FIN 346 Chapter 2 Quiz

Banking and Financial Institutions Act 1989 (BAFIA)

• Governs and provides for the regulation of a central depository in respect of the deposit holding, withdrawal and dealing in securities, and related matters.

• To provide new laws for the licensing and regulation of the institutions carrying on banking, finance company, merchant banking, discount house, and money-broking business.

• It sets out the powers and functions of the SC, and contains provisions for Take Over and Mergers.

• Provides comprehensive new laws for the prevention, detection, and prosecution of money laundering, the forfeiture of property derived from, or involvement in money laundering, and the requirements for record keeping and reporting of suspicious transactions for reporting institutions.

Securities Industry (Central Depositories) Act 1991

• Governs and provides for the regulation of a central depository in respect of the deposit holding, withdrawal and dealing in securities, and related matters.

• To provide new laws for the licensing and regulation of the institutions carrying on banking, finance company, merchant banking, discount house, and money-broking business.

• It sets out the powers and functions of the SC, and contains provisions for Take Over and Mergers.

• It is an act which governs and provides the regulatory framework of the securities industry.

Securities Commission Act 1993 (SCA1993)

• Governs and provides for the regulation of a central depository in respect of the deposit holding, withdrawal and dealing in securities, and related matters.

• To provide new laws for the licensing and regulation of the institutions carrying on banking, finance company, merchant banking, discount house, and money-broking business.

• It sets out the powers and functions of the SC, and contains provisions for Take Over and Mergers.

• Provides comprehensive new laws for the prevention, detection, and prosecution of money laundering, the forfeiture of property derived from, or involvement in money laundering, and the requirements for record keeping and reporting of suspicious transactions for reporting institutions.

The Anti-Money Laundering and Anti Terrorism Financing Act 2001 (AMLATFA)

• It is an act which governs and provides the regulatory framework of the securities industry.

• The Act regulates the pre-incorporation, operations, and duties of companies and its directors

• It sets out the powers and functions of the SC, and contains provisions for Take Over and Mergers.

• Provides comprehensive new laws for the prevention, detection, and prosecution of money laundering, the forfeiture of property derived from, or involvement in money laundering, and the requirements for record keeping and reporting of suspicious transactions for reporting institutions.

Securities Industry Act 1983 (SIA 1983)

• Licensing ensures an adequate level of investor protection, including the provision of sufficient safeguards to protect investors from default by market intermediaries or problems arising from the insolvency of such intermediaries.

• The Act regulates the pre-incorporation, operations, and duties of companies and its directors

• It is an act which governs and provides the regulatory framework of the securities industry.

• Provides comprehensive new laws for the prevention, detection, and prosecution of money laundering, the forfeiture of property derived from, or involvement in money laundering, and the requirements for record keeping and reporting of suspicious transactions for reporting institutions.

Capital Markets and Services Act 2007 (CMSA)

• Licensing ensures an adequate level of investor protection, including the provision of sufficient safeguards to protect investors from default by market intermediaries or problems arising from the insolvency of such intermediaries.

• The Act regulates the pre-incorporation, operations, and duties of companies and its directors

• It is an act which governs and provides the regulatory framework of the securities industry.

• Provides comprehensive new laws for the prevention, detection, and prosecution of money laundering, the forfeiture of property derived from, or involvement in money laundering, and the requirements for record keeping and reporting of suspicious transactions for reporting institutions.

Companies’ Act 1965

• Licensing ensures an adequate level of investor protection, including the provision of sufficient safeguards to protect investors from default by market intermediaries or problems arising from the insolvency of such intermediaries.

• The Act regulates the pre-incorporation, operations, and duties of companies and its directors

• It is an act which governs and provides the regulatory framework of the securities industry.

• Provides comprehensive new laws for the prevention, detection, and prosecution of money laundering, the forfeiture of property derived from, or involvement in money laundering, and the requirements for record keeping and reporting of suspicious transactions for reporting institutions.

REGULATORY BODIES IN MALAYSIA

BANK NEGARA MALAYSIA (BNM)

• The main purpose was to issue currency, act as banker and adviser to the Government of Malaysia, and regulate the country’s credit situation.

• To act as a single regulatory body as to promote the development of capital markets

• Offers the complete range of exchange-related facilities from trading to clearing to settlements to depository.

• To serve as an agency to incorporate companies and register businesses as well as to provide company and business information to the public.

• It provides and efficient central clearing and settlement of securities.

BURSA MALAYSIA DEPOSITORIES SDN. BHD. (BMD)

• The main purpose was to issue currency, act as banker and adviser to the Government of Malaysia, and regulate the country’s credit situation.

• To act as a single regulatory body as to promote the development of capital markets

• Offers the complete range of exchange-related facilities from trading to clearing to settlements to depository.

• To serve as an agency to incorporate companies and register businesses as well as to provide company and business information to the public.

• It provides and efficient central clearing and settlement of securities.