Bank Negara Malaysia (BNM) has imposed an administrative monetary penalty (AMP) of RM336,000 on The Pacific Insurance Berhad (TPIB) for failing to comply with regulatory requirements to have an approved chief executive officer (CEO) at all times.
In a statement, the central bank said the penalty was imposed after TPIB breached Section 54(1) of the Financial Services Act 2013 (FSA), which requires licensed financial institutions to maintain an approved CEO continuously.
According to BNM, TPIB’s CEO position remained vacant for more than 16 months, from 21 November 2024 until 23 March 2026, due to inadequate succession planning that delayed the identification and submission of a suitable CEO candidate for the central bank’s approval.
Despite the prolonged vacancy, BNM said the insurer had implemented measures to ensure its day-to-day operations continued without material disruption. These included appointing an Appointed Representative to oversee executive functions, alongside continuous oversight by the company’s board of directors.
The insurer has since rectified the issue, with a new CEO assuming office on 24 March 2026 following approval from Bank Negara Malaysia.
In determining the amount of the penalty, BNM said it took into account several aggravating and mitigating factors, including the severity of the breach, TPIB’s existing compliance controls, its historical compliance record, and the effectiveness of remedial actions taken after the breach to prevent a recurrence.
The Pacific Insurance paid the RM336,000 administrative monetary penalty on 9 June 2026.
