Application to be Approved as Financial Holding Company Pursuant to Sections 280(2) and 280(3) of the Financial Services Act 2013 and Section 290(1) of the Islamic Financial Services Act 2013

The Financial Services Act 2013 (FSA) and Islamic Financial Services Act 2013 (IFSA) empower Bank Negara Malaysia (the Bank) to exercise oversight over financial groups for the purpose of promoting safety and soundness of a licensed person.

The following companies (hereinafter referred to as ‘affected companies’) are required to submit an application to be approved as a financial holding company (hereinafter referred to as ‘FHC’):
(i) under section 280(2) of FSA, a company which holds more than 50% interest in shares in a licensed bank or licensed investment bank, and the Bank has not designated a FHC for such licensed bank or licensed investment bank;
(ii) under section 280(3) of the FSA, a company which has been approved under the repealed Insurance Act 1996 to hold more than 50% interest in shares in a licensed insurer; and
(iii) under section 290(1) of the IFSA, a company which has lawfully held more than 50% interest in shares in a licensed Islamic bank under the repealed Islamic Banking Act 1983, or a registered takaful operator under the repealed Takaful Act 1984.

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