Regulatory Alerts2024-05-07
Bank Indonesia Regulation Number 3 of 2024 on Alternative Dispute Resolution Institution within The Financial Sector
Bank Indonesia issued Regulation Number 3 of 2024 to establish and supervise Alternative Dispute Resolution Institutions (LAPS-SK) for resolving out-of-court disputes between consumers and financial service providers. The regulation mandates that these institutions obtain prior approval from Bank Indonesia, adhere to strict governance structures including fit-and-proper tests for management, and comply with specific operational and membership requirements. It further outlines the duties, authorities, and administrative sanctions applicable to LAPS-SK entities and their member providers to ensure fair and efficient dispute resolution.
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