Section 78 — LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010

(a)

the applicant is or will be, a Labuan company or a foreign

Labuan company or a branch of a Malaysian takaful operator;

(b)

the working funds of the applicant—

(i)

in a case where the applicant proposes to carry on either family takaful business or general takaful business, are at least seven million and five hundred thousand ringgit or its equivalent in any foreign currency or such other amount or denomination as may be specified by the

Authority;

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(ii)

in a case where the applicant proposes to carry on solely Labuan retakaful business, are at least ten million ringgit or its equivalent in any foreign currency or such other amount or denomination as may be specified by the Authority; or

(iii)

in a case where the applicant proposes to carry on solely Labuan captive takaful business, are at least three hundred thousand ringgit or its equivalent in any foreign currency or such other amount or denomination as may be specified by the Authority;

(c)

the sum of money specified in paragraph (b) is maintained in an account of the applicant with a bank in Labuan, as evidenced by a certificate of such bank, at the time when the application is made;

(d)

the person in control, director and principal officer of the applicant are fit and proper persons to be associated with a Labuan takaful operator;

(e)

the applicant either—

(i)

has established, or will establish, its management in Labuan with adequate knowledge and expertise of the Labuan takaful business to be carried on;

or

(ii)

has appointed, or will appoint, a licensed Labuan takaful underwriting manager or Labuan takaful manager in Labuan with adequate knowledge and experience of the Labuan takaful business to be carried on; and for the purpose of paragraph (ii), save that with respect to applicants who apply to carry out Labuan captive takaful business, such applicant shall appoint only a

Labuan takaful underwriting manager; and

(f)

the applicant will become a member of an association as prescribed by the Authority.

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(2)

Notwithstanding paragraph (1)(b), the Authority may, having regard to the extent and volume of Labuan takaful business which the applicant proposes to carry on, specify a lesser amount of working funds, subject to the applicant providing adequate guarantee on such terms and conditions as may be acceptable to the Authority for the difference in amount.

(3)

Every application for a license to carry on Labuan takaful business shall—

(a)

be made in writing and be submitted to the Authority;

(b)

state whether such Labuan takaful business is in relation to family takaful business or general takaful business;

(c)

set out the types of Labuan takaful business, as the case may be, which are to be carried on under the takaful licence;

(d)

set out the applicant’s business plans; and

(e)

be accompanied by—

(i)

a copy of—

(aa) the applicant’s constituent documents, duly authenticated by a director or officer of the applicant;

(bb) the resolutions of the board and the general meeting, if any, of the applicant, duly authenticated by a director or officer of the applicant, authorizing the applicant to apply for a takaful licence;

(cc)

the applicant’s certificate of incorporation or registration, as the case may be, certified by the relevant registering authority in the place of establishment or origin of the applicant; and

(dd)

except in relation to an application to carry on a Labuan captive takaful business, a letter of awareness from the applicant’s

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home supervisory authority or such authority as may be specified by the

Authority.

(ii)

a copy of the applicant’s audited annual accounts for the three consecutive years immediately preceding the application, where applicable;

(iii)

a statement on—

(aa) the name, place and date of establishment of the applicant;

(bb) the names, addresses, qualifications and experience of the directors and officers responsible for the overall management of the affairs of the applicant; and

(cc)

the name and address of each member who holds fifteen per centum or more of the voting shares of the applicant;

(iv)

a declaration by the applicant on the probity of the applicant’s directors and officers who would be concerned in the management of the proposed

Labuan takaful operator; and

(v)

in the case of an application by a Labuan company, a guarantee secured and an undertaking given, and, in the case of an application by a foreign

Labuan company or a branch of a Malaysian takaful operator, an undertaking given, by the applicant in respect of its Labuan takaful business, in such manner and such form as may be acceptable to the Authority, and such guarantee and undertaking shall provide, inter alia, that—

(aa) the applicant shall comply with the financial obligations and requirements imposed under this Act and shall meet the applicant’s liabilities in respect of its Labuan takaful business;

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(bb) where the applicant is a Labuan company, no participant of the applicant who holds ten per centum or more of the paid-up capital of the applicant shall be changed without the prior written approval of the

Authority and, where the applicant is a foreign Labuan company, that it shall promptly notify the Authority of any change in its participants who hold ten per centum or more of its paid-up capital;

and

(cc)

every director or the principal officer of the applicant responsible for the management of its Labuan takaful business shall be a fit and proper person and the appointment of such director or principal officer shall only be made after consultation with the

Authority.

(4)

Subparagraph (3)(e)(v) shall not apply to an application to carry on a Labuan captive takaful business where the policy owner is a related corporation or associate corporation of the

Labuan takaful operator.

(5)

The Authority may require from the applicant such other information or documents as may be specified by the Authority for the purpose of determining the application.

(6)

The information or documents specified by the Authority under subsection (5) may differ as between applicants, or different classes, categories or descriptions of applicants as may be determined by the Authority.

(7)

An application under this section may be made in relation to a person not yet established under the Labuan Companies

Act 1990 but will be so established in the event of such person obtaining a takaful licence, and in such event, the requirements of subsection (1) may be varied by the Authority as it deems appropriate.

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Application for takaful licence to carry on Labuan takaful related activities