Preferences of disputes resolution mechanisms in Islamic financial services industry in Malaysia
The groundbreaking reforms in the legal and regulatory framework for Islamic financial services industry in Malaysia open a new phase in the modern history of this market. The financial ombudsman scheme (FOS) is applied by the Ombudsman of Financial Services (OFS) and resembles the classical muht...
| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
Ahmad Ibrahim Kulliyyah of Laws (AIKOL), International Islamic University Malaysia
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/57618/ http://irep.iium.edu.my/57618/ http://irep.iium.edu.my/57618/7/57618.pdf |
| Summary: | The groundbreaking reforms in the legal and regulatory framework for Islamic financial
services industry in Malaysia open a new phase in the modern history of this market.
The financial ombudsman scheme (FOS) is applied by the Ombudsman of Financial
Services (OFS) and resembles the classical muhtasib model in Islamic law. Earlier on, the
i-Arbitration Rules (Revised 2013) was introduced by the Kuala Lumpur Regional Centre
for Arbitration (KLRCA). Focusing in making Malaysia as the global dispute resolution
hub for Islamic financial services, this research investigates the preferences of dispute
resolution mechanisms among Malaysian retail customers in resolving disputes with
their Islamic banks. While employing aqualitative legal approach on the availabilityof
dispute resolution mechanisms for Islamic financial services in Malaysia, it is found that
Shariah Advisory Council of Bank Negara (SAC) has an essential role as an expert body
for reference in disputes involving Islamic financial services. Such reference to SAC is
significant in ensuring the Shariah-compliance nature in the disputes of Islamic financial
services. A collaborative bridge between the SAC and the institutions that offer dispute
resolution mechanism must be built and maintained at all time |
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