On 28 May 2026, Bank Negara Malaysia (BNM) imposed an administrative monetary penalty (AMP)^[1] of RM336,000 on The Pacific Insurance Berhad (TPIB) for failure to comply with the requirement to have an approved chief executive officer (CEO) at all times.

Pursuant to section 54(1)^[2] of the Financial Services Act 2013 (FSA), TPIB is required to have a CEO at all times. TPIB did not comply with this requirement, as its CEO position was vacant between 21 November 2024 and 23 March 2026. This was attributed to TPIB’s inadequate succession planning, which resulted in its failure to identify and submit a suitable CEO candidate application for BNM’s approval in a timely manner. During the vacancy period however, TPIB implemented controls to ensure no material disruption to its day-to-day operations. This includes the appointment of an Appointed Representative, as well as continuous oversight by the Board. 

TPIB has since appointed a CEO effective 24 March 2026, with the approval of BNM. 

In deciding the AMP to be imposed, relevant aggravating and mitigating factors were considered. These include the severity of the breach and TPIB’s:

1. current controls in ensuring compliance with the requirements under the FSA;
2. past compliance record; and
3. post-misconduct behaviour, including the effectiveness of remedial actions to prevent recurrence of breach.

On 9 June 2026, TPIB paid RM336,000 for the AMP imposed by BNM.

BNM requires financial institutions to maintain a high level of commitment in ensuring compliance with all requirements stipulated under the FSA. BNM will not hesitate to take appropriate supervisory and/or enforcement actions, should any financial institution fail to meet legal and/or regulatory requirements.

The enforcement action taken against TPIB is in line with the approach and processes outlined in BNM’s published Enforcement Approach. 

^[1] BNM imposed the AMP pursuant to section 234(3)(b)(i) of the FSA.

^[2] This requirement is read together with section 54(2)(a) of the FSA.