Malaysia legislation
Section 156
Section 156
(2)
The Authority may, subject to such terms and conditions as it thinks fit, by publication in the Gazette declare or recognize that a corporation or organization shall be a self-regulatory organization in relation to a specified sector or industry, or any part thereof, where the Authority is satisfied that the corporation or organization—
(a)
has a constitution and internal rules and policies which are consistent with this Act and any written law applicable to such sector or industry, or part thereof;
(b)
has the capacity and the financial and administrative resources necessary or desirable to carry out its functions and the regulatory or supervisory functions it shall perform as a self-regulatory organization, including dealing with breaches of the law or of the applicable standards and guidelines;
Act 704
(c)
shall not discriminate unreasonably against a person in offering access to its services or in carrying out its functions as a self-regulatory organization;
(d)
is managed or controlled by officers or persons in control who are fit and proper persons under this Act; and
(e)
satisfies such criteria as may be specified in the rules stipulated by the Authority.
(3)
The Authority may, by written arrangement, delegate a power or function of the Authority to a self-regulatory organization.
(4)
An arrangement under subsection (3) shall provide for—
(a)
any power or function delegated to the self-regulatory organization by the Authority under subsection (3);
(b)
the terms and conditions upon which the power or function has been delegated and may be exercised by the self-regulatory organization;
(c)
the persons authorized to exercise the power or function delegated on behalf of the self-regulatory organization;
and
(d)
the submission to the Authority of periodical reports in respect of the exercise of a delegated power or function by the self-regulatory organization.
Rules of a self-regulatory organization