Labuan’s position as a reputable, international business and financial centre has resulted from its concerns with safety, security and certainty. In ensuring a conducive environment for your funds and assets, the Jurisdiction recognises that factors which make the island ideal for the management and growth of your wealth include attractive low tax implications and a highly flexible legislative framework in which to operate. Its proximity – in terms of geographical distance and time zone – to the financial capitals of Asia also makes it easy and convenient to execute time-sensitive decisions. Finally, quality financial service providers – which include the biggest names in the world of banking – are ever ready to facilitate your international business dealings.
A giant step was taken by Labuan IBFC in fund management with the coming into force of new laws as of February 11th, 2010. One central piece of the legislation is the Labuan Financial Services and Securities Act 2009 (LFSSA) which replaces 4 previous Acts governing different Labuan business activities.
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’.
Mindful of the different needs of investors, Labuan IBFC regulations provide for two tiers of funds, public and private.