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AdministeredLegislation>FinancialServicesAct2013
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AdministeredLegislation
Guidelines&Circulars
LawHarmonisationCommittee
FinancialServicesAct2013
LAWSOFMALAYSIA
Act758
FinancialServicesAct2013
DateofRoyalAssent
Dateofpublicationinthe
Gazette
18Mar2013
22Mar2013
AnActtoprovidefortheregulationandsupervisionoffinancialinstitutions,
paymentsystemsandotherrelevantentitiesandtheoversightofthemoneymarket
andforeignexchangemarkettopromotefinancialstabilityandforrelated,
consequentialorincidentalmatters.
[30Jun2013,
PU(B)276/2013.
excepts.129andSchedule9w.e.f.1Jan2015]
PU(B)552/2014.
ARRANGEMENTOFSECTIONS
PARTI
PRELIMINARY
1. Shorttitleandcommencement
2. Interpretation
3. PrescriptionbyMinisterofadditionalbusinessoractivity
4. PrescriptionbyBankofadditionalagreement,dealing,transactionorperson
5. Classificationof,andconstructionofreferencesto,insurancebusiness
PARTII
REGULATORYOBJECTIVESANDPOWERSANDFUNCTIONSOF
BANK
6. Regulatoryobjectives
7. PowersandfunctionsofBank
PARTIII
AUTHORIZATIONANDREGISTRATION
Division1
Authorizedbusiness
8. Authorizedbusinesstobecarriedonbyauthorizedperson
9. Applicationforauthorization
10. GrantoflicencebyMinister
11. ApprovalbyBank
12. Requirementsonminimumcapitalfundsorsurplusofassetsoverliabilities
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13. Additionalconditionsoflicenceorapproval
Division2
Restrictionondealingsofauthorizedpersons
14. Authorizedpersontocarryonauthorizedbusinessonly
15. Authorizedpersonandoperatorofdesignatedpaymentsystempermittedtocarry
oncertainIslamicfinancialbusiness
16. Licensedinsurertocarryonlifeorgeneralbusiness
Division3
Registeredbusiness
17. Registeredbusinesstobecarriedonbyregisteredperson
18. Registeredpersontocomplywithstandards
Division4
Representativeoffice
19. Requirementsforrepresentativeoffice
Division5
Revocation,deregistration,surrenderorcessationofbusinessoroperations
20. Groundsforrevocationofauthorization
21. Groundsforderegistration
22. Surrenderoflicenceornotificationoncessationofbusinessoroperations
23. Effectofrevocation,deregistration,surrender,notificationoncessationofbusiness
oroperations,andexpiry
Division6
Generalmatters
24. Formofestablishment
25. Establishmentorrelocationofofficeofauthorizedpersons
26. Fees
27. Publicationofnamesofauthorizedpersonsandregisteredpersons
28. Holdingoutasauthorizedpersonorregisteredperson
29. Actingonbehalfofunlicensedperson
PARTIV
PAYMENTSYSTEMS
Division1
Designationofpaymentsystemsandpaymentinstruments
30. Designationandrevocationofdesignationofpaymentsystems
31. Designationofpaymentinstruments
Division2
Requirementsforoperationofpaymentsystemsandissuanceofdesignated
paymentinstruments
32. ApplicationofthisActonpaymentsystems
33. PowerofBanktospecifystandardsforpaymentsystems
34. Directiontoparticipantsofdesignatedpaymentsystem
35. Operationalarrangements
36. PowerofBanktoinspect
Division3
Finalityofpaymentandnettingarrangement
37. Interpretation
38. PowerofBanktoissuecertificateoffinality
39. Revocationofcertificateoffinality
40. ApplicationofthisDivision
41. Transferordermadeafterappointmentofinsolvencyadministrator
42. Finalityofpaymentandnettingarrangement
43. Preservationofrights
44. Nonrecognitionofinsolvencyorderbyforeigncourt
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45. Requirementtonotifyineventofinsolvency,etc.
PARTV
PRUDENTIALREQUIREMENTS
46. Interpretation
Division1
Standardsonprudentialmatters
47. PowerofBanktospecifystandardsonprudentialmatters
48. Institution,directorandofficertocomplywithstandards
49. Registeredoperatorofpaymentsystemtocomplywithstandards
50. Singlecounterpartyexposurelimitforlicensedperson
51. Restrictiononpaymentofdividendbylicensedperson
52. MaintenanceofassetsinMalaysiabylicensedperson
Division2
Corporategovernance
53. Interpretation
54. Chairman,directorsandchiefexecutiveofficerofinstitution
55. Requirementstobechairman,director,chiefexecutiveofficerorseniorofficer
56. Functionsanddutiesofboardofdirectors
57. Dutiesofdirectors
58. Dutytodiscloseinterestsinmaterialtransactionormaterialarrangement
59. Disqualifications
60. Fitandproperrequirements
61. Cessationfromoffice
62. Noticeofcessationfromoffice
Division3
Transparencyrequirements
63. Interpretation
64. Maintenanceofaccountingrecordsandinformation
65. Compliancewithapprovedaccountingstandards
66. Publicationoffinancialstatements
Division4
Auditors
67. Appointmentofauditorbyinstitution
68. AppointmentofauditorbyBank
69. Dutiesofauditor
70. Noticeofcessationasauditor
71. Informationtobeprovidedtoauditor
72. Reportingobligationsofauditor
73. Qualifiedprivilegeanddutyofconfidentiality
Division5
Appointedactuaries
74. Appointmentofactuarybylicensedinsurer
75. AppointmentofactuarybyBank
76. Dutiesofappointedactuary
77. Cessationasappointedactuary
78. Noticeofcessationasappointedactuary
79. Informationtobeprovidedtoappointedactuary
80. Qualifiedprivilegeanddutyofconfidentiality
Division6
Insurancefunds
81. Establishmentandmaintenanceofinsurancefunds
82. Requirementsrelatingtoinsurancefunds
83. Withdrawalfrominsurancefunds
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84. Assumptionofrisk
Division7
Subsidiaries
85. Establishmentoracquisitionofsubsidiariesandacquisitionorholdingofmaterial
interestincorporation
PARTVI
OWNERSHIP,CONTROLANDTRANSFEROFBUSINESS
86. Applicationandnonapplication
Division1
Interestinsharesoflicensedperson
87. Acquisitionofinterestinsharesrequiringapproval
88. Controloverlicensedpersonprohibitedinsomecases
89. Disposalofinterestinsharesrequiringapproval
90. Applicationproceduresforsection87,88or89
91. PowerofBanktospecifystandardsonshareholdersuitability
92. Maximumpermissibleholdings
93. Notificationonacquisitionordisposalofinterestinsharesoflicensedperson
Division2
ActionbyBankineventofbreach
94. Orderagainstdefaultingpersons
95. Additionalprovisionsrelatingtoorderundersubparagraph94(2)(a)(v)
Division3
Interestinsharesofapprovedperson
96. Interpretation
97. Acquisitionofinterestinsharesofapprovedperson
Division4
Transferofbusiness,reconstructionoramalgamationoflicensedperson
98. Interpretation
99. Approvalrequiredforreconstructionoramalgamationoflicensedperson
100. Approvalrequiredforbusinesstransferscheme
101. Notificationofbusinesstransferscheme
102. ApplicationtoHighcourtforconfirmationofbusinesstransferscheme
103. Banktobepartytoproceedings
104. Orderssoughtbytransferorandtransferee
105. Publicationofcourtorderundersection102
106. ReimbursementofBanksexpenses
107. Prohibitionofpaymentoutofinsurancefund
PARTVII
FINANCIALGROUPS
108. Purposeofthispart
109. Disapplicationofsections110and111tolicensedpersons
110. Applicationtobefinancialholdingcompany
111. PowerofBanktorequiresubmissionofapplication
112. Approvalofapplicationasfinancialholdingcompanyundersection110or111
113. Bankmayapprovemorethanonefinancialholdingcompany
114. Businessoffinancialholdingcompany
115. Prudentialrequirementsonfinancialholdingcompanyandsubsidiaries
116. Powertoissuedirectionstofinancialholdingcompanyandsubsidiaries
117. Generalprovisionsdealingwithdirections
118. Consequencesforfailingtocomplywithdirections
119. Additionalprovisionsrelatingtoparagraph116(3)(e)
120. Powertoremovedirectororchiefexecutiveofficeroffinancialholdingcompany
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PARTVIII
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BUSINESSCONDUCTANDCONSUMERPROTECTION
Division1
Interpretation
121. Interpretation
Division2
Businessconduct,complaints,disputes,etc.
122. Application
123. Standardsonbusinessconduct
124. Prohibitedbusinessconduct
125. Approvedinsurancebroker,approvedfinancialadviserandapprovedissuerof
designatedpaymentinstrumenttoestablishcustomeraccount
126. Financialombudsmanscheme
Division3
Insuranceissues
127. ObtaininginsuranceoutsideMalaysia
128. Provisionsrelatingtopolicies
129. Precontractualdisclosureandrepresentations,andremediesformisrepresentations
130. Paymentofpolicymoneysunderlifepolicyandpersonalaccidentpolicy
Division4
Informationandsecrecy
131. Interpretation
132. Restrictiononinquiringspecificallyintoaffairsofparticularcustomer
133. Secrecy
134. Permitteddisclosures
Division5
Restrictionsrelatingtoconsumerprotection
135. ApplicationofthisDivision
136. Deposit
137. Restrictiononacceptingdeposits
138. Advertisementsfordeposits
139. Restrictiononuseofcertainwords
PARTIX
MONEYMARKETANDFOREIGNEXCHANGEMARKET
140. PowerofBanktospecifystandardsorissuecodes
141. Prohibitedconductinmoneymarketandforeignexchangemarket
142. Arrangementwithrelevantsupervisoryauthority
PARTX
SUBMISSIONOFDOCUMENTORINFORMATION
143. SubmissionofdocumentorinformationtoBank
144. Submissionofstatisticalinformation,etc.
145. Secrecyrequirementsundersections143and144nottoapply
PARTXI
EXAMINATION
146. Examinationofauthorizedperson,etc.
147. Dutytoprovideaccessto,andproducedocuments,information,etc.
148. Examinationofotherpersons
149. AppearancebeforeBank
150. Examinationorassessmentbyauditororactuary
151. Confidentialinformation
152. Examinationbyrelevantoverseassupervisoryauthority
153. DisclosureofinformationbyBanktorelevantoverseassupervisoryauthority
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DIRECTIONSOFCOMPLIANCE
154. Interpretation
155. Circumstancesforexercisingpowertoissuedirections
156. Powertoissuedirectionstoinstitution
157. Generalprovisionsdealingwithdirections
158. Consequencesoffailingtocomplywithdirections
159. Additionalprovisionsrelatingtoparagraph156(2)(b)
PARTXIII
INTERVENTIONANDREMEDIALACTION
160. ApplicationofthisParttomemberinstitution
Division1
Removalofdirector,chiefexecutiveofficerorseniorofficer
161. Interpretation
162. Powertoremovedirector,chiefexecutiveofficerorseniorofficer
163. Provisionsrelatingtoremoval
Division2
Powertotakeinterventionandremedialaction
Subdivision1Circumstancesforexercisinginterventionandremedialaction
164. Interpretation
165. CircumstancesforexerciseofBankspower
Subdivision2Assumptionofcontrol
166. Interpretation
167. Powertoassumecontrol
168. Effectofassumptionofcontrol
169. Informationandfacilities
170. Additionalprovisionsrelatingtoassumptionofcontrol
Subdivision3Powertoappointreceiverandmanager
171. Interpretation
172. AppointmentofreceiverandmanagerbyBank
173. AppointmentofreceiverandmanagerbypersonsotherthanBank
174. Provisionsinrelationtoappointmentofreceiverandmanager
Subdivision4Compulsorytransferofbusiness,assetsorliabilities
175. Interpretation
176. Orderforcompulsorytransferofbusiness,assetsorliabilities
177. Additionalprovisionsrelatingtocompulsorytransfer
178. Continuityobligations
Subdivision5Provisionsrelatingtobridgeinstitution
179. Designationofbridgeinstitution
180. Publicationofnotice
181. Bridgeinstitutionauthorizedtocarryonbusiness
182. Bridgeinstitutionnotliableforpastobligationsinrespectofofficers
183. Stayinrespectofbridgeinstitution
184. Financialassistancetobridgeinstitution
Subdivision6Restructuringofsharecapital
185. Interpretation
186. Powertoreducesharecapitalofinstitution
Subdivision7Financialassistance
187. Interpretation
188. Liquidityorfinancialassistancetoinstitution
Subdivision8Moratorium
190. Applicationformoratorium
189. Interpretation
Division3
Windingup
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Subdivision1Generalprovisionsonwindingup
191. Interpretation
192. ApplicationofCompaniesAct1965inrelationtowindingupofinstitution
193. Banktoapplyforwindingup
194. Restrictiononvoluntarywindingup
195. WindingupbyHighcourtonapplicationbypersonsotherthanBank
196. Appointmentandremunerationofliquidator
197. Controlofliquidator
198. Statementofaffairs
199. Offencesbyofficersofinstitution
Subdivision2Provisionsspecifictolicensedinsurers
200. Valuationofassetsandliabilities
201. Terminationofinsurancepolicy
202. Waiverofstrictproofofdebt
203. Prohibitionagainstissuanceofpolicy
204. Continuationoflifebusiness
Subdivision3Priorityofpaymentsinwindingup
205. Priorityofpaymentsinwindingupoflicensedinvestmentbank
206. PriorityofpaymentsinwindingupoflicensedinvestmentbankcarryingonIslamic
bankingbusiness
207. Applicationofinsurancefundinwindingup
Division4
GeneralprovisionsinrelationtoactionstakenbyBank
208. PowerofBanktotakeactionunderthisPart
209. Qualifiedfinancialagreement
210. Assessorcommittee
PARTXIV
OTHERPOWERSOFBANK
Division1
Regulationofprescribedfinancialinstitutions
211. Interpretation
212. PowerofMinistertoprescribefinancialinstitutions
Division2
Internationalanddomestictransactions
213. Interpretation
214. Measuresrelatingtointernationalanddomestictransactions
215. PowerofBanktoimposeleviesorcharges
216. PowerofBank,withapprovalofMinister,toissuedirections
Division3
Holidayforlicensedperson
217. PowerofMinistertodeclareholidayforlicensedperson
PARTXV
ENFORCEMENTANDPENALTIES
Division1
Investigationpowers
218. InvestigationbyBank
219. Appointmentofinvestigatingofficer
220. Powersofinvestigatingofficer
221. Powersofentry,searchandseizurewithwarrant
222. Powersofentry,searchandseizurewithoutwarrant
223. Listofseizedproperty,etc.
224. Releaseofseizedproperty,etc.
225. Searchofperson
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226. Obstructiontoexerciseofpowersbyinvestigatingofficer
227. Requirementtoprovidetranslation
228. Powertoexaminepersons
229. Serviceofordersornoticesgenerally,etc.
230. Surrenderoftraveldocuments
231. Agentprovocateur
232. Assistancetopoliceorotherpublicofficer
233. Investigatingofficerdeemedtobepublicservantandpublicofficer
Division2
Administrativeactions
234. PowerofBanktotakeaction
235. LodgmentofamountnotdistributedwithRegistrarofUnclaimedMoneys
236. PowerofBanktoprescribemonetarypenalty
237. Applicationforappealofdecisions
238. MonetarypenaltyReviewcommittee
Division3
Civilactions
239. CivilactionbyBank
240. Ordersbycourt
241. Civilactiontoseekcompensation
242. Interimorders
243. Contraventionofcourtorder
244. Noundertakingastodamages
245. Otheractions
246. Evidenceobtainedininvestigationsmaybeusedincivilproceedings
Division4
Criminaloffences
247. Imprisonment
248. Offencesinrelationtoentriesindocuments
249. Offencecommittedbyanypersonactinginofficialcapacity
250. Offencebyemployees,etc.
251. Seizableoffence
252. Dutyofinvestigatingofficertomakeoverarrestedpersontopolice
253. Powertocompound
254. Attempts,abetmentsandconspiracies
255. Prosecution
Division5
Generalmatters
256. ProtectioninrelationtodisclosureofinformationtoBank
257. Evidentialprovision
258. PowerofBanktopublishinformation
PARTXVI
GENERALPROVISIONS
259. Enforceableundertakings
260. Regulations
261. Provisionsrelatingtoapprovals,consents,standards,codes,specifications,notices,
requirements,directionsormeasures
262. Opportunitytomakerepresentations
263. Exemptions
264. PowerofMinistertoamendSchedule
265. DecisionofMinistertobefinal
266. PowerofBanktoissueguidance
267. Protectionagainstsuitsandlegalproceedings
268. ApplicationofCompaniesAct1965
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269. ApplicationofcertainprovisionsofActtolabuanentities
270. Breachorcontraventionnottoaffectcontract,agreementorarrangement
PARTXVII
REPEAL,SAVINGSANDTRANSITIONAL
271. Repeal
272. Savingsandtransitional
273. SavingsinrespectoflicencesgrantedunderrepealedActs
274. SavingsinrespectofIslamicfinancialbusiness
275. Savingsandtransitionalprovisioninrespectofspecificprovisionsofrepealed
InsuranceAct1996
276. Conversiontosingleinsurancebusiness
277. Designatedpaymentsystemsdeemedcertified
278. Savingsinrespectofapprovalsgranted,notificationgivenandprescriptionmade
underrepealedPaymentSystemsAct2003
279. Savingsinrespectofinterestinshares
280. Savingsinrespectoffinancialholdingcompany
281. Savingsinrespectofdepositsacceptedbycooperativesocieties
SCHEDULE1
SCHEDULE2
SCHEDULE3
SCHEDULE4
SCHEDULE5
SCHEDULE6
SCHEDULE7
SCHEDULE8
SCHEDULE9
SCHEDULE10
SCHEDULE11
SCHEDULE12
SCHEDULE13
SCHEDULE14
SCHEDULE15
SCHEDULE16
PARTI
PRELIMINARY
Shorttitleand 1.(1)ThisActmaybecitedastheFinancialServicesAct2013.
commencement
(2)ThisActcomesintooperationonadatetobeappointedbytheMinisterby
notificationintheGazetteandtheMinistermayappointdifferentdatesforthe
comingintooperationofdifferentpartsordifferentprovisionsofthisAct.
Interpretation 2.(1)InthisAct,unlessthecontextotherwiserequires
adjustermeansapersonwhocarriesonadjustingbusiness
adjustingbusinessmeansthebusinessofinvestigatingthecauseand
circumstancesofalossandascertainingthequantumofthelossinrelationto
insuranceortakafulclaims
advertisementmeansthedisseminatingorconveyingofinformation,invitation
orsolicitationbyanymeansorinanyformincludingoralandwritten
communicationbymeansofprint,electronicandanyothermedia
agreementmeansanagreementwhetherformalorinformal,oralorwritten,
expressorimplied
annuitymeanstherighttoaseriesofperiodicalpaymentsatintervalsofone
yearorlessunderacontractwithalifeinsurer
annuitycertainmeansanannuitywherethedurationofperiodicpaymentsis
predeterminedanddoesnotdependonthedeathorsurvivalofthepolicyowner
applicantmeans
(a) inPartIIIandSchedule5,thepersonwhosubmits,onitsownbehalfor
throughanadvocate,asecretarialfirmorotherdulyauthorized
representative,theapplicationforauthorizationundersection9
(b) inPartVIandSchedule6,thepersonwhosubmits,onitsownbehalfor
throughanadvocate,asecretarialfirmorotherdulyauthorized
representative,theapplicationforapprovalunderthatpartor
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(c) inPartVII,thepersonwhosubmitstheapplicationtobeafinancial
holdingcompanyorproposesanothercompanytobeafinancialholding
company
appointedactuarymeansanactuaryappointedbyalicensedinsurerunder
subsection74(1)orbytheBankundersection75
appointeddateinrespectofanyprovisionunderthisAct,meansthedate
appointedbytheMinisterundersubsection1(2)asthedateforthecominginto
operationofthatprovision
approvedbusinessmeansanybusinesssetoutinDivision1ofPart1of
Schedule1
approvedfinancialadvisermeansapersonapprovedundersection11tocarry
onfinancialadvisorybusiness
approvedinsurancebrokermeansapersonapprovedundersection11tocarry
oninsurancebrokingbusiness
approvedissuerofadesignatedpaymentinstrumentmeansapersonapproved
undersection11toissueadesignatedpaymentinstrument
approvedmoneybrokermeansapersonapprovedundersection11tocarryon
moneybrokingbusiness
approvedoperatorofapaymentsystemmeansapersonapprovedundersection
11tooperateapaymentsystemsetoutinparagraph1ofDivision1ofPart1of
Schedule1
approvedpersonmeansapersonapprovedundersection11tocarryonan
approvedbusiness
approvedrepresentativeofficemeansarepresentativeofficeinMalaysiaofa
foreigninstitutionapprovedbytheBankundersubsection19(4)
arrangementmeansanarrangementwhetherformalorinformal,oralorwritten,
expressorimplied
associatecorporationmeansacorporationinwhichnotlessthantwentyper
centbutnotmorethanfiftypercentofthevotingsharesofthatcorporationareheld
byanothercorporation,wherethefirstmentionedcorporationisanassociate
corporationoftheothercorporation
authorizationmeansthegrantofalicenceundersection10orthegrantofan
approvalundersection11
authorizedbusinessmeansalicensedbusinessoranapprovedbusiness
authorizedpersonmeansapersonlicensedundersection10orapprovedunder
section11tocarryonanauthorizedbusiness
Act701. Bankhasthesamemeaningasdefinedinsubsection2(1)oftheCentralBank
ofMalaysiaAct2009[Act701]
bankingbusinessmeans
(a) thebusinessof
(i) acceptingdepositsoncurrentaccount,depositaccount,savings
accountorothersimilaraccount
(ii) payingorcollectingchequesdrawnbyorpaidinbycustomersand
(iii) provisionoffinanceand
(b) suchotherbusinessasprescribedundersection3
Act125. bookshasthesamemeaningassignedtoitinsubsection4(1)oftheCompanies
Act1965[Act125]
bridgeinstitutionmeansabodycorporateestablishedoracquiredbytheBank,
anddesignatedasabridgeinstitutionundersubsection176(1)
businesstransferschememeansaschemeoftransferforbankingbusiness,
investmentbankingbusinessorinsurancebusiness
chiefexecutiveofficer,inrelationto
(a) abodycorporateorunincorporate,meansanindividual,howeverstyled,
who,eitherindividuallyorjointlywithoneormoreotherpersons,is
responsibleundertheauthorityofthedirectors,fortheconductofthe
businessandtheadministrationofsuchbodyor
(b) anauthorizedpersonwhichisestablishedasabranchinMalaysia,means
anofficerprincipallyresponsibleforthebusinessofthebranchin
Malaysia
childincludesanillegitimatechild,astepchildandachildadoptedunderany
writtenlawofMalaysiaorofanyplaceoutsideMalaysia,orunderacustom
recognizedbyaclass,categoryordescriptionofpersonsinoroutsideMalaysia
Act125. companyhasthesamemeaningassignedtoitinsubsection4(1)ofthe
CompaniesAct1965
Act56. computerhasthesamemeaningassignedtoitinsection3oftheEvidenceAct
1950[Act56]
computeroutputmeansastatementorrepresentation,whetherinwritten,
printed,pictorial,film,graphical,acousticorotherform
(a) producedbyacomputer
(b) displayedonthescreenofacomputeror
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(c) accuratelytranslatedfromastatementorrepresentationsoproduced
Act701. constituentdocumenthasthesamemeaningassignedtoitinsubsection2(1)of
theCentralBankofMalaysiaAct2009
corporategroupmeansagroupofcorporationswhicharerelatedtoeachother
Act125. corporationhasthesamemeaningassignedtoitinsubsection4(1)ofthe
CompaniesAct1965
Act502. cooperativesocietyhasthesamemeaningassignedtoitinsection2oftheCo
operativeSocietiesAct1993[Act502]
creditfacilitymeans
(a) thegivingofanyadvance,loanorotherfacilityinwhateverformorby
whatevernamecalled
(b) thegivingofaguaranteeor
(c) anyotherdealingortransactionasprescribedundersection4
depositmeansasumofmoneyacceptedorpaidontermsunderwhichitwillbe
repaidinfull,withorwithoutinterestoranyotherconsiderationinmoneyor
moneysworth,eitherondemandoratatimeorincircumstancesagreedbyoron
behalfofthepersonmakingthepaymentandthepersonacceptingit,butexcludes
moneypaidbonafide
(a) bywayofanadvanceorapartpaymentunderacontractforthesale,hire
orotherprovisionofpropertyorservices,andisrepayableonlyinthe
eventthatthepropertyorservicesarenotinfactsold,hiredorotherwise
provided
(b) bywayofsecurityfortheperformanceofacontractorbywayofsecurity
inrespectofanylosswhichmayresultfromthenonperformanceofa
contract
(c) withoutlimitingparagraph(b),bywayofsecurityforthedeliveryupor
returnofanyproperty,whetherinaparticularstateofrepairorotherwise
and
(d) insuchothercircumstances,ortoorbysuchotherperson,assetoutin
Schedule2
depositormeansapersonentitledtotherepaymentofadeposit,whetherthe
depositwasmadebyhimoranyotherperson
derivativemeansanyagreement,includinganoption,aswap,futuresor
forwardcontract,whosemarketprice,value,deliveryorpaymentobligationsis
derivedfrom,referencedtoorbasedon,butnotlimitedto,securities,commodities,
assets,rates(includinginterestratesorexchangerates)orindices
designatedpaymentinstrumentmeansapaymentinstrumentprescribedasa
designatedpaymentinstrumentundersection31
designatedpaymentsystemmeansapaymentsystemprescribedasadesignated
paymentsystemundersubsection30(1)
directorincludesanypersonwhooccupiesthepositionofadirector,however
styled,ofabodycorporateorunincorporate,andincludes
(a) apersoninaccordancewithwhosedirectionsorinstructionsthedirectors
orofficersofthebodyareaccustomedtoact
(b) analternateorsubstitutedirectoror
(c) inparticular,withoutlimitingtheforegoing,inthecaseof
(i) acorporation,hasthesamemeaningassignedtoitinsubsection4(1)
oftheCompaniesAct1965
(ii) acooperativesociety,meansamemberoftheboard,orother
governingbodyhowsoevercalled,ofthecooperativesociety
(iii) astatutorybody,meansamemberoftheboard,committee,councilor
othergoverningbodyhowsoevercalled,ofthestatutorybody
(iv) apartnership,meansapartner
(v) asoleproprietorship,meansthesoleproprietorand
(vi) anyotherbody,associationorgroupofpersons,whethercorporateor
unincorporate,meansanypersonhavingthedirectionandcontrolof
themanagementofitsaffairsorbusiness
Act125.
Act56. documenthasthesamemeaningassignedtoitinsection3oftheEvidenceAct
1950andincludesbooks
electronicmoneymeansanypaymentinstrument,whethertangibleor
intangible,that
(a) storesfundselectronicallyinexchangeoffundspaidtotheissuerand
(b) isabletobeusedasameansofmakingpaymenttoanypersonotherthan
theissuer
electronicterminalmeansanelectronicdevice,operatedbyoronbehalfofan
authorizedpersonoraregisteredperson,throughwhichapersonmayinitiatean
electronicfundtransfer,andincludesapointofsaleterminal,automatedteller
machineorcashorchequedepositmachine
factoringbusinessmeans
(a) thebusinessofacquiringdebtsduetoanypersonand
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(b) suchotherbusinessasprescribedundersection3
financialadvisersrepresentativemeansanindividual,howeverstyled,inthe
directemploymentof,actingfororbyarrangementwithanapprovedfinancial
adviser,whoperformsforthefinancialadviseranyservicesrelatingtofinancial
advisorybusiness
financialadvisorybusinessmeansanyofthefollowing:
(a) analyzingthefinancialplanningneedsofapersonrelatingtoaninsurance
product
(b) recommendinganappropriateinsuranceproducttoaperson
(c) sourcinganinsuranceproductfromalicensedinsurerforaperson
(d) arrangingofacontractinrespectofaninsuranceproductforapersonor
(e) suchotherbusiness,serviceoractivityinrelationtoafinancialserviceas
prescribedundersection3
financialgroupmeansafinancialholdingcompanyandagroupofrelated
corporationsundersuchfinancialholdingcompanyprimarilyengagedinfinancial
servicesorinotherservicesinconnectionwithorforthepurposesofsuchfinancial
serviceswhichincludesatleastonelicensedperson
financialholdingcompanymeansacompanywhich
(a) holdsanaggregateofmorethanfiftypercentofinterestinsharesofa
licensedperson,orhasanaggregateinterestinsharesoffiftypercentor
lessbuthascontroloveralicensedpersonand
(b) hasobtainedtheapprovaloftheBankpursuanttosubsection112(3)tobe
afinancialholdingcompanyofsuchlicensedperson
Act125. financialyearhasthesamemeaningassignedtoitinsubsection4(1)ofthe
CompaniesAct1965
Act125. foreigncompanyhasthesamemeaningassignedtoitinsubsection4(1)ofthe
CompaniesAct1965
foreigncurrencymeansanycurrencyotherthanringgit
foreigninstitutionmeansaforeigncompany,notbeinganauthorizedpersonor
aregisteredperson,whichcarriesonanybusinessoutsideMalaysiawhich
corresponds,orissimilar,tothebusinessofanyauthorizedpersonorregistered
person,whetherornotsuchpersonhasanapprovedrepresentativeoffice
foreigninsurermeansaninsurerincorporatedoutsideMalaysia
Act701. GovernorandDeputyGovernorhavethesamemeaningassignedtothemin
subsection2(1)oftheCentralBankofMalaysiaAct2009
Act125. holdingcompanyhasthesamemeaningassignedtoitinsection5ofthe
CompaniesAct1965
individualmeansanaturalperson
insuranceincludesreinsurance
insuranceagentmeansapersonwhodoesalloranyofthefollowing:
(a) solicitsorobtainsaproposalforinsuranceonbehalfofaninsurer
(b) offersorassumestoactonbehalfofaninsurerinnegotiatingapolicyor
(c) doesanyotheractonbehalfofaninsurerinrelationtotheissuance,
renewalorcontinuanceofapolicy
insurancebrokermeansapersonwho,asanindependentcontractor,carrieson
insurancebrokingbusinessandincludesareinsurancebroker
insurancebrokingbusinessmeansthebusinessofsoliciting,negotiatingor
procuringapolicywithaninsurer,ortherenewalorcontinuanceofthepolicybya
person,forapolicyownerotherthanforhimselfandincludesreinsurancebroking
foraninsurer
insuranceclaimmeansademandforpaymentofanamountdueunderapolicy
insurancefundmeansaninsurancefundestablishedandmaintainedunder
section81
insurerincludesaprofessionalreinsurer
interestinsharesshallbeconstruedassetoutinSchedule3
Act759. investmentaccounthasthesamemeaningassignedtoitinsubsection2(1)of
theIslamicFinancialServicesAct2013[Act759]
investmentbankingbusinessmeans
(a) thebusinessof
(i) acceptingdepositsondepositaccountand
(ii) provisionoffinance
Act671.
(b) anyregulatedactivitycarriedonpursuanttoaCapitalMarketsServices
licenceundertheCapitalMarketsandServicesAct2007[Act671]and
(c) suchotherbusinessasprescribedundersection3
Act125. investmentcompanyhasthesamemeaningassignedtoitinsubsection319(1)
oftheCompaniesAct1965
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investmentlinkedpolicymeansacontractofinsuranceonhumanlifeoran
annuitywherethebenefitsare,whollyorpartly,tobedeterminedbyreferenceto
units,thevalueofwhichisrelatedto
(a) theincomefrompropertyofanydescriptionor
(b) themarketvalueofsuchproperty
issuermeansanyperson,actingaloneorunderanarrangementwithanother
person,whoundertakestoberesponsibleforthepaymentobligationinrespectofa
paymentinstrumentresultingfromauserbeingissuedwithorusingthepayment
instrument
leasingbusinessmeans
Act212.
(a) thebusinessoflettingorsublettingmovablepropertyonhireforthe
purposeoftheuseofsuchpropertybythehireroranyotherpersoninany
business,trade,professionoroccupationorinanycommercial,industrial,
agriculturalorothereconomicenterprisewhatsoeverand,wherethelessor
istheowneroftheproperty,regardlesswhetherthelettingiswithor
withoutanoptiontopurchasetheproperty,butexcludesthebusinessof
hirepurchasewhichissubjecttotheHirePurchaseAct1967[Act212]
andforthepurposeofthisdefinition,movablepropertyincludesany
plant,machinery,equipmentorotherchattelattachedortobeattachedto
theearthorfastenedortobefastened,permanentlyorotherwise,toany
thingattachedtotheearthand
(b) suchotherbusinessasprescribedundersection3
liabilitiesincludesdebtsorobligationsofeverykind,whetherpresentorfuture,
orwhethervestedorcontingent
licencemeansalicencegrantedundersection10
licensedbankmeansapersonlicensedundersection10tocarryonbanking
business
licensedbusinessmeansbankingbusiness,insurancebusinessorinvestment
bankingbusiness
licensedinsurermeansapersonlicensedundersection10tocarryoninsurance
business
licensedinvestmentbankmeansapersonlicensedundersection10tocarryon
investmentbankingbusiness
licensedpersonmeansapersonlicensedundersection10tocarryonalicensed
business
lifebusinessmeansthebusinessofundertakingliabilityunderalifepolicy
lifepolicymeansapolicybywhichpaymentofpolicymoneysisinsuredon
deathorsurvival,includingextensionsofcoverforpersonalaccident,diseaseor
sicknessandincludesanannuitybutexcludesapersonalaccidentpolicy
Act720. MalaysiaDepositInsuranceCorporationmeanstheMalaysiaDeposit
InsuranceCorporationreferredtointheMalaysiaDepositInsuranceCorporation
Act2011[Act720]
MalaysianpolicymeansapolicywhichisissuedinMalaysiabyalicensed
insurerandis
Act53.
(a) alifepolicywherethepolicyownersaddress,asspecifiedinthepolicyor
anyotheraddresssubsequentlynotifiedinwritingbythepolicyownerto
theinsurer,isorwasanaddressinMalaysia
(b) ageneralpolicywhichrelatestorisksarisinginMalaysia,orwherethe
policyownerisaresidentof,orapermanentestablishmentin,Malaysia
withinthemeaningoftheIncomeTaxAct1967[Act53]or
(c) areinsurancecontractwithanotherlicensedinsurer
marketparticipantmeansanypersonwho
(a) issues,sells,purchases,repurchases,borrows,lendsorotherwisedeals
withcurrenciesorotherfinancialinstrumentstradedinthemoneymarket
orforeignexchangemarketincludingoverthecounterderivativeswhose
price,valueorpaymentobligationsarederivedfrom,referencedtoor
basedoninterestratesorexchangeratesor
(b) arrangestransactionsinthemoneymarketorforeignexchangemarketas
anintermediary,
whetheractingasaprincipaloranagent,andincludesanyotherpersonsas
prescribedundersection4
member,inrelationtoabodycorporateorunincorporatewhichis
(a) acorporation,meansashareholder
(b) acooperativesociety,meansamemberofthecooperativesociety
(c) apartnership,meansapartner
(d) anyotherbodycorporatehavingamembership,meansamemberofthe
bodyand
(e) asocietyregisteredundertheSocietiesAct1966[Act335],meansa
memberofthesociety
Act335.
merchantacquiringservicesmeansabusinessofanoperatorofapayment
systemthatentersintoacontractwithamerchantforthepurposeofaccepting
paymentinstrumentsforpaymentofgoodsorservices
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MinistermeanstheMinisterforthetimebeingchargedwiththeresponsibility
forfinance
moneybrokingbusinessmeansthebusinessofarrangingtransactionsbetween
buyersandsellersinthemoneymarketorforeignexchangemarketasan
intermediaryinconsiderationofbrokeragefeespaidortobepaid,butexcludesthe
buyingorsellingofMalaysiancurrencyorforeigncurrenciesasaprincipalinsuch
markets
officereferstoaplacewhereoratwhichanybusinessofanypersoniscarried
out,includingtheheadofficeinMalaysia,oranyotheroffice,abranch,anagency
(exceptforaninsuranceagencyinthecaseofalicensedinsurer),amobileplaceof
business,aplaceofbusinesssetupandmaintainedforalimitedperiodonlyoran
electronicterminal
officer,inrelationtoabodycorporateorunincorporate,includesanyemployee
orthechiefexecutiveofficerofthebodycorporateorunincorporate
operatormeansanyperson,actingaloneorunderanarrangementwithanother
person,responsiblefortherules,proceduresandoperationsofapaymentsystem
operatorofadesignatedpaymentsystemmeansanypersonwhooperatesa
designatedpaymentsystem
participantmeansanypersonwhoispermittedbytherulesgoverninga
paymentsystemtosendpaymentinstructionsorsettlementinstructionstothe
paymentsystemandwhoisboundbytherulesgoverningthepaymentsystem
participatinglifepolicymeansalifepolicyconferringarighttothepolicy
ownertoparticipateinallocations,ofwhichtheamountortimingisatthediscretion
oftheinsurer,fromtheassetsofaninsurancefundundersubsection81(2)
paymentinstructionorsettlementinstruction,inrelationtoapaymentsystem,
includesaninstructiontotransfer,clearorsettletransactionsinfundsorsecurities,
asthecasemaybe
paymentinstrumentmeansanyinstrument,whethertangibleorintangible,that
enablesapersontoobtainmoney,goodsorservicesortomakeanypayment
paymentsystemmeansanysystemorarrangementforthetransfer,clearingor
settlementoffundsorsecurities
personincludesanindividual,anycorporation,statutorybody,localauthority,
society,tradeunion,cooperativesociety,partnershipandanyotherbody,
organization,associationorgroupofpersons,whethercorporateorunincorporate
personalaccidentpolicymeansapolicyprovidingfixedpecuniarybenefitsor
benefitsinthenatureofindemnity,orboth,againstrisksofthepersoninsured
sustaininginjuryordyingastheresultofanaccidentorbecomingincapacitatedin
consequenceofdisease
policymeansaninsurancepolicyandincludesacovernoteoracontractof
insurance,whetherornotembodiedinorevidencedbyaninstrumentintheformof
aninsurancepolicy,andreferencesto
(a) issuingapolicyshallbeconstruedasenteringintoacontractofinsurance,
whetherornotaformalcontracthasbeenissuedand
(b) apolicyofaninsurerincludesapolicyorabondinrespectofwhichthe
insurerisunderanyliability,whetherthepolicywasissuedbytheinsurer
ortheliabilitywastransferredtotheinsurerfromanotherinsurer
policymoneysincludesanybenefit,whetherpecuniaryornot,whichissecured
byapolicy
policyownermeansthepersonwhohaslegaltitletoapolicyandincludes
(a) whereapolicyhasbeenassigned,theassignee
(b) whereapersonalrepresentativeofadeceasedpolicyownerisentitledas
againsttheinsurertothebenefitofapolicy,thepersonalrepresentative
(c) inrelationtoapolicyprovidingforthepaymentofannuity,anannuitant
and
(d) whereunderapolicy,moneysaredueorpayable,whetherperiodicallyor
otherwise,thepersontowhomthemoneysaredueorpayable
premisesincludesanyland,building,structureorplace
premiummeanstheamountpayabletoaninsurerunderapolicyas
considerationfortheobligationsassumedbytheinsurer
prescribemeanstoprescribebyanorderpublishedintheGazette,andapower
toprescribeincludesthepowertoprescribedifferentlyfordifferentpersons,
paymentsystemsorpaymentinstrumentsordifferentclasses,categoriesor
descriptionsofpersons,paymentsystemsorpaymentinstruments
professionalreinsurermeansareinsurerwhichislicensedtocarryonsolely
reinsurancebusiness
propertymeansanymovableorimmovableproperty,whethertangibleor
intangibleandincludes
(a) anyright,interest,title,claim,choseinaction,powerorprivilege,whether
presentorfuture,orwhethervestedorcontingent,inrelationtoany
property,orwhichisotherwiseofvalue
(b) anyconveyanceexecutedforconveying,assigning,appointing,
surrendering,orotherwisetransferringordisposingofimmovable
propertyofwhichthepersonexecutingtheconveyanceistheproprietoror
haspossessionorinwhichheisentitledtoacontingentright,eitherforthe
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wholeinterestorforanylessinterest
(c) anysecurity,includinganystock,share,debentureandfund
(d) anynegotiableinstrument,includinganybanknote,bearernote,Treasury
bill,dividendwarrant,billofexchange,promissorynote,chequeand
negotiablecertificateofdepositor
(e) anymortgageorcharge,whetherlegalorequitable,guarantee,lienor
pledge,whetheractualorconstructive,letterofhypothecation,trustreceipt,
indemnity,undertakingorothermeansofsecuringpaymentordischarge
ofadebtorliability,whetherpresentorfuture,orwhethervestedor
contingent
provisionoffinanceincludes
(a) lendingofmoney
(b) leasingbusiness
(c) factoringbusiness
(d) purchaseofbillsofexchange,promissorynotes,certificatesofdeposit,
debenturesorothernegotiableinstrumentsand
(e) theacceptanceorguaranteeofanyliability,obligationordutyofany
person
Act125. publiccompanyhasthesamemeaningassignedtoitinsubsection4(1)ofthe
CompaniesAct1965
registeredadjustermeansaregisteredpersoncarryingonadjustingbusiness
registeredbusinessmeansanybusinesssetoutinPart2ofSchedule1
registeredoperatorofapaymentsystemmeansaregisteredpersonoperatinga
paymentsystemsetoutinparagraph9ofPart2ofSchedule1
registeredpersonmeansaregisteredpersonundersubsection18(1)
reinsurancemeansinsurancecovereffectedbyaninsurerwithasecondinsurer
ontherisks,whollyorpartly,ithasacceptedandincludesanysimilararrangement
byabranchoftheinsurerinMalaysiawithitsbranchoutsideMalaysia(thehead
officeoftheinsurerbeing,forthispurpose,treatedasabranch)
Act125. related,inrelationtoacorporation,meansrelatedwithinthemeaningofsection
6oftheCompaniesAct1965
relative,inrelationtoanindividual,subjecttosubsection(2),means
(a) thespouseoftheindividual
(b) thebrotherorsisteroftheindividual,orofthespouseoftheindividual
(c) anylinealascendantordescendantoftheindividual,orofthespouseof
theindividual
(d) thespouseofanyindividualreferredtoinparagraph(b)or(c)
(e) anylinealdescendantofanindividualreferredtoinparagraph(b)or(d)
(f) anyuncle,auntorcousinoftheindividual,orofthespouseofthe
individualor
(g) anyspouse,oranylinealascendantordescendant,ofanindividual
referredtoinparagraph(f)
Act372. repealedActsmeanstheBankingandFinancialInstitutionsAct1989[Act372],
Act17. theExchangeControlAct1953[Act17],theInsuranceAct1996[Act553]andthe
Act553.
Act627. PaymentSystemsAct2003[Act627]
Act701. risktofinancialstabilityhasthesamemeaningassignedtoitinsection29of
theCentralBankofMalaysiaAct2009
seniorofficermeansaperson,otherthanthechiefexecutiveofficerora
director,havingauthorityandresponsibilityforplanning,directingorcontrolling
theactivitiesofanauthorizedperson,operatorofadesignatedpaymentsystemora
financialholdingcompanyincludingthechiefoperatingofficer,membersof
decisionmakingcommitteesandotherpersonsperformingkeyfunctionssuchas
riskmanagement,compliance,internalauditorotherfunctionsasmaybespecified
bytheBankundersection47
share,inrelationtoacorporation,meansanissuedshareofthecorporationand
includesstockexceptwhereadistinctionbetweenstockandshareisexpressedor
implied
specifymeanstospecifyinwritingbywayofstandardsoranyotherforms,
andapowertospecifyincludesthepowertospecifydifferentlyfordifferent
persons,paymentsystemsorpaymentinstrumentsordifferentclasses,categories
ordescriptionsofpersons,paymentsystemsorpaymentinstruments
standardsincludesanyobligationorrequirementasspecifiedbytheBank
underthisActandsuchstandardsmaycontainanyinterpretative,incidental,
supplemental,consequentialandtransitionalprovisionsastheBankconsiders
appropriate
statutorybodymeansanyauthorityorbody,whethercorporateor
unincorporate,established,appointedorconstitutedbyanywrittenlaw,but
excludesanylocalauthority
Act125. subsidiaryhasthesamemeaningassignedtoitinsection5oftheCompanies
Act1965
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systemicriskinrelationtoadesignatedpaymentsystem,means
(a) ariskthatthefailureofaparticipantoroperatortomeethispaymentor
settlementobligationswillcauseanotherparticipanttobeunabletomeet
hispaymentorsettlementobligationswhendueor
(b) ariskthatthefailureofaparticipantoroperatortomeethispaymentor
settlementobligationsmaycausesignificantliquidityorcreditproblems
thatmightthreatenthestabilityofthefinancialsystem
Act759. takafulclaimhasthesamemeaningassignedtoitinsubsection2(1)ofthe
[sic]
IslamicFinancialServicesAct2012
usermeansanypersontowhomadesignatedpaymentinstrumenthasbeen
issuedoranypersonwhousesadesignatedpaymentinstrumenttoobtainmoney,
goodsorservicesortomakeanypayment
Act125. votingsharehasthesamemeaningassignedtoitinsubsection4(1)ofthe
CompaniesAct1965.
Relative
(2)Forthepurposeofthedefinitionofrelativeinsubsection(1)
(a) theadoptionofanypersonbyanotherunderanywrittenlawofMalaysia
oranycountry,territoryorplaceoutsideMalaysia,orunderanycustom
recognizedbyanyclassofpersonsinMalaysiaorinanycountry,territory
orplaceoutsideMalaysia,shallbetreatedascreatingbetweentheadopter
andtheadoptedpersonthesamenaturalrelationshipastheadoptive
relationship,andotherrelationshipsinrelationtoitshallbedetermined
accordinglyand
(b) referencesthereintoarelationshipinclude,whererelevant,arelationship
byhalfblood.
Control
(3)ForthepurposesofthisAct,apersonshallbepresumedtohavecontrol
overalicensedpersonorcorporationifsuchperson
(a) hasaninterestofmorethanfiftypercentofthesharesinthelicensed
personorcorporationor
(b) unlessprovenotherwise
(i) hasthepowertoelect,appoint,removeorpreventfromelection,
appointmentorremoval,orcausetobeelected,appointed,removedor
preventedfrombeingelected,appointedorremoved,amajorityofthe
directorsofthelicensedpersonorcorporation
(ii) hasthepowertomakeorcausetobemadedecisionsinrespectofthe
businessoradministrationofthelicensedpersonorcorporation,and
togiveeffecttosuchdecisionsorcausethemtobegiveneffecttoor
(iii) isapersoninaccordancewithwhosedirections,instructionsor
wishesthedirectors,chiefexecutiveofficerorseniorofficersofthe
licensedpersonorcorporationareaccustomedorunderobligation,
whetherformalorinformal,toact,
andthephrasecontrolledorcontrollershallbeconstruedaccordingly.
Actinginconcert
(4)ForthepurposesofthisAct
(a) personsactinginconcertmeanspersonswho,pursuanttoanagreement,
arrangementorunderstanding,cooperateto
(i) acquirejointlyorseverallyinterestsinthesharesofacorporationfor
thepurposeofobtainingorconsolidatingcontrolofthatcorporation
or
(ii) actjointlyforthepurposeofexercisingcontroloveracorporation
and
(b) withoutlimitingthegeneralityofparagraph(a),thefollowingpersons
shallbepresumedtobepersonsactinginconcert,unlessproven
otherwise:
(i) acorporationanditsrelatedandassociatecorporations
(ii) acorporationandanyofitsdirectors,ortheparent,child,brotheror
sisterofanyofitsdirectors,orthespouseofanysuchdirectororof
anysuchrelative,oranyrelatedtrusts
(iii) acorporationandanypensionfundestablishedbyit
(iv) apersonandanyinvestmentcompany,unittrustfundoranyother
fundwhoseinvestmentssuchpersonmanagesonadiscretionary
basis
(v) apersonandhisclientwhichisacorporation,wheretheperson
managesonadiscretionarybasistheclientsfundsandhastenper
centormoreinterestinsharesoftheclientor
(vi) apersonwhoownsorcontrolstwentypercentormoreofthevoting
sharesofacorporationfallingwithinsubparagraph(i)andanyparent,
child,brotherorsisterofsuchperson,orthespouseofsuchpersonor
anysuchrelative,oranyrelatedtruststogetherwithoneormore
personsfallingwithinsubparagraph(i).
Qualifiedfinancialagreements
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(5)ForthepurposesofthisAct
(a) qualifiedfinancialagreementmeans
(i) amasteragreementinrespectofoneormorequalifiedfinancial
transactionsunderwhichifcertaineventsspecifiedbythepartiesto
theagreementoccur
(A) thetransactionsreferredtointheagreementterminateormaybe
terminated
(B) theterminationvaluesofthetransactionsundersubparagraph(i)
arecalculatedormaybecalculatedand
(C) theterminationvaluesofthetransactionsundersubparagraph(i)
arenettedormaybenetted,sothatanetamountispayable,
andwhereanagreementisalsoinrespectofoneormoretransactions
thatarenotqualifiedfinancialtransactions,theagreementshallbe
deemedtobeaqualifiedfinancialagreementonlywithrespecttothe
transactionsthatarequalifiedfinancialtransactionsandanypermitted
enforcementbythepartiesoftheirrightsundersuchagreement
(ii) anagreementrelatingtofinancialcollateral,includingatitletransfer
creditsupportagreement,withrespecttooneormorequalified
financialtransactionsunderamasteragreementreferredtoin
subparagraph(i)or
(iii) anyotheragreementasprescribedundersection4
(b) qualifiedfinancialtransactionmeans
(i) aderivative,whethertobesettledbypaymentordeliveryor
(ii) arepurchase,reverserepurchaseorbuysellbackagreementwith
respecttosecurities
(c) financialcollateralmeansanyofthefollowingthatissubjecttoan
interestorarightthatsecurespaymentorperformanceofanobligationin
respectofaqualifiedfinancialagreementorthatissubjecttoatitletransfer
creditsupportagreement:
(i) cashorcashequivalents,includingnegotiableinstrumentsand
demanddeposits
(ii) security,asecuritiesaccountorarighttoacquiresecuritiesor
(iii) futuresagreementorfuturesaccount
(d) titletransfercreditsupportagreementmeansanagreementunderwhich
titletopropertyhasbeenprovidedforthepurposeofsecuringthepayment
orperformanceofanobligationinrespectofaqualifiedfinancial
agreement.
Act759. (6)AnyreferenceinthisActtothisAct,theIslamicFinancialServicesAct
Act701. 2013ortheCentralBankofMalaysiaAct2009shall,unlessotherwise
expresslystated,bedeemedtoincludeareferencetoanyrule,regulation,order,
notificationorothersubsidiarylegislationmadeunderthisAct,theIslamic
FinancialServicesAct2013ortheCentralBankofMalaysiaAct2009,asthecase
maybe.
Prescriptionby 3.TheMinistermay,ontherecommendationoftheBank,prescribe
Ministerofadditional
businessoractivity
(a) anybusinessoractivityasanadditiontothedefinitionof
(i) bankingbusiness
(ii) investmentbankingbusiness
(iii) financialintermediationactivities
(iv) factoringbusinessor
(v) leasingbusiness,
anduponsuchprescription,thedefinitionasaddedtoshallbedeemedto
beanintegralpartofthisActasfromthedateofcommencementofsuch
prescription,orfromsuchlaterdateasmaybespecifiedintheorderand
(b) anybusiness,serviceoractivityinrelationtoafinancialserviceasa
financialadvisorybusinessforthepurposesofthedefinitionoffinancial
advisorybusinessundersubsection2(1).
PrescriptionbyBank 4.TheBankmay,withtheconcurrenceoftheMinister,prescribe
ofadditional
agreement,dealing,
transactionorperson
(a) anyagreementinrespectofafinancialtransactionthatmaybeenteredinto
bypartiesinthefinancialmarkets,otherthanastandardizedderivativeor
anagreementinrespectofsecuritiestransactionsenteredintounderthe
rulesofastockexchangeandapprovedclearinghouseasdefinedin
subsection2(1)oftheCapitalMarketsandServicesAct2007asa
qualifiedfinancialagreementforthepurposesofthedefinitionof
qualifiedfinancialagreementinsubsection2(5)
(b) anydealingortransactionasacreditfacilityforthepurposesofthe
definitionofcreditfacilityinsubsection2(1)and
(c) anyotherpersonasamarketparticipantforthepurposesofthedefinition
Act671.
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ofmarketparticipantinsubsection2(1).
Classificationof,and 5.(1)ForthepurposesofthisAct,insurancebusinessshallbedividedinto
constructionof twoclasses
referencesto,insurance
business
(a) lifebusiness,whichinadditiontoallinsurancebusinessconcernedwith
lifepoliciesshallincludeanytypeofinsurancebusinesscarriedonas
incidentalonlytothelifeinsurersbusinessand
(b) generalbusiness,whichmeansallinsurancebusinesswhichisnotlife
business.
(2)ForthepurposesofthisAct,thereinsuranceofliabilitiesunderinsurance
policiesshallbetreatedasbelongingtothesameclassanddescriptionasthe
insurancepoliciesbeingreinsured.
(3)Notwithstandinganythinginsubsection(1)orthedeterminationofapolicy
toaparticularinsurancefundbyalicensedinsurer,iftheBankissatisfiedthatany
partofthelicensedinsurersbusinesswhichbelongstoaparticularclassor
descriptionofinsurancebusinessoughtinthatlicensedinsurerscasetobetreated
asbelongingtoanotherclassordescription,theBankmaydirectthatitshallbeso
treatedforthepurposesofthisAct.
(4)ForthepurposesofthisAct
(a) theactivityof
(i) effectingacontractofinsuranceor
(ii) carryingoutacontractofinsurance,
bywayofbusinessshallconstitutethecarryingonofinsurancebusiness
(b) apersonisdeemedtoeffect,orcarryout,acontractofinsurancebyway
ofbusinessifhe
(i) engagesinsuchactivityinamannerwhichinitselfconstitutesthe
carryingonofabusiness
(ii) holdshimselfoutaswillingandabletoengageinsuchactivityor
(iii) regularlysolicitsotherpersonstoengagewithhimintransactions
constitutingsuchactivityand
(c) areferencetocarryingoninsurancebusinessincludescarryingiton
throughanagent,orasanagent,butinsurerdoesnotincludean
insuranceagentassuchnorinthecaseofapersonwhoisbothinsurerand
insuranceagent,anybusinessdonebythatpersonasaninsuranceagent.
(5)ForthepurposesofthisAct
(a) theMinistermay,ontherecommendationoftheBank,prescribeany
businessoractivityasinsurancebusiness
(b) theBankmaydeterminesuchbusinessoractivitytobelongtoaparticular
classreferredtoinsubsection(1)ordescription,ofinsurancebusiness
and
(c) thebusinessessetoutinSchedule4shallnotbetreatedasinsurance
business.
PARTII
REGULATORYOBJECTIVESANDPOWERSANDFUNCTIONSOF
BANK
Regulatoryobjectives 6.TheprincipalregulatoryobjectiveofthisActistopromotefinancialstability
andinpursuingthisobjective,theBankshall
(a) foster
(i) thesafetyandsoundnessoffinancialinstitutions
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