Product Transparency and Disclosure

As financial products become more diverse and complex to address the varying needs of financial consumers, the ability of financial consumers to understand the features and characteristics to assess product suitability and risks becomes more challenging. Consequently, there is a need to enhance product specific transparency and disclosure to facilitate sufficient understanding by financial consumers so that they can make informed decisions. Given the greater use of financial products, financial consumers need to be provided with relevant, timely, reliable and comparable information that enable them to select financial products that best meet their financial circumstances and needs.

This Policy Document contains specifications on minimum requirements for enhanced consistency and comprehensive transparency aimed at improving information disclosure on financial products offered by financial service providers (“FSPs”).

This Policy Document sets out the timing and content on disclosure of information on financial products to financial consumers.

The objectives of this Policy Document are toa) promote financial consumers’ awareness and understanding of financial products offered by FSPs;
b) ensure consistency in disclosure of essential information on financial products to enable comparison by financial consumers;
c) minimise mis-selling of financial products and ensure that financial products sold are suitable to the needs and financial circumstances of financial consumers;
d) promote informed decision-making by financial consumers; and
e) facilitate financial consumers in safeguarding their own best interests.

This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking