Malaysia legislation
Section 41
Section 41
(a)
the sound financial position of a prescribed institution;
or
(b)
integrity, professionalism and expertise in the conduct of the business, affairs and activities of a prescribed institution.
(2)
Without prejudice to the generality of subsection (1), standards specified under that subsection may include standards relating to—
(a)
corporate governance;
(b)
risk management; and
(c)
prevention of a prescribed institution from being used, intentionally or unintentionally, for criminal activities.
(3)
The Bank may, in the interest of the prescribed institution, specify standards on prudential matters under this section to a subsidiary of a prescribed institution.
(4)
Every prescribed institution and a subsidiary of a prescribed institution shall at all times—
(a)
comply with the standards as may be specified by the Bank under this section;
(b)
ensure that its internal policies and procedures are consistent with the standards as may be specified by the Bank under this section; and
(c)
whether or not standards have been specified by the Bank under this section, manage its business, affairs and activities in a manner consistent with sound risk management and governance practices which are effective, accountable and transparent.
(5)
Every director and officer of a prescribed institution and a subsidiary of a prescribed institution shall at all times comply with the internal policies and procedures adopted by such institution or subsidiary including internal policies and procedures to implement the standards as may be specified by the Bank under this section.”.
Amendment of section 42