Financial Services
Areas of Business:
Overview
Labuan IBFC’s capital market comprises a number of capital market intermediaries licensed by Labuan FSA. These include fund managers, fund administrators, custodians and securities licensees providing the ecosystem in Labuan IBFC for international investments and fund setups in the Centre. In terms of geographical distribution, majority of the Labuan fund managers and securities licensees are originated from Asia and Pacific region and some are from Europe and America.
Investors can establish mutual funds or issue securities out of Labuan IBFC as a platform to raise funding in the international market. The fund management company can provide fund administration and advisory services for the purpose of investment related activities while securities licences are also available for companies that would like to deal in securities and provide securities advice, as well as administration services for investment purposes.
Two types of funds can be prescribed under the Labuan Financial Services and Securities Act 2010, namely private funds and public funds. A private fund can carry on its affairs by giving notice in writing of its scope and nature of business to Labuan FSA. The notification shall be accompanied with an information memorandum or such other offering document and should be lodged through a Labuan licensed entity. Meanwhile, the Labuan public funds are those whose securities are offered for subscription to any members of the general public.
Frequently Asked Questions
A mutual fund or fund means a Labuan company, a corporation incorporated under the laws of any recognised country or jurisdiction, a partnership, a protected cell company, a foundation or a unit trust which:
A private fund is defined as a fund whose shares are:
A public fund is a mutual fund other than a private fund, and an Islamic public fund is a public fund that is in compliance with Shariah principles.
A fund management company or manager is a person who, for valuable consideration, provides management services and/or investment advice, or administrative services in respect of securities for the purposes of investment, investment advisory services, fund manufacturing services or such other activities as may be prescribed by Labuan FSA.
A fund administrator means a person who, for valuable consideration, provides a mutual fund with administrative services or facilities alone or with accounting services.
An applicant should have the following minimum eligibility criteria:
A securities licensee means a person who, for valuable consideration, provides investment advice or administrative services in respect of securities for the purposes of investment, including dealing in securities or such other activity as may be specified by Labuan FSA.
A Labuan protected cell company (PCC) may be established to conduct a mutual fund business in accordance to either conventional or Islamic principles.
The Labuan International Financial Exchange (LFX) is a financial exchange based in Labuan. It was established to complement the various business financial services currently available in Labuan. LFX is limited by shares and is wholly owned by Bursa Malaysia Berhad. LFX will be a fully fledged exchange with listing and trading facilities. Its initial focus will be the listing of financial instruments.
Application for listing on the LFX can be approved in a shorter period, only two (2) market (business) days, subject to all required documentation received being accurate and complete.
The rate of tax imposed is 3% of audited net profits.
Dividends received from a Labuan fund management company are tax-exempt.
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