Malaysia legislation
Section 115
Section 115
(a)
provides for remuneration to be paid by the client to the commodity trading adviser on the basis of a share of capital gains of the funds or any part of the funds of the client;
(b)
does not include a provision to the effect that an assignment of the contract by the commodity trading adviser shall be made only with the consent of the client;
(c)
does not include a provision to the effect that the commodity trading adviser—
(i)
if a corporation, will notify the client of any change in the directors of the corporation; or
(ii)
if a firm, will notify the client of any change in the partners of the firm, within a reasonable time after the change.
(2)
Paragraph (a) of subsection (1) does not prohibit a commodity trading advisory contract which provides for remuneration based on the total value of the funds of a client averaged over a definite period or on definite dates, or taken on a definite date.
(4)
Any commodity trading adviser who knowingly enters into any contract in contravention of subsection (1) commits an offence and is liable on conviction to a fine not exceeding five thousand ringgit.
(3)
For the purpose of this section, "commodity trading advisory contract" means a contract or agreement whereby a person agrees to act as a commodity trading adviser or to manage any commodity trading or trading account of a client, not being a company carrying on business as a commodity trading company and registered as such under the Companies Act 1965.
(5)
Any commodity trading advisory contract entered into in contravention of subsection (1) shall, notwithstanding anything in the contract, be voidable at the option of the client.