Perbadanan Insurans Deposit Malaysia (“PIDM”) is a Government agency established in 2005 under Akta Perbadanan Insurans Deposit Malaysia (“PIDM Act”). PIDM is an integrated financial consumer protection authority for depositors and takaful or policy owners, and resolution authority for member institutions.
The deposit insurance system (“DIS”) is administered by PIDM to protect depositors against the loss of their insured deposits placed with member institutions in the event of a member institution failure.
Commercial and Islamic banks that are member institutions of PIDM are also referred to as “deposit-taking members” or “DTMs“.
The Terms and Conditions of Membership Regulations set membership rules that will promote safety and soundness and facilitate a prompt intervention and failure resolution of any DTM by PIDM.
A DTM is to comply with the obligations and responsibilities as set out in these Regulations.
The Regulations and Guidelines on Provision of Information on Deposit Insurance govern disclosures by the DTMs about membership status and deposit insurance provided by PIDM.
These Regulations and Guidelines aim to ensure that customers receive accurate, relevant, consistent and timely information regarding deposit insurance protection. This is to facilitate informed decision-making by the customers on the placement of their monies in deposits offered by the DTMs.
The Guidelines on Deposit Insurance Coverage for Deposits set out the insurability criteria applied by PIDM in determining whether a product offered by a DTM is a deposit insured under the DIS or not.
The Guidelines on Submission of Deposit Product Information provide guidance and requirement to DTMs in submitting information on certain products offered to customers in order that PIDM can certify the insurability status of the products.
The Guidelines on Deposit Information Systems and Submission set out requirements on DTMs to have the necessary systems and capabilities to submit prompt and accurate deposits information to PIDM as well as the requirement to provide deposits information in a standard file format, as and when required.
A DTM is required to pay the First Premium upon becoming a member (i.e. upon being licensed under the FSA or IFSA) and the annual premium payment thereafter based on prescribed premium rates.
Premium payable = Total Insured Deposits x Prescribed premium rate for each premium category
* Financial Services Act 2013
** Islamic Financial Services Act 2013
The Guidelines and Regulations on DPS set out the assessment approach under the DPS framework, including the formula, threshold and score range of each of the indicators under the quantitative and qualitative criteria.
It also details requirements for reporting and submission of quantitative information to PIDM for the purpose of determining the overall DPS score and premium category.
The Guidelines on Total Insured Deposits set out the requirements for DTMs in determining the TID for premium assessment purpose, the submission of the Return on Total Insured Deposits (“RTID”), as well as the calculation and payment of premium to PIDM.
The Guidelines on Validation Programme set out the detailed scope, procedures and PIDM’s requirements in respect of the independent validation to be performed by external auditor on premium information submitted to PIDM.
This Handbook aims to familiarise and facilitate the understanding of new deposit-taking members of PIDM and promote compliance of regulatory requirements.
Tel: +603 2173 7436 / 2265 6565 Fax: +603- 2173 7527 / 2260 7432 Toll Free: 1-800-88-1266 Email: info@pidm.gov.my
Level 12, Axiata Tower, No. 9, Jalan Stesen Sentral 5, Kuala Lumpur Sentral 50470 Kuala Lumpur
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