MBSB is 'an Exempt Finance Company'
MBSB is a company incorporate under the companies ACT 1965 and is scheduled institution as defined under the Banking and Financial Institution Act 1989 (BAFIA). The status of an Exempt Finance Company was granted to MBSB on 1 March 1972 by the Ministry of Finance and the status has never been revoked or rescinded. The status allows MBSB to carry on a finance business without a license.
- MBSB has been granted with an exemption under Section 7(4) of the Borrowing Companies Act 1969 (BCA) and the said exemption has never been revoked or rescinded.
- The BCA was later known as Finance Companies Act 1969 (FCA) upon the coming into force of the Banking and Borrowing Companies Act 1979 (BBCA).
- As a result of the charge from BCA to FCA, all reference to borrowing business and borrowing company were to be construed respectively as finance business and finance company.
- The FCAS was later repealed by Banking and Financial Institutions Act 1989 (BAFIA) which effective 'made the regulation of finance companies under the FCA came under the purview of BAFIA.
Section 128(2) of BAFIA states that all exemptions and approval made or given under the repealed acts (FCA) shall be deemed to have been made and given under the relevant corresponding provisions of BAFIA and shall remain in force until revoked, rescinded or replaced by the corresponding provisions of BAFIA.