Financial Services Act 2013. A significant Development in the Financial Services Industry in Malaysia

Punitha Kandiah, Head, Corporte Advisory / Group Legal Policy Commercial Banking & Corporate Functions - Group Legal Affairs, Maybank, Malaysia

In recent years, Malaysia has seen the introduction of several pieces of legislation which have had some impact on its financial industry. The most significant piece of legislation is none other than the Financial Services Act 2013 (“FSA”) which came into force on 30 June 2013 and has been touted to be the legislation which will bring about substantial changes and development to the financial industry in Malaysia. In this paper we will be focusing and examining the more salient provisions of the FSA and its impact in particular on licensed financial institutions (defined below). It should also be noted that alongside the FSA, the Islamic Financial Services Act 2013 (“IFSA”) which governs the Islamic financial institutions in Malaysia also came into force on 30 June 2013. We will also be discussing the IFSA briefly at the end of this article.

Punitha Kandiah is a Vice President with Commercial Banking & Corporate Functions, Group Legal, Malayan Banking Berhad ("Maybank") and is currently heading its Corporate Advisory/ Group Legal Policy unit. She graduated with a L.L.B (Hons) from the University of Warwick, United Kingdom and had started her legal career in 1994 as a Legal Assistant with Messrs Shook Lin & Bok, handling corporate, conveyancing and banking law matters. She joined Group Legal, Maybank in year 2000 and prior to joining Maybank, she was a Legal Counsel with Southern Bank Bhd, Malaysia.

Malayan Banking Berhad and its group of companies ("Maybank") is the largest banking group in Malaysia and has a strong regional presence in South East Asia with total assets of Ringgit Malaysia 560 billion and with a staff strength of 47,000 serving over 22 million customers. Maybank offers a comprehensive range of financial services ranging from corporate and consumer banking, investment banking, insurance and takaful, asset management, Islamic banking, offshore banking, stock broking, venture capital financing and internet banking with 2,200 offices in 20 countries. It was also ranked amongst the top 20 Strongest Banks in the world.