Financial Services Act 2013- Part 2
54. Chairman, directors and chief executive officer of institution
(1) Every institution shall at all times have a chief executive officer.
(2) Except with the prior written approval of the Bank--
(a) no licensed person shall appoint or elect, or reappoint or re-elect any person as its chairman, director or chief executive officer; and
(b) no person shall accept any appointment or election, or reappointment or re-election as a chairman, director or chief executive officer, of a licensed person.
(3) The licensed person shall submit an application in writing to the Bank together with such documents or information as may be specified by the Bank for the purposes of an approval under subsection (2).
(4) An approved person or operator of a designated payment system shall notify the Bank in writing of the appointment, reappointment, election or re-election of its chairman, director or chief executive officer and in the case of an approved financial adviser, its representative, within seven days or such other period as may be specified by the Bank together with such documents or information as may be specified by the Bank.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/55.Requirements to be chairman, director, chief executive officer or senior officer
55. Requirements to be chairman, director, chief executive officer or senior officer
(1) An institution shall not appoint or elect, reappoint or re-elect any person as a chairman, director, chief executive officer or senior officer of the institution, unless such person--
(a) is an individual;
(b) is not disqualified under subsection 59(1); and
(c) has complied with the fit and proper requirements as may be specified by the Bank under section 60.
(2) No person shall accept any appointment or election, reappointment or re-election as a chairman, director, chief executive officer or senior officer of an institution, unless such person--
(a) is not disqualified under subsection 59(1); and
(b) has complied with the fit and proper requirements as may be specified by the Bank under section 60.
(3) Unless the Bank otherwise approves, a chief executive officer of an institution shall have his principal or only place of residence within Malaysia and devote the whole of his professional time to the service of the institution.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/56.Functions and duties of board of directors
56. Functions and duties of board of directors
(1) The business and affairs of an institution shall be managed under the direction and oversight of its board of directors, subject to this Act and any other written law which may be applicable to the institution.
(2) Without limiting the generality of subsection (1), the board of directors shall--
(a) set and oversee the implementation of business and risk objectives and strategies and in doing so shall have regard to the long term viability of the institution and reasonable standards of fair dealing;
(b) ensure and oversee the effective design and implementation of sound internal controls, compliance and risk management systems commensurate with the nature, scale and complexity of the business and structure of the institution;
(c) oversee the performance of the senior management in managing the business and affairs of the institution;
(d) ensure that there is a reliable and transparent financial reporting process within the institution; and
(e) promote timely and effective communications between the institution and the Bank on matters affecting or that may affect the safety and soundness of the institution.
(3) In carrying out its functions or duties under this Division, the board of directors of an institution shall have regard to the interests of depositors or policy owners of the institution and participants.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/57.Duties of director
57. Duties of directors
(1) A director of an institution shall at all times--
(a) act in good faith in the best interests of the institution;
(b) exercise reasonable care, skill and diligence with--
(i) the knowledge, skill and experience which may reasonably be expected of a director having the same responsibilities; and
(ii) any additional knowledge, skill and experience which the director has;
(c) only exercise powers conferred on him for the purposes for which such powers are conferred; and
(d) exercise sound and independent judgment.
(2) Subsection (1) has effect in addition to, and not in derogation of, any written law or rule of law relating to the duty or liability of a director.
(3) Any director who contravenes paragraph (1)(c) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/58.Duty to disclose interests in material transaction or material arrangement
58. Duty to disclose interests in material transaction or material arrangement
(1) A director of an institution shall disclose to the board of directors of the institution the nature and extent of his interest, whether directly or indirectly, in a material transaction or material arrangement with the institution.
(2) Whether or not a declaration under subsection (1) has been made, a director who has, directly or indirectly, an interest in a material transaction or material arrangement shall not be present at the board meeting where the material transaction or material arrangement is being deliberated by the board of directors.
(3) Where there is any change in the nature and extent of a director's interest in a material transaction or material arrangement subsequent to the disclosure pursuant to subsection (1), the director shall make a further disclosure of such changes in accordance with subsection (1).
(4) For the purposes of subsection (1), the Bank may specify--
(a) the time, form, manner, procedures or any other incidental or ancillary matters in which the disclosure under subsection (1) is to be made; and
(b) what constitutes a material transaction or material arrangement.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/59.Disqualifications
59. Disqualifications
(1) A person is disqualified from being appointed or elected, reappointed or re-elected, accepting any appointment or election, or holding office, as a chairman, director, chief executive officer or senior officer of an institution if--
(a) he is an undischarged bankrupt, has suspended payments or has compounded with his creditors whether in or outside Malaysia;
(b) a charge for a criminal offence relating to dishonesty or fraud under any written law or the law of any country, territory or place outside Malaysia, has been proven against him;
(c) he is prohibited from being a director of a company or in any way, whether directly or indirectly, be concerned or take part in the management of a company in Malaysia pursuant to a court order made under section 130A of the Companies Act 1965 and has not obtained any leave of the court under the same section; or
(d) under any law relating to prevention of crime, drug trafficking or immigration--
(i) an order of detention, supervision, or deportation has been made against that person; or
(ii) any form of restriction or supervision by bond or otherwise, has been imposed on him.
(2) Where any criminal proceeding is pending in any court for any offence referred to in paragraph (1)(b) against a chairman, director, chief executive officer or senior officer of an institution, such person shall not--
(a) act in such capacity, hold any other office or act in any other capacity, in that institution; or
(b) be concerned with, take part or engage in any manner, whether directly or indirectly, in any activity, affairs or business of, or in relation to, that institution, except as may be permitted by the board of directors of the institution subject to such conditions as may be specified by the Bank.
(3) For the purposes of subsection (2), "criminal proceedings" shall be deemed to be pending from the date that the accused person is first charged in court for the offence until the date of the final conclusion of the proceedings, whether in the court of original jurisdiction or, in the event of any appeal by any party, in the court of final appellate jurisdiction.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/60.Fit and proper requirements
60. Fit and proper requirements
(1) Without limiting the generality of section 47 and for the purposes of paragraphs 55(1)(c) and 55(2)(b), the Bank may specify fit and proper requirements to be complied with by a chairman, director, chief executive officer or senior officer of an institution or a financial adviser's representative, which may include minimum criteria relating to--
(a) probity, personal integrity and reputation;
(b) competency and capability; and
(c) financial integrity.
(2) Where an issue arises as to whether a chairman, director, chief executive officer, senior officer or financial adviser's representative has complied with the fit and proper requirements as specified under subsection (1), the Bank shall have full discretion to determine the issue.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/61.Cessation from office
61. Cessation from office
(1) Where a chairman, director, chief executive officer or senior officer of an institution or a financial adviser's representative, as the case may be--
(a) becomes disqualified under subsection 59(1); or
(b) no longer complies with any of the fit and proper requirements as may be specified by the Bank under section 60, such chairman, director, chief executive officer, senior officer or financial adviser's representative shall immediately cease to hold office and act in such capacity.
(2) The institution shall immediately--
(a) in the case of paragraph (1)(a), terminate the appointment of such chairman, director, chief executive officer, senior officer or financial adviser's representative; or
(b) in the case of paragraph (1)(b), remove such chairman, director, chief executive officer, senior officer or financial adviser's representative from such office.
(3) Notwithstanding anything contained in any contract of service or any other agreement relating to his appointment, the chairman, director, chief executive officer, senior officer or financial adviser's representative terminated under paragraph (2)(a) shall not be entitled to claim any compensation for such termination.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/62.Notice of cessation from office
62. Notice of cessation from office
An institution shall notify the Bank in writing of the fact that a person has ceased to be its chairman, director, chief executive officer, senior officer or financial adviser's representative, as the case may be, pursuant to this Division or under any other circumstances and of the reasons for the cessation within seven days from the date of such cessation.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/63.Interpretation
Part V PRUDENTIAL REQUIREMENTS
Division 3 Transparency requirements
63. Interpretation
For the purposes of this Division--
"accounting records"
has the same meaning assigned to it in subsection 4(1) of the Companies Act 1965;
"approved accounting standards"
has the same meaning assigned to it in section 2 of the Financial Reporting Act 1997 [Act 558];
"financial statements"
has the same meaning as set out in the approved accounting standards issued or approved by the Malaysian Accounting Standards Board under the Financial Reporting Act 1997.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/64.Maintenance of accounting records and information
64. Maintenance of accounting records and information
An institution shall maintain or cause to be maintained proper accounting records and information in such manner as will sufficiently enable the institution to prepare its financial statements under section 65 and shall cause those records to be kept in such manner as to enable them to be conveniently and properly audited.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/65.Compliance with approved accounting standards
65. Compliance with approved accounting standards
An institution shall prepare its financial statements in accordance with--
(a) the approved accounting standards subject to any standards as may be specified by the Bank under subsection 47(1); or
(b) in the absence of any approved accounting standards, any standards as may be specified by the Bank under subsection 47(1).
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/66.Publication of financial statements
66. Publication of financial statements
(1) An institution shall publish its financial statements prepared under section 65 from time to time subject to any standards as may be specified by the Bank under subsection 47(1).
(2) Notwithstanding subsection (1), the Bank may require that the financial statements shall be audited before any publication under subsection (1).
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/67.Appointment of auditor by institution
Part V PRUDENTIAL REQUIREMENTS
Division 4 Auditors
67. Appointment of auditor by institution
(1) Every institution shall appoint an auditor for each financial year who meets such requirements or has such qualifications set out in any standards as may be specified by the Bank under subsection 47(1).
(2) Except with the prior written approval of the Bank, no licensed person shall appoint any person as its auditor and no person shall accept any appointment as an auditor of a licensed person.
(3) An approved person or operator of a designated payment system shall notify the Bank of the appointment of its auditor within such period as may be determined by the Bank.
(4) For the purposes of this Division--
(a) a person shall not be deemed to be an officer of an institution by reason only of him having been appointed as an auditor of the institution; and
(b) the term "appointment" includes reappointment.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/68.Appointment of auditor by Bank
68. Appointment of auditor by Bank
Without prejudice to section 67, the Bank may appoint an auditor for an institution--
(a) if the institution fails to appoint an auditor as required under subsection 67(1); or
(b) to act with an existing auditor of the institution appointed under subsection 67(1), and the remuneration and expenses relating to such appointment shall be borne by the institution
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/69.Duties of auditor
69. Duties of auditor
(1) An auditor appointed under this Division shall--
(a) carry out an audit of the business, affairs and books of the institution;
(b) submit a report of such audit to the members of the institution and the Bank;
(c) submit any additional information as may be specified by the Bank relating to the audit conducted under paragraph (a);
(d) expand or extend the scope of the audit conducted under paragraph (a) within such time, in such manner or to such extent as may be specified by the Bank; or
(e) carry out any specific assessment of the business, affairs and books of the institution as may be specified by the Bank and submit a report to the Bank on such assessment.
(2) The remuneration and expenses of the auditor relating to any expanded or extended scope of audit under paragraph (1)(d) or any specific assessment under paragraph (1)(e) shall be borne by the institution.
(3) Any audit carried out under subsection (1) shall be in accordance with generally accepted auditing standards applicable in Malaysia.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/70.Notice of cessation as auditor
70. Notice of cessation as auditor
Where during the course of an audit on an institution, an auditor appointed under section 67 or 68 has ceased to be an auditor of an institution, the auditor shall notify the Bank in writing of that fact and the reasons of such cessation within seven days from the date of such cessation.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/71.Information to be provided to auditor
71. Information to be provided to auditor
An institution and any director, officer or controller of that institution shall--
(a) provide the auditor appointed under section 67 or 68 all information within its or his knowledge or capable of being obtained by it or him which the auditor may require; and
(b) ensure that all such information provided under paragraph (a) is accurate, complete, not false or misleading in any material particular, to enable the auditor to carry out his duties under this Act
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/72.Reporting obligations of auditor
72. Reporting obligations of auditor
An auditor shall report such matter to the Bank immediately in writing if, in the course of carrying out his duties as an auditor of an institution under this Act, he is satisfied that--
(a) there has been a breach or contravention of any provision of this Act or a non-compliance of any standards as may be specified by the Bank under this Act which may have a material effect on the financial position of the institution;
(b) an offence involving fraud or dishonesty under any written law has been committed by the institution or by any director or officer of the institution;
(c) any irregularity which may have a material effect on the financial position of the institution, including any irregularity which jeopardizes or may jeopardize the interests of the depositors, policy owners, creditors of the institution, participants or users, or any other serious irregularity, has occurred;
(d) he is unable to confirm that claims of depositors, policy owners, creditors of the institution, participants or users, as the case may be, are covered by the assets of the institution or insurance fund, as the case may be;
(e) there is any weakness in the internal controls which is relevant to the financial reporting process undertaken by the institution; or
(f) the financial position of the institution is likely to be or has been materially affected by any event, conduct of activity by the institution or any weakness in the internal controls of the institution.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/73.Qualified privilege and duty of confidentiality
73. Qualified privilege and duty of confidentiality
(1) Subsection 133(1) shall not apply to any documents or information relating to the affairs or account of any customer of a financial institution subject to such conditions as may be specified by the Bank, disclosed by an auditor of a financial institution to the Audit Oversight Board established under the Securities Commission Act 1993 [Act 498] or an officer or other person authorized in writing by the Audit Oversight Board to perform the responsibilities of the Audit Oversight Board.
(2) An auditor of an institution shall not be liable--
(a) for a breach of a duty of confidentiality between the auditor and the institution in respect of any reporting to the Bank done in good faith under this Division; or
(b) to be sued in any court for defamation in respect of any statement made by the auditor without malice in the discharge of his duties under this Act.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/74.Appointment of actuary by licensed insurer
Part V PRUDENTIAL REQUIREMENTS
Division 5 Appointed actuaries
74. Appointment of actuary by licensed insurer
(1) Every licensed insurer shall appoint an actuary in respect of a life or general business carried on by the licensed insurer.
(2) Any actuary to be appointed under subsection (1) shall meet such requirements or have such qualifications set out in any standards as may be specified by the Bank under subsection 47(1).
(3) Except with the prior written approval of the Bank, no licensed insurer shall appoint any person as its actuary under subsection (1) and no person shall accept such appointment.
(4) An appointment under subsection (1) shall be for each financial year or such longer period as approved by the Bank.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/75.Appointment of actuary by Bank
75. Appointment of actuary by Bank
Without prejudice to section 74, the Bank may appoint an actuary for a licensed insurer if the licensed insurer fails to appoint an actuary as required under subsection 74(1) and the remuneration and expenses relating to such appointment shall be borne by the licensed insurer.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/76.Duties of appointed actuary
76. Duties of appointed actuary
An appointed actuary shall have such duties and functions set out in any standards as may be specified by the Bank under subsection 47(1).
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/77.Cessation as appointed actuary
77. Cessation as appointed actuary
A person shall cease to be the appointed actuary of a licensed insurer if--
(a) such person resigns from office;
(b) the licensed insurer terminates his appointment; or
(c) such person, in the opinion of the Bank, no longer meets the requirements or cease to have the qualifications as may be specified by the Bank under subsection 74(2).
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/78.Notice of cessation as appointed actuary
78. Notice of cessation as appointed actuary
(1) Where a person ceases to be an appointed actuary of a licensed insurer under section 77, such person shall notify the Bank in writing of that fact and the reasons of such cessation not later than seven days from the date of such cessation.
(2) Where a person ceases to be the appointed actuary of a licensed insurer under subsection (1), such insurer shall appoint another person as its appointed actuary under subsection 74(1) not later than such period as may be specified by the Bank from the date of the cessation.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/79.Information to be provided to appointed actuary
79. Information to be provided to appointed actuary
A licensed insurer and any director, officer or controller of such licensed insurer shall--
(a) provide the appointed actuary all information within its or his knowledge or capable of being obtained by it or him which the appointed actuary may require; and
(b) ensure that all such information provided under paragraph (a) is accurate, complete, not false or misleading, in any material particular, to enable the appointed actuary to carry out his duties and functions under this Act
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/80.Qualified privilege and duty of confidentiality
80. Qualified privilege and duty of confidentiality
An appointed actuary shall not be liable--
(a) for a breach of a duty of confidentiality between the appointed actuary and a licensed insurer in respect of--
(i) any reporting to the Bank; or
(ii) the discharge of his duties and performance of his functions, pursuant to any standards as may be specified under subsection 47(1) which was done or made in good faith; or
(b) to be sued in any court for defamation in respect of any statement made by the appointed actuary without malice in the discharge of his duties under this Act.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/81.Establishment and maintenance of insurance funds
Part V PRUDENTIAL REQUIREMENTS
Division 6 Insurance funds
81. Establishment and maintenance of insurance funds
(1) A licensed insurer shall establish and maintain one or more insurance funds for any class or description of its insurance business as may be specified by the Bank.
(2) Notwithstanding subsection (1), a licensed life insurer shall establish and maintain a separate insurance fund for its life insurance business relating to participating life policies.
(3) The Bank may specify that a licensed life insurer shall establish and maintain more than one insurance fund for its participating life policies under subsection (2).
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/82.Requirements relating to insurance funds
82. Requirements relating to insurance funds
(1) A licensed insurer shall--
(a) pay into an insurance fund all receipts in respect of policies to which the insurance fund relates and which are issued by it or under which it has undertaken liability, including all income of that insurance fund;
(b) maintain at all times assets in an insurance fund of a value equivalent to or higher than the liabilities of that insurance fund;
(c) apply the assets of an insurance fund only to meet the liabilities and expenses properly incurred by that insurance fund; and
(d) comply with such other requirements as may be specified by the Bank under paragraph 47(2)(g) including requirements on the types of assets to be, or not to be, included as assets of the insurance fund.
(2) For the purposes of subsection (1), the Bank may specify what constitutes "receipts", "income", "liabilities" or "expenses" and the manner to determine or value the receipts, income, assets, liabilities or expenses.
(3) Unless the Bank otherwise approves, a licensed insurer shall maintain an insurance fund established under section 81 so long as it is under liability in respect of any policy or insurance claim relating to that insurance fund.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/83.Withdrawal from insurance funds
83. Withdrawal from insurance funds
A licensed insurer shall not make any withdrawal from an insurance fund, whether from the surplus or otherwise of that insurance fund, unless--
(a) it has complied with such requirements on withdrawals as may be specified by the Bank;
(b) the withdrawal does not impair the sustainability of the insurance fund to meet its liabilities; and
(c) in respect of an insurance fund for participating life policies, the interests and fair treatment of policy owners, including their reasonable expectations, have been given due regard.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/84.Assumption of risk
84. Assumption of risk
(1) No licensed insurer shall assume any risk in respect of such description of policy as may be prescribed by the Bank unless and until the premium payable is received by the licensed insurer in such manner and within such time as may be prescribed by the Bank.
(2) Where the premium payable under subsection (1) is received by a person on behalf of a licensed insurer, the receipt shall be deemed to be receipt by the licensed insurer for the purpose of that subsection and the onus of proving that the premium was received by a person who was not authorized to receive the premium shall lie on the licensed insurer.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/85.Establishment or acquisition of subsidiaries and acquisition or holding of material interest in corporation
Part V PRUDENTIAL REQUIREMENTS
Division 7 Subsidiaries
85. Establishment or acquisition of subsidiaries and acquisition or holding of material interest in corporation
(1) No authorized person shall--
(a) establish or acquire a subsidiary in or outside Malaysia; or
(b) acquire or hold any material interest in any corporation, without the prior written approval of the Bank.
(2) The Bank may specify what constitutes "material interest" for the purposes of paragraph (1)(b).
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/86.Application and non-application
Part VI OWNERSHIP, CONTROL AND TRANSFER OF BUSINESS
86. Application and non-application
(1) Divisions 1 and 2 shall apply to a licensed person incorporated in Malaysia.
(2) Sections 87, 88, 89, 99 and 100 shall not apply to the Malaysia Deposit Insurance Corporation, its subsidiary, bridge institution or any person appointed under paragraph 99(1)(c) or section 106 of the Malaysia Deposit Insurance Corporation Act 2011, where such person is exercising its powers under that Act.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/87.Acquisition of interest in shares requiring approval
Part VI OWNERSHIP, CONTROL AND TRANSFER OF BUSINESS
Division 1 Interest in shares of licensed person
87. Acquisition of interest in shares requiring approval
(1) Subject to section 92 and except with the prior written approval of the Bank, no person--
(a) shall enter into an agreement or arrangement, to acquire any interest in shares of a licensed person by which, if the agreement or arrangement is carried out, he would hold (together with any interest in shares of that licensed person which are already held by such person) an aggregate interest of five per cent or more in the shares of the licensed person; or
(b) who has obtained an approval of the Bank under paragraph 90(3)(a), or the Minister under subsection 90(6) in respect of the prohibition under subsection (2), as the case may be, shall enter into any subsequent agreement or arrangement, by which, if the agreement or arrangement is carried out, he would hold an aggregate interest in shares of a licensed person of, or exceeding--
(i) any multiple of five per cent; or
(ii) the percentage holding for a mandatory offer under the Malaysian Code on Take-Overs and Mergers prescribed under section 217 of the Capital Markets and Services Act 2007.
(2) Notwithstanding subsection (1), no person shall enter into an agreement or arrangement to acquire any interest in shares of a licensed person by which, if the agreement or arrangement is carried out, he would hold (together with any interest in shares of that licensed person which are already held by such person) an aggregate of more than fifty per cent of the interest in shares of the licensed person, without obtaining the prior written approval of the Minister, on the recommendation of the Bank.
(3) For the avoidance of doubt, a person shall not be required to obtain--
(a) the approval of the Bank--
(i) under subsection (1), for any subsequent acquisition of interests in the shares of a licensed person, if--
(A) such person has already obtained the approval of the Bank under that subsection; and
(B) such acquisition will result in the person holding interest in shares which is less than any multiple of five per cent; or
(ii) under subparagraph (1)(b)(i), if the approval of the Minister under subsection (2) is also required for such acquisition; or
(b) the approval of the Minister under subsection (2) for any subsequent acquisition of interests in the shares of a licensed person if such person has already obtained the approval of the Minister under subsection 90(6) to hold an aggregate of more than fifty per cent of interest in shares of the licensed person.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/88.Control over licensed person prohibited in some cases
88. Control over licensed person prohibited in some cases
(1) Subject to subsection (2), no person shall have control over a licensed person, unless such person obtains the prior written approval of the Minister, on the recommendation of the Bank.
(2) Subsection (1) shall not apply to--
(a) any director or chief executive officer of a licensed person in respect of the carrying out of his duties and functions in the management of the licensed person; and
(b) a person who has obtained an approval of the Minister under subsection 90(6) to hold more than fifty per cent of the interest in shares of the licensed person.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/89.Disposal of interest in shares requiring approval
89. Disposal of interest in shares requiring approval
Except with the prior written approval of the Minister, on the recommendation of the Bank, no person who has an aggregate interest in shares of a licensed person of--
(a) more than fifty per cent; or
(b) fifty per cent or less but has control over the licensed person, shall enter into an agreement or arrangement to dispose any interest in shares of a licensed person by which, if the agreement or arrangement is carried out, such disposal would result in the person holding an interest in shares of less than fifty per cent or in any way ceasing to have control over the licensed person
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/90.Application procedures for section 87, 88 or 89
90. Application procedures for section 87, 88 or 89
(1) An application for an approval of--
(a) the Bank under subsection 87(1); or
(b) the Minister under subsection 87(2) or 88(1), or section 89, as the case may be, shall be made by submitting the application to the Bank together with such documents or information as may be specified by the Bank.
(2) In assessing the suitability of an applicant for the purposes of--
(a) granting an approval of the Bank under subsection 87(1); or
(b) recommending to the Minister under subsection 87(2) or 88(1), the Bank shall take into consideration matters that the Bank considers relevant including any of the factors set out in Schedule 6, and any standards as may be specified by the Bank under subsection 91(1).
(3) Upon making an assessment under subsection (2) and where the Bank is satisfied with the suitability of the applicant, the Bank--
(a) may approve an application in respect of subsection 87(1), with or without conditions; or
(b) may make a recommendation to the Minister to approve the application in respect of subsection 87(2) or 88(1), with or without conditions.
(4) Where an application is made under subsection (1) for an approval of the Minister in respect of section 89, the Bank shall consider the application and may make a recommendation to the Minister to grant the approval if the Bank is of the opinion that it would not be detrimental to the safety and soundness of the licensed person.
(5) The Bank shall notify the applicant in writing if the Bank does not make a recommendation to the Minister under paragraph (3)(b) or subsection (4).
(6) Where the Bank makes a recommendation pursuant to paragraph (3)(b) or subsection (4), the Minister may approve the application, with or without conditions, or reject the application.
(7) The Minister, on the recommendation of the Bank, in the case of an approval under subsection (6), or the Bank, in the case of an approval under paragraph (3)(a), may, at any time amend or revoke any condition imposed on such approval under subsection (6) or paragraph (3)(a), as the case may be.
(8) The Bank shall notify the applicant of its decision under paragraph (3)(a) or the decision of the Minister under subsection (6), as the case may be.
(9) The Bank may, at any time by notice in writing, require a person who has obtained the approval of the Bank under paragraph (3)(a) or the Minister under subsection (6) in respect of subsection 87(2) or 88(1), to submit any information or particulars of any share acquired or held directly or indirectly either for his own benefit or any other person.
(10) Any person who has been served with a notice under subsection (9) shall submit to the Bank such information and particulars as may be specified by the Bank.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/91.Power of Bank to specify standards on shareholder suitability
91. Power of Bank to specify standards on shareholder suitability
(1) The Bank may specify standards on shareholder suitability to give full effect to Schedule 6.
(2) Any person who has obtained the approval of the Bank under paragraph 90(3)(a) or the Minister under subsection 90(6) in respect of subsection 87(2) or 88(1), shall at all times comply with the standards as may be specified under subsection (1) to the satisfaction of the Bank.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/92.Maximum permissible holdings
92. Maximum permissible holdings
No individual shall hold more than ten per cent of interest in shares of a licensed person.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/93.Notification on acquisition or disposal of interest in shares of licensed person
93. Notification on acquisition or disposal of interest in shares of licensed person
(1) Where it comes to the knowledge of a director or an officer of a licensed person or a financial holding company that--
(a) any agreement or arrangement as referred to in section 87 or 89 has been or is about to be effected; or
(b) any person approved by the Bank under paragraph 90(3)(a) or the Minister under subsection 90(6) in respect of subsection 87(2) or 88(1), has failed to comply or is likely to fail to comply with standards as may be specified under subsection 91(1), the director or officer shall immediately notify the Bank of all such information which is within his knowledge.
(2) No director or officer shall be liable to any action for defamation at the suit of any person or be subject to any disciplinary proceedings in respect of the notification under subsection (1) made by the director or officer without malice.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/94.Order against defaulting persons
Part VI OWNERSHIP, CONTROL AND TRANSFER OF BUSINESS
Division 2 Action by Bank in event of breach
94. Order against defaulting persons
(1) Where the Bank is satisfied that any person (in this section referred to as "the defaulting person")--
(a) has breached section 87, 88, 89 or 92;
(b) has failed to comply with any condition imposed pursuant to the approval of the Bank or the Minister, as the case may be, under section 87, 88 or 89; or
(c) has failed to comply with any standards as may be specified by the Bank under subsection 91(1), the Bank may exercise its powers under subsection (2) as may be applicable or appropriate in the circumstances of the breach or non-compliance.
(2) Subject to section 262, where any of the circumstances described in subsection (1) exists, the Bank may make the following order:
(a) in respect of any shares which are the subject of the breach or non-compliance--
(i) prohibit the transfer of, or the carrying out of the agreement to transfer, such shares, or, in the case of unissued shares, prohibit the transfer of, or the carrying out of the agreement to transfer, the right to be issued with such unissued shares;
(ii) prohibit the exercise of any voting rights in respect of such shares;
(iii) prohibit the issue of any further shares in right of such shares or in pursuance of any offer made to their holder;
(iv) except in a liquidation, prohibit the payment of any sum due from the licensed person on such shares, whether in respect of capital or otherwise; or
(v) direct the defaulting person to surrender the shares to the Bank within a certain period as may be specified by the Bank; or
(b) in respect of a breach of section 88, direct the defaulting person to take such necessary actions as may be specified by the Bank in order to cease exercising or to relinquish its control over a licensed person.
(3) An order made under subsection (2) shall be served on the defaulting person as soon as is practicable, and may be published by the Bank in such manner as the Bank deems fit.
(4) Where a defaulting person has been served with an order under subsection (2), he shall notify any person for the time being holding any shares to which such order applies, any other person specified in the order or any person to whom the order is directed.
(5) An order under subsection (2) shall be binding on the defaulting person, any person for the time being holding any shares to which such order applies and any other person specified in the order or any person to whom the order is directed, notwithstanding--
(a) anything contained in any constituent documents of the licensed person; or
(b) anything contained in any contract entered into by such persons affecting the shares relating to the licensed person.
(6) The Bank may give such instructions or directions to the directors or officers of the licensed person as may be necessary or requisite to give effect to any order of the Bank under this section, or as may be incidental, ancillary or consequential to such order.
(7) Any transaction entered into by the defaulting person, including any agreement or arrangement in relation to any shares, interest in shares, or security, which is in contravention of any order under subsection (2) or of any instructions or directions given by the Bank under subsection (6), shall be void and of no effect.
(8) The satisfaction of the Bank under subsection (1) that a person has breached or failed to comply with section 87, 88 or 89 or standards specified by the Bank under subsection 91(1), may be arrived at regardless that there has been no exercise of any action in respect of such breach or non-compliance.
(9) A person who fails to comply with an order issued under subsection (2) or contravenes subsection (4) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/95.Additional provisions relating to order under subparagraph 94(2)(a)(v)
95. Additional provisions relating to order under subparagraph 94(2)(a)(v)
(1) After considering the representation made by the defaulting person under section 262 and where the Bank confirms an order made under subparagraph 94(2)(a)(v), the Bank may dispose of the shares surrendered to it pursuant to the order made under that subparagraph to such persons and to such extent as shall be consistent with the same being held lawfully by the person who acquires the shares under this Act.
(2) The proceeds of the disposal of the shares under subsection (1) shall be paid into the High Court, and any person claiming to be beneficially entitled to the whole or any part of such proceeds may, within thirty days of such payment into the High Court, apply to a judge of the High Court in chambers for payment out of the same to him.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/96.Interpretation
Part VI OWNERSHIP, CONTROL AND TRANSFER OF BUSINESS
Division 3 Interest in shares of approved person
96. Interpretation
For the purposes of this Division, "an approved person" does not include an approved operator of a payment system and an approved issuer of a designated payment instrument.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/97.Acquisition of interest in shares of approved person
97. Acquisition of interest in shares of approved person
(1) Where a person enters into an agreement or arrangement to acquire any interest in shares of an approved person, by which, if the agreement or arrangement is carried out, he would hold, together with any interest in shares of the approved person which were then already held by him, an aggregate interest in shares of not less than five per cent of the shares of the approved person, such person shall notify the Bank of such fact upon entering into such agreement or arrangement within the period as may be specified by the Bank.
(2) In addition to subsection (1), no person shall enter into any agreement or arrangement for the purpose of acquiring interest in shares pursuant to subsection (1), if such acquisition will result in a change in the control of an approved person, unless such person obtains the prior written approval of the Bank upon entering into such agreement or arrangement.
(3) The Bank may specify standards on shareholder suitability to give full effect to subsections (1) and (2).
(4) Any person who has notified the Bank under subsection (1) or obtained the approval of the Bank under subsection (2), shall at all times comply with the standards specified by the Bank under subsection (3) to the satisfaction of the Bank.
(5) For the purposes of this section, the Bank may, at any time by notice in writing, require a person who has notified the Bank under subsection (1) or obtained the approval of the Bank under subsection (2) to submit any information or particulars of any share acquired or held directly or indirectly either for his own benefit or any other person.
(6) Any person who has been served with a notice under subsection (5) shall submit to the Bank such information and particulars as may be specified by the Bank.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/98.Interpretation
Part VI OWNERSHIP, CONTROL AND TRANSFER OF BUSINESS
Division 4 Transfer of business, reconstruction or amalgamation of licensed person
98. Interpretation
For the purposes of this Division--
"security"
includes a mortgage or charge, whether legal or equitable, debenture, bill of exchange, promissory note, guarantee, lien or pledge, whether actual or constructive, hypothecation, indemnity, undertaking or other means of securing payment or discharge of a debt or liability, whether present or future, or whether vested or contingent;
"transferee"
means a person, including a licensed person, to which the whole or any part of the licensed business of a transferor is transferred under a business transfer scheme;
"transferor"
means a licensed person which transfers the whole or any part of its licensed business under a business transfer scheme.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/99.Approval required for reconstruction or amalgamation of licensed person
99. Approval required for reconstruction or amalgamation of licensed person
No person shall enter into an agreement or arrangement for the reconstruction or amalgamation under the Companies Act 1965 of a licensed person except with the prior written approval of the Minister, on the recommendation of the Bank.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/100.Approval required for business transfer scheme
100. Approval required for business transfer scheme
(1) No person shall enter into an agreement or arrangement for a scheme to transfer the whole or any part of the business of a licensed person, except with the prior written approval of the Bank.
(2) For the purposes of subsection (1), in the case of a licensed person which is a foreign insurer, a reference to "business" in subsection (1) is a reference to its Malaysian business as may be specified by the Bank.
(3) The transferor and transferee shall jointly submit an application for the approval of the Bank together with such documents or information as may be specified by the Bank.
(4) Where an agreement or arrangement for a business transfer scheme proposes to transfer the whole business, or a material part of the business of a licensed person, the Bank shall, prior to giving approval--
(a) be satisfied that the proposed agreement or arrangement is not prejudicial to--
(i) the interests of any person likely to be affected by the scheme; and
(ii) the safety and soundness of such licensed person; and
(b) obtain the concurrence of the Minister in respect of the proposed agreement or arrangement.
(5) For the purpose of subsection (4), the Bank may, after consultation with the Minister, specify what constitutes a material part of the business of a licensed person.
(6) The Bank may approve an application submitted under subsection (3), with or without conditions, or reject the application.
(7) The Bank shall notify the transferor and transferee of its decision under subsection (6) in writing.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/101.Notification of business transfer scheme
101. Notification of business transfer scheme
(1) Before an application is made to the High Court under subsection 102(1), a transferor shall publish in the Gazette a notice stating its intention to make the application to the High Court for confirmation of the business transfer scheme.
(2) In addition to the notice under subsection (1), the Bank may require the transferor to give such other notice in respect of the business transfer scheme and for such purpose, the Bank may specify the following requirements:
(a) persons to whom, and when such notices shall be given;
(b) the form or manner of the notices to be given; and
(c) the period within which a person specified under paragraph (a) may object to the proposed scheme.
(3) Where any person files an objection to the proposed scheme, the transferor, with the approval of the Bank, may modify the scheme.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/102.Application to High Court for confirmation of business transfer scheme
102. Application to High Court for confirmation of business transfer scheme
(1) Upon obtaining the approval of the Bank under subsection 100(6), the transferor and transferee may make an application to the High Court for confirmation of the business transfer scheme.
(2) An application to the High Court with respect to any matter connected with a business transfer scheme may be made by a person, who in the opinion of the High Court, is likely to be affected by the scheme, at any time before the High Court grants an order under subsection (3) confirming the scheme.
(3) The High Court may confirm the business transfer scheme by granting an order in the terms applied for, or with modifications to the terms applied, or refuse to confirm the scheme.
(4) When the High Court makes an order confirming the business transfer scheme under subsection (3) after hearing all parties concerned, the High Court shall fix a date, to be applied for by the transferor and transferee and to be known as the transfer date, on which the business transfer scheme shall take effect.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/103.Bank to be party to proceedings
103. Bank to be party to proceedings
(1) A person making an application to the High Court under subsection 102(2) in relation to a business transfer scheme shall--
(a) deliver a copy of the application to the Bank;
(b) give notice to the Bank of all proceedings relating to the application; and
(c) give to the Bank a copy of any document relating to the proceedings, at the same time as the proceedings are instituted or the document is lodged, in the High Court or the document is served on a party to the proceedings.
(2) The Bank shall be entitled to be heard in proceedings relating to the application under subsection (1).
(3) Notwithstanding that the Bank has given its approval to a business transfer scheme under subsection 100(6), the Bank may propose any modification to the scheme.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/104.Orders sought by transferor and transferee
104. Orders sought by transferor and transferee
(1) In an application made under subsection 102(1), the transferor and transferee may seek all or any of the following orders:
(a) for the transferor's rights and title to the assets to be transferred to the transferee under a business transfer scheme without the need to effect the transfer of rights and titles to each asset individually;
(b) in relation to a banking or an investment banking business transfer scheme, for any account between the transferor and its customer to become an account between the transferee and the customer, subject to the same conditions and incidents existed between the transferor and its customer, and such account to be deemed for all purposes to be a single continuing account;
(c) in relation to an insurance business transfer scheme, for the transferee to be fully responsible for liabilities transferred by the business transfer scheme whether arising out of policies or otherwise as though the liabilities were originally assumed by the transferee without the need for the transferee to confirm each liability individually;
(d) for any existing instrument, whether in the form of a deed, will or otherwise, or order of any court, under or by virtue of which any property became vested in the transferor, to be construed and to have effect as if for any reference therein to the transferor there were substituted a reference to the transferee;
(e) for any existing agreement to which the transferor was a party to have effect as if the transferee had been a party thereto instead of the transferor;
(f) for any existing instruction, order, direction, mandate, power of attorney, authority, undertaking or consent, whether or not in relation to an account, given to the transferor, either alone or jointly with another person, to have effect, in respect of anything due to be done as if given to the transferee either alone or, as the case may be, jointly with the other person;
(g) for any negotiable instrument or order for payment of money drawn on, or given to, or accepted or endorsed by, the transferor or payable at the office of the transferor, whether so drawn, given, accepted or endorsed before, on, or after, the transfer date, to have the same effect on and from the transfer date, as if it had been drawn on, or given to, or accepted or endorsed by, the transferee or were payable at the office of the transferee;
(h) for the custody of any document, goods or thing held by the transferor as bailee immediately before the transfer date to pass to the transferee and the rights and obligations of the transferor under any contract of bailment relating to any such document, goods or thing to be transferred to the transferee;
(i) for any security held immediately before the transfer date by the transferor, or by a nominee of, or trustee for, the transferor, as security for the payment or discharge of any liability of any person, to be held by the transferee or, as the case may be, to be held by that nominee or trustee as the nominee of, or trustee for, the transferee, and to the extent of those liabilities, be available to the transferee as security for the payment or discharge of those liabilities; and where any such security extends to future advances or future liabilities, to be held by, and to be available as aforesaid to, the transferee as security for future advances by, and future liabilities to, the transferee in the same manner in all respects as future advances by, or future liabilities to, the transferor were secured thereby immediately before the transfer date;
(j) where any right or liability of the transferor is transferred to the transferee, for the transferee to have the same rights, powers and remedies (and in particular the same rights and powers as to taking or resisting legal proceedings or making or resisting applications to any authority) for ascertaining, protecting or enforcing that right or resisting that liability as if it had at all times been a right or liability of the transferee, including those rights or liabilities in respect of any legal proceedings or applications to any authority pending immediately before the transfer date by or against the transferor;
(k) any judgment or award obtained by or against the transferor and not fully satisfied before the transfer date to be enforceable by or, as the case may be, against the transferee; and
(l) for all such incidental, consequential and supplemental orders as are necessary to secure that the business transfer scheme shall be fully and effectively carried out.
(2) Where the order for confirmation of the High Court under subsection 102(3) provides for the transfer of any business, including assets and liabilities, vested in or held by the transferor, either alone or jointly with any other person, then, by virtue of the order, that business, including assets and liabilities, shall, on and from the transfer date, become vested in or held by the transferee either alone or, as the case may be, jointly with such other person, and the order shall have effect according to its terms notwithstanding anything in any law and shall be binding on all persons affected by it, regardless that the person is not a party to the proceedings under this Division or any other related proceedings, or had no notice of the proceedings under this Division or of other related proceedings.
(3) Where an order of the High Court under subsection 102(3) vests any alienated land, or any share or interest in any alienated land, in the transferee--
(a) the High Court shall, where such alienated land is in Peninsular Malaysia, pursuant to subsection 420(2) of the National Land Code [Act 56 of 1965], cause a copy of the order to be served on the Registrar of Titles or the Land Administrator, as the case may be, immediately after the making of the order so that the Registrar of Titles or the Land Administrator, as the case may be, gives effect to subsections 420(2), (3) and (4) of the National Land Code;
(b) where such alienated land is in Sabah, the transferee shall, as soon as practicable after the order has been made, present an authenticated copy of such order to the Registrar for registration of the vesting of the alienated land or of the share or interest in alienated land as provided under the Land Ordinance of Sabah [Sabah Cap. 68]; or
(c) where such alienated land is in Sarawak, the transferee shall, as soon as practicable after the order has been made, produce an authenticated copy of such order to the Registrar for the registration of the vesting of the alienated land or of the share or interest in alienated land, in the transferee, as provided under section 171 of the Land Code of Sarawak [Sarawak Cap. 81].
(4) An order of the High Court under subsection 102(3) may relate to any assets or business of the transferor outside Malaysia and, if it so relates, effect may be given to it either in accordance with any reciprocal arrangements relating to enforcement of judgments that may exist between Malaysia and the country, territory or place outside Malaysia in which such assets or business is, or where there are no such arrangements, in accordance with the law applicable in such country, territory or place.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/105.Publication of court order under section 102
105. Publication of court order under section 102
(1) An order of the High Court made under subsection 102(3) shall, subject to the directions of the High Court, be published by the transferee in not less than two daily newspapers published in Malaysia and approved by the Bank, one of which shall be in the national language and the other in English.
(2) A transferor shall, within thirty days after the business transfer scheme has taken effect, lodge--
(a) such documents or information relating to the business transfer scheme as may be specified by the Bank, with the Bank; and
(b) a certified copy of such order made by the High Court under subsection 102(3) together with a certified copy of the Bank's approval, with--
(i) the Registrar of Companies; and
(ii) the appropriate authority, if any, concerned with the registration or recording of dealings in any movable property, or any interest in movable property transferred pursuant to the order.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/106.Reimbursement of Bank's expenses
106. Reimbursement of Bank's expenses
The transferor and transferee shall be jointly and severally liable to reimburse the Bank for any expenses the Bank may incur under this Division.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/107.Prohibition of payment out of insurance fund
107. Prohibition of payment out of insurance fund
Unless the Bank otherwise approves, no licensed insurer shall pay to any person any remuneration out of the assets of an insurance fund in relation to a business transfer scheme.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/108.Purpose of this Part
Part VII FINANCIAL GROUPS
108. Purpose of this Part
The Bank is empowered under this Part to exercise oversight over financial groups for the purposes of promoting the safety and soundness of a licensed person.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/109.Disapplication of sections 110 and 111 to licensed persons
109. Disapplication of sections 110 and 111 to licensed persons
Sections 110 and 111 shall not apply to licensed persons.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/110.Application to be financial holding company
110. Application to be financial holding company
(1) Any company which has to obtain the prior written approval of the Minister under section 87 to hold an aggregate interest in shares of more than fifty per cent in a licensed person shall submit an application to the Bank for it to be approved as a financial holding company.
(2) A company referred to in subsection (1) may propose another company within its corporate group to be approved as a financial holding company if it can be shown that the proposed company is in a position to have control over the licensed person and its proposed financial group.
(3) A person, other than a foreign institution or a company referred to in subsections (1) and (2), which is required to obtain the prior written approval of the Minister under section 87 to hold an aggregate interest in shares of more than fifty per cent in a licensed person shall propose a company within its corporate group which will have control over a licensed person and such proposed company shall submit to the Bank an application to be approved as a financial holding company.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/111.Power of Bank to require submission of application
111. Power of Bank to require submission of application
Where the Bank considers it is necessary for the purpose of maintaining effective regulation and supervision of a licensed person, the Bank may require--
(a) any other company within the corporate group of the applicant, if the Bank is of the opinion that neither the applicant nor the other company proposed by the applicant under section 110 should be approved as a financial holding company; or
(b) a company which has an aggregate interest in shares of fifty per cent or less in the licensed person but has control over the licensed person, to submit to the Bank an application to be approved as a financial holding company
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/112.Approval of application as financial holding company under section 110 or 111
112. Approval of application as financial holding company under section 110 or 111
(1) An application to be a financial holding company under section 110 or 111, as the case may be, shall be submitted to the Bank together with such documents or information as may be specified by the Bank.
(2) In assessing an application under section 110 or 111 for an applicant company to be approved as a financial holding company submitted under subsection (1), the Bank shall have regard to all matters that the Bank considers relevant including the factors set out in Schedule 6 and any standards specified by the Bank under subsection 91(1).
(3) Where the Bank is satisfied that such matters referred to in subsection (2) have been fulfilled by the applicant, the Bank may approve an application made pursuant to section 110 or 111, as the case may be, with or without conditions, or reject such application.
(4) The Bank may, at any time, in writing amend or revoke any existing condition of approval of a financial holding company under subsection (3) or impose any new condition thereto and such conditions shall not have retrospective effect.
(5) The Bank shall notify the applicant of its decision under subsection (3) in writing.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/113.Bank may approve more than one financial holding company
113. Bank may approve more than one financial holding company
The Bank may require more than one company within a corporate group of the applicant to be approved as a financial holding company.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/114.Business of financial holding company
114. Business of financial holding company
(1) Unless the Bank otherwise approves, a financial holding company of a licensed person shall not carry on any business, other than the business of holding investments directly or indirectly in corporations which are primarily engaged in financial services or in other services in connection with or for the purpose of such financial services.
(2) The Bank may specify standards to give full effect to subsection (1).
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/115.Prudential requirements on financial holding company and subsidiaries
115. Prudential requirements on financial holding company and subsidiaries
(1) Subject to subsection (2), Part V shall apply to a financial holding company as if references in that Part to an "institution" or a "licensed person" are references to a "financial holding company".
(2) The Minister may, on the recommendation of the Bank, by an order published in the Gazette, provide that all or any provision of Part V--
(a) shall not apply to a financial holding company; or
(b) shall apply with such modifications consistent with the regulatory objectives of this Act.
(3) The Bank may specify standards on prudential matters under section 47 to a subsidiary of a financial holding company, if the Bank is of the opinion that the activities of such subsidiary may pose risks to the licensed person or its financial group.
(4) A subsidiary of a financial holding company referred to in subsection (3) shall at all times ensure that its internal policies and procedures are consistent with the standards specified by the Bank under that subsection.
(5) A financial holding company or any of its subsidiries which contravenes any provision of this Act or any standards, notice, direction, condition, specification or requirement specified or issued by the Bank under any provision of this Act applied to it under this section commits a breach and the Bank may take an action under paragraph 234(3)(b) in addition to other enforcement actions that the Bank is empowered to take under this Act.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/116.Power to issue directions to financial holding company and subsidiaries
116. Power to issue directions to financial holding company and subsidiaries
(1) The Bank may issue one or more of the directions specified in subsection (2) or (3), if the Bank is of the opinion that--
(a) the financial holding company, its subsidiary or director, chief executive officer or senior officer of such financial holding company or such subsidiary--
(i) is committing or is about to commit an act, or is pursuing or is about to pursue any course of conduct or carrying on its business, in a manner that is detrimental to the safety and soundness of a licensed person;
(ii) has failed to comply with any standards, notice, condition, specification, requirement, restriction, direction or code specified, issued or made under this Act or a direction under subsection 214(6) or section 216 regardless that there has been no prosecution or other action in respect of such non-compliance; or
(iii) has breached or contravened any provision of this Act which is applicable to such financial holding company or any of its subsidiaries, the Central Bank of Malaysia Act 2009 or any written law, other than securities laws as defined in the Securities Commission Act 1993, regardless that there has been no prosecution or other action in respect of such breach or contravention; or
(b) any state of affairs exist in respect of a financial group that may directly or indirectly affect the safety and soundness of a licensed person.
(2) Subject to section 262, the Bank may issue a direction in writing to a financial holding company, any of its subsidiaries or a director or chief executive officer of such financial holding company or such subsidiary, to cease or refrain from committing an act or pursuing a course of conduct or to do any act, in relation to its business, affairs or property if the Bank is of the opinion that it is necessary to remedy any of the circumstances in subsection (1).
(3) Without limiting the generality of subsection (2) and subject to section 262, a direction under subsection (2) may include any one or more of the following directions:
(a) to vary or terminate any agreement or arrangement other than any qualified financial agreement entered into by the financial holding company or any of its subsidiaries with any person in relation to its business, affairs or property;
(b) to dispose of all or any of the investments or assets held by the financial holding company or any of its subsidiaries in any body corporate;
(c) to prohibit the financial holding company or any of its subsidiaries from carrying on any part of its business;
(d) to prohibit the financial holding company or any of its subsidiaries from entering into any other transaction or class of transactions, or to enter into it subject to such restrictions or conditions as may be specified by the Bank; or
(e) with respect to a financial holding company, to increase its capital to such amount as may be specified by the Bank.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/117.General provisions dealing with directions
117. General provisions dealing with directions
(1) The direction issued under subsection 116(2) or (3) shall specify--
(a) the grounds on which the Bank proposes to issue the direction; and
(b) the time by which, or period during which, the direction is to be complied with.
(2) The Bank may at any time--
(a) amend or revoke a direction; or
(b) replace a direction with another direction.
(3) Any direction issued under subsection 116(2) or (3) shall not affect the enforcement by the parties of their rights under a qualified financial agreement.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/118.Consequences of failing to comply with directions
118. Consequences of failing to comply with directions
A financial holding company, its subsidiary, director or chief executive officer of such financial holding company or such subsidiary who fails to comply with a direction issued under subsection 116(2) or (3) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding ten years or to a fine not exceeding fifty million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/119.Additional provisions relating to paragraph 116(3)(e)
119. Additional provisions relating to paragraph 116(3)(e)
(1) A direction issued pursuant to paragraph 116(3)(e) may direct the financial holding company to issue shares or other capital instruments of a kind specified in the direction.
(2) Where the financial holding company issues shares or other capital instruments in compliance with a direction pursuant to subsection (1), the financial holding company shall give a notice in writing to the members of the financial holding company, to subscribe to the shares or other capital instruments within the period specified in the notice.
(3) Where a member of the financial holding company does not subscribe to the shares or other capital instruments within the period specified in the notice given by the financial holding company pursuant to subsection (2), the Bank may issue a further direction pursuant to subsection 116(2) to the financial holding company requiring the financial holding company to allot the shares or other capital instruments to a person determined by the Bank.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/120.Power to remove director or chief executive officer of financial holding company
120. Power to remove director or chief executive officer of financial holding company
(1) Subject to section 262, the Bank may by a notice in writing, remove a director or chief executive officer of a financial holding company if the Bank is of the opinion that the director or chief executive officer of the financial holding company--
(a) no longer fulfills the fit and proper requirements specified by the Bank under section 60 which is applicable to a financial holding company pursuant to section 115, and fails to cease holding such office or acting in such capacity; or
(b) has failed to comply with or by action or negligence has contributed to the breach or contravention of, any provision of this Act, a direction of the Bank referred to in section 116 or an enforceable undertaking accepted by the Bank under section 259.
(2) A director or chief executive officer removed from office or employment in a financial holding company under subsection (1) shall cease to hold the office from which he is removed with effect from the date set out in the order and shall cease to be concerned with the business or affairs of the financial holding company.
(3) Notwithstanding anything contained in any contract of service or any other agreement relating to his appointment, the removal of the director or chief executive officer under subsection (1) shall not entitle him to claim any compensation for such removal.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/121.Interpretation
Part VIII BUSINESS CONDUCT AND CONSUMER PROTECTION
Division 1 Interpretation
121. Interpretation
For the purposes of this Division, Division 2 and Schedule 7--
"eligible complainant"
means any person who is eligible to refer a dispute to a financial ombudsman scheme in accordance with the terms of reference of the scheme;
"financial consumer"
means any person who uses, has used or may be intending to use, any financial service or product--
(a) for personal, domestic or household purposes;
(b) in connection with a small business as may be specified by the Bank under section 123; or
(c) whether or not for the purposes set out in paragraph (a) or (b), if--
(i) the value of the financial services or products does not exceed an amount as may be specified by the Bank under section 123; or
(ii) such person is of a class, category or description of persons as may be specified by the Bank under section 123;
"financial ombudsman scheme"
means a scheme for the resolution of disputes between an eligible complainant and a financial service provider in respect of financial services or products;
"financial services or products"
means financial services or financial products developed, offered or marketed, by a financial service provider or for and on behalf of another person by a financial service provider;
"financial service provider"
means an authorized person or a registered person but excludes an approved money-broker.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/122.Application
Part VIII BUSINESS CONDUCT AND CONSUMER PROTECTION
Division 2 Business conduct, complaints, disputes, etc.
122. Application
(1) Sections 123 and 124 shall apply without prejudice to the provisions of the Capital Markets and Services Act 2007 in so far as such provisions relate to capital market products or capital market services as defined in subsection 2(1) of the Capital Markets and Services Act 2007, developed, offered or marketed by a licensed bank, licensed insurer or licensed investment bank.
(2) The Bank shall enter into an arrangement in writing with the Securities Commission to coordinate on the regulation of business conduct relating to capital market products or capital market services as defined in subsection 2(1) of the Capital Markets and Services Act 2007, developed, offered or marketed by a licensed bank, licensed insurer or licensed investment bank.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/123.Standards on business conduct
123. Standards on business conduct
(1) The Bank may specify standards on business conduct to a financial service provider for the purposes of ensuring that a financial service provider is fair, responsible and professional when dealing with financial consumers.
(2) Without limiting the generality of subsection (1), standards specified under that subsection may include standards relating to--
(a) transparency and disclosure requirements including the provision of information to financial consumers that is accurate, clear, timely and not misleading;
(b) fairness of terms in a financial consumer contract for financial services or products;
(c) promotion of financial services or products;
(d) provision of recommendations or advice including assessments of suitability and affordability of financial services or products offered to financial consumers; and
(e) complaints and dispute resolution mechanisms.
(3) The Bank may specify any class, category or description of persons for purposes of the definition of "financial consumer" in section 121.
(4) Where the Bank specifies a standard on business conduct under subsection (1) which relates specifically to capital market products or capital market services as defined in subsection 2(1) of the Capital Markets and Services Act 2007, such standard shall be specified jointly with the Securities Commission.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/124.Prohibited business conduct
124. Prohibited business conduct
(1) A financial service provider shall not engage in any prohibited business conduct set out in Schedule 7.
(2) Without limiting the generality of section 266, the Bank may issue guidance in writing on--
(a) descriptions of conduct which amount to; or
(b) factors that are to be taken into account in determining whether a financial service provider has engaged in, any prohibited business conduct set out in Schedule 7.
(3) Where the Bank issues guidance relating to prohibited business conduct set out in paragraphs 5 and 6 of Schedule 7, such guidance shall be issued in consultation with the Competition Commission.
(4) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding ten million ringgit or to both.
(5) In relation to any complaint from an aggrieved person involving the prohibited business conduct set out in paragraphs 5 and 6 of Schedule 7, the Bank shall refer such complaint to the Competition Commission.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/125.Approved insurance broker, approved financial adviser and approved issuer of designated payment instrument to establish customer account
125. Approved insurance broker, approved financial adviser and approved issuer of designated payment instrument to establish customer account
(1) Where--
(a) an approved insurance broker or approved financial adviser receives any money--
(i) from or on behalf of an insured or potential insured for or on account of a licensed insurer in connection with a contract of insurance or a proposed contract of insurance; or
(ii) from or on behalf of a licensed insurer for or on account of an insured; or
(b) an approved issuer of a designated payment instrument as may be determined by the Bank, receives any money from or on behalf of its user in exchange of the payment instrument issued, such approved person shall, for the purposes of this section, establish and maintain one or more accounts for its customers in a licensed bank separate from its own account.
(2) For the purposes of subsection (1)--
(a) a lien or claim on, or a right to set-off, the moneys in any account established for customers under subsection (1) shall be void unless the moneys are for fees due and owing to such approved persons; and
(b) a charge, mortgage or an attachment on the moneys in any account established for customers under subsection (1) shall be void.
(3) Moneys in the account established for customers under subsection (1) is taken to be held in trust by the approved persons for the benefit of the customers.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/126.Financial ombudsman scheme
126. Financial ombudsman scheme
(1) For the purposes of ensuring effective and fair handling of complaints and for the resolution of disputes in connection with financial services or products, regulations may be made under section 260 to require any class, category or description of financial service providers--
(a) to be a member of a financial ombudsman scheme approved under subsection (2); and
(b) at all times, to comply with terms of membership of such scheme.
(2) The Bank may approve any financial ombudsman scheme for the purposes of paragraph (1)(a).
(3) Regulations may be made under section 260 for the purposes of ensuring a financial ombudsman scheme is fair, accessible and effective, including regulations on the following:
(a) the matters that the Bank may have regard to in determining whether to approve a financial ombudsman scheme under subsection (2);
(b) the functions and duties of, or other requirements to be complied with by any person operating a financial ombudsman scheme;
(c) the terms of a financial ombudsman scheme setting out the scope including types of dispute that may be referred to it and its eligible complainants, membership requirements, application, operations, procedures, the fees that may be charged and the types of award which may be granted under the financial ombudsman scheme;
(d) appointment of directors of any person operating a financial ombudsman scheme;
(e) the documents or information that shall be submitted by any person operating a financial ombudsman scheme to the Bank; and
(f) withdrawal or suspension of an approval under subsection (2).
(4) A financial service provider, who is a member of a financial ombudsman scheme approved under subsection (2), shall--
(a) provide documents or information as may be required for the purposes of the resolution of disputes referred to the financial ombudsman scheme; and
(b) comply with any award granted under the financial ombudsman scheme, including a direction that requires the financial service provider to take such steps in relation to a dispute.
(5) Where a dispute has been referred to a financial ombudsman scheme by an eligible complainant, the eligible complainant is not entitled to lodge a claim on such dispute with the Tribunal for Consumer Claims established under the Consumer Protection Act 1999 [Act 599].
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/127.Obtaining insurance outside Malaysia
Part VIII BUSINESS CONDUCT AND CONSUMER PROTECTION
Division 3 Insurance issues
127. Obtaining insurance outside Malaysia
(1) Except with the prior written approval of the Bank, no person shall enter into or cause to be entered into, a contract of general insurance of such description as may be prescribed by the Bank with an insurer other than a licensed general insurer.
(2) The Bank may grant an approval under subsection (1) after consultation with the Minister.
(3) A person shall provide to the Bank such information on any contract of general insurance entered into, or caused to be entered into with an insurer other than a licensed general insurer, as the Bank may require by notice in writing within such period as may be specified in the notice.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/128.Provisions relating to policies
128. Provisions relating to policies
Schedule 8 sets out provisions relating to policies.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/129.Pre-contractual disclosure and representations, and remedies for misrepresentations
129. Pre-contractual disclosure and representations, and remedies for misrepresentations
(1) Schedule 9 sets out the pre-contractual duty of disclosure and representations for contracts of insurance in Part 2, and the remedies for misrepresentations relating to contracts of insurance in Part 3.
(2) Any person who contravenes the duty of disclosure under paragraph 11 of Schedule 9 commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding ten million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/130.Payment of policy moneys under life policy and personal accident policy
130. Payment of policy moneys under life policy and personal accident policy
Schedule 10 sets out provisions for the payment of policy moneys upon death of a policy owner under a life policy, including a life policy under section 23 of the Civil Law Act 1956 [Act 67] and a personal accident policy effected by him upon his own life.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/131.Interpretation
Part VIII BUSINESS CONDUCT AND CONSUMER PROTECTION
Division 4 Information and secrecy
131. Interpretation
For the purposes of this Division--
"customer"
includes a participant or user;
"financial institution"
refers to--
(a) a licensed bank;
(b) a licensed investment bank;
(c) an approved operator of a payment system;
(d) a registered operator of a payment system;
(e) an operator of a designated payment system; or
(f) an approved issuer of a designated payment instrument.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/132.Restriction on inquiring specifically into affairs of particular customer
132. Restriction on inquiring specifically into affairs of particular customer
(1) Nothing in this Act shall--
(a) authorize the Minister to direct the Bank; or
(b) authorize the Bank, to inquire specifically into the affairs or account of any customer of any authorized person.
(2) Notwithstanding paragraph (1)(b), the Bank may inquire into the affairs or account of a customer of an authorized person for the purposes of exercising its powers or functions under this Act, the Islamic Financial Services Act 2013 or section 47 of the Central Bank of Malaysia Act 2009.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/133.Secrecy
133. Secrecy
(1) No person who has access to any document or information relating to the affairs or account of any customer of a financial institution, including--
(a) the financial institution; or
(b) any person who is or has been a director, officer or agent of the financial institution, shall disclose to another person any document or information relating to the affairs or account of any customer of the financial institution.
(2) Subsection (1) shall not apply to any document or information relating to the affairs or account of any customer of a financial institution--
(a) that is disclosed to the Bank, any officer of the Bank or any person appointed under this Act or the Central Bank of Malaysia Act 2009 for the purposes of exercising any powers or functions of the Bank under this Act or the Central Bank of Malaysia Act 2009;
(b) that is in the form of a summary or collection of information set out in such manner as does not enable information relating to any particular customer of the financial institution to be ascertained from it; or
(c) that is at the time of disclosure is, or has already been made lawfully available to the public from any source other than the financial institution.
(3) No person who has any document or information which to his knowledge has been disclosed in contravention of subsection (1) shall disclose the same to any other person.
(4) Any person who contravenes subsection (1) or (3) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding ten million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/134.Permitted disclosures
134. Permitted disclosures
(1) A financial institution or any of its directors or officers may--
(a) for such purpose or in such circumstances as set out in the first column of Schedule 11, disclose any document or information relating to the affairs or account of its customer to such persons specified in the second column of that Schedule; or
(b) disclose any document or information relating to the affairs or account of its customer to any person where such disclosure is approved in writing by the Bank.
(2) The financial institution or its directors or officers making a disclosure for the purposes or in such circumstances set out in Schedule 11 and paragraph (1)(b), shall be subject to such conditions as may be specified by the Bank.
(3) For the purposes of subsection (2), the Bank may at any time amend or revoke any existing conditions or impose any new conditions in respect of permitted disclosures by the financial institutions set out in Schedule 11 or paragraph (1)(b).
(4) Any person who receives any document or information relating to the affairs or account of a customer as permitted under subsection (1) shall not disclose such document or information to any other person.
(5) In any proceedings under paragraph 3, 4, 5, 6 or 7 of the first column of Schedule 11 or circumstances approved by the Bank under paragraph (1)(b), where any document or information is likely to be disclosed in relation to a customer's account, the court may, on its own motion, or on the application of a party to the proceedings or the customer to which the document or information relates--
(a) order that the proceedings be held in camera and in such case, the document or information shall be secret as between the court and the parties thereto, and no such party shall disclose such document or information to any other person; and
(b) make such further orders as it may consider necessary to ensure the confidentiality of the customer information.
(6) Unless the court otherwise orders, no person shall publish the name, address or photograph of any parties to such proceedings as are referred in subsection (5), or any document or information likely to lead to the identification of the parties thereto, either during the currency of the proceedings or at any time after they have been concluded.
(7) Any person who fails to comply with conditions imposed by the Bank pursuant to subsection (2) or (3) or contravenes subsection (4) or (6) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding ten million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/135.Application of this Division
Part VIII BUSINESS CONDUCT AND CONSUMER PROTECTION
Division 5 Restrictions relating to consumer protection
135. Application of this Division
This Division shall not apply to a licensed Islamic bank under the Islamic Financial Services Act 2012.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/136.Deposit
136. Deposit
For the purposes of sections 137 and 138, "deposit" means a sum of money or any precious metal or precious stone, or any article or thing as may be prescribed by the Minister, on the recommendation of the Bank, accepted, paid or delivered on terms under which it will be repaid or returned in full, regardless whether the repayment or return is by way of instalments, with or without interest or any other consideration in money or money's worth, either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment or delivery and the person accepting it, but excludes money paid bona fide--
(a) by way of an advance or a part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services are not in fact sold, hired or otherwise provided;
(b) by way of security for the performance of a contract or by way of security in respect of any loss which may result from the non-performance of a contract;
(c) without limiting paragraph (b), by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise; and
(d) in such other circumstances, or to or by such other person, as set out in Schedule 2.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/137.Restriction on accepting deposits
137. Restriction on accepting deposits
(1) No person shall accept deposits except under a licence granted under section 10 regardless of whether the transaction is described as a loan, an advance, an investment, a savings, a sale or a sale and repurchase or by whatever name called.
(2) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding ten years or to a fine not exceeding fifty million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/138.Advertisements for deposits
138. Advertisements for deposits
(1) No person, other than a licensed bank or licensed investment bank, shall issue, or otherwise facilitate any person to issue, an advertisement which--
(a) contains any offer or invitation--
(i) to make any deposit; or
(ii) to enter or offer to enter into any agreement to make any deposit; or
(b) is intended, directly or indirectly, to lead to or induce the making of any deposit.
(2) Subsection (1) shall not apply to the issuance by any person of any advertisement for or on behalf of a licensed bank or licensed investment bank.
(3) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding ten million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/139.Restriction on use of certain words
139. Restriction on use of certain words
(1) Except with the prior written approval of the Bank, no person shall--
(a) in its name, description or title under which such person carries on business or in the conduct of its business, use--
(i) the word "bank" unless such person is licensed under this Act to carry on banking business or investment banking business;
(ii) the word "insurance" or "assurance" unless such person is authorized or registered under this Act to carry on insurance business, insurance broking business, financial advisory business or adjusting business;
(iii) the words "financial adviser" unless such person is approved under this Act to carry on financial advisory business;
(iv) any derivative of the words in subparagraph (i), (ii) or (iii) in any language; or
(v) any other words in any language, capable of being construed as indicating the carrying on of any of the authorized or registered businesses; or
(b) make any representation to the effect of paragraph (a) in any document relating to its business or document used in the course of carrying on its business or in any other manner whatsoever.
(2) The restriction in subsection (1) shall not apply to--
(a) the persons specified in Part 1 of Schedule 12 for the word "bank" in subparagraph (1)(a)(i);
(b) the persons specified in Part 2 of Schedule 12 for the word "insurance" or "assurance" in subparagraph (1)(a)(ii); and
(c) the persons specified in Part 3 of Schedule 12 for the words "financial adviser" in subparagraph (1)(a)(iii).
(3) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/140.Power of Bank to specify standards or issue codes
Part IX MONEY MARKET AND FOREIGN EXCHANGE MARKET
140. Power of Bank to specify standards or issue codes
(1) The Bank may specify standards or issue codes for the purposes of developing, or maintaining orderly conditions or the integrity of, the money market or foreign exchange market.
(2) Without limiting the generality of subsection (1), standards specified or codes issued under that subsection may include standards or codes relating to--
(a) Obligations and duties of any market participant or any officer of the market participant; and
(b) the issuance, sale, purchase, repurchase, borrowing or lending, of or other dealings in, currencies or other financial instruments traded in the money market or foreign exchange market including over-the-counter derivatives whose price, value or payment obligations are derived from, referenced to or based on interest rates or exchange rates.
(3) Standards or codes may only be specified or issued under paragraph (2)(b) in respect of over-the-counter derivatives derived from, referenced to or based on interest rates for the purposes of maintaining monetary stability.
(4) Any market participant or any officer of the market participant in the money market or foreign exchange market shall at all times comply with any standards specified or codes issued by the Bank under this section.
(5) Without limiting the Bank's powers to take action under any provision of this Act, the Bank may impose any condition, restriction or prohibition including, suspension from trading and restrictions on dealings in these markets on any market participant or any officer of the market participant for failure to comply with or give effect to such standards specified or codes issued under this section.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/141.Prohibited conduct in money market and foreign exchange market
141. Prohibited conduct in money market and foreign exchange market
(1) No person shall--
(a) take part in or carry out a transaction that has or is likely to have the effect of creating a rate which is an off-market rate which results in an artificial rate for dealing in financial instruments in the money market or foreign exchange market;
(b) create, or cause to be created, or do anything that is calculated to create, a false or misleading appearance of active dealing in financial instruments in the money market or foreign exchange market;
(c) make a statement, or disseminate information that is false or misleading in a material particular and is likely to induce another person to deal in financial instruments or is likely to have the effect of raising, lowering, maintaining or stabilising the market rate of such financial instruments in the money market or foreign exchange market and when the person makes the statement, or disseminates the information--
(i) the person does not exercise due care whether the statement or information is true or false; or
(ii) the person knows, or ought reasonably to have known, the statement or information is false or is materially misleading;
(d) take part in or carry out a transaction based on information that is not generally available to persons who regularly deals in the money market or foreign exchange market that would, or would tend to, have a material effect on the price or value of financial instruments; or
(e) engage in any other conduct relating to money market or foreign exchange market as may be prescribed by the Minister, on the recommendation of the Bank.
(2) Without limiting the generality of section 266, the Bank may issue guidance in writing on--
(a) descriptions of conduct which amount to; or
(b) factors that are to be taken into account in determining whether a person has engaged in,
any conduct set out in subsection (1).
(3) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding ten years or to a fine not exceeding fifty million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/142.Arrangement with relevant supervisory authority
142. Arrangement with relevant supervisory authority
(1) The Bank shall enter into arrangements with relevant supervisory authorities to coordinate on the regulation of financial instruments traded in the money market which are within the purview and oversight of the relevant supervisory authorities.
(2) For the purposes of this section, "relevant supervisory authorities" means any authority, body or agency in Malaysia other than the Bank which is responsible for the supervision or oversight of the capital market, or capital market intermediaries or capital market participants.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/143.Submission of document or information to Bank
Part X SUBMISSION OF DOCUMENT OR INFORMATION
143. Submission of document or information to Bank
(1) Where under this Act or any written law, any person including--
(a) an authorized person;
(b) a registered person;
(c) an operator of a designated payment system;
(d) a financial holding company;
(e) a market participant;
(f) an approved representative office;
(g) a financial institution prescribed under section 212;
(h) an associate corporation or related corporation of a person referred to in paragraphs (a) to (g); or
(i) a participant, user or any other person having dealings with a person referred to in paragraphs (a) to (g),
is required to submit any document or information to the Bank, such person shall submit such document or information to the Bank.
(2) Where, for the purposes of the exercise of any of its powers or the performance of any of its functions under this Act or any written law, the Bank requires any document or information from any person including a person referred to in subsection (1), such person shall submit such document or information to the Bank.
(3) Any person who is required to submit any document or information under subsection (1) or (2) shall not submit any document or information--
(a) which he knows, or has reason to believe, to be false or misleading in a material particular; or
(b) which is inaccurate or incomplete in respect of which there is a material error or omission, or any recurring error or omission.
(4) For the purposes of subsection (1) or (2), any document or information required to be submitted shall be submitted within a period, at such intervals, in the manner or form as may be specified by the Bank.
(5) Any person complying with subsection (1) or (2) shall not be treated as being in breach of any contract, agreement or arrangement.
(6) The Bank may require--
(a) any document or information submitted under subsection (1) or (2) to be verified in such manner as may be specified by the bank; or
(b) any document produced to be certified as a true copy, by any person including an auditor of a person referred to in subsection (1).
(7) Subject to section 145, where a document or information obtained by the Bank under subsection (1) relates to the account or affairs of any customer of any person referred to in subsection (1), that document or information shall be secret as between the Bank and such person submitting the document or information.
(8) Any person who contravenes paragraph (3)(a) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/144.Submission of statistical information, etc.
144. Submission of statistical information, etc.
(1) For the purposes of collating statistical or other information on financial intermediation or financial inclusion in Malaysia or for other purposes related to the regulatory objectives of this Act, the Bank may require any person to submit any document or information to the Bank.
(2) Subject to section 145, the Bank shall not disclose to any person any document or information submitted under subsection (1) unless such disclosure is in summary or consolidated form and does not in any manner lead to the identification of any person to which such document or information relates.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/145.Secrecy requirements under sections 143 and 144 not to apply
145. Secrecy requirements under sections 143 and 144 not to apply
The secrecy requirements in subsections 143(7) and 144(2) shall not apply--
(a) for the purposes of the exercise of any of its powers or the performance of any of its functions by the Bank under this Act or the Central Bank of Malaysia Act 2009, including for the purposes of--
(i) the credit bureau established under section 47 of the Central Bank of Malaysia Act 2009; or
(ii) submitting any proposal to the Financial Stability Executive Committee;
(b) in respect of information provided by the Bank under section 95 of the Malaysia Deposit Insurance Corporation Act 2011;
(c) where such disclosure is in summary or consolidated form and does not in any manner lead to the identification of any person to which such document or information relates including the publication of consolidated statements or reports in respect of each class, category or description of persons as the Bank deems appropriate by aggregating the figures in all or any document or information submitted to the Bank under section 143 or 144; and
(d) for the purposes of prosecuting any person for any offence under any written law.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/146.Examination of authorized person, etc.
Part XI EXAMINATION
146. Examination of authorized person, etc.
(1) The Bank may examine, without any prior notice, the business and affairs of the following persons:
(a) an authorized person, registered person, operator of a designated payment system or financial holding company, and the offices, related corporations and any agent of any such persons, in or outside Malaysia;
(b) a market participant; or
(c) an approved representative office.
(2) The Bank may, for the purposes of an examination under subsection (1), examine any director, officer or controller of any person referred to in subsection (1).
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/147.Duty to provide access to, and produce documents, information, etc.
147. Duty to provide access to, and produce documents, information, etc.
(1) For the purposes of an examination under section 146, a person under examination and its director, officer or controller--
(a) shall afford the Bank access to its documents, including documents of title to its assets, all securities held by it in respect of its customers' transactions and investments held by it, cash, premises, apparatus, equipment or machinery, and produce to the Bank all such documents or cash, as the Bank may require within such time as it may specify;
(b) shall allow the Bank to copy or make extracts of any document referred to in paragraph (a); and
(c) shall give to the Bank, orally or in writing, all such information and explanation relating to its business and affairs or of its agent as the Bank may require within such time as it may specify.
(2) The Bank may take possession of any documents, titles, securities, cash, apparatus, equipment or machinery to which it has access under subsection (1), if the Bank is of the opinion that the documents, titles, securities, cash, apparatus, equipment or machinery may be--
(a) interfered with, destroyed, concealed or removed unless the Bank takes possession of them; or
(b) needed as evidence in any legal proceedings, whether civil or criminal, which may be instituted under this Act, the Central Bank of Malaysia Act 2009 or any other written law.
(3) Any person who contravenes subsection (1) or refuses to allow the Bank to take possession of the documents, titles, securities, cash, apparatus, equipment or machinery under subsection (2), commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/148.Examination of other persons
148. Examination of other persons
(1) The Bank may, for the purposes of an examination under section 146, examine--
(a) a person who was at any time, a director or officer of a person referred to in subsection 146(1);
(b) a person who is, or was at any time having dealings with a person referred to in subsection 146(1); or
(c) a person whom the Bank believes to be acquainted with the facts and circumstances of the case, including the auditor of a person referred to in subsection 146(1), and that person shall give to the Bank such document, information or explanation as the Bank may require within such time as it may specify.
(2) Any person falling under paragraph (1)(b), or an auditor referred to in paragraph (1)(c) shall not be liable for breach of a contract relating to, or duty of, confidentiality for giving a document, information or explanation under subsection (1).
(3) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/149.Appearance before Bank
149. Appearance before Bank
(1) Any person examined under sections 146 and 148 shall appear before the Bank at such place, and at such time, as may be specified by the Bank.
(2) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/150.Examination or assessment by auditor or actuary
150. Examination or assessment by auditor or actuary
(1) The Bank may require an authorized person, operator of a designated payment system or financial holding company to appoint an auditor, or actuary, as the case may be, to carry out any specific examination or assessment in respect of its business or affairs as may be specified by the Bank and submit a report of such examination or assessment to the Bank.
(2) Where an examination or assessment is required under subsection (1), the remuneration of the auditor or actuary and other expenses related to such examination or assessment shall be borne by the authorized person, operator of a designated payment system or financial holding company.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/151.Confidential information
151. Confidential information
(1) Any document or information produced by the Bank as provided in subsection (2) as a result of the administration or enforcement of this Act, the Central Bank of Malaysia Act 2009 or any other written law administered by the Bank, or from an examination by a relevant supervisory authority under section 152, shall not be disclosed by any authorized person, operator of a designated payment system or financial holding company, or any director, officer, auditor or actuary of such persons, to any other person except in such circumstances as may be specified by the Bank.
(2) A document or information referred to in subsection (1) which shall not be disclosed, whether wholly or in part, shall include--
(a) any rating assigned by the Bank or relevant supervisory authority, as the case may be, to an authorized person, operator of a designated payment system or financial holding company;
(b) any stage of intervention assigned to an authorized person, operator of a designated payment system or financial holding company;
(c) any assessment of an authorized person, operator of a designated payment system or financial holding company made by the Bank or relevant supervisory authority, as the case may be, as a result of an examination or other supervisory review of such person including any report, correspondence or recommendation made to such persons;
(d) any enforceable undertaking accepted by the Bank under section 259;
(e) any order made, or direction issued by the Bank under this Act or by the relevant supervisory authority, as the case may be, to an authorized person, operator of a designated payment system or financial holding company; or
(f) any other information as may be specified by the Bank.
(3) In any court proceedings, where any document or information referred to in this section is likely to be disclosed, the court, of its own motion, or at the application of a party to the proceedings or the Bank, may order for such proceedings to be held in camera and in such case, the document or information shall be secret as between the court and parties or the Bank thereto, and no such party shall disclose such document or information to any other person.
(4) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/152.Examination by relevant overseas supervisory authority
152. Examination by relevant overseas supervisory authority
(1) A relevant supervisory authority outside Malaysia which exercises functions corresponding to those of the Bank under this Act may, with the approval of the Bank, examine the books and transactions of--
(a) an approved representative office in Malaysia of a foreign institution;
(b) an authorized person which operates in Malaysia as a branch of a foreign institution; or
(c) an authorized person, registered person, operator of a designated payment system or financial holding company which is a subsidiary of a foreign institution, established or incorporated in that country, territory or place, provided that such examination by the relevant supervisory authority is for the sole purpose of its supervisory functions.
(2) The relevant supervisory authority shall give to the Bank a written undertaking to protect the confidentiality of any information it has obtained during, or arising out of its examination under subsection (1) and the purposes for which such information may be used.
(3) Where the Bank has granted its approval under subsection (1), the provisions of section 133 shall not apply in relation to the examination to be carried out under such approval, to the extent specified in the approval.
(4) A copy of the report of an examination under subsection (1) shall be lodged with the Bank upon the conclusion of such examination.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/153.Disclosure of information by Bank to relevant overseas supervisory authority
153. Disclosure of information by Bank to relevant overseas supervisory authority
The Bank may, subject to such terms and conditions it deems fit, provide to a relevant supervisory authority outside Malaysia which exercises functions corresponding to those of the Bank under this Act, such document or information relating to--
(a) the affairs of--
(i) any authorized person, registered person, operator of a designated payment system or financial holding company which is a subsidiary of a foreign institution; or
(ii) any authorized person, registered person, operator of a designated payment system or financial holding company which is an associate of a foreign institution;
(b) any office of an authorized person, registered person, operator of a designated payment system or financial holding company; or
(c) any authorized person, registered person, operator of a designated payment system or financial holding company for the purposes of assessing a proposed establishment of any office by the authorized person, registered person, operator of a designated payment system or financial holding company, if the Bank considers it necessary that the such document or information be disclosed to the relevant supervisory authority outside Malaysia for the sole purpose of carrying out its supervisory functions.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/154.Interpretation
Part XII DIRECTIONS OF COMPLIANCE
154. Interpretation
For the purposes of this Part, "institution" refers to an authorized person or operator of a designated payment system.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/155.Circumstances for exercising power to issue directions
155. Circumstances for exercising power to issue directions
The Bank may issue one or more of the directions specified in section 156 if the Bank is of the opinion that an institution, its director, chief executive officer or senior officer--
(a) is committing or is about to commit an act, or is pursuing or is about to pursue any course of conduct, that is unsafe or unsound or has failed to commit an act or pursue a course of conduct that is necessary to maintain the safety and soundness of the institution;
(b) is carrying on business in a manner detrimental to the interests of depositors, policy owners, participants, users, creditors or the public generally;
(c) has failed to manage its business or affairs in a manner that is consistent with sound risk management and good governance practices;
(d) has failed to comply with any standards, notice, condition, specification, requirement, restriction, direction or code specified, issued or made under this Act or a direction under subsection 214(6) or section 216 regardless that there has been no prosecution or other action in respect of such non-compliance;
(e) has breached or contravened any provision of this Act, the Central Bank of Malaysia Act 2009 or any written law, other than securities laws as defined in the Securities Commission Act 1993, regardless that there has been no prosecution or other action in respect of the breach or contravention; or
(f) has failed to ensure the safety, efficiency and reliability of the payment system or payment instrument, having regard, inter alia, to the reasonableness of admission criteria for participating in the payment system and the overall cost to the participants or users of, or any other persons involved with, the payment system or payment instrument.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/156.Power to issue directions to institution
156. Power to issue directions to institution
(1) Subject to section 262, the Bank may issue a direction in writing to the institution, its director, chief executive officer or senior officer, to cease or refrain from committing an act or pursuing a course of conduct or to do any act, in relation to its business, affairs or property if the Bank is of the opinion that it is necessary to remedy any of the circumstances in section 155.
(2) Without limiting the generality of subsection (1), the direction under subsection (1) may include--
(a) with respect to any institution, any one or more of the following directions:
(i) to vary or terminate any agreement or arrangement other than any qualified financial agreement entered into by the institution with any person in relation to its business, affairs or property;
(ii) to dispose of all or any of the investments or assets held by the institution in any body corporate;
(iii) to prohibit the institution from carrying on any part of its business including, imposing any limitation on or prohibiting the giving of credit facilities, the making of investments, or in the case of a licensed bank or licensed investment bank, the acceptance of deposits, or in the case of a licensed insurer, the effecting of policies; or
(iv) to prohibit the institution from entering into any other transaction or class of transactions, or to enter into it subject to such restrictions or conditions as may be specified by the Bank;
(b) with respect to an institution which is a licensed person, to increase its capital to such amount as may be specified by the Bank; and
(c) with respect to an institution which is an approved operator of a payment system, approved issuer of a designated payment instrument or operator of a designated payment system, any one or more of the following directions:
(i) to make any modification to such payment system or payment instrument, as the case may be, including any operational arrangements;
(ii) cease to issue the designated payment instrument; or
(iii) cease to operate the designated payment system or a payment system set out in Division 1 of Part 1 of Schedule 1.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/157.General provisions dealing with directions
157. General provisions dealing with directions
(1) The direction issued under section 156 shall specify--
(a) the grounds on which the Bank proposes to issue the direction; and
(b) the time by which, or period during which, the direction is to be complied with.
(2) The Bank may at any time--
(a) amend or revoke a direction; or
(b) replace a direction with another direction.
(3) Any direction issued under section 156 shall not affect the enforcement by the parties of their rights under a qualified financial agreement.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/158.Consequences of failing to comply with directions
158. Consequences of failing to comply with directions
An institution, its director, chief executive officer or senior officer who fails to comply with a direction issued under section 156 commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding ten years or to a fine not exceeding fifty million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/159.Additional provisions relating to paragraph 156(2)(b)
159. Additional provisions relating to paragraph 156(2)(b)
(1) A direction issued pursuant to paragraph 156(2)(b) may direct the licensed person to issue shares or other capital instruments of a kind specified in the direction.
(2) Where the licensed person issues shares or other capital instruments in compliance with a direction pursuant to subsection (1), the licensed person shall give a notice in writing to the members of the licensed person to subscribe to the shares or other capital instruments within the period specified in the notice.
(3) Where a member of the licensed person does not subscribe to the shares or other capital instruments within the period specified in the notice given by the licensed person pursuant to subsection (2), the Bank may issue a further direction pursuant to subsection 156(1) to the licensed person requiring the licensed person to allot the shares or other capital instruments to a person determined by the Bank.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/160.Application of this Part to member institution
Part XIII INTERVENTION AND REMEDIAL ACTION
160. Application of this Part to member institution
(1) Notwithstanding any other provision in this Part, in respect of an institution that is a member institution as defined under the Malaysia Deposit Insurance Corporation Act 2011--
(a) the Bank may exercise the following powers:
(i) the powers under sections 161 to 163 and paragraph 188(a); and
(ii) for the sole purpose of averting or reducing any risk to financial stability and where the institution has not ceased to be viable or is not considered by the Bank to be likely to become non-viable, the powers under the following provisions:
(A) paragraph 188(b);
(B) sections 189 and 190; and
(C) section 208; and
(b) the following provisions shall continue to apply:
(i) subsections 173(1) and (2) except where the application for the appointment of a receiver and manager to manage the whole or part of the business, affairs or property of a member institution is made by the Malaysia Deposit Insurance Corporation;
(ii) subsection 173(3) and section 194; and
(iii) section 195 except where the application for the winding up of a member institution is presented by the Malaysia Deposit Insurance Corporation.
(2) For the avoidance of doubt, in respect of an institution that is a member institution as defined under the Malaysia Deposit Insurance Corporation Act 2011, in relation to section 208, the provision shall be read to apply only in relation to the powers that may be exercised by the Bank under subsection (1)
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/161.Interpretation
Part XIII INTERVENTION AND REMEDIAL ACTION
Division 1 Removal of director, chief executive officer or senior officer
161. Interpretation
For the purposes of this Division, "institution" refers to a licensed person or an operator of a designated payment system.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/162.Power to remove director, chief executive officer or senior officer
162. Power to remove director, chief executive officer or senior officer
Subject to section 262, the Bank may, by an order in writing, remove a director, chief executive officer or senior officer from office or employment in an institution if the Bank is of the opinion that the director, chief executive officer or senior officer of the institution--
(a) no longer fulfils the fit and proper requirements specified under section 60 and fails to cease holding such office or acting in such capacity; or
(b) has breached, contravened or failed to comply with or, by action or negligence, has contributed to the breach or contravention of, or non-compliance with any provision of this Act, a direction under section 156 or an enforceable undertaking accepted by the Bank under section 259.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/163.Provisions relating to removal
163. Provisions relating to removal
(1) A director, chief executive officer or senior officer removed from office or employment in an institution under section 162 shall cease to hold the office from which he is removed with effect from the date set out in the order and shall cease to be concerned with the business or affairs of the institution.
(2) The removal of a director, chief executive officer or senior officer under section 162 shall be lawful and valid notwithstanding anything contained in a contract of service or any other agreement relating to his appointment and whether or not made or provided for under any written law, and a person so removed from office or employment shall not be entitled to claim compensation for the loss of office.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/164.Interpretation
Part XIII INTERVENTION AND REMEDIAL ACTION
Division 2 Power to take intervention and remedial action
Subdivision 1 Circumstances for exercising intervention and remedial action
164. Interpretation
For the purposes of this Subdivision, "institution" refers to a licensed person, an approved issuer of a designated payment instrument or operator of a designated payment system.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/165.Circumstances for exercise of Bank's power
165. Circumstances for exercise of Bank's power
Where the Bank is of the opinion that any of the following circumstances exist in respect of an institution:
(a) the institution has breached or contravened any provision of this Act, the Islamic Financial Services Act 2012, the Central Bank of Malaysia Act 2009 or any written law, regardless that there has been no prosecution or other action in respect of the breach or contravention;
(b) the institution has failed to comply with any direction under section 156;
(c) the assets of the institution are not sufficient to give adequate protection to its depositors, policy owners, participants, users or creditors, as the case may be;
(d) the capital of the institution has reached a level or is eroding in a manner that may detrimentally affect its depositors, policy owners, participants, users, creditors or the public generally;
(e) the institution has become or is likely to become insolvent or is likely to become unable to meet all or any of its obligations; or
(f) any other state of affairs exists in respect of the institution that may be materially prejudicial to the interests of the depositors, policy owners, participants, users or creditors of the institution, including where proceedings under a law relating to bankruptcy or insolvency have been commenced in Malaysia or elsewhere in respect of the holding company of the institution, including its financial holding company, the Bank may exercise its powers under this Division or Division 3.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/166.Interpretation
Part XIII INTERVENTION AND REMEDIAL ACTION
Subdivision 2 Assumption of control
166. Interpretation
For the purposes of this Subdivision--
"appointed person"
refers to a person appointed by the Bank under subsection 167(1);
"institution"
refers to a licensed person or an operator of a designated payment system.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/167.Power to assume control
167. Power to assume control
(1) Subject to section 262, where any of the circumstances set out in section 165 exist in respect of an institution, the Bank may, with the prior approval of the Minister, by an order in writing, assume control of the whole or part of the business, affairs or property of the institution and manage the whole or such part of its business and affairs, or appoint any person to do so on behalf of the Bank.
(2) The terms and conditions of the appointed person shall be determined by the Bank.
(3) Where an order has been made under subsection (1) or revoked under subsection 168(1), the Bank shall--
(a) notify that fact in the Gazette; and
(b) give notice of the commencement of the assumption of control under subsection (1), or revocation of the order in writing under subsection 168(1), as soon as is practicable by publication in at least two daily newspapers in Malaysia, one of which shall be in the national language.
(4) All costs and expenses of the Bank, including the remuneration of the appointed person, shall be payable out of the funds and properties of the institution, as a first charge on the funds and properties of the institution.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/168.Effect of assumption of control
168. Effect of assumption of control
(1) Upon assuming control of the whole or part of the business, affairs or property of the institution, the Bank or the appointed person shall take custody and control of the whole or part of the business, affairs or property of the institution, and shall manage the whole or such part of the business and affairs of the institution in the name and on behalf of that institution until the order is revoked by the Bank in writing.
(2) During the period an order under this Subdivision is in force, the functions, rights and privileges of--
(a) directors and chief executive officer of the institution shall be suspended unless the Bank gives its approval in writing for any director to remain as director or the chief executive officer to continue in the employment of the institution on such terms and conditions as the Bank may determine; and
(b) such senior officers of the institution as may be specified by the Bank, shall be suspended.
(3) The Bank or the appointed person shall be vested with such powers and functions of the institution and its board of directors, under its constituent documents or exercisable by the institution or its directors under any written law regardless whether the powers are exercisable by resolution or in any other manner whatsoever.
(4) The Bank or the appointed person, in effecting any action under this Subdivision, shall not be required to notify or obtain the approval of the members or creditors of the institution in a general meeting or otherwise notwithstanding any contract or law including without limitation to sections 132C, 132D and 132E of the Companies Act 1965 or anything in its constituent documents.
(5) The Bank or the appointed person may alter the constituent documents of the institution or other arrangements for governance if the alteration is necessary to facilitate the exercise of powers or performance of functions of the Bank or the appointed person under this Subdivision, in relation to the institution.
(6) The Bank or the appointed person may sell or otherwise dispose of the whole or part of the business or property of the institution, on any terms and conditions determined by the Bank.
(7) Sections 99, 100 and 101 shall not apply to any sale or disposal of the whole or part of the business or property under subsection (6).
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/169.Information and facilities
169. Information and facilities
(1) Where control of the whole or part of the business, affairs or property of an institution has been assumed pursuant to an order under this Subdivision--
(a) the institution, its directors, chief executive officer and officers shall submit the whole or part of the business, affairs or property to such control and provide the Bank or the appointed person with such facilities, documents or information as may be required to facilitate the exercise of powers or performance of functions of the Bank or the appointed person under this Subdivision; and
(b) the Bank or the appointed person may require a person who has, at any time, been a director, chief executive officer or an officer of the institution to give the Bank or the appointed person any information relating to the business, affairs or property of the institution that the Bank or the appointed person requires.
(2) Any person who contravenes paragraph (1)(a) or fails to comply with the requirement under paragraph (1)(b) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/170.Additional provisions relating to assumption of control
170. Additional provisions relating to assumption of control
(1) Upon assuming control of the whole or part of the business, affairs or property of the institution, where the Bank gives its approval in writing for the director or chief executive officer to remain in his appointment pursuant to paragraph 168(2)(a), any remuneration payable to the director or chief executive officer of the institution shall be determined by the Bank, in relation to the activity required or authorized by the Bank or the appointed person.
(2) Notwithstanding anything contained in any contract of service or any other agreement relating to his appointment, the suspension of the director or chief executive officer under paragraph 168(2)(a) shall not entitle him to claim any compensation for such suspension.
(3) An order under this Subdivision shall not have the effect of--
(a) conferring on, or vesting in, the Bank or the appointed person, any title to, or any beneficial interest in, any property of the institution to which the order relates; or
(b) rendering the Bank or the appointed person liable for any obligation or liability of the institution, whether incurred before or after the order comes into force.
(4) Where the Bank or the appointed person sells or disposes of the whole or part of the business or property of the institution pursuant to subsection 168(6), any person aggrieved by the transacted price may appeal on the transacted price to the Assessor Committee and section 210 shall apply.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/171.Interpretation
Part XIII INTERVENTION AND REMEDIAL ACTION
Subdivision 3 Power to appoint receiver and manager
171. Interpretation
For the purposes of this Subdivision, "institution" refers to a licensed person, an approved issuer of a designated payment instrument or operator of a designated payment system.
Unannotated Statutes of Malaysia - Principal Acts/FINANCIAL SERVICES ACT 2013 Act 758/FINANCIAL SERVICES ACT 2013 Act 758,,/172.Appointment of receiver and manager by Bank
172. Appointment of receiver and manager by Bank
(1) Subject to section 262, where any of the circumstances described in section 165 exist in respect of an institution, the Bank may make an application to the High Court for an order--
(a) to appoint a receiver and manager to manage the whole or part of the business, affairs or property of the institution; and
(b) for all such incidental, ancillary or consequential orders or directions of the High Court in relation to such appointment as may, in the opinion of the Bank, be necessary or expedient.