The Financial Services Act 2013 (FSA 2013) came into force on 30 June 2013 and repealed the Insurance Act 1996. It is administered by Bank Negara Malaysia (BNM) and is the principal legislation governing Malaysia's domestic insurance industry.

Key points relating to captive arrangements:

1. Malaysia's domestic insurance legal framework provides no licence category for captive insurers; Malaysian companies intending to establish a captive insurer are directed principally to the Labuan International Business and Financial Centre (Labuan IBFC).

2. Under section 6.6 of the Labuan FSA captive insurance guidelines, a Labuan captive insurer underwriting direct risks within Malaysia must obtain the approval of the domestic authority (Bank Negara Malaysia).

3. FSA 2013 sets out comprehensive requirements for the licensing, solvency and market conduct of domestic insurers and, together with the Labuan LFSSA 2010, forms Malaysia's dual-track insurance regulatory framework.

Related links:Bank Negara Malaysia website