FINANCIAL FINANCIAL SERVICES SERVICES ACT 2013 DPD20042 Islamic Financial System
The Team Members HANIS DAYANA BINTI MOHD KHAIRUL FARID NORAINI BINTI SULAIMAN 17DIB22F2003 17DIB22F2013 NIK MUHAMMAD ZUHAIRI BIN ZAINAL 17DIB22F2004
MUHAMMAD AZAM BIN MOHD RAZALI 17DIB22F2019 NUR IZZATIE SYAZWANI BINTI MOKHTAR 17DIB22F2017
Table of contents 01 Introduction 02 Function 03 Structures of Act 04 Conclusion 05 References
Introduction of FSA 2013 The Financial Services Act (FSA) and the Islamic Financial Services Act (IFSA) came into force on 30 June 2013, replacing the repealed Payment System Act 2003 (PSA). The FSA/IFSA incorporates strengthened provisions to regulate payment system operators and payment instrument issuers in order to promote safe, efficient and reliable payment systems and instruments.
Introduction of FSA 2013 Payment systems that are considered systemically important, where the failure of the systems may cause impact to monetary and financial stability, can be designated by Bank Negara Malaysia under the act. The designation provision provides the power to Bank Negara Malaysia to exercise necessary intervention powers to ensure smooth operation and functioning of the system. Operators of systems that enable the transfer of funds from one banking account to another or provide payment instrument network operation will require approval from Bank Negara Malaysia to operate such systems.
4Function of Financial Services Act 2013
Regulating Financial Institutions FUNCTION OF FINANCIAL SEVICES ACT 2013 (FSA 2013) provides a comprehensive regulatory framework for financial institutions, including banks, insurance companies, investment banks, and other financial service providers. It sets guidelines for their operations, governance, risk management, and compliance.
Strengthening Consumer Protection FUNCTION OF FINANCIAL SEVICES ACT 2013 (FSA 2013) It aims to safeguard the interests of consumers by ensuring fair treatment, adequate disclosure of financial products, and addressing issues related to consumer complaints and disputes.
Resolution and Crisis Management FUNCTION OF FINANCIAL SEVICES ACT 2013 (FSA 2013) In the event of financial distress or crisis, the FSA 2013 may provide mechanisms for the resolution and orderly winding down of financial institutions. This is crucial for maintaining financial stability and protecting the interests of depositors and other stakeholders.
Market Conduct and Integrity FUNCTION OF FINANCIAL SEVICES ACT 2013 (FSA 2013) The Act addresses issues related to market conduct and integrity. It establishes rules to prevent market manipulation, insider trading, and other activities that could compromise the integrity of financial markets.
Structure of Financial Services Act 2013
The Financial Services Act 2013 (FSA) is the key statute governing the conventional finance industry It replaced the Banking and Financial Services Act 1989, the Insurance Act 1996, the Payment Systems Act 2003 and the Exchange Control Act 1953.
Date of publication in the Gazette 22 Mar 2013 THE FINANCIAL SERVICES ACT 2013 Date of Royal assent 18 March 2023 An Act to provide for the regulation and supervision of financial institutions, payment systems and other relevant entities and the oversight of the money market and foreign exchange market to promote financial stability and for related, consequential or incidental matters. Consists of 18 Parts containing 281 sections 16 schedules (including no amendment).
STRUCTURE OF FINANCIAL SEVICES ACT 2013 (FSA 2013) The Financial Services Act 2013 was introduced to provide a comprehensive regulatory framework for financial institutions and financial markets in Malaysia. Here is a general overview of its structure: 1. Title and Commencement: Typically, the act begins with the title and a section specifying when the act comes into operation. 2) Part I - Preliminary: Definitions: This section defines key terms used throughout the act to ensure clarity and consistency in its interpretation. 3). Part II - Administration: Establishes regulatory bodies and authorities responsible for overseeing and enforcing the provisions of the act. This may include the establishment of a central bank or financial regulatory authority.
STRUCTURE OF FINANCIAL SEVICES ACT 2013 (FSA 2013) The Financial Services Act 2013 was introduced to provide a comprehensive regulatory framework for financial institutions and financial markets in Malaysia. Here is a general overview of its structure: Part III - Licensing and Registration: Outlines the requirements and procedures for obtaining licenses or registrations for various financial institutions and services. Part IV - Business Rules: Sets out the rules and regulations governing the conduct of financial institutions, ensuring compliance with standards and ethical practices. Part V - Powers of Regulatory Authorities: Enumerates the powers of regulatory bodies, such as inspection, investigation, and enforcement powers, to ensure the stability and integrity of the financial system.
STRUCTURE OF FINANCIAL SEVICES ACT 2013 (FSA 2013) Part VI - Control of Corporate Governance Part VII - Market Conduct Part VIII - Consumer Protection Part IX - Financial Stability and Crisis Management: Deals with provisions related to maintaining financial stability and managing financial crises. Part X - Resolution: Outlines procedures for the resolution of financial institutions facing financial difficulties. Part XI - Offences and Penalties: Specifies the offenses under the act and the corresponding penalties for non-compliance. Part XII - Miscellaneous: Covers any additional provisions, transitional arrangements, or other miscellaneous matters not covered in previous sections. 14. Schedules: 15. Amendments and Repeals:
THE FINANCIAL SERVICES ACT 2013
THE FINANCIAL SERVICES ACT 2013
BNM KENAKAN DENDA RM600,000 KE ATAS TNG DIGITAL KUALA LUMPUR: Bank Negara Malaysia (BNM) pada 18 Mei lalu mengenakan Penalti Monetari Pentadbiran (AMP) sebanyak RM600,000 ke atas TNG Digital Sdn Bhd (TNGD) kerana menyalahi Akta Perkhidmatan Kewangan 2013 (FSA). TNGD dalam kes berasingan membabitkan dua individu yang dihukum di bawah Akta Pencegahan Pengubahan Wang Haram, Pencegahan Pembiayaan Keganasan dan Hasil Aktiviti Haram 2014 (AMLA).
Conclusion THE CONCLUSION FOR THE FINANCIAL SERVICES ACT (FSA) 2013 IN MALAYSIA IS THAT IT FORMS A CRUCIAL LEGAL FRAMEWORK FOR REGULATING CONVENTIONAL FINANCIAL INSTITUTIONS. BY OUTLINING REGULATIONS AND STANDARDS FOR VARIOUS FINANCIAL PRODUCTS AND SERVICES, INCLUDING BANKS, INSURANCE COMPANIES, AND CAPITAL MARKET INTERMEDIARIES, THE FSA AIMS TO MAINTAIN STABILITY, INTEGRITY, AND SUSTAINABILITY IN MALAYSIA'S FINANCIAL SECTOR. THE SYSTEM EMPOWERS CENTRAL BANKS AND REGULATORY BODIES TO ENSURE COMPLIANCE AND PROTECT THE INTERESTS OF CONSUMERS AND THE FINANCIAL SAFETY OF THE COUNTRY. IT IS ALSO SEEK TO ADDRESS SOME GAPS WHICH EXISTED IN THE EARLIER FRAMEWORK ESPECIALLY IN THE AREA OF MAKING FINANCIAL HOLDING COMPANIES MORE RESPONSIBLE AND ACCOUNTABLE FOR THE ANY WRONG DOINGS OR FAILURES ON THE PART OF FINANCIAL INSTITUTIONS CONTROLLED BY THE SAID FINANCIAL HOLDING COMPANIES.
REFERENCE 1)Thomson Reuters Partical Law (October,2023) BANKING REGULATION OVERVIEW https://uk.practicallaw.thomsonreuters.com/w-008-0538? transitionType=Default&contextData=(sc.Default)&firstPage=true#co_anchor_a467216 2) Berita Harian (October,2023) BNM kenakan denda RM600,000 ke atas TNG Digital https://www.bharian.com.my/bisnes/lain-lain/2023/09/1147496/bnm-kenakan-dendarm600000-ke-atas-tng-digital 3) Bank Negara Malaysia (30 June 2013) FINANCIAL SERVICES ACT 2013 https://www.bnm.gov.my/documents/20124/820862/Financial+Services+Act+2013.pdf 4) Bank Negara Malaysia ISLAMIC FINANCIAL SERVICES ACT 2013 https://www.bnm.gov.my/financial-services-act-2013-and-islamic-financial-servicesact-2013# 5) Nazlan Ghazali & Punitha Kandiah (2014),Financial Services Act 2013. A significant Development in the Financial Services Industry in Malaysia https://www.iicj.net/subscribersonly/14may/iicj6may-financialregulation-punithakandiahmaybank-malaysia.pdf
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