Section 49

Where client’s assets that are required by this section to be deposited into a trust account are received by a fund manager in a place outside Malaysia, the fund manager may deposit such assets into a trust account maintained by it in that place.

The trust account referred to in subsections (1) and (2)

shall always be kept separate from those of the fund manager, and shall be so marked in the books of the fund manager relating to each client’s account, so that at no time shall such monies, property or other valuable consideration form part of or be mixed with the general assets of the fund manager, and all investments made by the company as trustee shall be so designated that the trusts to which the investments belong can be readily identified at any time.

Labuan Islamic Financial Services and Securities 67

Client’s assets held in a trust account shall not be available for the payment of the liabilities of a fund manager or liable to be paid or taken in execution under an order or process of court for the payment of the liabilities of a fund manager.

Nothing in this section shall be construed as taking away or affecting any lawful claim or lien which any person has against or upon any client’s assets held in a trust account or against or upon any client’s assets received for the purchase or from the sale of securities before such assets are deposited into the trust account.

Any person who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding five years or to both.