Development Financial Institutions Act 2002 · Updated to 6 Oct 2023 · Part IV · Obligations and Sourcing of Funds
42D. Prohibited business conduct
Feedback & supportA prescribed institution shall not engage in any prohibited business conduct set out in the Second Schedule.
prescribed institution
“prescribed institution” means a development financial institution which is prescribed by the Minister under subsection 2(1);
Without prejudice to the generality of section 126, the Bank may issue guidance in writing on—
Bank
“Bank” means the Central Bank of Malaysia established under the *Central Bank of Malaysia Act 2009;
descriptions of conduct which amount to any prohibited business conduct set out in the Second Schedule; or
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.
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
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;
Commission.
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.
The Bank shall refer any complaint from an aggrieved person involving the prohibited business conduct set out in paragraphs 5
person
“person” includes an individual, any corporation, statutory body, local authority, society, trade union, co-operative society, partnership and any other body, organization, association or group of persons, whether corporate or unincorporate;
and 6 of the Second Schedule to the Competition Commission.
In this section, “Competition Commission” means the
Competition Commission established under the Competition
Act 2010 [Act 712].
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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;