Labuan Islamic Financial Services and Securities Act 2010

Akta Perkhidmatan Kewangan dan Sekuriti Islam Labuan 2010

Provides for the licensing and regulation of Islamic financial services and securities in Labuan.

Read the copy (English) — PDF, 161 pages Bahasa Melayu — PDF, 177 pages

Copy of the official text captured from the Laws of Malaysia portal (AGC) on 26 October 2026. Always check the official portal for the authoritative current version. Amendments made after the official “last updated” date are published separately as amending Acts (Act A…) on the portal.

Number	Act 705
Type	Federal Act
Applies to	Federal
Subject	Islamic affairs
Year	2010
Official “last updated”	15 October 2022
Published by	Attorney General's Chambers — Laws of Malaysia portal (lom.agc.gov.my)
Text as at	15 October 2022
Royal Assent	31 January 2010
Published in the Gazette	11 February 2010

Long title

An Act to provide for the licensing and regulation of Islamic financial services and securities in Labuan and for other matters related thereto.

Contents — Parts and sections

161 sections in 12 Parts, headings copied from the “ARRANGEMENT OF SECTIONS” of the official text (copy of 26 October 2026). Read the full wording in the PDF.

Definitions: section 2 (Interpretation).

Part I PRELIMINARY (6)

s 1 Short title and commencement
s 2 Interpretation
s 3 Administration of the Act
s 4 Fit and proper person
s 5 Business in, from or through Labuan
s 6 Compliance with Syariah principles

Part II SYARIAH SUPERVISORY COUNCIL (5)

s 7 Establishment of the Syariah Supervisory Council
s 8 Functions of the Syariah Supervisory Council
s 9 Power to make rulings and give advice
s 10 Appointment of members to the Syariah Supervisory Council
s 11 Reference by court or arbitrator in making decision

Part III SECURITIES (20)

Chapter 1 Offer of securities
- s 12 Interpretation
- s 13 Offers or invitations which require the approval of the Authority
- s 14 False or misleading statements
- s 15 Advertisements
- s 16 Registration of prospectus
- s 17 Document containing offer of securities to be made via Labuan trust company or bank licensee or Islamic bank licensee and to be deemed prospectus
- s 18 Expert’s consent to issue of prospectus containing statement by him
- s 19 Civil liability for misstatement in prospectus
- s 20 Criminal liability for misstatement in prospectus
- s 21 Labuan trust company, bank licensee or Islamic bank licensee as agent in offer
- s 22 Prohibition of allotment unless minimum subscription received
- s 23 Application monies to be held in trust until issuance or allotment
Chapter 2 Sukuk
- s 24 Power to issue Sukuk
- s 25 Trustee for Sukuk holders
- s 26 Exemptions and indemnifications of trustee for Sukuk holders from liability
- s 27 Duties of trustee for Sukuk holders
- s 28 Obligations of directors of borrowing company
- s 29 Obligation of guarantor company to furnish information
- s 30 Monies to be immediately payable on certain events
- s 31 Retention of over-subscriptions in Sukuk issues Labuan Islamic Financial Services and Securities 5

Part IV ISLAMIC MUTUAL FUNDS (23)

Chapter 1 Preliminary
- s 32 Intepretation
Chapter 2 Islamic private fund
- s 33 Notification by Islamic private fund
- s 34 Islamic private fund to lodge an information memorandum or such other offering document
- s 35 Exclusion of liability for errors or omission in the information memorandum or such other offering document
Chapter 3 Islamic public fund
- s 36 Islamic public fund shall be registered
- s 37 Application by Islamic public fund
- s 38 Power to grant or refuse registration of Islamic public fund
- s 39 Registration procedure
- s 40 Prospectus relating to Islamic public fund
- s 41 Investors’ rights
- s 42 Limitation
- s 43 Certificate of compliance
- s 44 Foreign Islamic public fund may be managed or administered in Labuan
Chapter 4 Fund managers and fund administrators
- s 45 Fund manager or fund administrator of an Islamic public fund
- s 46 Duties of a fund manager and fund administrator of an Islamic public fund
- s 47 Duties of a fund manager and fund administrator under applicable law
- s 48 Specific duties of a fund manager of an Islamic public fund
- s 49 Duty to segregate client’s assets
Chapter 5 Trustees or custodians
- s 50 Eligibility of a trustee or custodian of an Islamic public fund
- s 51 Duties of a trustee or custodian and director under applicable law
- s 52 Duty of a fund manager, custodian or trustee to be independent of each other
Chapter 6 Registers and accounting
- s 53 Registers
- s 54 Accounts and audit

Part V LICENSING OF INTERMEDIARIES (5)

Chapter 1 Preliminary
- s 55 Interpretation
Chapter 2 Islamic securities licensee
- s 56 Islamic securities licensee
- s 57 Application for licence
- s 58 Power to grant or refuse application for licence Labuan Islamic Financial Services and Securities 7
- s 59 Form of licence

Part VI LABUAN ISLAMIC BANKING (16)

Chapter 1 Preliminary
- s 60 Interpretation
Chapter 2 Licensing of Labuan Islamic banking business
- s 61 Labuan Islamic banking business to be carried on only under licence
- s 62 Labuan Islamic investment banking business to be carried on only under licence
- s 63 Application for licence to carry on Labuan Islamic banking business
- s 64 Application for licence to carry on Labuan Islamic investment banking business
- s 65 Application for licence to carry on Labuan Islamic financial business
- s 66 Additional information
- s 67 Grant of licence by the Authority
- s 68 Requirement to use, and restriction on use of, the words “Labuan Islamic bank”, etc.
- s 69 Maintenance of capital adequacy ratio
- s 70 Amendment or alteration of constituent documents of Islamic bank licensee
- s 71 Authority to publish list of Labuan Islamic bank licensee
Chapter 3 Duties of Islamic bank licensees
- s 72 Offices and subsidiaries
- s 73 Prohibition of certain accounts
- s 74 Financial statements, statistics and information to be submitted to the Authority
- s 75 Payment from a deceased person’s account

Part VII LABUAN TAKAFUL BUSINESS AND LABUAN TAKAFUL RELATED ACTIVITIES (29)

Chapter 1 Preliminary
- s 76 Interpretation
Chapter 2 Licensing
- s 77 Licensing of Labuan takaful business and Labuan takaful related activities
- s 78 Application for takaful licence to carry on Labuan takaful business
- s 79 Application for takaful licence to carry on Labuan takaful related activities
- s 80 Grant of takaful licence
- s 81 Publication of list of all Labuan takaful licensees
- s 82 Continuing licensing requirements
Chapter 3 Financial requirements and duties of and restrictions on
- takaful licensees
- s 83 Appointment of actuary
- s 84 Margin of solvency
- s 85 Segregation of takaful fund
- s 86 Separate accounts to be kept by Labuan takaful operator
- s 87 Submission of financial statements
- s 88 Subsidiaries and offices of takaful licensees Labuan Islamic Financial Services and Securities 9
- s 89 Restriction on business of takaful licensees by Labuan takaful operator
- s 90 Restrictions on and duties of Labuan takaful manager, Labuan takaful underwriting manager and Labuan takaful broker
- s 91 List of Labuan takaful operators to be supplied by Labuan takaful manager and Labuan takaful underwriting manager
- s 92 Conduct of business
Chapter 4 Payment of policy monies under a family takaful policy and personal
- accident takaful policy
- s 93 Application of this Chapter
- s 94 Power to make nomination
- s 95 Revocation of nomination
- s 96 Payment of policy monies
- s 97 Trustee of policy monies
- s 98 Nominee other than a nominee under section 97
- s 99 Assigned or pledged policy monies
- s 100 Payment of policy monies where there is no nomination
- s 101 Payment to person incompetent to contract
- s 102 Distribution of policy monies in due course of administration
- s 103 This Chapter to prevail over policy and any other written law
Chapter 5 Winding-up
- s 104 Winding-up of Labuan takaful operator

Part VIII LABUAN ISLAMIC TRUSTS (2)

s 105 Establishment of Labuan Islamic trusts
s 106 Assets of Labuan Islamic trusts

Part IX LABUAN ISLAMIC FOUNDATION (4)

s 107 Establishment of Labuan Islamic foundation
s 108 Object and purpose
s 109 Charter
s 110 Assets

Part X LABUAN ISLAMIC LIMITED PARTNERSHIPS AND LABUAN ISLAMIC LIMITED LIABILITY PARTNERSHIPS (2)

s 111 Establishment of Labuan Islamic limited partnership and Labuan Islamic limited liability partnership
s 112 Object and purpose

Part XI ISLAMIC SELF-REGULATORY ORGANIZATIONS (10)

s 113 Declaration or recognition of an Islamic self-regulatory organization
s 114 Rules of an Islamic self-regulatory organization
s 115 Restriction on decision-making
s 116 Obligations of and in relation to officers of an Islamic self-regulatory organization
s 117 Powers to direct an Islamic self-regulatory organization
s 118 Termination of arrangements and revocation of declaration or recognition
s 119 Amendments to the constitution of an Islamic self-regulatory organization
s 120 Protection for an Islamic self-regulatory organization
s 121 Financial statements of an Islamic self-regulatory organization
s 122 Powers of the Authority with respect to Islamic self-regulatory organization Labuan Islamic Financial Services and Securities 11

Part XII GENERAL (39)

s 123 Appeals
s 124 Revocation of consent, licence or registration
s 125 Revocation procedure
s 126 Surrender of licence
s 127 Consequences of revocation or surrender of licence
s 128 Transfer of business
s 129 Additional licensing requirements of Islamic bank licensees and takaful licensees
s 130 Establishment of internal Syariah advisory board for Islamic securities licensees and fund manager
s 131 Syariah Adviser for Labuan Islamic trusts, Labuan Islamic foundation, Labuan Islamic limited partnership or Labuan Islamic limited liability partnership
s 132 Internal Syariah compliance review
s 133 External Syariah compliance review
s 134 Internal audit
s 135 External auditor
s 136 Payment systems
s 137 Accounts and records
s 138 Examination and inspection of books and documents of licensed entities
s 139 Secrecy
s 140 Secrecy in relation to the Syariah Supervisory Council
s 141 Translation
s 142 Application of Exchange Control Act 1953
s 143 Application of Capital Markets and Services Act 2007
s 144 Application of Labuan Companies Act 1990 and Companies Act 1965
s 145 Application of Labuan Financial Services Authority Act 1996
s 146 Non-application of certain laws
s 147 Protection against suit and legal proceedings
s 148 General penalty
s 149 Offence by body corporate
s 150 Annual and licence fees
s 151 Procedure where none laid down
s 152 Misrepresentation
s 153 Enforcement
s 154 Power to compound
s 155 Service of documents
s 156 Power of the Minister to make regulations
s 157 Power of the Minister to issue directions
s 158 Power of the Minister to amend Schedules
s 159 Power of the Minister to grant exemptions
s 160 Publication of notification, Gazette
s 161 Savings and transitional

Schedules: First Schedule · Second Schedule · Third Schedule — Labuan Islamic Financial Services and Securities 13

Financial Services Act 2013 (Act 758)Islamic Financial Services Act 2013 (Act 759)Anti-Money Laundering, Anti-Terrorism Financing, Anti-Restricted Activity Financing and Proceeeds of Unlawful Activities Act 2001 (Act 613)Companies Act 2016 (Act 777)Bankers' Books (Evidence) Act 1949 (Act 33)Civil Law Act 1956 (Act 67)Probate and Administration Act 1959 (Act 97)Public Authorities Protection Act 1948 (Act 198)Labuan Companies Act 1990 (Act 441)Labuan Business Activity Tax Act 1990 (Act 445)Labuan Financial Services Authority Act 1996 (Act 545)Labuan Offshores Trusts Act 1996 (Act 554)Capital Markets and Services Act 2007 (Act 671)Central Bank of Malaysia Act 2009 (Act 701)Labuan Financial Services and Securities Act 2010 (Act 704)Labuan Foundations Act 2010 (Act 706)Labuan Limited Partnerships and Limited Liability Partnerships Act 2010 (Act 707)National Land Code (Revised-2020) (Act 828)

Federal Acts that this law's official text itself refers to (as “[Act N]”), most-referred first.

Version history

Captured	Language	Official “last updated”	Pages	SHA-256	File
26 October 2026	Bahasa Melayu	15 October 2022	177	`7772cfd4a406`	PDF 0.6 MB
26 October 2026	English	15 October 2022	161	`f38b55031b2b`	PDF 0.6 MB

A new version is kept only when the official file changes (different SHA-256 fingerprint). Older versions are never overwritten, so you can see what the text said on an earlier date.

Official source

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Labuan Islamic Financial Services and Securities Act 2010

Long title

Contents — Parts and sections

Related laws

Version history

Official source