Policy Documents for Financial Advisors and Islamic Financial Advisors issued
27 April 2022
On 26 April 2022, Bank Negara Malaysia issued the following policy documents that took effect immediately:
Interpretation
For the purposes of the Application Procedures Policy Document and the Policy Document on Conduct:
- an ‘approved financial adviser’ is a person approved under section 11 of the Financial Services Act 2013 to carry on financial advisory business, that is, any of the following:
- analysing the financial planning needs of a person relating to an insurance product;
- recommending an appropriate insurance product to a person;
- sourcing an insurance product from a licensed insurer for a person;
- arranging of a contract in respect of an insurance product for a person; or
- such other business, service or activity in relation to a financial service as prescribed under section 3 of the Financial Services Act 2013;
- an ‘approved Islamic financial adviser’ is a person approved under section 11 of the Islamic Financial Services Act 2013 to carry on Islamic financial advisory business, that is, any of the following:
- analysing the financial planning needs of a person relating to a takaful product;
- recommending an appropriate takaful product to a person;
- sourcing a takaful product from a licensed takaful operator for a person;
- arranging of a contract in respect of a takaful product for a person; or
- such other business, service or activity in relation to a financial service as prescribed under section 3 of the Islamic Financial Services Act 2013.
The Application Procedures Policy Document
The Application Procedures Policy Document applies to:
- persons intending to become approved financial advisers;
- persons intending to become approved Islamic financial advisers;
- approved financial advisers; and
- approved Islamic financial advisers.
The Application Procedures Policy Document sets out the required documents and submission procedures for an application for a new approval or renewal of an existing approval to carry on financial advisory business or Islamic financial advisory business.
Policy Document on Conduct
The Policy Document on Conduct applies to:
- approved financial advisers; and
- approved Islamic financial advisers.
The Policy Document on Conduct sets out the requirements to be met on an ongoing basis by an approved financial adviser and Islamic financial adviser in managing its business and conduct in a fair, impartial and professional manner that instils trust and confidence among financial consumers.
Superseded guidelines
The Application Procedures Policy Document and the Policy Document on Conduct supersede the Guidelines on Application for Financial Adviser’s Licence under the Insurance Act 1996 issued by Bank Negara Malaysia on 18 September 2007.
Alert prepared by Nur Liana Binti Mohamed (Associate) of the Corporate Practice of Skrine.