Labuan Investment Bank Labuan investment banking is defined as the business of providing credit facilities, providing consultancy and advisory services relating to corporate and investment matters including dealing in securities, or making and managing investments on behalf of any person, business of undertaking foreign exchange transactions, interest rate swaps, dealings in derivative instruments or derivative financial instruments or any other similar risk management activities, Labuan Islamic investment banking business, Labuan financial business or such other business as Labuan FSA may specify, with the approval of the Minister of Finance, in any currency (including ringgit where permitted by the Exchange Control Act 1953 or such other relevant law in force). Labuan investment banks are not allowed to accept deposits. Entry Requirements A Labuan investment bank can be set up as a branch or subsidiary and registered or incorporated under the Labuan Companies Act 1990. The application may be accepted from: - An investment bank or group engaging in investment banking activities licensed by the regulatory authority in the country of origin;
- A licensed bank or an established financial institution or financial service provider supervised by a competent regulatory authority;
- Any licensed institutions under BAFIA with prior approval of Bank Negara Malaysia; and
- Corporations with the necessary expertise and experience in financial industry with at least three years good track records and regulated by an Authority in their home countries.
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| Application Requirements
An applicant is required to submit application of which the submission should include the following: - A letter of awareness from a competent regulatory authority that supervises the applicant's shareholder/head office.
- A letter of guarantee from the applicant's shareholder or an undertaking from the head office.
- Business plans inclusive of three years' financial projections of the applicant.
- Certified true copy of the Memorandum and Articles of Association of the applicant.
- Certified true copy of the resolutions of the Board or minutes of the general meeting, which approve the applicant to apply for a licence.
- Copy of the applicant's shareholder/head office audited annual accounts for the three preceding years.
- A minimum paid-up capital amounting to RM10.0 million equivalents in any foreign currency.
- Applicant's corporate profile, which includes:
- The name, place and date of establishment of the applicant.
- The names, addresses, qualifications and experience of the directors and officers responsible for the overall management of the affairs of the applicant.
- The name and address of each member who holds 10% or more of the voting shares of the applicant.
- Declaration by the applicant on the probity of its directors and officers who are responsible for the management of the applicant.
- Any other information relevant to the application.
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| Operational Requirement - Maintain a physical presence in Labuan.
- Every director or Principal Officer (PO) of a Labuan investment bank must be of fit and proper persons and shall not be subjected to any adverse report from any reliable sources. The appointment of director or PO of a Labuan investment bank must obtain prior approval from Labuan FSA.
- Comply with the statutory requirements under the Labuan Financial Services and Securities Act 2010.
- Comply with the prudential and reporting requirements issued by Labuan FSA.
- Adhere to any other requirements issued by Labuan FSA from time to time.
- Meet certain pre-determined criteria, should it prefer to co-locate to any other parts in Malaysia.
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 | RM100,000 | USD30,000 | | Marketing Office Fee | RM7,500 | USD2,500 | | Co-Located Office Fee | RM10,000 | USD3,500 | |
