Application Procedures for Acquisition of Interest in Shares and to be a Financial Holding Company

The Financial Services Act 2013 FSA and Islamic Financial Services Act 2013 IFSA prohibit any person from entering into an agreement or arrangement to acquire an interest in the shares of a licensed person that would result in the person holding an aggregate interest of any multiple of 51% or more without the prior approval of the Bank. The FSA and IFSA also prohibit a person from having control of or holding an aggregate interest of more than 50% in a licensed person without the prior approval of the Minister based on the Bank’s recommendation. A company intending to hold an aggregate interest of more than 50 percent in a licensed person is also required to submit an application to the Bank for approval as a financial holding company.

This policy document sets out –
(a) considerations under the law for assessing an application to acquire an interest in shares or control of a licensed person or a proposed licensed person, or to become a financial holding company;
(b) the application procedure; and
(c) the documents and information to be submitted to the Bank to facilitate the assessment of the application.

This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking