1.

RISKSA Magazine - - Advertorial -

Bank Ne­gara Malaysia (BNM) reg­u­lates en­ti­ties which carry on in­sur­ance busi­ness, in­sur­ance broking, ad­just­ing and fi­nan­cial ad­vi­sory. In­sur­ers are li­censed by the Min­is­ter of Fi­nance on the rec­om­men­da­tion of the BNM. Bro­kers and fi­nan­cial ad­vis­ers must be ap­proved by BNM, and ad­justers must be reg­is­tered with BNM.

2. Sub­sidiary/Branch

Branches are not per­mit­ted. In­sur­ers (other than pro­fes­sional rein­sur­ers) must be public com­pa­nies; ad­justers must be in­cor­po­rated whereas BNM may spec­ify the form of estab­lish­ment of rein­sur­ers, bro­kers and fi­nan­cial ad­vi­sors. There is cur­rently a freeze on the is­suance of new in­sur­ance li­cences by BNM, although BNM may be open to con­sider ap­pli­ca­tions on a case by case ba­sis. Prior con­sul­ta­tion with BNM is en­cour­aged.

3.

FDI re­stric­tions

70 per cent limit on for­eign eq­uity own­er­ship. >70 per cent con­sid­ered on a case by case ba­sis for play­ers who can fa­cil­i­tate con­sol­i­da­tion and ra­tio­nal­i­sa­tion of the in­dus­try.

4. Con­trol ap­provals

Prior writ­ten ap­proval of the BNM or the Min­is­ter of Fi­nance (as the case may be) is re­quired for a per­son to: • ini­tially ac­quire an ag­gre­gate share in­ter­est

of >5 per cent in a li­censed in­surer; • sub­se­quently hold an ag­gre­gate share in­ter­est in a li­censed in­surer equal to or ex­ceed­ing each mul­ti­ple of 5 per cent, or the

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