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An ASEAN Framework for Cross-Border Cooperation in Financial Consumer Dispute Resolution

Published online by Cambridge University Press:  11 April 2017

Vivien CHEN ,
Andrew GODWIN  and
Ian RAMSAY
Vivien CHEN
Affiliation:
Monash University, Australiavivien.chen@monash.edu
Andrew GODWIN
Affiliation:
The University of Melbourne, Australiaa.godwin@unimelb.edu.au
Ian RAMSAY
Affiliation:
The University of Melbourne, Australiai.ramsay@unimelb.edu.au
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Abstract

The increasing integration of regional markets in Southeast Asia has led to the need for a regional framework for financial consumer protection. Access to affordable redress mechanisms is essential for consumer confidence in ASEAN’s burgeoning regional financial markets. Drawing on established channels of regional cooperation among ASEAN Member States, this article proposes a framework based on international best practices and existing financial consumer dispute resolution mechanisms in ASEAN 5 countries. It explores the need for cross-border cooperation to facilitate the effective resolution of financial consumer disputes arising from cross-border transactions. Key proposals include requiring ASEAN CIS passport operators to submit to the jurisdiction of host country financial consumer alternative dispute resolution mechanisms. The ASEAN Committee on Consumer Protection, with its contact points in each Member State and website on available consumer redress mechanisms across ASEAN, provides a platform for the strengthening of cross-border cooperation and facilitating financial consumer access to affordable redress in cross-border transactions.

Type
Articles
Information
Asian Journal of Comparative Law , Volume 12 , Issue 1 , July 2017 , pp. 167 - 196
Copyright
© National University of Singapore, 2017 

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Footnotes

*

Vivien Chen is a Research Associate, Melbourne Law School, The University of Melbourne and Lecturer, Monash Business School, Monash University.

**

Andrew Godwin is an Associate Professor, Melbourne Law School, The University of Melbourne.

***

Ian Ramsay is the Harold Ford Professor of Commercial Law and Director of the Centre for Corporate Law and Securities Regulation, Melbourne Law School, The University of Melbourne. The authors would like to thank Dr Benny Tabalujan for his helpful comments on the Indonesian regulatory framework. This paper is part of a project on Financial Regulation in Asia, which is funded by a grant from the Melbourne School of Government, The University of Melbourne.

References

1. ASEAN is the acronym for the Association of Southeast Asian Nations, a political and economic organization which comprises Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The ASEAN Economic Community, established at the end of 2015, seeks to create a single market within the ASEAN region, premised on the free flow of goods, services, skilled labour, investment and capital; ASEAN Secretariat, ‘Fact Sheet – ASEAN Economic Community’ (ASEAN Secretariat December 2015).

2. Association of Southeast Asian Nations (ASEAN), ‘ASEAN Economic Community Blueprint 2025’ (ASEAN Secretariat 2015), 13 <www.asean.org/storage/images/2015/November/aec-page/AEC-Blueprint-2025-FINAL.pdf> accessed 2 February 2017.

3. World Bank, ‘Good Practices for Financial Consumer Protection’ (World Bank June 2012), 87 <http://siteresources.worldbank.org/EXTFINANCIALSECTOR/Resources/Good_Practices_for_Financial_CP.pdf> accessed 2 February 2017.

4. Organisation for Economic Cooperation and Development (OECD), ‘G20 High-Level Principles on Financial Consumer Protection’ (OECD October 2011), 4 <www.oecd.org/g20/topics/financial-sector-reform/48892010.pdf> accessed 2 February 2017.

5. The resilience of the Australian financial system during the global financial crisis is attributed in part to its strong regulatory regime which deterred the sale of riskier products to Australian consumers: Financial Stability Board (FSB), ‘Consumer Finance Protection with particular focus on credit’ (FSB 26 October 2011), 4 <www.fsb.org/wp-content/uploads/r_111026a.pdf> accessed 2 February 2017.

6. World Bank, ‘Good Practices’ (n 3) 89.

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8. ASEAN 5 refers to Indonesia, Malaysia, the Philippines, Singapore and Thailand.

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11. In examining financial consumer redress mechanisms in ASEAN 5 countries, this article focuses on formal regulatory frameworks, and does not examine the practices of financial service providers in detail.

12. Association of Southeast Asian Nations (ASEAN), ‘ASEAN Economic Community’ (ASEAN Secretariat 2008), 5 <http://asean.org/wp-content/uploads/archive/5187-10.pdf> accessed 2 February 2017 (noting that, in 2007, ASEAN leaders affirmed their commitment to establish the ASEAN Economic Community by 2015).

13. ASEAN, ‘ASEAN Economic Community Blueprint’ (n 2) 8.

14. Securities Commission Malaysia, ‘ASEAN Capital Market Regulators Launch Framework for the Cross-border Offering of CIS’ (Press release, Securities Commission Malaysia 25 August 2014) <www.sc.com.my/post_archive/asean-capital-market-regulators-launch-framework-for-the-cross-border-offering-of-cis/> accessed 2 February 2017.

15. ASEAN, ‘ASEAN Economic Community Blueprint’ (n 2) para 53.

16. Asia-Pacific Economic Cooperation, ‘Statement of Understanding on the Establishment of the Asia Region Funds Passport’ (Financial Services Agency of Japan 11 September 2015) <www.fsa.go.jp/en/news/2015/20150911-1/01.pdf> accessed 2 February 2017. Singapore was one of the initial participants in the proposed ARFP but has since held back over tax issues: Yasmine YAHYA, ‘S’pore Holds Off on APEC Fund Deal over Tax’ Straits Times (Singapore, 16 September 2015).

17. Andrew Godwin and Ian Ramsay, ‘The Asia Region Funds Passport Initiative: Challenges for Regulatory Coordination’ (2015) 26 ICCLR 236; APEC Finance Ministers Process, ‘Asia Region Funds Passport Framework Document’ (APEC 2013) <http://fundspassport.apec.org/files/2013/12/Asia-Region-Funds-Passport-Framework-Document.docx> accessed 2 February 2017.

18. OECD (n 4); World Bank, ‘Good Practices’ (n 3).

19. Financial services included in the recommendations include banking, securities, insurance, non-bank credit and private pensions: World Bank, ‘Good Practices’ (n 3).

20. External dispute resolution mechanisms are independent forums which assist in resolving disputes between consumers and financial services providers.

21. OECD (n 4) 7.

22. ibid.

23. ibid.

24. World Bank, ‘Good Practices’ (n 3) 26.

25. OECD, (n 4) 7.

26. Megan Chapman and Rafael Mazer, ‘Making Recourse Work for Base-of the-Pyramid Financial Consumers’ (CGAP Focus Note No. 90, CGAP December 2013).

27. World Bank, ‘Good Practices’ (n 3) 27.

28. ibid; OECD (n 4) 7.

29. World Bank, ‘Good Practices’ (n 3) 27.

30. Chapman and Mazer (n 26) 2.

31. ibid.

32. Choong Lyol Lee and Shinji Takagi, ‘Assessing the Financial Landscape for the Association of Southeast Asian Nations Economic Community, 2015’ (2015) 2 Asia & the Pacific Policy Studies 116, 116.

33. Undang-Undang Republik Indonesia No. 1/2011 tentang Otoritas Jasa Keuangan [Law No. 21 of 2011 on Financial Services Authority], art 1.

34. Peraturan Otoritas Jasa Keuangan Nomor: 1/POJK.07/2013 Tentang Perlindungan Konsumen Sektor Jasa Keuangan [Financial Services Authority Regulations No. 1/POJK.07/2013 concerning Protecting Consumers in the Financial Services Sector], art 32.

35. ibid, art 36.

36. ibid, art 35. In specific situations, a further period of twenty working days is permitted for the resolution of complaints.

37. ibid, art 1.

38. ibid, art 41.

39. Otoritas Jasa Keuangan [Financial Services Authority], ‘OJK Consumer Service Applies Trackable and Traceable Facilities’ (Press release, Otoritas Jasa Keuangan 6 February 2014) <www.ojk.go.id/en/press-release-ojk-inaugurates-integrated-consumer-care-system> accessed 19 January 2017; World Bank Group, ‘Indonesia Diagnostic Review of Consumer Protection and Financial Literacy, Volume 1’ (World Bank December 2014), 38 <http://responsiblefinance.worldbank.org/~/media/GIAWB/FL/Documents/Diagnostic-Reviews/Indonesia-CPFL-DiagReview-Volume-I-FINAL.pdf> accessed 2 February 2017.

40. Otoritas Jasa Keuangan [Financial Services Authority], ‘OJK: Tingkat Pengaduan Konsumen dan Tingkat Kesadaran Masyarakat Meningkat [FSA: Levels of Consumer Complaints and Community Awareness Have Increased]’ (Info Terkini [Latest Information], Otoritas Jasa Keuangan 17 March 2015) <www.ojk.go.id/ojk-tingkat-pengaduan-konsumen-dan-tingkat-kesadaran-masyarakat-meningkat> accessed 27 April 2016.

41. Amianti, Grace D., ‘Banking Dispute Resolution Body to Operate Next Year’ The Jakarta Post (Jakarta, 4 December 2015)Google Scholar.

42. Otoritas Jasa Keuangan, ‘Tingkat Pengaduan Konsumen’ (n 40).

43. ibid.

44. According to Kusumaningtuti S. Soetiono, OKJ commissioner for consumer education and protection, most of the banking disputes concerned debt restructuring, collateral and payment systems: Amianti (n 41).

45. A. Muttaqiena, ‘Credit Card Complaints Dominate Financial Consumer Protection in Indonesia’ Seputar Forex (Jakarta, 21 February 2014) <www.seputarforex.com/abe/indonesian_economy/view.php?id=161349&title=credit_card_complaints_dominate_financial_consumer_protection_in_indonesia> accessed 3 February 2017.

46. ‘Empat Lembaga Alternatif Penyelesaian Sengketa Keuangan Siap Beroperasi [Four Alternative Resolution Institutions for Financial Dispute Ready to Operate]’ Hukumonline (Jakarta, 28 April 2015) <www.hukumonline.com/berita/baca/lt553f580b5aab9/empat-lembaga-alternatif-penyelesaian-sengketa-keuangan-siap-beroperasi> accessed 19 January 2017; Yanita Petriella Selasa, ‘OJK Dan Asosiasi Perbankan Bentuk Lembaga Alternatif Penyelesaian Sengketa Perbankan [FSA And Banking Associations Form Alternative Dispute Resolution Institutes for Banking]’ Indonesia Business Daily (Jakarta, 28 April 2015).

47. Peraturan Otoritas Jasa Keuangan Nomor 1/POJK.07/2014 Tentang Lembaga Alternatif Penyelesaian Sengketa Di Sektor Jasa Keuangan [Financial Services Authority Regulations No. 1/POJK.07/2014 on Alternative Dispute Resolution Institutes in the Financial Services Sector].

48. ibid.

49. ibid, art 4.

50. ibid, art 3(3).

51. ‘Keputusan LAPSPI Bersifat Final bagi Lembaga Keuangan [LAPSPI Decisions are Final for Financial Institutions]’ Republika (Jakarta, 28 April 2015) <www.republika.co.id/berita/ekonomi/keuangan/15/04/28/nniqwr-keputusan-lapspi-bersifat-final-bagi-lembaga-keuangan> accessed 20 January 2017.

52. Peraturan Otoritas Jasa Keuangan Nomor 1/POJK.07/2014 Tentang Lembaga Alternatif Penyelesaian Sengketa Di Sektor Jasa Keuangan [Financial Services Authority Regulations No. 1/POJK.07/2014 on Alternative Dispute Resolution Institutes in the Financial Services Sector], art 2.

53. Amianti (n 41).

54. World Bank Group, ‘Indonesia Volume 1’ (n 39) 10.

55. ibid 40.

56. Undang-Undang Republik Indonesia No. 1/2011 tentang Otoritas Jasa Keuangan, [Law No. 21 of 2011 on Financial Services Authority], art 70. Likewise, Article 55 of the Financial Consumer Protection Regulations No. 1/POJK.07/2013 states that other financial consumer protection rules remain in force provided that they are not inconsistent with the regulations.

57. The maxim lex specialis derogate lex generalis is widely accepted among Indonesian legal scholars; Arskal Salim, Contemporary Islamic Law in Indonesia: Sharia and Legal Pluralism (Edinburgh University Press 2015), 58-59; Giorgio Budi Indrato, et al., ‘The Context of REDD+ in Indonesia: Drivers, Agents and Institutions’ (Working Paper 92, Center for International Forestry Research 2012) 36.

58. Islamic Economic Society Dispute Resolution Institution, ‘Dispute Resolution Institution’ (Islamic Economic Society) <www.islamiceconomic.org/indonesia-have-various-alternative-dispute-resolution-institution> accessed 20 January 2017.

59. Badan Mediasi dan Arbitrase Asuransi Indonesia (BMAI), the insurance ADR institute, sets the threshold for mediation and adjudication at a maximum of Rp 750 million for general insurance and Rp 500 million for life insurance. Disputes involving amounts over those limits may proceed to arbitration. Similarly, Badan Arbitrase Pasar Modal Indonesia (BAPMI), the capital markets ADR institute, sets the threshold at Rp 500 million and below for adjudication, which it describes as a summary version of arbitration (arbitrase ringkas): Peraturan dan Prosedur Ajudikasi Badan Mediasi dan Arbitrase Asuransi Indonesia [Adjudication Rules and Procedure Insurance Mediation and Arbitration Agency Indonesia], art 6. See ‘BAPMI Akan Bentuk Layanan Adjudikasi’ [BAPMI Will Provide Adjudication Services]’ Askrida (Jakarta, 8 December 2014) <http://askrida.com/bapmi-akan-bentuk-layanan-ajudikasi.html#.VntzrVI2Xgk> accessed 20 January 2017.

60. For instance, BMAI’s mediation and adjudication services are free while the cost of arbitration services varies according to the amount disputed. BAPMI has a scale of costs for its services; Badan Mediasi dan Arbitrase Asuransi Indonesia [Institute for Mediation and Arbitration of Insurance Indonesia] (BMAI), ‘Tentang BMAI [About BMAI]’, (BMAI) <http://bmai.or.id/index.php?option=com_content&view=article&id=66&Itemid=193> accessed 20 January 2017; Peraturan Badan Arbitrase Pasar Modal Indonesia Nomor: 02/BAPMI/12.2014 tentang Peraturan dan Acara Mediasi [Regulations of the Capital Market Arbitration Institute Indonesia Number: 02/BAPMI/12/2014 on Rules and Procedure for Mediation] (2014) 9.

61. World Bank Group, ‘Indonesia Volume 1’ (n 39) 40.

62. ibid 9.

63. Kawamura explains musyawarah mufakat as a customary practice of decision making based on consensus and deliberation, often observed in village meetings. Musyawarah mufakat is also used in formal, high-level decision-making such as legislative processes in Parliament; Koichi Kawamura, ‘Consensus and Democracy in Indonesia: Musyawarah-Mufakat Revisited’ (IDE Discussion Paper No. 30, Institute of Developing Economies September 2011) <www.ide.go.jp/English/Publish/Download/Dp/308.html> accessed 2 February 2017.

64. Juwana, Hikmahanto, ‘Courts in Indonesia: A Mix of Western and Local Character’ in Jiunn-rong Yeh and Wen-Chen Chang, eds., Asian Courts in Context (Cambridge University Press 2015) 303 Google Scholar, 328; World Bank Group, ‘Indonesia Volume 1’ (n 39) 37.

65. BPSK has jurisdiction over consumer disputes involving goods and services. The term ‘services’ is defined broadly and arguably extends to financial services: Undang-undang Republik Indonesia No. 8 Tahun 1999 tentang Perlindungan Konsumen [Law No. 8 of 1999 on Consumer Protection], art 1 and 52.

66. Raghavendra Verma, ‘The Clock is Ticking’ Asian Legal Business (1 June 2014) <www.legalbusinessonline.com/features/clock-ticking/65990> accessed 2 February 2017.

67. Bank Negara Malaysia [Central Bank of Malaysia] (BNM), ‘Guidelines on Complaints Handling’ (BNM/RH/GK 000-4) (17 December 2009). The guidelines were issued in 2009 and became effective on 1 February 2010.

68. Bank Negara Malaysia [Central Bank of Malaysia] (BNM), ‘Complaint units of financial institutions’ (Bank Negara Malaysia) <www.bnm.gov.my/?ch=en_complaint_redress> accessed 27 April 2016.

69. Daljit Dhesi, ‘Malaysian Banks Take Heed of Complaints, Making Huge Investment to Improve Services’ The Star (Malaysia, 25 March 2013) <www.thestar.com.my/business/business-news/2013/03/25/malaysian-banks-take-heed-of-complaints-making-huge-investments-to-improve-services/> accessed 2 February 2017.

70. Financial Mediation Bureau, ‘Annual Report 2014’ (Ombudsman for Financial Services 2014), 6 <www.ofs.org.my/file/files/FMB-AR2014-FINAL.pdf> accessed 2 February 2017.

71. ibid at 10. Disputes must be referred to the Financial Mediation Bureau within six months. ibid 80.

72. The Financial Mediation Bureau’s jurisdiction extends to motor and fire insurance policies of up to RM 200,000, other policies including life, medical, travel insurance of up to RM 100,000 and third property damage claims of RM 5,000 or less. ibid.

73. ibid 11.

74. ibid 5.

75. ibid.

76. Financial Mediation Bureau, ‘How to Lodge a Complaint’ (Financial Mediation Bureau) <www.fmb.org.my/en/how_to_lodge_a_complaint> accessed 27 April 2016.

77. Bank Negara Malaysia [Central Bank of Malaysia] (BNM), ‘SMS Service’ (BNM) <www.bnm.gov.my/index.php?ch=en_sms&pg=en_sms&ac=767> accessed 27 April 2016; Bank Negara Malaysia [Central Bank of Malaysia] (BNM), ‘Complaint and Redress’ (BNM) <www.bnm.gov.my/index.php?ch=en_complaint_redress&lang=en> accessed 27 April 2016.

78. Bank Negara Malaysia [Central Bank of Malaysia] (BNM), ‘Establishment of Bank Negara Malaysia TELELINK 1-300-88-LINK’ (Press release, BNM 6 July 2007) <www.bnm.gov.my/index.php?ch=en_press&pg=en_press&ac=693&lang=en> accessed 2 February 2017.

79. Financial Services Act 2013, s 126 provides for the establishment of a financial ombudsman.

80. Bank Negara Malaysia (BNM), ‘Financial Ombudsman Scheme Concept Paper’ (BNM/RH/CP 029-4 BNM 2014), 8-11 <www.bnm.gov.my/guidelines/10_business_conduct/5_financial_ombudsman_scheme.pdf> accessed 2 February 2017.

81. The maximum award for payment instruments is RM 25,000 (USD 6,400); Financial Services (Financial Ombudsman Scheme) Regulations 2015, r 18.

82. Financial Services (Financial Ombudsman Scheme) Regulations 2015, r 19.

83. Financial Services (Financial Ombudsman Scheme) Regulations 2015, r 13.

84. Securities Industry Dispute Resolution Centre (SIDReC), ‘Terms of Reference of the Securities Industry Dispute Resolution Centre’ (SIDReC January 2011) <http://sidrec.com.my/wp-content/uploads/2015/02/SIDREC_TOR.pdf> accessed 2 February 2017.

85. Securities Industry Dispute Resolution Centre (SIDReC), ‘Annual Report 2014’ (SIDReC 2014), 38-9 <http://sidrec.com.my/wp-content/uploads/2015/05/SIDREC_AD_2014-V2-3.pdf> accessed 2 February 2017.

86. SIDReC, ‘Terms of Reference’ (n 84).

87. Cooperatives are regulated by the Cooperative Commission of Malaysia under the purview of the Ministry of Domestic Trade, Cooperatives and Consumerism; Consultative Group to Assist the Poor (CGAP), ‘CGAP Consumer Protection Policy Diagnostic Report Malaysia 2009’ (CGAP 2009), 4 <www.cgap.org/sites/default/files/CGAP-Consumer-Protection-Policy-Diagnostic-Report-Malaysia-2009.pdf> accessed 2 February 2017.

88. Money lending and pawn broking are under the supervision of the Ministry of Urban Wellbeing, Housing and Local Government; Ministry of Urban Wellbeing, Housing and Local Government, ‘Homepage’ (Ministry of Urban Wellbeing) <www.kpkt.gov.my/> accessed 27 April 2016. Hire purchase and retail credit come under the Ministry of Domestic Trade, Cooperatives and Consumerism; Ibid. at 5.

89. National Consumer Complaints Centre, ‘Proses Pengendalian Aduan [Complaints-handling Process]’ (National Consumer Complaints Centre) <www.nccc.org.my/v2/index.php/mengenai-nccc/proses-pengendalian-aduan> accessed 27 April 2016.

90. Consumer Protection Act 1999, s 98.

91. Ministry of Domestic Trade, ‘Cooperative and Consumerism, Enforcement of Award’ (Ministry of Domestic Trade, Cooperative and Consumerism) <http://ttpm.kpdnkk.gov.my/portal/index.php/en/award/enforcement-of-award> accessed 27 April 2016.

92. The 2011 Economic Census indicated that small and medium enterprises accounted for 97.3 percent of establishments in Malaysia. Of the small and medium enterprises, 77 percent were microenterprises, while 20 percent were small enterprises; Department of Statistics Malaysia, Economic Census 2011 (2011), 89-91.

93. Consultative Group to Assist the Poor (n 87) 4; Mohamed Asmy Bin Mohd Thas Thaker and Mustafa Omar Mohammed, ‘The Challenges of Micro Enterprises in Malaysia and the Prospect for Integrated Cash Waqf Micro Enterprise Investment (ICWME-I) Model’ in Mohd Asri Abdullah and Mohammad-Bashir Owolabyi Yusuf, eds. Small and Medium Enterprises in Selected Muslim Countries (IIUM Press 2015), 203.

94. Agensi Kaunseling dan Pengurusan Kredit [Credit Counselling and Debt Management Agency] (AKPK), ‘Loan Sharks and their Illegal Activities’ (AKPK 2 July 2013) <www.akpk.org.my/learning/articles-and-tips/id/899/loan-sharks-and-their-illegal-activities> accessed 27 April 2016.

95. CGAP, (n 87) 4.

96. Bangko Sentral ng Pilipinas [Central Bank of Phillipines] (BSP), ‘Manual of Regulation for Banks, Part Ten: BSP Regulations on Financial Consumer Protection’ (BSP 2014), s X 1002.4 <www.bsp.gov.ph/downloads/Regulations/MORB/MORB_11_of_16.pdf> accessed 27 April 2016.

97. Bangko Sentral ng Pilipinas [Central Bank of Phillipines] (BSP), ‘Guidelines and Procedures Governing the Consumer Assistance Management System of BSP-Supervised Financial Institutions’ (BSP 2014), III(d) <www.bsp.gov.ph/downloads/Regulations/MORB/MORNBFI1.pdf> accessed 27 April 2016.

98. ibid F(1).

99. BSP, ‘Manual of Regulation for Banks’ (n 96) X 1002.4.

100. Bank Marketing Association of the Philippines (BMAP), ‘Banking Code for Consumer Protection’ (BMAP revised 2011) <http://bmap.net/wp-content/uploads/2014/06/Banking-Code-for-Consumer-Protection.pdf> accessed 2 February 2017.

101. World Bank Group, ‘Republic of the Philippines: Diagnostic Review of Consumer Protection in the Banking Sector, Volume II’ (World Bank November 2014), 103 <http://responsiblefinance.worldbank.org/~/media/GIAWB/FL/Documents/Diagnostic-Reviews/Philippines-CP-DiagReview-Banking-Volume-II-FINAL.pdf> accessed 2 February 2017.

102. Insurance Commission, Circular Letter No. 2014-47 (21 November 2014).

103. World Bank Group, ‘Republic of the Philippines’ (n 101) 55.

104. Bangko Sentral ng Pilipinas [Central Bank of the Philippines] (BSP), ‘Consumer Assistance Mechanism’ (BSP) <www.bsp.gov.ph/about/advocacies_fin_cam.asp> accessed 27 April 2016.

105. Lee C. Chipongian, ‘BSP Resolves 99.5% of Bank Complaints’ Manila Bulletin (Manila, 5 April 2014); ‘BSP Beefs Up Consumer Protection’ Manila Bulletin (Manila, 28 June 2014).

106. World Bank Group, ‘Republic of the Philippines’ (n 101) 104.

107. Chipongian, Lee C., ‘BSP Issues Advisory on Credit Card Debt Restructuring’ Manila Bulletin (Manila, 30 April 2015)Google Scholar.

108. World Bank Group, ‘Republic of the Philippines’ (n 101) 55.

109. Chipongian, ‘BSP Issues Advisory’ (n 107).

110. Insurance Commission, ‘Frequently Asked Questions’ (Insurance Commission) <www.insurance.gov.ph/htm/_faq.asp> accessed 27 April 2016.

111. Insurance Commission, ‘Annual Report 2013’ (Insurance Commission 31 December 2013), 3 <www.insurance.gov.ph/_@dmin/upload/reports/AR_31Dec2013.pdf> accessed 27 April 2016.

112. World Bank Group, ‘Republic of the Philippines’ (n 101) 106.

113. Pre-need plans involve the payment of instalments for the purpose of future payments for specific needs such as education, retirement or funeral expenses: Pre-Need Indsutry Act of 2005, s 3(b).

114. Securities and Exchange Commission, ‘Mandate’ (Securities and Exchange Commission) <www.sec.gov.ph/aboutsec/mvv.html> accessed 27 April 2016; The 2006 Rules of Procedure of the Securities and Exchange Commission.

115. The 2006 Rules of Procedure of the Securities and Exchange Commission, r 6-1.

116. The 2006 Rules of Procedure of the Securities and Exchange Commission, r 3-15.

117. Chapman and Mazer (n 26) 15.

118. ibid 12.

119. ibid 19.

120. Monetary Authority of Singapore (MAS), ‘Guidelines on Fair Dealing – Board and Senior Management Responsibilities for Delivering Fair Dealing Outcomes to Customers’ (MAS 3 April 2009) <www.mas.gov.sg/~/media/resource/legislation_guidelines/fin_advisers/fin_advisers_act/guidelines/Guidelines%20on%20Fair%20Dealing.ashx> accessed 2 February 2017.

121. General Insurance Association of Singapore, ‘The Singapore General Insurance Code of Practice’ (Revised) (MAS 2016) <www.mas.gov.sg/~/media/resource/legislation_guidelines/fin_advisers/fin_advisers_act/guidelines/Guidelines%20on%20Fair%20Dealing.ashx> accessed 2 February 2017.

122. Monetary Authority of Singapore (MAS), ‘Guidelines on Fair Dealing – Board and Senior Management Responsibilities for Delivering Fair Dealing Outcomes to Customers’ (revised 20 February 2013).

123. Financial Industry Dispute Resolution Centre (FIDReC), ‘Annual Report 2014-2015’ (FIDReC 2015), 4 <www.fidrec.com.sg/website/annualreports/FIDReC%20AR%202014-2015.pdf> accessed 20 January 2017.

124. Ministry of Trade and Industry of Singapore (MTI), ‘Hire-Purchase’ (MTI 13 April 2009) <www.mti.gov.sg/legislation/Pages/Hire-Purchase.aspx#5> accessed 20 January 2017.

125. Consumers may seek assistance of the Small Claims Tribunal against moneylenders who charge excessive interest: The Advisory Committee on Moneylending, Final Report (2015) 6.

126. FIDReC (n 123).

127. ibid 7.

128. Financial Industry Dispute Resolution Centre (FIDReC), ‘Frequently Asked Questions’ (FIDReC) <www.fidrec.com.sg/website/faq.html> accessed 20 January 2017.

129. ibid .

130. Financial Industry Dispute Resolution Centre (FIDReC), ‘Dispute Resolution Process’, (FIDReC) <www.fidrec.com.sg/website/disputerp.html> accessed 20 January 2017

131. This was measured over a ten year period, from 2005 to 2015: Financial Industry Dispute Resolution Centre, ‘Annual Report 2014’ (n 123).

132. ibid 41-3.

133. Bank of Thailand, ‘Financial Institutions’, (Bank of Thailand) <www.bot.or.th/English/BOTStoryTelling/Pages/FinancialInstitutions_StoryTelling_FI.aspx> accessed 20 January 2017.

134. Robert Hickson and Patamawadee Suzuki, ‘Financial Consumer Protection Assessment Report, ‘Kingdom of Thailand: TA7998 (THA) - Development of a Strategic Framework for Financial Inclusion in Thailand’ (Technical Assistance Consultant’s Report, ADB October 2013), 16 <www.adb.org/sites/default/files/project-document/80370/45128-001-tacr-01.pdf> accessed 2 February 2017.

135. ibid 21.

136. ibid 25.

137. This includes annual on-site supervision and biannual off-site monitoring of SFIs: Asian Development Bank, ‘Thailand: Restructuring of Specialized Financial Institutions’ (ADB 2011), 31 <www.adb.org/sites/default/files/evaluation-document/35072/files/32437-01-tha-pper.pdf> accessed 2 February 2017.

138. Kanittha Tambunlertchai, ‘Financial Inclusion, Financial Regulation and Financial Education in Thailand’ (2015) ADB Working Paper Series No. 537, 14.

139. Hickson and Suzuki (n 134) 12.

140. Pathom Sangwongwanich, ‘Holding Banks Accountable: The FCC Champions Consumers against Dodgy Selling Practices’ Bangkok Post (Bangkok, 30 September 2013).

141. ibid.

142. ibid.

143. Bank of Thailand, ‘The Opening of the Financial Consumer Protection Centre’ (Press release, Bank of Thailand 13 January 2012) <www.bot.or.th/Thai/PressAndSpeeches/Press/News2555/n0355e.pdf> accessed 2 February 2017.

144. Hickson and Suzuki (n 134) 21.

145. ibid 13.

146. Consumers International, ‘Office of the Consumer Protection Board of Thailand’ (Consumers International) <www.consumersinternational.org/our-members/member-directory/Office%20of%20the%20Consumer%20Protection%20Board%20of%20Thailand> accessed 20 January 2017.

147. Hickson and Suzuki, (n 134) 11.

148. ibid 35.

149. The National Village Funds guidelines indicate how village funds should be managed. The funds are formally under the Prime Minister’s supervision. In practice, village funds are managed by local communities and are self-regulated; Patrick Meagher, ‘Microfinance Regulation and Supervision Recommendations Report: Development of a Strategic Framework for Financial Inclusion in Thailand’ (Technical Assistance Consultant’s Report, ADB October 2013), 33 <www.adb.org/sites/default/files/project-document/80373/45128-001-tacr-03.pdf> accessed 2 February 2017; Jirawan Boonperm, Jonathan Haughton and Shahidur R. Khandker, ‘Does the Village Fund Matter in Thailand? Evaluating the Impact on Incomes and Spending’ (2013) 25 Journal of Asian Economics 3, 4.

150. Cooperatives are under the oversight of the Ministry of Agriculture and Cooperatives: Tambunlertchai (n 138) 16.

151. Compliance with international best practices does not in itself imply convergence among these countries in their practices. Studies indicate that despite convergence in formal law across countries, there is a tendency towards greater divergence in the implementation of law; Reinier Kraakman, et al., The Anatomy of Corporate Law: A Comparative and Functional Approach (Oxford University Press 2nd ed, 2009), 313; Curtis J. Milhaupt and Katharina Pistor, Law and Capitalism: What Corporate Crises Reveal about Legal Systems and Economic Development around the World (University of Chicago Press 2008) 201.

152. BNM, ‘Guidelines on Complaints Handling’ (n 67); MAS, ‘Guidelines on Fair Dealing’ (n 120).

153. Peraturan Otoritas Jasa Keuangan Nomor: 1/POJK.07/2013 Tentang Perlindungan Konsumen Sektor Jasa Keuangan [Financial Services Authority Regulations No. 1/POJK.07/2013 on Financial Consumer Protection]; Bangko Sentral ng Pilipinas, ‘Guidelines and Procedures’ (n 97).

154. Dhesi, (n 69); World Bank Group, ‘Republic of the Philippines’ (n 101) 103; Hickson and Suzuki, (n 134).

155. Shahla F. Ali, Consumer Financial Dispute Resolution in a Comparative Context (Cambridge University Press 2015), 148. Moneylending and hire purchase are examples of financial services that do not come within FIDReC’s jurisdiction: The Advisory Committee on Moneylending, (n 125); Ministry of Trade and Industry Singapore (n 124).

156. Ministry of Manpower, ‘Central Provident Fund’, (Ministry of Manpower 18 January 2017): <www.mom.gov.sg/employment-practices/central-provident-fund> accessed 20 January 2017; ‘Employees Provident Fund, ‘About EPF’, (Employees Provident Fund 3 May 2016) <www.kwsp.gov.my/portal/en/about-epf/overview-of-the-epf> accessed 20 January 2017.

157. Iene Muliati, ‘Pension Reform Experience in Indonesia’ (IMF Conference for Designing Equitable and Sustainable Pension Post Crisis World, Tokyo, 9-10 January 2013); Grace D. Amianti, ‘RI Pension Fund Growth to Slow But Remains Solid’ Jakarta Post (Jakarta, 12 March 2015).

158. ASEAN Capital Markets Forum (ACMF), ‘Standards of Qualifying CIS’ (ACMF 2014), para 8.5. <www.theacmf.org/ACMF/upload/standards_of_qualifying_cis.pdf> accessed 20 January 2017.

159. APEC Finance Ministers Process, ‘Asia Region Funds Passport Framework Document’ (APEC 2013) para 10.3.

160. Financial Ombudsman Service Australia, ‘Financial Ombudsman Service Submission’ (Asia Region Funds Passport Consultation, Financial Ombudsman Service 2014).

161. ibid 10.

162. FIDReC (n 123) 4.

163. Financial services providers are able to submit to FIDReC’s jurisdiction even if they are not FIDReC subscribers. See Financial Industry Disputes Resolution Centre Ltd, ‘Terms of Reference’, r 4.

164. All capital markets intermediaries licensed by the Securities Commission of Malaysia are members of SIDREC. Failure by capital market intermediaries to comply with decisions of SIDREC have implications for their licences; Securities Commission Malaysia, ‘FAQ for Securities Industry Dispute Resolution Center (SIDREC)’ (Securities Commission Malaysia) <www.sc.com.my/faq-for-securities-industry-dispute-resolution-center-sidrec/> accessed 20 January 2017.

165. Financial Ombudsman Service Australia (n 160) 7.

166. According to the ARFP Framework Document, host country laws apply to the interaction between consumers and the Passport fund, while home country laws govern matters such as the licensing and duties of the CIS operator and risk management; APEC Finance Ministers Process (n 159) paras. 10-13. Specific Passport rules apply in areas such as streamlined authorization processes, qualifications of CIS operators and investment restrictions.

167. Financial Ombudsman Service Australia (n 160) 14.

168. International Organization of Securities Commissions (IOSCO), ‘Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information’ (IOSCO 2012) <www.iosco.org/about/?subsection=mmou> accessed 2 February 2017.

169. APEC Finance Ministers Process, ‘Framework’ (n 159) para 24.

170. ibid.

171. ASEAN Committee on Consumer Protection, ‘Claims and Complaints for ASEAN Consumers’ (ASEAN Committee on Consumer Protection) <www.aseanconsumer.org/> accessed 20 January 2017.

172. Allan Asher, William Dee and John T. D. Wood, ‘Guidelines for the Selection and Implementation of Complaint and Redress Models’ (ASEAN 2013) <www.asean.org/storage/images/2015/January/Community-ASEAN_economic_community-consumer_protection-key_document/Output%209%20%20Guidelines%20for%20Selection%20of%20Models%20-%209Jan14.pdf> accessed 2 February 2017; Allan Asher, William Dee and John T. D. Wood, ‘ASEAN Complaint and Redress Mechanism Models’ (ASEAN 2013) <www.asean.org/storage/images/2015/January/Community-ASEAN_economic_community-consumer_protection-key_document/Output%208%20i.Complaint%20and%20Redress%20Models%20-%209Jan14.pdf> accessed 2 February 2017.

173. Cross-border disputes refer to disputes in which parties are based in different countries.

174. Cai (n 9) 122.

175. Guidelines also contained recommended practices on drafting competition law and establishing enforcement systems; Association of Southeast Asian Nations (ASEAN), ‘Guidelines on Developing Core Competencies in Competition Policy and Law for ASEAN’ (ASEAN Secretariat 2012) <www.asean-competition.org/file/post_image/Regional%20Core%20Competencies.pdf> accessed 2 February 2017; Association of Southeast Asian Nations (ASEAN), ‘ASEAN Regional Guidelines on Competition Policy’ (ASEAN Secretariat, 2010).

176. Lee and Takagi (n 32) 117.

177. ASEAN, ‘ASEAN Regional Guidelines on Competition Policy’ (n 10) 2.

178. ASEAN, ‘ASEAN Economic Community Blueprint 2025’ (n 2) 13.

179. ibid 13.

180. ibid 14.

181. ASEAN, ‘ASEAN Regional Guidelines on Competition Policy’ (n 10); Association of Southeast Asian Nations (ASEAN), ‘Handbook on Competition Policy and Law in ASEAN for Business 2013’ (ASEAN Secretariat May 2013) <www.asean-competition.org/file/post_image/Handbook%20on%20CPL%20for%20Business.pdf> accessed 2 February 2017; Association of Southeast Asian Nations (ASEAN), ‘Guidelines on Developing Core Competencies in Competition Policy and Law for ASEAN’ (ASEAN Secretariat 2012) <www.asean-competition.org/file/post_image/Regional%20Core%20Competencies.pdf> accessed 2 February 2017.

182. Nguyen Dieu Tu Uyen, “Vietnam’s Economy is an Emerging Market Standout” Bloomberg (19 January 2016) <www.bloomberg.com/news/articles/2016-01-18/vietnam-growth-makes-it-emerging-market-standout-in-shaky-world> accessed 2 February 2017; OECD Development Centre, ‘Economic Outlook for Southeast Asia, China and India 2016: Enhancing Regional Ties’ (OECD 2016) <www.oecd.org/dev/asia-pacific/SAEO2016_Overview%20with%20cover%20light.pdf> accessed 2 February 2017; UN Capital Development Fund (UNCDF), ‘Digital Financial Services in Lao PDR’ (UNCDF January 2015) <www.uncdf.org/sites/default/files/Documents/dfs_in_lao_pdr.pdf> accessed 2 February 2017; International Monetary Fund (IMF), ‘Myanmar’s Growth Momentum is Strong, but Maintaining Stability is Key’ (IMF Survey, IMF 18 September 2015) <www.imf.org/en/News/Articles/2015/09/28/04/53/socar091815a> accessed 2 February 2017.

183. World Bank, ‘Good Practices’ (n 3); OECD (n 4).

184. World Bank, ‘Good Practices’ (n 3) 9.

185. Peraturan Otoritas Jasa Keuangan Nomor 1/POJK.07/2014 Tentang Lembaga Alternatif Penyelesaian Sengketa Di Sektor Jasa Keuangan [Financial Services Authority Regulations No. 1/POJK.07/2014 on Alternative Dispute Resolution Institutes in the Financial Services Sector], art 3(3).

186. World Bank Group, ‘Republic of the Philippines’ (n 101) 104.

187. Ali, (n 155) 140; SIDREC, ‘Panel of Mediators and Adjudicators’ (SIDREC) <http://sidrec.com.my/panel-of-mediators-adjudicators/> accessed 20 January 2017.

188. Goh Joon Seng is a former judge of the Supreme Court of Singapore and Siti Norma Yakob is retired Malaysian Federal Court judge.

189. Financial Ombudsman Service Australia, ‘Annual Review 2014-2015’ (Financial Ombudsman Service 2015) 95 <www.fos.org.au/custom/files/docs/20142015-fos-annual-review.pdf> accessed 2 February 2017.

190. Consumers are able to access case studies on the Financial Ombudsman Service website on a wide range of disputes and search for decisions issued. Information on the number and types of disputes handled is published in annual reviews: ibid 97.

191. Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes and amending Regulation (EC) No. 2006/2004 and Directive 2009/22/EC, art 16. The Directive sets out minimum standards for financial consumer redress mechanisms within the EU. Member States are allowed discretion as to the manner in which they achieve the objectives of the Directive and, as such, there is some diversity in redress mechanisms across the EU.

192. ibid. art 17.

193. Financial Dispute Resolution Network, ‘Welcome to FIN-NET’ (European Commission) <http://ec.europa.eu/finance/fin-net/index_en.htm> accessed 20 January 2017.

194. European Consumer Centres, ‘Solving Consumer Disputes’, (European Commission) <http://ec.europa.eu/consumers/solving_consumer_disputes/non-judicial_redress/ecc-net/index_en.htm> accessed 27 April 2016.

195. Yeo Guat Kwang, ‘CASE Signs MOU with FOMCA’ (CASE 26 August 2010) <www.case.org.sg/admin/news/pdf/60_pdf.pdf> accessed 27 April 2016.

196. ASEAN, ‘ASEAN Economic Community Blueprint 2025’ (n 2) 24.

197. ASEAN, ‘ASEAN Economic Community Blueprint 2025’ (n 2) 16. Automated negotiation, which simulates functions mediators perform, is a cost effective means of dispute resolution. Market incentives such as reputation facilitate amicable settlement of disputes. Even when disputes are not resolved, automated negotiation is thought to be useful in narrowing down issues; Cortes, Pablo and Lodder, Arno R, ‘Consumer Dispute Resolution Goes Online: Reflections on the Evolution of European Law for Out-of-Court Redress’ (2014) 21 Maastricht Journal of European and Comparative Law 14 CrossRefGoogle Scholar, 22.

198. The EU’s online dispute resolution platform provides electronic complaints forms that may be lodged online, identifies the competent ADR entity and transmits the complaint to it. The platform informs respondents of the complaints and provides electronic case management. The ODR services are provided in all the official languages of the EU and are free of charge. The ODR regulation builds on the ADR Directive. The ODR platform forwards complaints to the relevant ADR entity and enables the conduct of dispute resolution processes online, removing the need for the parties’ physical attendance: Regulation (EU) No 524/2013 of the European Parliament and of the Council of 21 May 2013 on online dispute resolution for consumer dispute and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC.

199. ibid art 7.

200. Chapman and Mazer (n 26) 15.

201. As mentioned in Part II.A above, in Indonesia, financial consumers have access to ADR institutes for disputes relating to pawnbroking.

202. Conroy, John D., ‘The Challenges of Microfinancing in Southeast Asia’ in Nick J. Freeman, ed., Financing Southeast Asia’s Economic Development (Institute of Southeast Asian Studies, 2003), 97 Google Scholar; Chan, Selina Ching and Owyong, David T., ‘Pawnshops in Singapore: Traditional Microfinance in a Modern Society’ in Aditya Goenka and David Henley, eds., Southeast Asia’s Credit Revolution: From Moneylenders to Microfinance (Routledge 2010) 84 Google Scholar, 85.

203. The World Bank’s statistics indicate that 47 percent of the Indonesian population, 56 percent of Philippines’ population, 51 percent of Thailand’s population and 26 percent of Malaysia’s population was rural in 2014; World Bank, ‘Data: Rural Population’ (World Bank) <http://data.worldbank.org/indicator/SP.RUR.TOTL.ZS> accessed 27 April 2016.

204. Sangwongwanich (n 140).

205. Hickson and Suzuki (n 134) 35.

206. Kirkpatrick, Andy, ‘English in ASEAN: Implications for Regional Multilingualism’ (2012) 33 Journal of Multilingual and Multicultural Development 331 CrossRefGoogle Scholar, 340.

207. The most common indigenous language in ASEAN is Indonesian or Malay, which is spoken in Brunei, Indonesia, Malaysia and Singapore: ibid.

208. Cortes and Lodder (n 197) 28.

209. This has been observed in the Philippines with microfinance consumers and in Indonesia with village credit and cooperatives; Chapman and Mazer (n 26) 19; World Bank Group, ‘Indonesia Volume 1’ (n 39) 37.

210. International best practices are described in more detail in Part I above.