Application Requirements

All applications for the setting up of a co located insurance or takaful entity should be directed to the Director General, Labuan FSA and should include, amongst others, the following information:

• A business plan that illustrates the following:
  a)    Rationale or purpose of co-locating the office under this Guideline
  b)    Activities to be performed at Labuan office and at the intended Co-located office respectively, and
  c)    Relocation plan of staff from Labuan to the Co-Located office (if any).
• Organisational chart of the management office in Labuan (if any) and Co-located office, including the estimated number of staff after the co-location takes place
• Notwithstanding the above, Labuan FSA may request other information for the purpose of processing the application.

Operational Requirements

Address of the Co-located Office

Labuan insurance and takaful licensee is required to inform Labuan FSA the address and contact numbers of the Co-located office prior to the commencement of its operations and of any subsequent changes.

The Co-located office must be segregated and independent from the office of other entity/company and has its own phone line, fax machine and computer terminal separate from the other entity/company. It must be managed by its own personnel with sufficient books and records that would explain activities at the Co-located entity.

Name and Signboard

The name of the Labuan insurance and takaful licensee must be easily legible in Romanised characters, printed on a signboard affixed at the entrance of the Co-located office and shall include the words “licensed by Labuan FSA”. The signboard must contain the following information of Labuan insurance and takaful licensee:

• Company’s name
• Type of licence, and
• Licence number.

In addition, the Labuan insurance and takaful licensee must comply with requirements of the relevant local authorities with regard to the signboard and the Co-located office, wherever applicable.

Market Conduct and Consumer Protection

Labuan insurance and takaful licensee that co-locates under this Guideline is expected to comply with the Guidelines on Market Conduct for Labuan Insurance and Insurance-Related Companies issued by Labuan FSA (for a copy of this Guideline please visit www.labuanibfc.my or www.labuanfsa.gov..my)

Annual Fee

The Labuan insurance and takaful licensee that co-locates is required to pay to Labuan FSA an annual fee of MYR7,000 for each Co-located office, all subsequent payment of the annual fee is payable not later than 15 January of each year.    

Revocation and Surrender

Labuan FSA reserves the right to vary, review, impose additional conditions or revoke the approval if Labuan FSA is satisfied, based on the information made available to it, that the Labuan insurance and takaful licensee has not complied with any laws or requirements in relation to the Co-located office. 

Notwithstanding the above, the Labuan insurance and takaful licensee may surrender the approval under this Guideline by notifying Labuan FSA in writing not less than 1 (one) month from the date it intends to close the Co-located office.

Others

Labuan FSA may request the Labuan insurance and takaful licensee to provide statistical information in such manner and frequency as may be determined by Labuan FSA with regard to activities in the Co-located office

Effective date

This guideline came into effect on 1 March 2011 and would remain effective and applicable unless amended or revoked.