LAWS OF MALAYSIA - Labuan IBFC

1 1 laws OF MALAYSIAAct 704 Labuan FINANCIAL SERVICES AND SECURITIES ACT 2010 Labuan Financial Services and Securities2 laws of MalaysiaACT 704 Date of Royal Assent .. 31 January 2010 Date of publication in theGazette .. 11 February 2010 Publisher s Copyright CPERCETAKAN NASIONAL MALAYSIA BERHADAll rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and/or otherwise without the prior permission of Percetakan Nasional MALAYSIA Berhad (Appointed Printer to the Government of MALAYSIA ).

2 3 Labuan Financial Services and SecuritiesLAWS OF MALAYSIAAct 704 Labuan FINANCIAL SERVICES AND SECURITIES ACT 2010 ARRANGEMENT OF SECTIONSPART IPRELIMINARY Section 1. Short title and commencement 2. Interpretation 3. Administration of the Act 4. Fit and proper person 5. Business in, from or through Labuan 6. Shariah mattersPART IISECURITIESDIVISION 1 preliminary 7. InterpretationDIVISION 2 OFFERS 8. Offers or invitations which require the approval of the Authority 9. False or misleading statements 10. Advertisements 11. Registration of prospectus 12.

3 Document containing offer of securities to be made via Labuan trust company or bank licensee and to be deemed prospectus 13. Expert s consent to issue of prospectus containing statement by him4 laws of MalaysiaACT 704 Section 14. Civil liability for mis-statement in prospectus 15. Criminal liability for mis-statement in prospectus 16. Labuan trust company or bank licensee as agent in offer 17. Prohibition of allotment unless minimum subscription received 18. Application monies to be held in trust until issuance or allotmentDIVISION 3 DEBENTURES 19.

4 Power to issue debentures 20. Trustee for debenture holders 21. Exemptions and indemnifications of trustee from liability 22. Duties of trustee 23. Obligations of directors of borrowing company 24. Obligation of guarantor company to furnish information 25. Loan and deposits to be immediately repayable on certain events 26. Retention of over-subscriptions in debenture issuesPART IIIMUTUAL FUNDSDIVISION 1 preliminary 27. InterpretationDIVISION 2 MUTUAL FUNDSSUBDIVISION 1 PRIVATE FUNDS 28. Notification by private funds 29. Private fund to lodge an information memorandum or such other offering document 30.

5 Exclusion of liability for errors or omission in the information memorandum or such other offering document5 Labuan Financial Services and SecuritiesSUBDIVISION 2 PUBLIC FUNDS Section 31. Public funds shall be registered 32. Application by public funds 33. Power to grant or refuse registration of public funds 34. Registration procedure 35. Prospectus relating to public fund 36. Investors rights 37. Limitation 38. Certificate of compliance 39. Foreign public fund may be managed or administered in LabuanDIVISION 3 LICENSINGSUBDIVISION 1 FUND MANAGERS AND FUND ADMINISTRATORS 40.

6 Licensing of fund managers 41. Licensing of fund administrators 42. Application for fund manager s licence 43. Application for fund administrator s licence 44. Power to grant or refuse licenceSUBDIVISION 2 TRUSTEES OR CUSTODIANS 45. Eligibility of trustees or custodians of public fundsSUBDIVISION 3 GRANT OF LICENCE OR REGISTRATION 46. Licence or registration6 laws of MalaysiaACT 704 DIVISION 4 DUTIES Section 47. Duties of fund managers and fund administrators of public funds 48. Duties of fund managers, fund administrators, trustees or custodians and directors under applicable law 49.

7 Specific duties of fund managers of public funds 50. Duty to segregate client s assets 51. Duty of fund manager and custodian or trustee to be independent of each otherDIVISION 5 REGISTERS AND ACCOUNTING 52. Registers 53. Accounts and auditPART IVMARKET INTERMEDIARIESDIVISION 1 preliminary 54. InterpretationDIVISION 2 SECURITIES LICENSEE 55. Securities licensee 56. Application for licence 57. Power to grant or refuse licenceDIVISION 3 GRANT OF LICENCE 58. Licence7 Labuan Financial Services and SecuritiesPART VLABUAN TRUST COMPANIESDIVISION 1 preliminary Section 59.

8 Interpretation 60. Licence required to carry on trust company business in Labuan 61. Licensing of trust companies 62. Terms and conditions of licence 63. Temporary continuation for winding-upDIVISION 2 POWERS OF Labuan TRUST COMPANIES 64. Disclosure of interests in relation to Labuan trust company 65. Labuan trust company s power to act as executor 66. Labuan trust company s power to act as administrator 67. Additional powers of a Labuan trust company 68. Labuan trust company s power to act as sole trustee 69. Labuan trust company s power to act as joint trustee with another 70.

9 Delegation to Labuan trust companyDIVISION 3 Labuan MANAGED TRUST COMPANIES 71. Licensing of Labuan managed trust companies 72. Terms and conditions of licence as Labuan managed trust company DIVISION 4 Labuan PRIVATE TRUST COMPANIES 73. Meaning of connected persons 74. Registration as Labuan private trust company 75. Terms and conditions of registration as a Labuan private trust company 76. Duties of agent of Labuan private trust company 77. Powers of the Authority 78. Non-application of the provisions of this Part8 laws of MalaysiaACT 704 DIVISION 5 MISCELLANEOUS Section 79.

10 Labuan trust company subject to same control as any other executor 80. Affidavit of officer 81. Examination of books and accounts of a Labuan trust company 82. Retention of records 83. Money paid to a Labuan trust company to be held in trust 84. Commission, fees, charges and expenses levied by a Labuan trust company 85. Translation of accounts and recordsPART VILABUAN BANKINGDIVISION 1 preliminary 86. InterpretationDIVISION 2 LICENSING 87. Labuan banking business, Labuan investment banking business and Labuan financial business to be carried on only under licence 88.