|
REPORT OF ANNUAL DIALOGUE BETWEEN BAR COUNCIL AND BANK NEGARA MALAYSIA
Dialogue held on Thursday, 16th February 2006 at 4.00 p.m. at Bank Negara Malaysia Representatives from the Bar Council met with representatives from Bank Negara Malaysia (“Bank Negara”) on 16th February 2006 to discuss issues raised by members. The issues discussed included the following:- 1. Circulars and Guidelines from Bank Negara 1.1 Bank Negara informed that they are in the midst of collating the Circulars and Guidelines for their website and hope that it would be ready by end of the year. 1.2 In relation to the handbook on compliance in relation to Anti-Money Laundering, Bank Negara proposed that the Bar Council could create a hyperlink to access the same. 1.3 In relation to charges imposed by financial institutions for services rendered to its customers, Bank Negara commented that financial institutions have their respective list of charges which are available on their respective website. Bank Negara has requested financial institutions to be transparent with charges imposed. 1.4 In relation to the Exchange Control of Malaysia Notices, Bank Negara informed that should there be any changes to the same updates are made accordingly. They will ensure that in future the said Notices would be available on their website. 2. Disclosure of confidential information in relation to enquiry made to Bank Negara Bank Negara commented they would require full facts of the matter before answering queries as sufficient information is required so that they would have a clear understanding of the matter. Any query on interpretation of the law will not be considered by Bank Negara since Bank Negara is also subject to interpretation by the courts. 3. Application forms for exchange control purposes (available for download on the website) Bank Negara commented that the said forms can be downloaded from their website and completion of the forms can be done offline. They commented that they do not encounter any difficulty with the form. 4. The Status of Debt Collection Agencies in Malaysia Bank Negara informed that they do not regulate debt collection agencies. They commented that it is the responsibilities of the financial institutions to regulate their respective debt collection agency as the act of the agent is imputed to the financial institution being the principal. Bank Negara also informed that the agents are also bound by the secrecy provisions in BAFIA namely Section 97. They commented that borrowers to inform Bank Negara should they face any problems with debt collection agencies. Bar Council informed that amendments to the Rules of the High Court is ongoing and there is a Committee looking into the necessary amendments. Bar Council proposed that perhaps Bank Negara could provide their input on amendments to the Rules of the High Court. Both parties agreed to liaise with each other on this matter. Bar Council proposed that perhaps the court could also be invited to be a party to consider the said amendments. for example, in relation to auction matters. Bank Negara agreed with the said proposal. Bank Negara informed that they have recently set up a Credit Counselling and Debt Management agency to undertake credit counseling and loan restructuring for individuals. 5. Costs in relation to change of name Bar Council informed that some financial institutions are still refusing to bear the cost for matters pertaining to registration of change of name. Bank Negara advised a complaint could be made to them. They requested for specific cases from the Bar Council. 6. Issuance of redemption statement/undertaking letter and execution of discharge of charge/receipt and reassignment 6.1 On the following issues: (a) some financial institutions are taking as long as 5-6 weeks to attend to the matter; (b) financial institutions are also insisting that the legal firms collect documents from them instead of sending the same to legal firms; and (c) problems relating to loss of documents by financial institutions which has caused serious inconvenience, Bank Negara advised that perhaps Bar Council could seek a dialogue with The Association of Banks in Malaysia. Bar Council informed that they have not received favourable response from the said Association. Bank Negara requested for specific cases so that they could write to the relevant financial institution. 6.2 On the subject matter of financial institution outsourcing storage of documentation, Bank Negara commented that they are also outsourcing storage of documentation in view of lack of space in the office. 7. Panelship of financial institution Bank Negara advised that they do not condone unconstitutional discrimination and disregard. Should there be a blatant disregard in this matter, Bank Negara requested that they be informed about it and necessary action will be taken. 8. Cash Cheque Bank Negara commented that usage of cash cheque would expose one to risk. It is advisable to write the name on the cheque. 9. Deposit Insurance System Bank Negara informed that the Malaysia Deposit Insurance Corporation would be liaising with Bar Council. They commented that there is no need to name beneficiaries specifically. Under the said system, each beneficiary would receive RM60,000.00. 10. Blanket permission for the issue of Redeemable Preference Shares (“RPS”) under the Exchange Control of Malaysia Notice (“ECM”) 12 as it is subject to ECM 10 (foreign currency credit facilities from non-residents) Bank Negara commented that RPS is deemed a credit facilities and there are no inconsistencies on RPS in the provisions of the ECM. 11. Professional Indemnity Insurance Scheme 11.1 Setting up of an independent claims company Bar Council informed that currently claims handling is conducted through loss adjuster. There are problems arising for example: (i) delay in appointment of panel solicitors; (ii) slow/poor understanding of issues; (iii) no progress update to members. Bar Council proposed a dedicated claims handling company answerable to insurers to deal solely with the Bar Scheme so that there be pro-active claims management. Bank Negara commented that if the proposal has been submitted to them, they would look into it. Bar Council to submit further information on this matter in order for Bank Negara to consider Bar Council’s proposal. 11.2 Involvement of Bar Council as an insurer Bar Council proposed that an insurance company be set up in Labuan and this company proceeds to reinsure with other reinsurers. The Bar would be more involved and claim ownership of the scheme. At the moment, local insurer has no clue of the scheme. Bar Council informed that a lot of premiums are going out of the country. Bar Council also informed that they could send the papers presented at the PII Workshop held sometime in November 2005 for Bank Negara’s perusal. 11.3 Participation from local insurers Bar Council proposed that there be more pro-active action by local insurers as there is a premium pool of RM15million large premium pool without much local participation. Bar Council informed that a Joint Claims Committee (of an advisory capacity) comprising senior lawyers have been set up to assist in the claims. Bank Negara commented that they meet regularly with the Scheme Manager for the Scheme for Insurance of Large and Specialised Risks and could facilitate a discussion with the Bar Council on this issue. 12. Individuals sued have been blacklisted Bar Council highlighted that there are instances where individuals who have been sued have been blacklisted although no judgments have been obtained. Bank Negara commented that there is a case whereby CTOS has been sued and the Court ruled in favour of CTOS as CTOS has a disclaimer for information furnished by them. 13. Information of customer’s account where there is an intervener proceedings under the Legal Profession Act 1976 Bank Negara commented that should the financial institutions refuse to cooperate, the Bar Council should address the issue with the head office of the respective financial institution. They are of the view that it not an issue in light of the provisions under the Legal Profession Act 1976. 14. Judgment award interest Bank Negara enquired whether it is possible to review the 8% judgment award interest. They commented that there should be a benchmark. Bar Council replied that the matter could be considered in relation to the amendments to the Rules of the High Court. 15. Touting Bank Negara raised their concern about touting by lawyers. Bar Council commented that should there be any problem on this issue Bank Negara or the insurance company could refer the matter to the Bar Council and necessary show cause letter would be issued. 16. Letters copied to Bank Negara Bank Negara commented that for cases involving running down, they have been receiving quite a number of letters copied to them and much time is taken to process those letters. Bar Council agreed to issue a circular to members to discontinue such practice.
 |
About Us 
Subscribe to this comment's feed
Invitation to the Launching of the Bar Council Legal Aid Centre (Kuala Lumpur) Website 
