BNM has supplemented existing and new requirements with illustrations of good and poor practices to facilitate industry implementation.

Highlights
For ease of reference, key revisions made to the policy document on FTFC include:

1. Enhancements to the definitions of “representatives” and “agents” and the inclusion of the definitions of “persons with disabilities” and “vulnerable consumer” under paragraph 5.2;

2. Enhancements to the specification of “financial consumer” under paragraph 7.1;

3. Inclusion of new Outcome 7 to ensure vulnerable consumers are treated fairly and equitably by the FSP, and the FSP’s staff, representatives and agents under paragraph 8.1(g);

4. Enhancements to the role of the board and senior management in demonstrating a commitment to the fair treatment of vulnerable consumers, including establishing and maintaining appropriate policies, processes and accountability structures under paragraphs 10.2 to 10.4;

5. Inclusion of principle 7 to set out new requirements on the fair treatment of vulnerable consumers under paragraphs 16.1 to 16.28;

6. Enhancements of existing and inclusion of new good and poor practices throughout the policy document to illustrate BNM’s expectations and assist FSPs in understanding and complying with the policy document’s requirements;

7. Enhancements of fair outcomes to financial consumers under Appendix 1;

8. Enhancements to the illustration of the Treat Customers Fairly Charter under Appendix 2; and

9. Inclusion of new good practices by FSPs in dealing with persons with disabilities and other vulnerable consumers, where relevant, under Appendix 5.

BNM has also responded to key feedback received on the Exposure Draft on Fair Treatment of Vulnerable Consumers issued in February 2023, which is accessible through the document attached below. In addition, BNM will enhance the existing Frequently Asked Questions (FAQs) on the FTFC document for issuance soon.

Issuance Date
27 March 2024

Effective Date
27 March 2024

Issuing Department
Jabatan Konsumer dan Amalan Pasaran

Documents

• Policy Document on Fair Treatment of Financial Consumers
• Feedback Statement: Summary of Key Feedback Received and BNM’s Responses on the Exposure Draft on Fair Treatment of Vulnerable Consumers