Section 15
Provision applicable to foreign schemes on reciprocity arrangement
If, under—
(a)
any law of a foreign country; or
(b)
any regulatory or supervisory action taken by an authority or body in a foreign country, a company offering a scheme is suspended, disqualified or restricted from administering a scheme in that country, the Minister may by notice served on a person connected with that country who is administering or intends to administer a scheme in Malaysia, suspend, disqualify or restrict the business of such person in a similar manner.
(2)
The notice under subsection (1) may not be served unless—
(a)
it is in the national interest; or
(b)
the Minister has consulted the person concerned or, if expedient, a body representing the interest of the person to be affected.
(3)
The notice shall—
(a)
state the grounds on which it is given;
(b)
identify the country to which the person is connected;
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(c)
specify the date on which such notice comes into force;
and
(d)
provide for a reasonable period to complete the performance of transactions entered into before the date on which the notice comes into force or for the termination of contracts of a continuing nature.
(4)
The notice under subsection (1) may provide for the suspension, disqualification, restriction wholly or partly the administration of a scheme by a person and may provide for—
(a)
the withdrawal of the registration or approval of a scheme in Malaysia;
(b)
the disqualification of a person to register a scheme under this Act; or
(c)
the restriction, wholly or partly, of a person in respect of the administration of a scheme.
(5)
A notice which partly restricts the administration of a scheme may prohibit a person from—
(a)
entering into transactions of a specified kind or entering into transactions in specified circumstances or to a specified extent;
(b)
soliciting investments of a specified kind or from a specified person; or
(c)
administering a scheme in a specified manner.
(6)
For the purposes of this section, a person is connected with a foreign country, if—
(a)
in the case of an individual, he is a national of or resident—
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(i)
in that country and administers a scheme from a principal place of business in that country or
Malaysia; or
(ii)
in Malaysia and administers a scheme from a principal place of business in that country; or
(b)
in the case of a body corporate, it is incorporated or has a principal place of business—
(i)
in that country or is controlled by a person connected with that country or Malaysia; or
(ii)
in Malaysia or is controlled by a person connected with that country.