Wednesday, 03 February 2021 18:59

Single point of contact to settle grievances of Financial Consumers Featured

The Central Bank has established a new “Financial Consumer Relations Department” (FCRD) to serve as the single point of contact to handle all external complaints and grievances directed to CB on entities regulated under the provisions of Section 33 of the Monetary Law Act No. 58 of 1949, as amended.

 

Addressing complaints and grievances of financial consumers is an objective of financial market regulation and long term financial system stability.

With the increasing competition amongst Financial Service Providers (FSPs) in providing financial services, the need arises for a suitable mechanism to safeguard the interests of the users of financial services and safeguard the stability and integrity of the financial system, CB said.

Recent reports on financial consumer experience in the Sri Lankan financial markets show that even the most financially literate consumers have become victims to inappropriate market conduct by some FSPs regulated by CB as well as Informal Financial Service Providers (IFSPs).

Initially, FCRD will focus on financial consumer complaints and grievances on FSPs regulated by CB.

At a later stage, it is expected to expand the scope to cover areas such as monitoring of market conduct, consumer empowerment, financial consumer education, monitoring of unfair competition among FSPs.

The ultimate objective of this initiative is to establish an independent authority to safeguard the rights of consumers and investors in the financial industry in Sri Lanka.

 

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