Labuan Investment Bank Group - Industry Associations

The Labuan Investment Bank Group (LIBG) established as a self-regulating body for the licensed Labuan Investment Banks, which are incorporated in Labuan, Malaysia and regulated by Labuan Financial Services Authority (Labuan FSA).

LIBG was initiated on 8 July 2010 by Labuan FSA, approving a Protem Committee comprising:

At the point of inception, the office bearers were:

Chairman : Dato’ Howard Choo (IBH Investment Bank Limited)
Vice Chairman : Mr Mohsen Hosseini Hossein Pour (Middle East Investment Bank Limited)
Secretary : Mdm Zanariah Ja’afar (Amanah Raya Investment Bank Limited)

The objectives of setting up LIBG:

To promote the Federal Territory of Labuan (Labuan) as an International Business Centre
To deal with common issues of concern
To disseminate information of common interest
To communicate and/or liaise with relevant authorities and bodies on all matters affecting the interest of members

Generally, to promote and protect the mutual interest of members and to do all such other lawful acts as are incidental and conducive to the attainment of the above objectives or any of them.

The membership of LIBG shall include all Labuan Investment Banks registered under the Labuan Companies Act, 1990 for the sole and exclusive purpose of carrying investment banking business in Labuan, under the Labuan Offshore Banking Act, 1990 which was subsequently replaced by the Labuan Financial Services and Securities Act 2010.

Labuan Investment Banks (LIB) primarily serve corporations and government bodies and high net worth individuals as part of their wealth management and investment objectives. LIB is permitted to conduct all business activities of investment banks except for taking deposits. Labuan’s strong regulatory banking framework, flexible and favourable tax regime including its low operational and set-up cost have attracted many international players to base their investment banking business in Labuan.

Scope of LIBG:

To receive proposals affecting industry wide practice
To prepare the committee’s view on such proposals for the attention of the authorities
To administrate industry wide conduct
To undertake any other activities that might promote Labuan FSA or be beneficial to members

Contact Details:
Secretariat to LIBG
Tel: +6087-410 730

Permitted Business Activities for a LIBG member bank:

1. Providing credit facilities

Principal investing
Trade financing
Project / asset financing
Syndication / loan arrangement
Revolving credit

2. Consultancy and advisory services relating to corporate finance

Mergers and acquisitions
Initial Public Offerings
Capital restructuring
Dealing in securities

3. Performing securities trading

Derivatives
Hedging
Foreign Exchange
Treasury / government bonds
Unit trusts
Funds
Listings of financial instruments on Labuan International Financial Exchange
Proprietary trading
Issuance of financial products for sale

4. Consultancy and advisory services relating to investment matters

Private banking
Wealth management for High-Net-Worth Individuals (HNWIs)
Portfolio fund management of sovereign wealth funds, pensions, and corporations

5. Labuan Islamic investment banking business, if Shariah compliant.

Rules of the Labuan Investment Bank Group (LIBG) Governing Members