LFSSA: Labuan Financial Services and Securities Act 2010
Act 704, the Labuan Financial Services and Securities Act 2010, is Malaysia's framework law for financial services and securities business carried on in, from or through Labuan. It creates and governs the licences for Labuan banks, investment banks, securities licensees, fund managers/administrators, trust companies, insurers and company managers, administered by the Labuan Financial Services Authority.
At a glance
| Official title | Labuan Financial Services and Securities Act 20101 |
|---|---|
| English title | Labuan Financial Services and Securities Act 2010 |
| Citation | Act 704 |
| Jurisdiction | Malaysia (Labuan) |
| Type | act |
| Adopted | 2010-01-31 |
| Status | in force |
Full text
Official full text: Labuan Financial Services and Securities Act 2010 (PDF, en)2 · 857 KB · file checked 2026-09-24
Official page: labuanfsa.gov.my2 · archived copy
Summary
Act 704 provides for the licensing and regulation of financial services and securities carried on in, from or through Labuan, Malaysia's international business and financial centre, and for the establishment of exchanges there. It is administered by the Labuan Financial Services Authority. It sets out regimes for securities offers and prospectuses, debentures, private and public mutual funds, market intermediaries (securities licensees), Labuan trust companies (including managed and private trust companies), Labuan banking (banks, investment banks, financial business) with capital-adequacy requirements, Labuan insurance and insurance-related activities, company management, exchanges, and rules against false markets and insider dealing. It gives the Authority powers to grant, refuse, and revoke licences, registrations and consents, prescribe annual and licence fees, and enforce the Act, with a general penalty of up to RM3 million (bodies) or RM1 million (individuals) plus daily fines for continuing offences.
Summary written by the Atlas from the official text; the law itself prevails.
Main articles
- s.3: Establishes administration of the Act by the Labuan Financial Services Authority and its authorised officers.
- s.4: 'Fit and proper person' test the Authority applies to licence applicants and holders.
- s.40-46: Licensing of fund managers and fund administrators of public funds; grant of licence or registration.
- s.55-58: Securities licensee (market intermediary): application for and grant of licence.
- s.60-62: Licence required to carry on Labuan trust company business; licensing terms and conditions.
- s.71-78: Licensing of Labuan managed trust companies and registration of Labuan private trust companies.
- s.87-92: Labuan banking, investment banking and financial business may be carried on only under licence granted by the Authority.
- s.94: Bank licensees must maintain capital funds and a capital adequacy ratio specified by the Authority.
- s.102-107: Licensing of Labuan insurance business and Labuan insurance-related activities (manager, underwriting manager, broker).
- s.131-132: Application for and grant of a company management licence.
- s.146-155: Prohibits creation of a false or misleading market and insider dealing in securities.
- s.167-170: Grounds and procedure for revocation of a consent, licence or registration, and surrender of licence.
- s.187-188: General penalty (fine up to RM3m for a body, RM1m for an individual, plus daily fine) and offences by a body corporate.
- s.189: Authority may prescribe annual, licence or registration fees by regulations; unpaid fees recoverable as a civil debt.
Licences it governs
Regulators that apply it
Sources
- Labuan Financial Services and Securities Act 2010 · retrieved 2026-09-24
- labuanfsa.gov.my: labuan financial services and securities regulations 2010 fo · retrieved 2026-09-24
Does LFSSA apply to your business?
Send us a short description of what you do. We tell you which obligations and licences follow from it, and what it takes to comply.
A free preliminary assessment: we check your business model against the licence before you spend on an application. We handle this licence and any other fintech licence, including jurisdictions the Atlas does not cover yet.