Securities Licensees - Capital Markets

Part IV of the Labuan Financial Services and Securities (Amendment) Act 2022 (Act A1654) provides for the licensing of securities licensees with the following scope of business:

Provide investment advice or administration services in respect of securities for the purpose of investment; or
Deal in securities; or
Provide other activity as may be specified by Labuan FSA.

Part V of the Labuan Islamic Financial Services and Securities (Amendment) Act 2022 (Act A1655) provides for the licensing of Islamic securities licensees with the same scope of business as per securities licensees above. In addition, Islamic securities licensees shall also comply with the following requirements:

Carry on business in compliance with Shariah principles; and
Appoint qualified person(s) to its internal Shariah Advisory Board and notify Labuan FSA in writing of the appointment.

key highlights

14 number of securities licensees in 2020

57.2% of the securities licensees were from the Asia and the Pacific region, mainly from Malaysia and Singapore

View list of Securities Licensees

Application Requirements
Fees

Application Requirements
In general, the submission should include the following:

Particulars of the financial and human resources and administrative facilities available to the applicant for the competent and efficient conduct of its business
Statement on the address of the applicant's place of business and its address for service in Labuan; the name and address of a person in Labuan who is authorised to represent the applicant and to accept services on its behalf; and the address of the applicant's place of business outside Labuan
Statement to the effect that the applicant has declared its compliance with the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 and shall ensure that it shall update its policies and procedures periodically so as to comply with their requirements; and
Such other information or documents as Labuan FSA may reasonably require for the purpose of determining the application.
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
RM5,000
USD1,500
Marketing Office Fee
RM7,500
USD2,500

Application Requirements
In general, the submission should include the following:

Particulars of the financial and human resources and administrative facilities available to the applicant for the competent and efficient conduct of its business
Statement on the address of the applicant's place of business and its address for service in Labuan; the name and address of a person in Labuan who is authorised to represent the applicant and to accept services on its behalf; and the address of the applicant's place of business outside Labuan
Statement to the effect that the applicant has declared its compliance with the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 and shall ensure that it shall update its policies and procedures periodically so as to comply with their requirements; and
Such other information or documents as Labuan FSA may reasonably require for the purpose of determining the application.
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
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 Securities Licensees

For the latest list of Securities Licensees, click here.
This list was updated on 26 June 2024 and does not reflect real-time data.

Go to FAQs

List of Securities Licensees

Find Labuan Banks and Investment Banks here

View List of Banks

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.