Under subsection 42(4) of the Malaysia Deposit Insurance Corporation Act 2011, Perbadanan Insurans Deposit Malaysia (“PIDM”) provides separate insurance coverage for deposits held in a trust or joint account. In order for a depositor who is acting as a trustee or as joint owner to enjoy separate insurance coverage, the trusteeship or joint ownership must be disclosed on the records of the deposit-taking member (“member”).
To give effect to this provision, PIDM had, on 15 February 2007, issued the Malaysia Deposit Insurance Corporation (Disclosure Requirements for Trust Accounts and Joint Accounts) Regulations 2007 (“Regulations”). The Regulations set out what information and when such information should be submitted by a trustee or joint owner to the members.
After five (5) years of implementation, it is timely for the Regulations to be reviewed. The objectives of the review are:
(a) to ensure that the disclosure requirements remain current and relevant; and
(b) to address feedback received and the issues encountered by the members and the depositors since the implementation.
The purpose of this Consultation Paper is to seek the views and comments on the proposed refinements to the Regulations, as set out in the draft Malaysia Deposit Insurance Corporation (Disclosure Requirements for Trust Accounts and Joint Accounts) Regulations 2011 (“draft Regulations”) found in Appendix 1 to this Consultation Paper.