Malaysia legislation
Section 42
of SARAWAK SOVEREIGN WEALTH FUTURE FUND BOARD ORDINANCE, 2022
Section 42
―(1) If the Board becomes aware of any non-compliance with the Investment Mandate, it shall immediately give written notice to the Minister specifying ―
(a)
the failure to comply with the Investment Mandate; and
(b)
the action which the Board proposes to take in order to remedy such non-compliance.
(2)
Without prejudice to subsection (3), if the Minister is satisfied that the Investment Mandate has not been complied with, whether or not he has received any notice issued pursuant to subsection (1), he may give a direction to the Board requiring the
Board to―
(a)
give the Minister and the Majlis Mesyuarat Kerajaan
Negeri, within the period specified in the direction, a written explanation for the failure to comply with the Investment
Mandate; and
(b)
take the action specified in the direction, within the period specified in the direction, in order to comply with the
Investment Mandate.
(3)
In the circumstances specify in subsection (2), the Minister may, after―
(a)
reviewing the Board’s written explanation;
(b)
consultation with the Investment Advisory Panel; and 36
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(c)
having prior written approval of the Majlis Mesyuarat
Kerajaan Negeri, direct the Board to:
(i)
ratify the investment in question;
(ii)
take such measures as may be appropriate to prevent the value thereof being diminished;
(iii)
adversely affected by market conditions.
(4)
The Minister may, if he deems fit and proper, direct the
Board to take such action, including but not limited to disciplinary action and recovery of loss or damage sustained by reason of any failure to comply with the Investment Mandate.
(5)
Any action taken by the Minister under subsection (2), (3)
or (4) shall not have the effect of releasing any Guardian, officer, employee or agent of the Board from any liability which such person may be subject in relation to his office, his employment or the performance of his duties under this Ordinance, or under any other rule of law.
Raising Finance 43.―(1) Subject to section 11 of the Statutory Bodies (Financial and Accounting Procedure) Ordinance, 1995 [Cap. 15], the Board may, raise financing from the Government or any financial institutions including but not limited to any banks, dealers in securities and other financial intermediaries which are duly licensed, registered, or approved to carry on the relevant financing business in the jurisdictions in which they carry on business, provided that―
(a)
the purpose of the borrowing or financing is to enable the Board to settle a transaction for the acquisition of one or more financial assets;
(b)
the period of the borrowing or the financing does not exceed ninety days;
(c)
if the borrowing or financing was to take place, the total amount borrowed or utilised by the Board would not exceed one percent of the balance in the credit of the Investment Fund
Account; and
(d)
such borrowing or financing transaction complies with all applicable laws relating to such borrowing or financing.
Restrictions on Derivatives