MBSB is 'an Exempt Finance Company'
MBSB was defined as a Scheduled Institution under the repealed Banking and Financial Institution Act 1989 (BAFIA).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 remained since. This allows MBSB to undertake a financing business in the absence of a banking license.
Under Section 272 (a) of the Financial Services Act 2013, exemptions granted under the BAFIA is deemed to have been granted under the corresponding provision of the Financial Services Act 2013 and shall remain in full force and effect until amended or revoked.
MBSB Historical Highlights :
- MBSB has been granted with an exemption under Section 7(4) of the Borrowing Companies Act 1969 (BCA)
- As a result of the change from BCA to FCA, all references to borrowing business and borrowing company were to be construed respectively as finance business and finance company
- The FCA was later repealed by Banking and Financial Institutions Act 1989 (BAFIA)
- The BAFIA has been repealed and replaced with FSA 2013