ID :
121557
Wed, 05/12/2010 - 10:25
Auther :
Shortlink :
https://oananews.org//node/121557
The shortlink copeid
MALAYSIAN PM ANNOUNCES MEASURES TO INCREASE FINANCIAL CONSUMER PROTECTION
KUALA LUMPUR, May 11 (Bernama) -- Malaysian Prime Minister Najib Tun Razak Tuesday announced increased financial consumer protection whereby deposit insurance limit will be raised to RM250,000 (US$ USD 78,004) effective 2011.
The finance ministry, in a statement here Tuesday, said the prime minister
intended to advance a package of legislative initiatives aimed at enhancing
financial consumer protection for Malaysians.
The ministry said Malaysia Deposit Insurance Corp (PIDM) would bring forward
legislation to enable the government to increase the deposit insurance limit.
"The plan is for this package to be tabled in Parliament for debate and
enactment before year-end," it said.
The ministry said PIDM would also develop legislation to introduce an
explicit insurance compensation scheme (ICS) for insurance and takaful
policyholders.
"It is to ensure that policyholders of insurance and takaful products will
also enjoy a similar level of consumer protection provided by PIDM for
depositors in the commercial banks and Islamic banks.
"These demonstrate the government’s continued commitment to enhance
financial consumer protection for Malaysian and to promote continued public
confidence in the financial system," it said.
It said since the temporary government deposit guarantee would lapse as
scheduled at the end of this year, the enhanced protection package would
continue to provide increased protection to depositors.
"With this new limit, 99 per cent of depositors will be protected in full,"
it said.
The ministry said the establishment of an explicit ICS to be administered by
PIDM would level the playing field between the banking industry and the
insurance industry.
"It will remove the competitive distortions between the two, as
policyholders and depositors in both sectors will now be protected.
"The proposed ICS will contribute to enhancing financial consumer confidence
which will in turn promote consumer demand for insurance and takaful products,"
it said.
It said PIDM would conduct a consultation process with stakeholders on the
key design features of the proposed insurance compensation scheme before
bringing forward its recommendations to the government.
-- BERNAMA
The finance ministry, in a statement here Tuesday, said the prime minister
intended to advance a package of legislative initiatives aimed at enhancing
financial consumer protection for Malaysians.
The ministry said Malaysia Deposit Insurance Corp (PIDM) would bring forward
legislation to enable the government to increase the deposit insurance limit.
"The plan is for this package to be tabled in Parliament for debate and
enactment before year-end," it said.
The ministry said PIDM would also develop legislation to introduce an
explicit insurance compensation scheme (ICS) for insurance and takaful
policyholders.
"It is to ensure that policyholders of insurance and takaful products will
also enjoy a similar level of consumer protection provided by PIDM for
depositors in the commercial banks and Islamic banks.
"These demonstrate the government’s continued commitment to enhance
financial consumer protection for Malaysian and to promote continued public
confidence in the financial system," it said.
It said since the temporary government deposit guarantee would lapse as
scheduled at the end of this year, the enhanced protection package would
continue to provide increased protection to depositors.
"With this new limit, 99 per cent of depositors will be protected in full,"
it said.
The ministry said the establishment of an explicit ICS to be administered by
PIDM would level the playing field between the banking industry and the
insurance industry.
"It will remove the competitive distortions between the two, as
policyholders and depositors in both sectors will now be protected.
"The proposed ICS will contribute to enhancing financial consumer confidence
which will in turn promote consumer demand for insurance and takaful products,"
it said.
It said PIDM would conduct a consultation process with stakeholders on the
key design features of the proposed insurance compensation scheme before
bringing forward its recommendations to the government.
-- BERNAMA
