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Monday, 27 June 2011 00:07 |
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Fund and fund management activities are regulated under the Labuan Financial Services and Securities Act 2010 (LFSSA) and their Islamic counterparts under Labuan Islamic Financial Services and Securities Act 2010 (LIFSSA). The major policy changes concerning fund management include the following: private funds with less than 50 investors need not seek the approval of the regulator, Labuan FSA although documentation must be submitted; revised definition of ‘private fund,’ described as either those with not more than 50 investors with minimum MYR250, 000 first time investment OR any number of investors with a first time investment quantum of minimum MYR500,000; and the inclusion of entities such as limited liability partnerships and protected cell companies under the definition of ‘securities’. There are many advantages of setting-up a fund in Labuan. Firstly, Labuan fund can be structured in many forms i.e. as a company, limited liability partnership, protected cell company, foundation or trust. This provides flexibility. Secondly, Labuan funds support multi structures, i.e. the fund can be in multi currencies, investing in multi risk instruments, investors with multi risk classes, multi fees and so on. This allows product innovation. And last but not least, it provides hassle free entry. For example, minimum capital requirement and Labuan fund management licence for a private fund manager are waived.
Additionally, with the growing interest in Shariah compliant financial instruments as an alternative to conventional ones, Labuan Islamic funds provided under the Labuan Islamic Financial Services and Securities 2010, offers an attractive business opportunity for international players to structure Islamic funds in Labuan.
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Last Updated on Tuesday, 16 August 2011 18:45 |
