KUALA LUMPUR (Oct 29): Bank Negara Malaysia said the financial ombudsman scheme (FOS) would start in the first quarter of 2016.

In a statement today, Bank Negara said the FOS would enhance dispute resolution between consumers and financial service providers (FSP).

"The FOS is expected to commence its operation in the first quarter of 2016, where consumers can refer eligible disputes involving any of the following FSPs to the FOS for resolution.

"The proposed FOS framework, covering its scope, membership, funding, governance and resolution process, was published for public feedback on 29 August 2014 and had received 55 responses that affirmed broad support for the proposals," Bank Negara said.

Bank Negara said the FOS came under the Financial Services an Islamic Financial Services Regulations 2015.

The regulations, which came into force on Sept 14 this year, provides for the approval, oversight and obligations of a FOS in Malaysia, according to the central bank.

"The regulations pave the way for the establishment of a FOS as part of Bank Negara Malaysia's efforts to enhance financial dispute resolution arrangements for consumers and to strengthen consumer protection," Bank Negara said.

Bank Negara said the FOS would "publish its terms of reference upon commencement of its operations."