Labuan Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part IX
137. Regulatory functions of exchanges
Feedback & supportIn addition to its other functions, an exchange established under section 134 shall have regulatory functions and shall—
exchange
“exchange” includes a body corporate established as a securities exchange under section 134 and the Labuan International Financial Exchange that was established by the Minister under section 30 of the *Labuan Offshore Securities Industry Act 1998 that was approved and recognized immediately before the effective date;
ensure that it adequately supervises the market operations and the conduct of market participants;
ensure the adequacy and efficiency of internal controls;
ensure market participants follow capital adequacy rules;
investigate misconduct or apparent misconduct by market participants and their representatives that could seriously affect investors or other participating organizations and promptly report to the Authority on these instances of misconduct;
investigate possible market abuses, including insider dealing and fraudulent behaviour; and
take disciplinary measures or agree to a settlement after a public hearing.
Where an investigation is carried out by such exchange, it shall, in writing, forthwith—
inform the Authority of the nature of such investigation and persons involved in the investigation; and
advise the Authority on the status of such investigation at such intervals as the Authority may request.
On the completion of an investigation, such exchange shall—
transmit to the Authority all information in its possession relating to any such investigation; and
inform the Authority of the outcome of such investigation and of any disciplinary measure or other course of action taken as a result of an investigation.
An exchange established under section 134 shall ensure that an adequate budget allocation is made to properly carry out the regulatory functions mentioned in subsection (1).
established
“established”, in relation to a person specified in the first column of the First Schedule, has the meaning set out in the third column of the First Schedule as against such person;
In this section “internal controls” means the system of controls put in place to asses and ensure the effectiveness of an exchange in the exercise of its regulatory functions and “market participants” means any investment dealer or any other person which has been given direct access to trading on the exchange.
person
“person” includes a corporation, partnership, a body of persons, corporate or unincorporated and a corporation sole;