Securities Licensees

Part IV of the Labuan Financial Services and Securities Act 2010 provides for the licensing of securities licensees with the following scope of business:

  • Provide investment advice or administration services in respect of securities for the purpose of investment; or
  • Deal in securities; or
  • Provide other activity as may be specified by Labuan FSA.

Part V of the Labuan Islamic Financial Services and Securities Act 2010 provides for the licensing of Islamic securities licensees with the same scope of business as per securities licensees above. In addition, Islamic securities licensees shall also comply with the following requirements:

  • Carry on business in compliance with Shariah principles; and
  • Appoint qualified person(s) to its internal Shariah Advisory Board and notify Labuan FSA in writing of the appointment.

key highlights

  • 57.2% of the securities licensees were from the Asia and the Pacific region, mainly from Malaysia and Singapore

  • Application Requirements
  • Fees
  • Application Requirements
    In general, the submission should include the following:

    1. Particulars of the financial and human resources and administrative facilities available to the applicant for the competent and efficient conduct of its business
    2. Statement on the address of the applicant's place of business and its address for service in Labuan; the name and address of a person in Labuan who is authorised to represent the applicant and to accept services on its behalf; and the address of the applicant's place of business outside Labuan
    3. Statement to the effect that the applicant has declared its compliance with the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 and shall ensure that it shall update its policies and procedures periodically so as to comply with their requirements; and
    4. Such other information or documents as Labuan FSA may reasonably require for the purpose of determining the application.
  • Fees
    All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:
    Type of fees
    Amount
    Annual Fee
    RM5,000
    USD1,500
    Marketing Office Fee
    RM7,500
    USD2,500
  • Application Requirements
    In general, the submission should include the following:

    1. Particulars of the financial and human resources and administrative facilities available to the applicant for the competent and efficient conduct of its business
    2. Statement on the address of the applicant's place of business and its address for service in Labuan; the name and address of a person in Labuan who is authorised to represent the applicant and to accept services on its behalf; and the address of the applicant's place of business outside Labuan
    3. Statement to the effect that the applicant has declared its compliance with the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 and shall ensure that it shall update its policies and procedures periodically so as to comply with their requirements; and
    4. Such other information or documents as Labuan FSA may reasonably require for the purpose of determining the application.
  • Fees
    All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:
    Type of fees
    Amount
    Annual Fee
    RM5,000
    USD1,500
    Marketing Office Fee
    RM7,500
    USD2,500
List of Securities Licensees

List of Securities Licensees

Find Labuan Banks and Investment Banks here
FAQs
  • 1. What is Labuan banking?

    Labuan banking means the business of receiving deposits on current accounts, deposit accounts, savings accounts, and includes the investment banking business, Labuan financial business, Islamic banking business and such other transactions and terms and conditions as specified by Labuan FSA in any currency including Malaysian Ringgit where permitted by Bank Negara Malaysia.

  • 2. What is investment banking?

    Investment banking means the business of providing credit facilities and consultancy and advisory services relating to corporate and investment matters, including making investments on behalf of any person. Other activities include undertaking foreign exchange transactions, interest rate swaps, dealings in derivative instruments or derivative financial instruments or any other similar risk management activities.

  • 3. What is Islamic banking?

    Islamic banking is defined as a banking business that is in accordance with Shariah principles.

  • 4. Who may apply for Labuan banking licence?

    Organisations that meet the following minimum criteria may apply for a Labuan banking licence:

    • Must be a bank or financial institution
    • Possesses a sound track record
    • Accorded a good credit rating by acceptable rating agencies
    • Supervised by a competent regulatory authority; and
    • Conforms to generally accepted standards of international banking practices or the Bank for International Settlements (BIS).

  • 5. What is the minimum working minimum fund for an investment bank?

    RM10 million or its equivalent in any other currency.

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Stay ahead of the game
Access a wealth of information from Labuan IBFC from reports on forward-thinking research to insightful articles.
Get in touch
Interested to setup your business in Labuan? Speak to our dedicated advisors to find out more.
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