KUALA LUMPUR, Dec 1 — The Dewan Negara today passed six bills, including the Netting of Financial Agreements Bill 2014.

Deputy Finance Minister Datuk Ahmad Maslan, when tabling the bills for the second reading, said it gave confidence to the international financial institutions to deal with the domestic financial institutions through the recognition of Malaysia as a netting friendly jurisdiction.

“This legislation is very important to give an absolute assurance to international and domestic financial market participants, whether fund management, insurance, banking financial institutions or public and private companies to enforce the close-out netting mechanism when an ‘event of default’ occurs under a certain agreement.

“This mechanism only enables one party agreement that requires a single net amount for all transactions that have been under the agreement,” he said.

He said without the mechanism, both parties needed to make full payment for every transaction that had been made under the agreement.

The sitting also approved amendments on three bills under the Companies Commission of Malaysia (SSM), namely the Companies Commission of Malaysia (Amendment) Bill 2014, Registration of Businesses (Amendment) Bill 2014 and Limited Liability Partnership (Amendment) Bill 2014.

Deputy Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Ahmad Bashah Md Hanipah said the amendments were made to include the allocation relating to appointment of registrar, assistant registrar or workers under the Companies Commission of Malaysia Act.

The step is to ensure SSM could execute its task more effectively and efficiently in line with its initiative to streamline all enforcement provisions for all the acts under its jurisdiction.

The Inland Revenue Board of Malaysia (Amendment) Bill 2014 and Malaysia Co-operative Societies Commission (Amendment) Bill 2014) were also passed.

The sitting continues tomorrow. — Bernama