On 28 February 2023, Bank Negara Malaysia (BNM) issued its Exposure Draft on Fair Treatment of Vulnerable Consumers for feedback by 14 April 2023.

The exposure draft defines a "vulnerable consumer" as a financial consumer who:

  • has the capacity to make their own financial decisions but who may face challenges in accessing financial services or require assistance to engage in financial services;
  • has a low ability to withstand financial shocks;
  • is experiencing or has experienced adverse life events resulting in temporary or long-term financial hardship; and
  • has an inadequate level of financial literacy or experience in using financial services or products, or poor language skills.

The exposure draft expresses an intention to:

  • set requirements and expectations for the financial service providers (as defined in the draft) to observe; and
  • provide the appropriate support to vulnerable consumers, consistent with fair treatment outcomes.

For further information on this topic please contact Pamela Kung at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at www.shearndelamore.com.