Financial Services Update: Exposure draft on Proper Advice Practices for Insurance and Takaful Business
Bank Negara Malaysia ("BNM") is inviting feedback to its latest exposure draft on Proper Advice Practices for Insurance and Takaful Business by 31 January 2027.
This exposure draft:
- sets out BNM’s proposed requirements and guidance applicable to financial service providers and intermediaries involved in the provision of advice, recommendation and sale of insurance and takaful products.
- is intended to apply to all individual life insurance and family takaful products, as well as all medical and health insurance/takaful ("MHIT") products:
- MHIT standalone policies/takaful certificates, and MHIT riders, regardless of whether the rider is purchased upon or after inception of the base life insurance policy/family takaful certificate; and
- any new policies recommended to replace, convert or switch an existing policy/takaful certificate, including where proceeds (in whole or in part) are used to fund the new policy/takaful certificate where the change results in increased benefits or a material change in product features.
Contact us for further information regarding Financial Services matters.
COPYRIGHT © 2026 SHEARN DELAMORE & CO. ALL RIGHTS RESERVED
THIS UPDATE IS ISSUED FOR THE INFORMATION OF THE CLIENTS OF THE FIRM AND COVERS LEGAL ISSUES IN A GENERAL WAY.
THE CONTENTS ARE NOT INTENDED TO CONSTITUTE ANY ADVICE ON ANY SPECIFIC MATTER AND SHOULD NOT BE RELIED UPON AS A SUBSTITUTE FOR DETAILED LEGAL ADVICE ON SPECIFIC MATTERS OR TRANSACTIONS.