The authority that govern the accountancy profession in Malaysia

The main Malaysian authorities that govern (or directly shape) the accountancy profession, plus why each exists:

• Malaysian Institute of Accountants (MIA) — the statutory regulator created by the Accountants Act 1967 to register and regulate accountants, set by-laws/ethics, and develop the profession (e.g., education/CPD). MIA+1

• Malaysian Accounting Standards Board (MASB) — the sole national standard-setter established by the Financial Reporting Act 1997 to issue Malaysian Financial Reporting Standards (MFRS) and promote high-quality, internationally aligned standards. masb.org.my+2masb.org.my+2

• Securities Commission Malaysia (SC) – Audit Oversight Board (AOB) — the AOB, created under the Securities Commission Malaysia Act 1993, oversees and inspects auditors of public-interest entities to enhance audit quality and confidence in audited financial statements. Securities Commission Malaysia+2Securities Commission Malaysia+2

• Ministry of Finance (MOF) / Accountant General’s Department — issues/approves audit licences for “approved company auditors” under Companies Act 2016 s.263 (delegated by MOF to the Accountant General), ensuring only qualified practitioners may audit companies. MIA+1

• Companies Commission of Malaysia (SSM) — administers and enforces the Companies Act 2016, including provisions on the appointment, duties and reporting of auditors for companies registered in Malaysia. SSM+1

In short: MIA regulates members and ethics; MASB sets accounting standards (MFRS); SC/AOB polices audit quality for listed/PIE audits; MOF/AGD licenses company auditors; and SSM enforces company-law requirements around audits and financial reporting. SSM+4MIA+4masb.org.my+4

Short notes 

1. CA 2016
2. MFRS
3. BANK NEGARA GUIDELINES
4. FSA 2013

FSA 2013 (Financial Services Act 2013, Malaysia) is the country’s main law for regulating and supervising conventional (non-Islamic) financial institutions, payment systems and related activities, empowering Bank Negara Malaysia (BNM) to promote financial stability. It commenced 30 June 2013 (with some later-commencing provisions). Bank Negara Malaysia+1

What it does (in a nutshell):

• Creates BNM’s modern mandate & powers (clear regulatory objectives; supervision, standards, directions, enforcement). Bank Negara Malaysia
• Licensing & ongoing regulation of banks/insurers/operators of payment systems & instruments; oversight of money and FX markets; regulation of financial holding companies. Bank Negara Malaysia+1
• Prudential & conduct rules (capital/liquidity, risk management, governance, disclosures, consumer protection). Rahmat Lim & Partners
• Payments & e-money oversight to keep systems safe and efficient. Bank Negara Malaysia
• Strong intervention/enforcement tools (administrative penalties, directives, licence actions). legalbusinessonline.com

What it replaced: a set of older laws, including BAFIA 1989, Insurance Act 1996, Payment Systems Act 2003, Exchange Control Act 1953, consolidating them into one “omnibus” statute. Malaysian Bar+1

Side-by-side law: Islamic institutions are governed by the IFSA 2013 (parallel framework for Shariah-compliant finance). Bank Negara Malaysia

Why it matters (example): BNM uses FSA powers to penalise banks for service disruptions and protect consumers/system reliability. Reuters