Fund Management Companies - Capital Markets

A Labuan fund manager is defined as a person who, for valuable consideration, provides management services which may include investment advice or administrative services in respect of securities for the purposes of investment, including dealing in securities. For a Labuan fund manager undertaking Islamic fund management activities, its operations shall also comply with Shariah principles.

key highlights

31 number of fund managers in 2020 with 61.3% from the Asia and the Pacific region, mainly from Malaysia and Singapore

View list of Fund Managers

Eligibility
Licensing Requirements
Operational Requirements
Fees

Eligibility
An applicant intending to carry on business as a Labuan fund manager in Labuan IBFC shall meet the following eligibility criteria:
An individual who holds a relevant degree or professional qualification to carry on fund management activities. Labuan FSA may also consider an applicant who is at least a diploma holder with three years’ relevant experience in the capital market or direct experience in fund management activities;
An approved fund manager or any provider of such services from a country or jurisdiction who is a member of the International Organisation of Securities Commission (IOSCO); or
A person who does not fulfil items 1 and 2 may also be considered, provided that the fund management activities are run and managed by suitably qualified and experienced individuals.
Licensing Requirements
Submit a duly completed application form (Form LSCM) and all the relevant supporting documents as stipulated in Form LSCM
Provide a business plan covering the business intentions, types of services to be provided, target market, three-year revenue projections and manpower, including the equity structure of the company with regard to the percentage of shareholding
Demonstrate the existence of both adequate financial resources and insurance coverage as specified in paragraphs 8.1 and 8.2 of the Guidelines on the Establishment of Labuan Fund Manager
The applicant, proposed directors and principal officer including any other relevant person are fit and proper persons as per the Guidelines on Fit and Proper Person Requirements issued by Labuan FSA; and
Subject to the merit of each application, additional information may be requested by Labuan FSA to facilitate the processing of the application.
Operational Requirements
Maintain a paid-up capital unimpaired by losses of at least RM300,000 or its equivalent in any foreign currency throughout its operations. Where the Labuan fund manager has assets under management (AUM) of more than RM150 million, it must maintain additional capital equivalent to 0.2% of the AUM in excess of RM150 million.
Maintain a professional indemnity insurance policy with coverage of not less than RM1 million or its equivalent in any foreign currency throughout its operations.
Maintain a registered office in Labuan and ensure that the business must be carried on in, from or through Labuan. For a Labuan fund manager that plans to establish a marketing office at Kuala Lumpur and/or Iskandar Malaysia, the Guidelines on the Establishment of Marketing Office in Kuala Lumpur and Iskandar Malaysia issued by Labuan FSA should be observed.
Ensure that the shareholder(s), director(s), principal officer and representative, including any other relevant person, meet the requirements of the Guidelines on Fit and Proper Person Requirements issued by Labuan FSA.
Ensure the compliance of the duties of a Labuan fund manager including segregation of client’s assets as stipulated under Part III, Division 4 of the LFSSA and Part IV, Chapter 4 of the LIFSSA.
Establish adequate internal policies and procedures for its operations, compliances, internal controls, corporate governance and risk management, including its business continuity plan. These have to be regularly reviewed to ensure that they remain appropriate, relevant and prudent.
Appoint an approved auditor to carry out an annual audit of its accounts in respect of its business operations pursuant to Section 174 of the LFSSA and Section 135 of the LIFSSA.
Conduct its business in any foreign currency other than Malaysian Ringgit unless permitted under Section 7(4) of the Labuan Companies Act 1990.
Conduct its business with due diligence and sound principles, maintain adequate and proper records and books of accounts in Labuan in line with the Directive on Accounts and Record-keeping Requirement for Labuan Entities issued by Labuan FSA and indicate clearly its name and license or registration number on its letterhead, stationery and other documents.
Appointment of qualified person to its internal Shariah Advisory Board for a Labuan fund manager undertaking Islamic fund management activities is required to ensure that its management and operations are in compliance with Shariah principles. In this regard, the Directive on Islamic Financial Business in Labuan IBFC shall also be observed.
Obtain prior approval from Labuan FSA on the following:
Changes to its identity, place of business or office in Labuan or outside Labuan, ownership and shareholding information of the fund manager.
Appointment of director(s) and shareholder(s). The Labuan fund manager must have at least two directors.
Notify Labuan FSA in writing of the following:
Any amendment or alteration to any of its constituent documents within thirty (30) days of the changes being effected, including the business plan.
For a Labuan fund manager undertaking Islamic fund management activities, notification is required within thirty (30) days from the appointment of its internal Shariah Advisory Board.
Comply with relevant laws and regulations of the jurisdiction where it intends to operate in.
Comply with the relevant directives, guidelines and reporting requirements issued by Labuan FSA from time to time.
Fees

All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year. If any of the mutual funds uses a protected cell company (PCC) structure, the annual fee would be as follows:
Type of fees
Amount
Annual Fee
RM5,000
USD1,500
Marketing Office Fee
RM7,500
USD2,500

Eligibility
Submit a duly completed application form (Form LSCM) and all the relevant supporting documents as stipulated in Form LSCM
Provide a business plan covering the business intentions, types of services to be provided, target market, three-year revenue projections and manpower, including the equity structure of the company with regard to the percentage of shareholding
Demonstrate the existence of both adequate financial resources and insurance coverage as specified in paragraphs 8.1 and 8.2 of the Guidelines on the Establishment of Labuan Fund Manager
The applicant, proposed directors and principal officer including any other relevant person are fit and proper persons as per the Guidelines on Fit and Proper Person Requirements issued by Labuan FSA; and
Subject to the merit of each application, additional information may be requested by Labuan FSA to facilitate the processing of the application.
Licensing Requirements
A copy of the Memorandum and Articles of Association / Partnership agreement / trust deed / charter / other constituent documents as the case may be of the fund.
Names, addresses, profiles and relevant experience of the director / general partner / designated partner / trustee / council members of the fund (Board of the public fund), whichever applicable. The appointment of any members of the Board of the public fund requires prior written approval from Labuan FSA.
The profile of the promoter/custodian/trustee/fund manager, whichever applicable.
An audited annual account of the promoter and fund manager, where applicable, for the three years preceding the application.
The profile of the qualified person as its Shariah adviser in the case of a Labuan Islamic public fund.
A signed declaration by the Board of the public fund on confidentiality and secrecy with regard to the operation and administration of the fund.
A certificate from an expert as required under Section 11 of the LFSSA or Section 16 of the LIFSSA that includes a statement certifying that the Labuan public fund complies with the requirements under Part III of LFSSA or Part IV of the LIFSSA and the Guidelines on the Establishment of Labuan Mutual Funds Including Islamic Mutual Funds.
A copy of the prospectus of the Labuan public fund which should comply with Section 35 of the LFSSA or Section 40 of the LIFSSA, either in draft or final form.
Operational Requirements
Maintain a paid-up capital unimpaired by losses of at least RM300,000 or its equivalent in any foreign currency throughout its operations. Where the Labuan fund manager has assets under management (AUM) of more than RM150 million, it must maintain additional capital equivalent to 0.2% of the AUM in excess of RM150 million.
Maintain a professional indemnity insurance policy with coverage of not less than RM1 million or its equivalent in any foreign currency throughout its operations.
Maintain a registered office in Labuan and ensure that the business must be carried on in, from or through Labuan. For a Labuan fund manager that plans to establish a marketing office at Kuala Lumpur and/or Iskandar Malaysia, the Guidelines on the Establishment of Marketing Office in Kuala Lumpur and Iskandar Malaysia issued by Labuan FSA should be observed.
Ensure that the shareholder(s), director(s), principal officer and representative, including any other relevant person, meet the requirements of the Guidelines on Fit and Proper Person Requirements issued by Labuan FSA.
Ensure the compliance of the duties of a Labuan fund manager including segregation of client’s assets as stipulated under Part III, Division 4 of the LFSSA and Part IV, Chapter 4 of the LIFSSA.
Establish adequate internal policies and procedures for its operations, compliances, internal controls, corporate governance and risk management, including its business continuity plan. These have to be regularly reviewed to ensure that they remain appropriate, relevant and prudent.
Appoint an approved auditor to carry out an annual audit of its accounts in respect of its business operations pursuant to Section 174 of the LFSSA and Section 135 of the LIFSSA.
Conduct its business in any foreign currency other than Malaysian Ringgit unless permitted under Section 7(4) of the Labuan Companies Act 1990.
Conduct its business with due diligence and sound principles, maintain adequate and proper records and books of accounts in Labuan in line with the Directive on Accounts and Record-keeping Requirement for Labuan Entities issued by Labuan FSA and indicate clearly its name and license or registration number on its letterhead, stationery and other documents.
Appointment of qualified person to its internal Shariah Advisory Board for a Labuan fund manager undertaking Islamic fund management activities is required to ensure that its management and operations are in compliance with Shariah principles. In this regard, the Directive on Islamic Financial Business in Labuan IBFC shall also be observed.
Obtain prior approval from Labuan FSA on the following:

Changes to its identity, place of business or office in Labuan or outside Labuan, ownership and shareholding information of the fund manager.
Appointment of director(s) and shareholder(s). The Labuan fund manager must have at least two directors.

Notify Labuan FSA in writing of the following:

Any amendment or alteration to any of its constituent documents within thirty (30) days of the changes being effected, including the business plan.
For a Labuan fund manager undertaking Islamic fund management activities, notification is required within thirty (30) days from the appointment of its internal Shariah Advisory Board.

Comply with relevant laws and regulations of the jurisdiction where it intends to operate in.
Comply with the relevant directives, guidelines and reporting requirements issued by Labuan FSA from time to time.
Fees
All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year. If any of the mutual funds uses a protected cell company (PCC) structure, the annual fee would be as follows:
Type of fees
Amount
Annual Fee
USD1,500
Marketing Office Fee
USD2,500

Governing Legislation, Related Guidelines and Circulars

For the latest governing legislation, related guidelines and circulars, please go to labuanfsa.gov.my

List of Fund Managers

For the latest list of Fund Managers, click here.
This list was updated on 4 Dec 2024 and does not reflect real-time data.

A - F
G - Z

Go to FAQs

List of Fund Managers

A - F
G - Z

A - F
Arpels Fund Management Limited
Asian Asset Management Limited
Atlantis Capital Ltd
Berkeley Capital Asset Management Ltd
CCIB Asset Management Limited
Cogent Asset Management Ltd
Cremorne Capital Fund Management Limited
Farrringdon Asset Management Ltd. (also approved to conduct innovative financial services related business)

FinTech Digital Asset Management Limited
FTAG Asset Management Ltd (formerly known as GCX Financial Group Ltd)

Fulton Capital Management Ltd.Function Group (Labuan) Limited
Function Group (Labuan) Limited
G - Z
GA Peninsular Capital Limited
Genesis Investment (L) Limited
IAFC Asset Management Ltd.
Orbis Private Solutins S.A
Pacific Invesco Capital Ltd
Suisse Pacific Capital Partners A.G
Takumi Asset Management (Labuan) Ltd.
Washington Square Investment Management (Asia Pacific) Limited

A - F
G - Z

Find Labuan Banks and Investment Banks here

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FAQs

1. What is Labuan banking?
Labuan banking means the business of receiving deposits on current accounts, deposit accounts, savings accounts, and includes the investment banking business, Labuan financial business, Islamic banking business and such other transactions and terms and conditions as specified by Labuan FSA in any currency including Malaysian Ringgit where permitted by Bank Negara Malaysia.
2. What is investment banking?
Investment banking means the business of providing credit facilities and consultancy and advisory services relating to corporate and investment matters, including making investments on behalf of any person. Other activities include undertaking foreign exchange transactions, interest rate swaps, dealings in derivative instruments or derivative financial instruments or any other similar risk management activities.
3. What is Islamic banking?
Islamic banking is defined as a banking business that is in accordance with Shariah principles.
4. Who may apply for Labuan banking licence?
Organisations that meet the following minimum criteria may apply for a Labuan banking licence:
Must be a bank or financial institution
Possesses a sound track record
Accorded a good credit rating by acceptable rating agencies
Supervised by a competent regulatory authority; and
Conforms to generally accepted standards of international banking practices or the Bank for International Settlements (BIS).
5. What is the minimum working minimum fund for an investment bank?
RM10 million or its equivalent in any other currency.