Alternative Dispute Resolution Mechanisms for Financial Service Disputes

The Financial Services Authority (“OJK”) has issued Regulation No. 1/POJK.07/2014 on Alternative Dispute Resolution Institutions for the Financial Services Sector (“Regulation”).[1]

The Regulation establishes a framework to resolve disputes between financial service providers and their consumers through alternative dispute resolution (“ADR”) institutions.

The Regulation is of relevance to financial service providers, which includes companies engaged in banking, capital markets, insurance, pension funds, financing, and other  financial services,[2] along with their respective customers.