In the absence of a specific regulatory framework governing ‘scheduled institutions’ in the
Financial Services Act 2013 which replaces the Banking and Financial Institutions Act
1989 (“BAFIA”), paragraph 8.23(4)(c) of the Main LR has been deleted, which previously
exempted scheduled institutions which were registered and supervised by Bank Negara
Malaysia under the BAFIA from complying with the requirements in paragraph 8.23. Does
it mean that all corporations which were previously “scheduled institutions” under the
BAFIA must now comply with paragraph 8.23 in full?
Only corporations which were previously “scheduled institutions” and which are no longer
subjected to Bank Negara Malaysia’s regulation and supervision2 must now adhere strictly to the
requirements set out in paragraph 8.23 when providing financial assistance.
On the other hand, previous “scheduled institutions” such as the development finance institutions
which are prescribed under the Development Financial Institutions Act 20023
, and therefore, still
regulated and supervised by Bank Negara Malaysia will continue to enjoy the exemption from the
provision on financial assistance under paragraph 8.23(4)(b) of the Main LR.