Muhtasib, Ombudsman and Malaysian financial Ombudsman scheme: A comparative study
The growth of alternative dispute resolution (ADR) is an inevitable phenomenon due to inherent drawback of the conventional litigation. One of the most acceptable forms of ADR is ombudsman which is known as Muhtasibfrom Islamic perspective. In Malaysia, the first ombudsman institution has been es...
| 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/58747/ http://irep.iium.edu.my/58747/ http://irep.iium.edu.my/58747/2/58747.pdf |
| Summary: | The growth of alternative dispute resolution (ADR) is an inevitable phenomenon due to
inherent drawback of the conventional litigation. One of the most acceptable forms of
ADR is ombudsman which is known as Muhtasibfrom Islamic perspective. In Malaysia,
the first ombudsman institution has been established in financial industry operated by
the Ombudsman for Financial Services (OFS). It is one of the moves initiated by Bank
Negara Malaysia (BNM) with a view of providing simple, inexpensive and effective
redress mechanism to financial consumers. Applying doctrinal research methodology,
this paper examines the background of Muhtasib and ombudsman as well as their
functions and characteristics. Similar observation is made vis-à-vis the OFS. These
three aspects are subsequently compared to investigate the similarities and differences
between the Muhtasib, ombudsman and the OFS. The study concludes that both the
Muhtasib and ombudsman have undergone evolution from their original structure.
Despite derived from different origin and with a different terminology used, it is resolved
that in the contemporary milieu of alternative dispute resolution, the function of Muhtasib
and ombudsman is ultimately to settle the dispute amicably, impartially, effectively and
independently. The key principles of ombudsman are also in line with Shariah principles
and have been incorporated in the establishment of the OFS. Recommendation is made
concerning the imposition of specific requirements on the ombudsmen of the OFS. This
study provides a significant insight on the traditional and modern aspect of Muhtasib and
ombudsman as well as the newly set up Malaysian OFS. |
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