Bank Negara issues Policy Document on Complaints Handling

08 April 2025

1. Financial service provider (“FSP”) comprising:

• a licensed bank (including a digital bank);
• a licensed Islamic bank (including an Islamic digital bank);
• a licensed insurer;
• a licensed takaful operator;
• a development financial institution prescribed under the Development Financial Institutions Act 2002;
• an eligible e-money issuer as defined in Appendix I of the Policy Document on Electronic Money; and
• an approved non-bank credit card issuer with an annual revenue above RM50 million; and 

2. Approved person (“AP”) comprising:

• an approved insurance broker;
• an approved takaful broker;
• an approved financial adviser;
• an approved Islamic financial adviser;
• an approved issuer of a designated payment instrument (other than an eligible e-money issuer as defined in Appendix I of the Policy Document on Electronic Money and an approved non-bank credit card issuer with an annual revenue above RM50 million);
• an approved issuer of a designated Islamic payment instrument; and
• an approved payment system operator. 

1. require FSPs to establish fair, effective and transparent complaints handling mechanisms that are responsive to the diverse needs of their financial consumers; and
2. promote a culture of accountability by the FSP, its employees and representatives to ensure fair treatment of financial consumers through the provision of effective complaints handling services. 

1. overseeing the formulation and effective implementation of the FSP’s internal governance and control framework for complaints handling;
2. ensuring periodic review on the relevance and appropriateness of the FSP’s internal governance and control framework for complaints handling; and
3. promoting a sound corporate culture that is responsive and accords due consideration to financial consumers’ best interest when handling complaints. 

1. development and implementation of robust policies, procedures and processes to ensure timely and fair responses are provided to complaints received from financial consumers;
2. allocation of adequate and suitably qualified resources for effective complaints handling;
3. provision of adequate channels and systems for submission and management of complaints to ensure accessibility and efficient handling of complaints received from diverse groups of financial consumers;
4. effective oversight and monitoring mechanisms to detect any material deviations from the FSP’s established internal governance and control framework that warrant prompt resolution;
5. clear policies and procedures in handling complaints under exceptional circumstances¹ that exceeds the specified turnaround time and are required to be escalated to senior management for final decision; and
6. timely escalation to the board on any recurring or material deviations from the established internal governance and control framework that have resulted in poor outcomes to financial consumers. 

1. all complaints received through whatsoever channels are to be channelled to its centralised complaints handling platform;
2. all complaints are properly assessed to ensure accurate identification of root causes for issues raised by the complaint to ensure fair and timely resolution;
3. clear criteria or parameters for identification of simple and complex cases;
4. specific procedures, timelines and governance arrangements for handling of complaints with differing complexities;
5. adequate and timely notification to financial consumers on the status of the complaints received;
6. proper communication in writing of the FSP’s final decision, which must include the reasons for reaching such a decision; and
7. clear and transparent communication on the availability of redress avenues for financial consumers that are dissatisfied with the FSP’s final decision. 

1. collating complaints received via any channel and maintaining such information; and
2. lodging and maintaining the information on the measures taken by the FSP in assisting financial consumers seeking resolution or redress on their complaints. 

1. ensuring that a consumer’s complaint is attended to and resolved promptly and fairly, thereby minimising the need for referral to external redress avenues;
2. monitoring the centralised complaints handling platform, tracking each complaint received to the relevant function within the FSP for input or resolution, or external parties for additional information or document; and
3. regularly reviewing its complaints resolution processes to ensure fair outcomes, and informing senior management of outcome of such reviews and driving strategic improvements. 

1. information on specific contact points and channels for lodgement of complaints;
2. description of the complaints handling process and turnaround time for complaints resolution; and
3. summary of the next steps that a financial consumer may take if it is dissatisfied with the FSP’s final decision. 

1. clear and concise explanations, in plain language, on the basis for its final decision;
2. appropriate prominence to material information that may impact the financial consumer’s interests;
3. a translation of the final decision for consumers who face difficulty in understanding due to language barriers; and
4. clear and accurate information on the availability of redress avenues in circumstances where the consumer is dissatisfied with its final decision. 

1. the consumer is an eligible complainant as defined under the Financial Services Act 2013, Islamic Financial Services Act 2013 or Development Financial Institutions Act 2002, as the case may be, and the complaint falls within the FMOS’s jurisdiction; and
2. the complaint does not fall within the FMOS’s jurisdiction but the FSP or AP, as the case may be, and the consumer agree for the complaint to be referred to the FMOS.