A Labuan fund manager provides services such as investment advice and securities management and administration to individuals who are interested in investing their funds in the right manner in various securities. The fund managers who undertake Islamic fund management services must ensure compliance with Shariah principles.

Services Provided by Labuan Fund Management License Holders

A person holding a valid Labuan fund management license is permitted to provide the following services:

Management Services

  • Act as a portfolio manager on clients' behalf
  • Manage activities related to acquiring and disposal of securities
  • Management of discretionary accounts of clients

Investment Advisory Services

  • Security analysis and investment recommendations
  • Provide advice related to securities
  • Consultancy services for corporate finance and financial planning

Administrative Services

  • Making submissions to Labuan FSA on clients' behalf in respect of securities

Dealing In Securities

  • Quoting two-way prices
  • Arranging purchase and sale of securities
  • Underwriting of securities
  • Other dealings in securities as allowed by Labuan FSA

When it comes to tax computation, the services offered by a Labuan fund manager is categorized as trading activity and he/she is liable to pay corporate tax of 3 percent on net profits. Tax is not levied on the loss incurred.

Labuan Fund Manager License Application Eligibility Criteria

The individual applying for a license to operate as a fund manager must be a degree holder or have a professional qualification. Labuan FSA might also allow a diploma holder with three years of relevant experience in capital markets or fund management activities to apply for the license.

An approved fund manager/providers of such services from a jurisdiction/country who are members of International Organization of Securities Commission (IOSCO) or who individuals who do not meet any of the above said eligibility criteria may also be allowed to apply provided the activities related to fund management are executed by qualified and experienced persons.

Additionally, the application should be submitted along with the following documents/information:

  • A business plan, including business intentions, target market, different types of services to be offered, manpower and revenue projection for three years, and the company's equity structure with the percentage of shareholding
  • Key personnel's resume and educational credentials
  • Reference letters and relevant documents for all key personnel to prove their credibility
  • Financial statements of all key personnel to demonstrate the availability of adequate financial resources to support the business
  • The company should have at least two directors

On approval of the license, the Labuan fund manager company should pay an annual fee of RM 5,000. For subsequent years, the company has to ensure the payment of the fee on or before January 15 of each year.

The company’s marketing office should also pay an annual fee of RM 7,500 on receiving the approval. The validity of the fee is December 31 of each year. As in the case of the license fee, this fee should also be paid on or before January 15 for each subsequent year.

Finally, it takes about 45 to 60 days to obtain the Labuan fund manage license depending on whether the Labuan FSA asks for additional supporting documents or not. Further, the key personnel of the company might be asked to attend an interview by the Labuan FSA.

QX Trust Company Limited

QX Trust Company Limited, a member of QX Group, holds Labuan FSA license to conduct business activities related to trust companies. We have the experience and expertise to provide one-stop Labuan fund manager license application services to eligible individuals. You can contact us at +60 18 228 9533 or by email at consultant@qx-trust.com. Alternatively, you can write to us providing all details using the contact form on our website https://offshore-labuan.com/