We are also considering options for putting in place an effective mechanism to handle disputes involving financial intermediaries. This mechanism does not exist today outside of the advisory and complaint services provided through Bank Negara Malaysia’s LINK channel. Changes were also introduced under the new laws to deliver a more efficient regulatory regime for insurance intermediaries. Specifically, the scope of regulatory approvals required has been substantially reduced, for example the requirements to seek the Bank’s prior approval for shareholding changes not amounting to control, and for the appointment of key personnel, financial adviser’s representatives (FAR) and auditors. Intermediaries now only  2  BIS central bankers’ speeches  need to notify the Bank and comply with minimum qualification and suitability standards. While we believe this will help you run your businesses more efficiently, our focus on preserving a high level of integrity, competence and professionalism among intermediaries has not changed and we will, as we have demonstrated over the course of the year through stronger enforcement actions, apply more intrusive supervision if we find that intermediaries have not discharged their responsibilities as expected. A new category of financial adviser, that is the Islamic financial adviser, was introduced under the Islamic Financial Services Act 2003. This is also aligned to the objective of encouraging takaful agents to upgrade themselves to be Islamic financial advisers as the demand for financial advice grows. Similar to specialised takaful brokers introduced in 2005, Islamic financial advisers will be specialising in advising on family takaful and other Shariahbased products.

AFA can also play an important role in driving higher standards of professionalism in the industry through the development and implementation of industry codes of conduct and ethics that are focused on the interests of clients. Well informed financial consumers The Bank is mindful that while great emphasis has been placed on the responsibility of financial service providers and intermediaries to ensure that the products recommended to consumers are appropriate to their needs, consumers are ultimately accountable for their own financial decisions. Our best efforts to improve the quality of and accessibility to financial advice would be incomplete without at the same time, equipping consumers with the knowledge, skills and tools to make informed financial decisions. These capabilities not only allow individuals to build, manage and preserve wealth, they are essential to help consumers protect themselves against poor market practices and to take appropriate actions when treated unfairly. Therefore, enhancing financial capability among Malaysians has been and will continue to be an important agenda of the Bank. Financial advisers have an important role in this effort given your unique vantage point as an objective adviser, and through the close relationships that are cultivated with your clients. We look to the industry to provide input and support to the Bank’s ongoing work to develop financial capability programmes that are tailored to the different key life stages of individuals from their days as a student, when they enter the workforce, when they start and raise a family, and in retirement.