Malaysia legislation
Section 46
of LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010
Section 46
A fund manager or fund administrator of an Islamic public fund and its officers shall, in exercising their powers and duties—
(a)
act honestly;
(b)
exercise the degree of care and diligence that would be reasonably expected of a person in that position;
Act 705
(c)
act in the best interests of the investors in the Islamic public fund and, where there is a conflict between the interest of the investors and their own interests, give priority to the investors’ interests;
(d)
treat the investors who hold interests of the same class equally and participants who hold interests of different classes fairly;
(e)
not make use of information acquired through being a fund manager, fund administrator or its officers to—
(i)
gain an improper advantage for themselves or another person; or
(ii)
cause detriment to the investors in the Islamic public fund;
(f)
ensure that all payments out of the property of the Islamic public fund are made in accordance with the constituent documents of the Islamic public fund, this Act and any regulations;
(g)
report to the Authority, as soon as practicable after it becomes aware of any breach of—
(i)
this Act and any regulations; or
(ii)
the Islamic public fund’s constituent documents that has had, or is likely to have, a materially adverse effect on the interests of the investors;
and
(h)
take reasonable care to make and retain adequate records of all matters, transactions and dealings, including accounting records.
Duties of a fund manager and fund administrator under applicable law