Taipei, Jan. 2 (CNA) A nonprofit agency that will arbitrate disputes between consumers and financial institutions was formally launched Monday, centralizing a process currently divided between several different organizations.

The body, called the Financial Ombudsman Institution, will hear disputes between consumers and financial services companies such as banks, brokerage houses, and insurance companies and decide on compensation.

"The institution will not only be a consumer protection body, but will serve as a bridge for communications between consumers and financial institutions and make just and professional rulings on disputes between the two parties," said Chen Yuh-chang, chairman of the Financial Supervisory Commission (FSC), which will finance the new body.

Lin Kuo-chuan, chairman of the new institution, said financial institutions must first sign an agreement to state that they are willing to accept the institution's arbitration before cases related to them can be heard.

To get financial institutions to sign the agreement, Lin said it will publish a list of the companies that are unwilling to cooperate.

"Through transparent information, we will let consumers understand which financial institutions are willing to accept arbitration so that they can feel better protected," Lin said.

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