Strengthened legislative framework for consumer protection Before I turn to the Bank’s strategies and priorities for the further development of the financial advisory industry, let me briefly touch on the new legislation for financial services that marks a key milestone in strengthening the consumer protection framework Malaysia. As you are aware, the Financial Services Act and the Islamic Financial Services Act 2013 were brought into force in June this year. Under these new laws, the Bank has been given a clear mandate to foster fair, responsible and professional business conduct among financial service providers. To this end, the Bank may specify and enforce standards on the business conduct of financial service providers to ensure that financial consumers are treated fairly. The laws also specifically prohibit financial service providers from engaging in unfair or deceptive business conduct including making false, misleading or dishonest representations, and tied selling. The laws further provide for the approval of a financial ombudsman scheme for the resolution of disputes involving financial services. A significant amount of work is currently being undertaken by the Bank on these fronts to give full effect to the law. We are close to finalising principles for treating customers fairly and guidance on prohibited conduct which will be published for consultation and feedback from the industry and other stakeholders. We will continue to raise standards on transparency to consumers, taking into account new insights from research conducted by the Bank to better understand how consumers use information to make financial decisions.

With a reported average life expectancy of 75 years, many Malaysians are clearly at risk of not being able to meet their financial needs during retirement. The low level of financial literacy among Malaysians, especially in appreciating the importance of risk diversification and reduction, and how to use financial instruments effectively to achieve this, has further compounded the problem. Taken together, these observations underscore the tremendous opportunity that exists for financial advisers to raise the game in quality of advice, and in educating Malaysian households on the effective use of insurance and takaful as a financial management tool. Financial advisers are well-placed to provide lifelong financial planning support to Malaysian individuals and households in an environment of a growing middle class segment with higher purchasing power. To do this, gaining public trust and confidence is critical. Today, I think you will agree with me that that level of trust and confidence in insurance intermediaries at  BIS central bankers’ speeches  1  large remains below where it could and should be. An important starting point has to be a mindset that puts a client’s needs at the centre of advice and product recommendations, and which is firmly focused on helping the client to achieve his financial and life goals. This implies a view to developing lasting and durable partnerships with clients, and investments to build and maintain a high level of competence among financial adviser representatives who can tailor advice and tackle a broad range of consumer needs and profiles.