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Malaysia Deposit Insurance Corporation (Amendment) Act 2022 is Malaysia Amendment Act, cited as Amendment Act A1647 2022, currently marked in force and first recorded in 2022.
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MALAYSIA DEPOSIT INSURANCE CORPORATION
(AMENDMENT) ACT 2022
Date of Royal Assent
...
...
2 February 2022
Date of publication in the
...
...
10 February 2022
Gazette
Publisher’s Copyright C
(Appointed Printer to the Government of Malaysia).
Malaysia Deposit Insurance Corporation (Amendment)
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MALAYSIA DEPOSIT INSURANCE CORPORATION
(AMENDMENT) ACT 2022
Opening note
Short title and commencement
This Act may be cited as the Malaysia Deposit Insurance
Corporation (Amendment) Act 2022.
This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different provisions of this Act.
General amendment
The Malaysia Deposit Insurance Corporation Act 2011 [Act 720], which is referred to as the “principal Act” in this Act, is amended—
by substituting for the words “Companies Act 1965”
wherever appearing including in the shoulder note the words “Companies Act 2016”; and
by substituting for the words “provisional liquidator”
wherever appearing the words “interim liquidator”.
Amendment of section 2
Subsection 2(1) of the principal Act is amended—
by inserting before the definition of “Islamic bank”
the following definition:
‘ “investment account” has the same meaning as defined under subsection 2(1) of the Islamic Financial
Services Act 2013;’;
in the definition of “related”, by substituting for the words
“section 6” the words “section 7”;
by substituting for the definition of “Islamic deposit”
the following definition:
‘ “Islamic deposit” has the same meaning as defined under subsection 2(1) of the Islamic Financial Services
Act 2013;’;
by substituting for the definition of “conventional deposit”
the following definition:
‘ “conventional deposit” has the same meaning assigned to the definition of “deposit” under subsection 2(1) of the Financial Services Act 2013
and does not include an Islamic deposit;’;
in the national language text, in the definition of
“manfaat insurans”, by inserting after the word “kejadian”
the words “atau lebih”;
by substituting for the definition of “Registrar of Companies”
the following definition:
‘ “Registrar of Companies” means the Registrar designated under subsection 20 a(1) of the
Companies Commision of Malaysia Act 2001 [Act 614];’;
Malaysia Deposit Insurance Corporation (Amendment)
in the definition of “corporation”, by substituting for the words “section 4” the words “section 3”; and
in the definition of “insurance company”, by substituting for the words “and Danajamin Nasional Berhad”
the words “, Danajamin Nasional Berhad and any person carrying on solely financial guarantee insurance business or credit guarantee insurance business”.
Amendment of section 11
Section 11 of the principal Act is amended by inserting after subsection (2) the following subsections:
“(2a) The Minister, in appointing the directors under paragraphs 2(d) and (e), shall have regard to—
diversity of the board of directors in terms of interest, knowledge, skill and experience;
the person’s knowledge, skill and experience in banking, insurance, economics or in any other relevant discipline, which will enable him to discharge his functions as a director.
Each director referred to in paragraph (2)(b) or (c)
may assign in writing a position within his organization as the alternate director who shall attend meetings of the
Board in place of the director when the director is for any reason unable to attend.
For the avoidance of doubt, for the purposes of subsection 15(9) of the Central Bank of Malaysia
Act 2009 [Act 701], the position of the Deputy Governor of
Bank Negara Malaysia may be assigned as the alternate director under subsection (2b).
When attending meetings of the Board in place of the directors referred to in paragraph (2)(b) or (c), the alternate directors shall for all purposes be deemed to be directors of the Board.”.
Amendment of section 12
Subsection 12(1) of the principal Act is amended by inserting after paragraph (c) the following paragraph:
“(ca) the quorum of a meeting of the Board;”.
Amendment of section 13
Section 13 of the principal Act is amended by inserting after subsection (2) the following subsection:
“(3) An alternate director assigned in subsection 11(2b)
by a director referred to in paragraph 11(2)(b) or (c)
(referred to in this subsection as “principal director”) shall, unless the assignment is sooner revoked in writing or the position is no longer in existence, cease to be an alternate director when the principal director ceases to be a member of the Board.”.
Amendment of section 16
Section 16 of the principal Act is amended by inserting after the word “director” the words “including alternate director”.
Amendment of section 18
Section 18 of the principal Act is amended by deleting subsection (3).
Amendment of section 28
Section 28 of the principal Act is amended by inserting after subsection (2) the following subsection:
“(3) The Corporation is empowered to transfer monies or assets from any of the funds to another fund, as may be necessary for or in connection with, or reasonably incidental to, the furtherance of its objects, the performance of its functions or the discharge of its duties, and subject to such conditions as the Corporation may specify.”.
Malaysia Deposit Insurance Corporation (Amendment)
Amendment of section 34
Subsection 34(1) of the principal Act is amended by substituting for the word “certified” the word “audited”.
Amendment of section 41
Section 41 of the principal Act is amended—
in subparagraph (1)(a)(i), by inserting after the words
“primarily liable” the words “and which meets the criteria as specified by the Corporation”;
in subsubparagraph (1)(a)(E), by deleting the word “and”
at the end of the subsubparagraph;
by inserting after subsubparagraph (1)(a)(E) the following subsubparagraph:
“(EA) an investment linked to derivatives; and”; and
New section 46a
The principal Act is amended by inserting before section 47
of Chapter 2 of Part IV the following section:
“Definitions 46a. (1) For the purposes of this Chapter—
“total insured deposits” means the total deposits separately insured as Islamic deposits or conventional deposits under section 42, calculated in such manner as specified by the Corporation;
“transferring party” means a person, including a deposit-taking member, which transfers its business under a business transfer scheme;
“business transfer scheme” refers to a scheme of transfer for the whole or material part of the deposit-taking business; and
“transfer date” means the date on which a business transfer scheme takes effect as specified by the Corporation.
For the purposes of paragraph (1)(c), the Corporation may specify what constitutes a material part of the deposit-taking business.”.
Substitution of section 47
The principal Act is amended by substituting for section 47
the following section:
Quoted provision
“First premium in respect of new deposit-taking members
Subject to subsections (2), (3) and (4), the Corporation shall assess and collect the first premium payable by a new deposit-taking member for the assessment year in which it becomes a member institution as follows:
an amount based on a rate to be prescribed by the
Minister on the recommendation of the Corporation and calculated in accordance with section 47a, whichever is higher.
Except as provided under subsection (3), where the business of one or more transferring parties is transferred under a business transfer scheme to a new deposit-taking member, the Corporation shall assess and collect the first premium payable by the new deposit-taking member as follows:
two hundred and fifty thousand ringgit; or
Malaysia Deposit Insurance Corporation (Amendment)
an amount based on a rate to be prescribed by the
Minister on the recommendation of the Corporation and calculated in accordance with section 47a, whichever is higher.
Where the business of one or more deposit-taking members only is transferred under a business transfer scheme to a new deposit-taking member—
before the annual due date referred to in subsection 48(1)
in an assessment year, no annual premium shall be required to be paid by the deposit-taking members for that assessment year; and
after the annual due date referred to in subsection 48(1)
in an assessment year, no first premium shall be required to be paid by the new deposit-taking member.
For the avoidance of doubt, where the transferring parties are deposit-taking members which have been approved under paragraph 15(1)(a) of the Financial Services Act 2013
to carry on Islamic banking business and their Islamic banking business is transferred under a business transfer scheme to a new deposit-taking member before the annual due date referred to in subsection 48(1) in an assessment year, no annual premium shall be required to be paid by the deposit-taking members for that assessment year in respect of the Islamic banking business.
For the avoidance of doubt, different rates may be prescribed under subsections (1) and (2) for categories in which new deposit-taking members are classified under premium regulations and different rates may apply to different categories of new deposit-taking members.
A new deposit-taking member shall pay the first premium to the Corporation within thirty days from the date it becomes a member or such other period as may be specified by the
Corporation.”.
New section 47a
The principal Act is amended by inserting after section 47
the following section:
“Calculation of first premium in respect of new deposit-taking members 47a. (1) The first premiums shall be calculated as follows:
the first premium to be paid by a new deposit-taking member shall be calculated on the basis as may be prescribed by the Minister;
the first premiums of Islamic and conventional deposits shall be calculated separately; and
the applicable premium rates for each new deposit-taking member shall be based on such criteria as may be prescribed in the regulations.
The first premium payable by a new deposit-taking member shall be based on returns to be certified by the chief executive of the new deposit-taking member and submitted in such form and within such period as the Corporation may require.”.
Amendment of section 48
Subsection 48(1) of the principal Act is amended—
by substituting for the word “Every” the words
“Subject to paragraph 47(3)(a) and subsection 49a(1), every”; and
in the national language text, by substituting for the words “menjadi anggota penerima deposit” the words
“menjadi institusi anggota”.
Amendment of section 49
Subsection 49(1) of the principal Act is amended—
by substituting for the words “The annual premiums”
the words “Subject to section 49a, the annual premiums”;
and
Malaysia Deposit Insurance Corporation (Amendment)
by substituting for paragraph (a) the following paragraph:
“(a) the annual premium to be paid by a deposit-taking member shall be calculated on the basis as may be prescribed by the Minister;”.
New section 49a
The principal Act is amended by inserting after section 49
the following section:
“Annual premium in respect of deposit-taking members under business transfer scheme 49a. (1) Where the business of one or more transferring parties is transferred under a business transfer scheme to a deposit-taking member (referred to in this subsection as the “transferee member”) before the annual due date referred to in subsection 48(1) in an assessment year—
the transferee member shall pay annual premium for that assessment year calculated on the basis as may be prescribed by the Minister;
based on the rates and subject to the minimum amounts to be prescribed by the Minister on the recommendation of the Corporation; and
calculated in such manner and paid within such period as may be specified by the Corporation;
the transferring parties shall not be required to pay annual premium under section 48 for that assessment year; and
for the avoidance of doubt, where the transferring parties are deposit-taking members which have been approved under paragraph 15(1)(a) of the
Financial Services Act 2013 to carry on Islamic banking business and their Islamic banking business is transferred under a business transfer scheme to a transferee member before the annual due date referred to in subsection 48(1) in an assessment year, no annual premium shall be required to be paid by the deposit-taking members for that assessment year in respect of the Islamic banking business.
Where the business of one or more non-deposit taking members is transferred under a business transfer scheme to a deposit-taking member (referred to in this subsection as the “transferee member”) after the annual due date referred to in subsection 48(1) in an assessment year—
the transferee member shall, notwithstanding that it has paid annual premium under subsection 48(1), pay additional annual premium calculated on the basis as may be prescribed by the Minister; and
based on the rates and subject to the minimum amounts to be prescribed by the Minister on the recommendation of the Corporation; and
calculated in such manner and paid within such period as may be specified by the
Corporation.
For the avoidance of doubt, the rates prescribed under subsections (1) and (2) and the minimum amounts prescribed under subsections (1) and (2) may relate to categories in which deposit-taking members are classified under premium regulations and different rates and minimum amounts may apply to different categories.
Any deposit-taking member which contravenes subsection (1) or (2) commits an offence and shall, on conviction, be liable to a fine not exceeding three million ringgit and shall, in addition, be liable to a daily fine not exceeding thirty thousand ringgit for every day the offence continues after conviction.”.
Malaysia Deposit Insurance Corporation (Amendment)
Amendment of section 54
Section 54 of the principal Act is amended—
in subsection (1) as renumbered, by substituting for the word “Any” the words “Subject to subsection (2), any”;
and
by inserting after subsection (1) as renumbered the following subsection:
“(2) The Minister may, on the recommendation of the Corporation, by order published in the Gazette—
provide for the partial or total reduction, waiver, refund or rebate of the amount of any premium or premium surcharge to such deposit-taking member; and
Amendment of section 63
Section 63 of the principal Act is amended—
in the shoulder note, by substituting for the words
“index-linked deposit” the words “investments linked to derivatives previously specified as insured by Corporation”;
by substituting for the words “a deposit held by a deposit-taking member” the words “investments linked to derivatives held by a deposit-taking member and previously specified as insured by the Corporation”; and
by substituting for the words “in respect of the deposit”
the words “in respect of the investments linked to derivatives”.
Amendment of section 67
Section 67 of the principal Act is amended in the shoulder note by substituting for the word “claim” the word “action”.
Amendment of section 69
Subsection 69(6) of the principal Act is amended by substituting for the words “or (h)” the words “, (g) or (i)”.
New section 70a
The principal Act is amended by inserting before section 71
of Chapter 2 of Part V the following section:
“Definitions 70a. (1) For the purposes of this Chapter—
“transferring party” means a person, including an insurer member, which transfers its business under a business transfer scheme;
“business transfer scheme” refers to a scheme of transfer for the whole or material part of the business of family takaful or life insurance or the business of general takaful or general insurance; and
“transfer date” means the date on which a business transfer scheme takes effect as specified by the Corporation.
For the purposes of paragraph (1)(b), the Corporation may specify what constitutes a material part of the business of family takaful or life insurance or the business of general takaful or general insurance.”.
Malaysia Deposit Insurance Corporation (Amendment)
Substitution of section 71
The principal Act is amended by substituting for section 71
the following section:
Quoted provision
“First levy in respect of new insurer members
Subject to subsections (2) and (3), the Corporation shall assess and collect the first levy payable by a new insurer member for the assessment year in which it becomes a member institution as follows:
an amount based on a rate to be prescribed by the
Minister on the recommendation of the Corporation and calculated in accordance with section 71a, whichever is higher.
Except as provided under subsection (3), where the business of one or more transferring parties is transferred under a business transfer scheme to a new insurer member, the Corporation shall assess and collect the first levy payable by the new insurer member as follows:
an amount based on a rate to be prescribed by the
Minister on the recommendation of the Corporation and calculated in accordance with section 71a, whichever is higher.
Where the business of one or more insurer members only is transferred under a business transfer scheme to a new insurer member—
before the annual due date referred to in subsection 72(1) in an assessment year, no annual levy shall be required to be paid by the insurer members for that assessment year; and
after the annual due date referred to in subsection 72(1) in an assessment year, no first levy shall be required to be paid by the new insurer member.
For the avoidance of doubt, different rates may be prescribed under subsections (1) and (2) for categories in which new insurer members are classified under levy regulations and different rates may apply to different categories of new insurer members.
A new insurer member shall pay the first levy to the
Corporation within thirty days from the date it becomes a member or such other period as may be specified by the Corporation.”.
New section 71a
The principal Act is amended by inserting after section 71
the following section:
“Calculation of first levy in respect of new insurer members 71a. (1) The first levies shall be calculated as follows:
the first levy to be paid by a new insurer member shall be calculated on the basis as may be prescribed by the Minister;
the first levies in respect of the business of family takaful, general takaful, life insurance and general insurance shall be calculated separately; and
the applicable levy rates for each new insurer member shall be based on such criteria as may be prescribed in the regulations.
The first levy payable by a new insurer member shall be based on returns to be certified by the chief executive of the new insurer member and submitted in such form and within such period as the Corporation may require.”.
Malaysia Deposit Insurance Corporation (Amendment)
Amendment of section 72
Section 72 of the principal Act is amended—
by substituting for the word “Every” the words “Subject to paragraph 71(3)(a) and subsection 73a(1), every”; and
in the national language text, by substituting for the words “ia menjadi anggota penanggung insurans”
the words “ia menjadi institusi anggota”; and
in the national language text, in subsection (3), by inserting after the words “anggota penanggung insurans”
the words “bagi suatu tahun taksiran”.
Amendment of section 73
Section 73 of the principal Act is amended—
by substituting for the words “The annual levies”
the words “Subject to section 73a, the annual levies”;
by substituting for paragraph (b) the following paragraph:
“(b) the annual levy to be paid by an insurer member shall be calculated on the basis as may be prescribed by the Minister;”;
by substituting for paragraph (f) the following paragraph:
“(f) the annual levies in respect of the business of family takaful, general takaful, life insurance and general insurance shall be calculated separately.”; and
New section 73a
The principal Act is amended by inserting after section 73
the following section:
“Annual levy in respect of insurer members under business transfer scheme 73a. (1) Where the business of one or more transferring parties is transferred under a business transfer scheme to an insurer member (referred to in this subsection as the
“transferee member”) before the annual due date referred to in subsection 72(1) in an assessment year—
the transferee member shall pay annual levy for that assessment year calculated on the basis as may be prescribed by the Minister;
based on the rates and subject to the minimum amounts to be prescribed by the Minister on the recommendation of the Corporation;
and
calculated in such manner and paid within such period as may be specified by the
Corporation; and
the transferring parties shall not be required to pay annual levy under section 72 for that assessment year.
Where the business of one or more non-insurer members is transferred under a business transfer scheme to an insurer member (referred to in this subsection as the
“transferee member”) after the annual due date referred to in subsection 72(1) in an assessment year—
the transferee member shall, notwithstanding that it has paid annual levy under subsection 72(1), pay additional annual levy calculated on the basis as may be prescribed by the Minister; and
Malaysia Deposit Insurance Corporation (Amendment)
based on the rates and subject to the minimum amounts to be prescribed by the Minister on the recommendation of the Corporation; and
calculated in such manner and paid within such period as may be specified by the Corporation.
For the avoidance of doubt, the rates prescribed under subsections (1) and (2) and the minimum amounts prescribed under subsections (1) and (2) may relate to categories in which insurer members are classified under levy regulations and different rates and minimum amounts may apply to different categories.
Any insurer member which contravenes subsection (1)
or (2) commits an offence and shall, on conviction, be liable to a fine not exceeding three million ringgit and shall, in addition, be liable to a daily fine not exceeding thirty thousand ringgit for every day the offence continues after conviction.”.
Amendment of section 78
Section 78 of the principal Act is amended—
in subsection (1) as renumbered, by substituting for the word “Any” the words “Subject to subsection (2), any”; and
by inserting after subsection (1) as renumbered the following subsection:
“(2) The Minister may, on the recommendation of the Corporation, by order published in the Gazette—
provide for the partial or total reduction, waiver, refund or rebate of the amount of any levy or levy surcharge to such insurer member; and
Amendment of section 93
Section 93 of the principal Act is amended in the shoulder note by substituting for the word “claim” the word “action”.
New section 97a
The principal Act is amended by inserting after section 97
the following section:
“Resolution planning 97a. The Corporation may draw up, review and amend a resolution plan for the orderly resolution of a member institution.”.
Amendment of section 102
Subsection 102(4) of the principal Act is amended—
in paragraph (a), by substituting for the words
“section 64” the words “section 116”; and
in paragraph (b), by substituting for the words
“subsections 64(9) and (10)” the words “section 122 and subsections 116(9), 116(10) and 116(12)”.
Amendment of section 129
Section 129 of the principal Act is amended by substituting for the words “sections 217 and 218 and subsection 221(1)”
the words “sections 464, 465 and 466 and subsections 469(1)
and (2)”.
Malaysia Deposit Insurance Corporation (Amendment)
Amendment of section 131a
Subsection 131a(1) of the principal Act is amended by substituting for the words “paragraph 236(1)(a) of” the words
“subparagraph 1(a) of Part II of the Twelfth Schedule to”.
Amendment of section 131b
Subsection 131b(1) of the principal Act is amended by substituting for the words “paragraph 236(1)(a) of” the words
“subparagraph 1(a) of Part II of the Twelfth Schedule to”.
Amendment of section 132
Section 132 of the principal Act is amended—
in subsection (1), by substituting for the words
“section 228” the words “subsection 478(1)”; and
in subsection (3), by substituting for the words
“subsection 232(3)” the words “subsection 479(2)”.
Amendment of section 133
Section 133 of the principal Act is amended by substituting for the words “subsection 237(4)” the words “subsection 487(4)”.
Amendment of section 134
Section 134 of the principal Act is amended by substituting for the words “subsection 292(1)” the words “subsection 527(1)”.
Amendment of section 134a
Section 134a of the principal Act is amended—
in paragraph (2)(a), by inserting after the words
“its Islamic banking business” the words “including the
Islamic banking funds or any accounts established under subsection 15(3) of the Financial Services Act 2013, subject to paragraph (aa)”;
by substituting for the words “subsection 292(1)”
the words “subsection 527(1)”; and
by inserting after paragraph (2)(a), the following paragraph:
“(aa) notwithstanding subsection 527(1) of the
Companies Act 2016, but subject to any costs and expenses of the winding up set out in paragraph 527(1)(a) of the Companies Act 2016
directly incurred in realising the assets of the investment accounts and any tax set out in paragraph 527(1)(f) of the Companies Act 2016
which is attributable to the investment accounts, the assets of the investment accounts managed by the deposit-taking member in Malaysia, shall be available, in the order set out as follows:
to pay outstanding costs or expenses of the investment accounts;
to pay any profit, fees, gains or other remuneration due to the deposit-taking member; and
Substitution of section 134b
The principal Act is amended by substituting for section 134b the following section:
“Priority of payments in the winding up of a deposit-taking member that is an Islamic bank 134b. In the winding up of a deposit-taking member that is an Islamic bank in or outside Malaysia—
Malaysia Deposit Insurance Corporation (Amendment)
the assets of the deposit-taking member, subject to paragraph (b) shall be available to meet all liabilities of that deposit-taking member in respect of its Islamic deposits in Malaysia in priority to all other unsecured liabilities of that deposit-taking member other than the preferential debts set out in subsection 527(1) of the Companies Act 2016 in the order set out in that subsection and the debts due and claims owing to the Government under section 10 of the Government Proceedings Act 1956
and the order of priority for payments of different categories of Islamic deposits may be prescribed by regulations made under section 209; and
notwithstanding subsection 527(1) of the
Companies Act 2016, but subject to any costs and expenses of the winding up set out in paragraph 527(1)(a) of the Companies Act 2016 directly incurred in realising the assets of the investment accounts and any tax set out in paragraph 527(1)(f) of the
Companies Act 2016 which is attributable to the investment accounts, the assets of the investment accounts managed by the deposit-taking member in
Malaysia, shall be available, in the order set out as follows:
to pay outstanding costs or expenses of the investment accounts;
to pay any profit, fees, gains or other remuneration due to the deposit-taking member; and
Amendment of section 137
Paragraph 137(a) of the principal Act is amended by substituting for the words “sections 243 and 249 and subsections 236(3), 277(2), 277(3) and 277(4)” the words “sections 492, 493,
494, 502 and 510 and subsection 486(2)”.
Amendment of section 138
Section 138 of the principal Act is amended—
in paragraph (a), by substituting for the words
“subsection 235(3)” the words “section 485”; and
in paragraph (b), by substituting for the words
“prescribed form referred to in subsection 281(1)”
the words “documents referred to in subsection 514(1)”.
Amendment of section 139
Section 139 of the principal Act is amended by substituting for the words “section 234” the words “section 484”.
Amendment of section 142a
Section 142a of the principal Act is amended—
in subsection (1), by substituting for the words
“paragraph 292(1)(f)” the words “paragraph 527(1)(f)”;
and
in subsection (3), by substituting for the words
“subsection 292(1)” the words “subsection 527(1)”.
Amendment of section 142b
Section 142b of the principal Act is amended—
in subsection (1), by substituting for the words
“subsection 292(1)” the words “subsection 527(1)”; and
in paragraph (2)(c), by substituting for the words
“subsection 292(1)” the words “subsection 527(1)”.
Amendment of section 144
Paragraph 144(1)(a) of the principal Act is amended by substituting for the words “sections 176, 237, 241, 242, 246,
267 and 278” the words “sections 366, 367, 368, 370, 487, 499
and 512, subsections 454(2) and 454(3) and paragraphs 1, 2, 5,
6, 7, 8, 9, 10, 11, 12 and 13 of the Tenth Schedule”.
Malaysia Deposit Insurance Corporation (Amendment)
Amendment of section 146
Paragraph 146(3)(c) of the principal Act is amended by substituting for the word “(E)” the word “(F)”.
Amendment of section 150
Paragraph 150(2)(b) of the principal Act is amended by inserting after the words “Part IV” the words “and Chapter 2
of Part V”.
Amendment of section 160
Subsection 160(1) of the principal Act is amended in the definition of “secured creditor”, in paragraph (e), by substituting for the words “marketable securities (as defined in the
Companies Act 1965)” the word “securities”.
Amendment of section 181
Subsection 181(1) of the principal Act is amended in the definition of “director” by substituting for the words “section 4”
the words “section 2”.
Amendment of section 182
Section 182 of the principal Act is amended—
in subsection (1), by substituting for the words
“, had it been done by or against an individual, would in his bankruptcy under the law of bankruptcy be void or voidable” the words “would in the event of the affected person being wound up under the Companies Act 2016
be void or voidable”; and
by substituting for the words “law of bankruptcy”
the words “Companies Act 2016”; and
by substituting for the words “the effect of bankruptcy” the words “the effect of winding up”.
Amendment of section 186
Subsection 186(7) of the principal Act is amended by substituting for the words “marketable securities” the word “securities”.
Amendment of section 207a
Section 207a of the principal Act is amended by substituting for the words “subsection 132(1)” the words “subsection 213(1)”.
Amendment of section 209
Subsection 209(3) of the principal Act is amended by deleting paragraph (ea).
Amendment of Second Schedule
The Second Schedule to the principal Act is amended—
b y s u b s t i t u t i n g f o r t h e w o r d s
“paragraph 6 a(9)(b)” the words
“paragraph 8(9)(b)”; and
by inserting after the word “money”
the words “or the giving of financing”; and
in subsubparagraph (b), by substituting for the words “section 6a” the words “section 8”; and
in subparagraph 6(2), by substituting for the words
“subsection 112a(1)” the words “subsection 359(1)”.
Malaysia Deposit Insurance Corporation (Amendment)
Amendment of Third Schedule
The Third Schedule to the principal Act is amended—
b y s u b s t i t u t i n g f o r t h e w o r d s
“paragraph 6 a(9)(b)” the words
“paragraph 8(9)(b)”; and
by inserting after the word “money”
the words “or the giving of financing”; and
in subsubparagraph (b), by substituting for the words “section 6a” the words “section 8”; and
in subparagraph 7(2), by substituting for the words
“subsection 112a(1)” the words “subsection 359(1)”.
Saving
All references to “index-linked deposit” in the principal
Act shall, on the coming into operation of this Act, be construed as references to “investments linked to derivatives”.
Notwithstanding subsubparagraph 41(1)(a)(EA), all investments linked to derivatives previously specified as insured by the Corporation shall continue to be insured by the Corporation until they reach maturity, are fully withdrawn or are otherwise terminated, whichever is earlier.
For the avoidance of doubt, Islamic deposits accepted by a deposit-taking member under the repealed Islamic Banking
Act 1983 [Act 276] which are deemed to be Islamic deposits under section 288 of the Islamic Financial Services Act 2013 and which have been specified as insured by the Corporation shall continue to be insured by the Corporation until they cease to be deemed as
Islamic deposits under the Islamic Financial Services Act 2013.
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