Section 116
Power to issue directions to financial holding company and subsidiaries
of Financial Services Act 2013
(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
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(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
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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.