An effective mechanism has been devised to safeguard the rights of consumers and investors in the financial industry in Sri Lanka, Central bank announced on Friday 20.
With the increasing competition amongst Financial Service Providers (FSPs) in providing financial services, the need arises for such a mechanism for the benefit of users of financial services.
This arrangement thereby safeguards the stability and integrity of the financial system, CB said issuing a media release.
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.
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 CBSL as well as Informal Financial Service Providers (IFSPs).
With the aim of helping such victims the CB has established a new department named “Financial Consumer Relations Department” (FCRD) with effect from 10.08.2020
This department will serve as the single point of contact to handle all external complaints and grievances directed to CBSL on entities regulated by CBSL under the provisions of the Monetary Law Act.
Addressing complaints and grievances of financial consumers is an objective of financial market regulation and long term financial system stability, CB said.
Initially, FCRD will focus on financial consumer complaints and grievances on FSPs regulated by CBSL.
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, CB revealed.
(LIN)