New rules for financial institutions take effect
THE new rules governing financial institutions in Malaysia came into force yesterday.
The Financial Services Act 2013 (FSA) and the Islamic Financial Services Act 2013 (IFSA) underline Malaysia's priority to respond effectively to new and emerging risks.
At the same time, they will keep the nation's financial system undisrupted, Bank Negara Malaysia said yesterday.
"The laws provide Bank Negara with the necessary regulatory and supervisory oversight powers to fulfil its broad mandate within a more complex and interconnected environment, given the regional and international nature of financial developments," the central bank added.
The FSA and IFSA are the consolidation of the Banking and Financial Institutions Act 1989 (BAFIA), Islamic Banking Act 1983, Insurance Act 1996 (IA), Takaful Act 1984, Payment Systems Act 2003 and Exchange Control Act 1953, which were repealed on the same date.
The laws' key features include greater clarity and transparency in their implementation and admi-nistration, and a clear focus on syariah compliance and governance in the Islamic financial sector.
The laws also strengthened business conduct and consumer protection requirements to promote consumer confidence in the use of financial services and products, and provisions for effective and early enforcement and supervisory intervention.
"The new laws will place Malaysia's financial sector, namely the banking system; the insurance/takaful sector; the financial markets and payment systems; and other financial intermediaries on a platform for advancing as a sound, responsible and progressive financial system.
"This is crucial in order to enable the financial system to meet the new demands for financing associated with Malaysia's economic transformation programme both during and beyond the next decade, the changing demographics of its population, and the increasing integration of the Malaysian economy with the region and the world," Bank Negara noted.
More information on the FSA and IFSA can be obtained at http://www.bnm.gov.my.
Read more: New rules for financial institutions take effect http://www.btimes.com.my/Current_News/BTIMES/articles/01FSA/Article/#ixzz2XrzeCYZm
Source : Biz Times
Date : 2 July 2013
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