KUALA LUMPUR, April 21, 2006: Perbadanan Insurans Deposit Malaysia (PIDM) today reminded trustees of deposits in banks and financial institutions to submit beneficiary information by April 30 on a “best effort” basis.
In a statement issued here today, PIDM Chief Executive Officer Jean Pierre (J.P.) Sabourin assured all beneficiaries that deposit insurance coverage of up to RM60,000 (principal and return/interest) is provided automatically for each beneficiary under a trust account where disclosure has been appropriately made.
According to the “Guidelines on Disclosure Requirements for Trust Accounts and Joint Accounts” issued by PIDM to member banks recently, trustees must inform the member bank that the deposits are held on trust and they maintain accurate records on the beneficiaries and their respective interests in the deposit, if beneficiaries are to benefit from separate coverage.
“If trustees are prohibited by law or by client confidentiality rules from disclosing the name and address of any beneficiary, they may submit an alphanumeric code or any other identifier which corresponds to each beneficiary on their records,” Sabourin said.
He said PIDM had already extended the deadline from March 31 to April 30 for this year only to give trustees more time to submit the beneficiary information.
“For this year only, trustees should endeavour to submit information to the banks on a ‘best effort’ basis with regard to the accuracy of the information by this deadline. Going forward, trustees are expected to have organised their systems and administrative practices to comply with the deadline of March 31 and other provisions of the Guidelines which will be incorporated into formal Regulations,” Sabourin said.
PIDM, an independent statutory body administering the national deposit insurance system, plans to issue Regulations on trust account disclosure requirements by the end of this year.
“We welcome any feedback on our Guidelines since we will be drafting the Regulations and we will inform the public once the Regulations are issued,” Sabourin added.
Trustees are advised to familiarise themselves with the Guidelines which come complete with specific examples of coverage.
The Guidelines can also be accessed on PIDM’s website in four languages – English, Bahasa Melayu, Chinese and Tamil.
Copies of the guidelines are available from PIDM’s Communications & Public Affairs Division at Level 22, Dataran Kewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur.
Online copies of the Guidelines can also be downloaded at the following hyperlink: http://www.pidm.gov.my/consumers/downloads/resources.php
PIDM protects your deposits in the bank as well as your takaful and insurance benefits in the unlikely event of a failure of a member bank or a takaful operator / insurance company.