Development Financial Institutions Act 2002 · Updated to 6 Oct 2023 · Part IV · Obligations and Sourcing of Funds
42B. Application
Feedback & supportSections 42C and 42D shall apply without prejudice to the provisions of the Capital Markets and Services Act 2007 [Act 671] in so far as such provisions relate to any of the regulated activities carried on by a prescribed institution under that Act.
prescribed institution
“prescribed institution” means a development financial institution which is prescribed by the Minister under subsection 2(1);
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development
“development” includes the commencement of any new industrial, agricultural, commercial or other economic venture or the expansion or improvement of any such existing venture;
The Bank shall enter into an arrangement in writing with the Securities Commission to coordinate on the regulation of business conduct relating to capital market products or capital market services as defined in subsection 2(1) of the Capital Markets and
Bank
“Bank” means the Central Bank of Malaysia established under the *Central Bank of Malaysia Act 2009;
Services Act 2007, developed, offered or marketed by a prescribed institution.
Standards on business conduct
standards
“standards” includes any obligation or requirement as specified by the Bank under this Act and such standards may contain any interpretative, incidental, supplemental, consequential and transitional provisions; *NOTE—The Companies Act 1965 has been repealed by the Companies Act 2016 which comes into operation on 31 January 2017–see subsection 620(1)…
*42C. (1) The Bank may specify standards on business conduct for the purpose of ensuring that a prescribed institution is fair, responsible and professional when dealing with financial consumers.
specify
“specify” means specify in writing by way of standards or any other forms;
Without prejudice to the generality of subsection (1), standards specified under that subsection may include standards relating to—
transparency and disclosure requirements including the provision of information that is accurate, clear, timely and not misleading to financial consumers;
fairness of terms in a financial consumer contract for financial services or products;
promotion of financial services or products;
provision of recommendations or advice including assessments of suitability and affordability of financial services or products offered to financial consumers; and
complaints and dispute resolution mechanisms.
The Bank may specify standards for the purposes of the definition of “financial consumer” under section 42A.
financial consumer
“financial consumer” means any person who uses, has used or may be intending to use, any financial service or product— (a) for personal, domestic or household purposes; (b) in connection with a small business as may be specified by the Bank under section 42C; or (c) whether or not for the purposes set out in paragraph (a) or (b), if— (i) the value of the financial services or products does not exceed an amount as may be specified by the Bank under section 42C; or (ii) such person is of a class, category or description of persons as may be specified by the Bank under section 42C;
Where the Bank specifies a standard on business conduct under subsection (1) which relates specifically to capital market products or
business
“business” means any activity carried on for the purpose of gain or profit and includes all property derived from, or used in, or for the purpose of, carrying on such activity and all rights and liabilities arising from such activity;
*NOTE—General savings–see subsections 111(2) and (3) of the Development Financial Institutions
(Amendment) Act 2015 [Act A1502] which comes into operation on 31 January 2016.
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capital market services as defined in subsection 2(1) of the Capital
Markets and Services Act 2007, such standard shall be specified jointly with the Securities Commission.