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Section 42D

Prohibited business conduct

of Development Financial Institutions Act 2002

ActIn forceProvision 57 of 248
Section 42D
(1)

A prescribed institution shall not engage in any prohibited business conduct set out in the Second Schedule.

(2)

Without prejudice to the generality of section 126, the Bank may issue guidance in writing on—

(a)

descriptions of conduct which amount to any prohibited business conduct set out in the Second Schedule; or

(b)

factors that are to be taken into account in determining whether a prescribed institution has engaged in any prohibited business conduct set out in the Second Schedule.

(3)

Where the Bank issues guidance relating to prohibited business conduct set out in paragraphs 5 and 6 of the Second Schedule, such guidance shall be issued in consultation with the Competition

Commission.

(4)

Any prescribed institution that contravenes subsection (1)

commits an offence and shall on conviction be liable to imprisonment for a term not exceeding five years or to a fine not exceeding ten million ringgit or to both.

(5)

The Bank shall refer any complaint from an aggrieved person involving the prohibited business conduct set out in paragraphs 5

and 6 of the Second Schedule to the Competition Commission.

(6)

In this section, “Competition Commission” means the

Competition Commission established under the Competition

Act 2010 [Act 712].

Development Financial Institutions 71