Bank Negara Malaysia (BNM) has revised its policy document on granting credit facilities that are applicable to licensed insurers under the Financial Services Act 2013 and licensed takaful operator under the Islamic Financial Services Act 2013 (each a licensed person).
The policy document sets out, without limitation, that:
- it came into effect on 1 December 2015 and supersedes the earlier policy document dated 20 November 2015;
- a licensed person is required to obtain the prior written approval of BNM to:
- act, or arrange with any person to act, as a guarantor for a credit facility granted to any person; and
- grant a credit facility to any person specified in paragraph 7.2 thereof; and
- the prior written approval of BNM is not required to grant a credit facility to a licensed person's insurance or takaful agent.
The purchase of corporate bonds and/or sukuk by a licensed person does not equate to granting a credit facility.
For further information on this topic please contact Pamela Kung at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at www.shearndelamore.com.