Authors : Ruzian Markom, Rahmah Ismail, Sakina Shaik Ahmad Yusoff and Zeti Zuryani Mohd Zakuan
Abstract: Financial consumer protection is essential in the contemporary financial market. Financial consumers in the financial transaction contribute vastly in developing the economy of a country. Sound and effective legal and institutional framework premised the fair treatment of a robust and resilient financial system. The objective of this study is to examine the extent of financial consumer protection in the Malaysian financial system. The study adopted qualitative method with comparative approach between 2 groups of financial consumers, their institutions, governing laws and avenue for help and redress. Findings of the study showed that the unbanked financial consumers are in a disadvantaged status, as there is no law protecting them. On the other hand, the banked consumers are well protected with the enactment of the Financial Services Act 2013 and Islamic Financial Services Act 2013. Finally, it is recommended that the legal framework be reviewed for the enhancement of financial consumer protection.
Ruzian Markom, Rahmah Ismail, Sakina Shaik Ahmad Yusoff and Zeti Zuryani Mohd Zakuan, 2015. The Institutional Framework of Financial Consumers in Malaysia: A Legal Study. The Social Sciences, 10: 41-45.