In forceUpdated to 15 Oct 2022Read it in Bahasa Malaysia

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Labuan Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part IX

144. Minister’s power to suspend trading

(1)

Without prejudice to section 143, where the Minister is satisfied that it is in the public interest to do so, or that it is expedient for the protection of investors or for the proper regulation of an exchange to do so, he may, on the recommendation of the

Authority, make a suspension order relating to all or any of the following:

(a)

the functions of an exchange or its committee;

(b)

the functions of any subcommittee established by the committee referred to in paragraph (a); or

(c)

the functions of the principal officer, by whatever name called, who is responsible for the conduct of the business and operations of an exchange or any committee, as the case may be.

(2)

For so long as the suspension order is in force, the following provisions shall apply:

(a)

none of the functions to which the order relates shall be performed by such exchange or committee or any subcommittee established by the committee or by any officer of such exchange or the committee or any such subcommittee;

(b)

any function to which paragraph (a) applies may be performed by such person as shall be specified in the order in relation to that function; and

(c)

a person or body referred to in paragraph (a) shall not, by act or omission, either directly or indirectly, affect the manner in which the functions referred to in the order are performed unless the person referred to in paragraph (b) requests for his or its assistance.

(3)

Subject to subsection (6), a suspension order shall continue to be in force for such period, being a period not exceeding six months, as shall be specified in the order.

(4)

A suspension order or any extension thereof under subsection (6)

shall take effect when a copy of the order or notice of the extension is served under paragraph (7)(a) to such exchange, committee or the subcommittee established by the committee to which the order relates.

(5)

Without prejudice to subsection (4), where a suspension order is made or such an order is extended under subsection (6), the Authority shall, as soon as it may be practicable, give a copy of the order or, as the case may be, the notice of its extension, to the principal officer of such exchange, the committee or a subcommittee established by the committee as the Authority may consider appropriate in the circumstances.

(6)

The Minister may, on the recommendation of the Authority, extend the period during which a suspension order is to remain in force for any further periods each not exceeding three months.

Labuan Financial Services and Securities 143

(7)

Where a suspension order is made or extended under this section, the Authority shall—

(a)

forthwith serve a copy of the order or notice in writing of the extension on such exchange, committee or the subcommittee to which the order relates; and

(b)

cause a suspension order or the notice of the extension as the case may be, to be published in the Gazette.

(8)

Any person who contravenes a suspension order issued under subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or to both.

(9)

For the purposes of this section, “principal officer” includes a person, by whatever name called, who either individually or jointly with one or more other persons, is responsible for matters relating to listing, licensing, securities or dealings on such exchange or the committee.

Terms defined in this Act

Authority
Defined · s 2
“Authority” means the Labuan Financial Services Authority established under section 3 of the Labuan Financial Services Authority Act 1996;
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committee
Defined · s 133
“committee” means the persons responsible for all matters relating to listing, licensing, trading and other matters related to the securities market;
Open s 133
established
Defined · s 2
“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;
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exchange
Defined · s 133
“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;
Open s 133
Labuan
Defined · s 2
“Labuan” means the Federal Territory of Labuan;
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Minister
Defined · s 2
“Minister” means the Minister charged with the responsibility for finance;
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officer
Defined · s 2
“officer”, in relation to a corporation, includes— (a) a director, secretary or employee of the corporation including the principal officer; (b) a receiver and manager of any part of the undertaking of the corporation appointed under a power contained in any instrument; and (c) a liquidator of the corporation appointed in a voluntary winding-up; but does not include— (A) a receiver who is also not a manager; (B) a receiver and manager appointed by the Court; and (C) a liquidator appointed by the Court or by the creditors;
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person
Defined · s 2
“person” includes a corporation, partnership, a body of persons, corporate or unincorporated and a corporation sole;
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principal officer
Defined · s 2
“principal officer”, in relation to a licensed entity, means a person, by whatever name called, who is responsible, subject to the authority of the directors, for the conduct of the business and the administration of the licensed entity;
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ringgit
Defined · s 2
“ringgit” means a ringgit in the currency of Malaysia;
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securities
Defined · s 2
“securities” means any investments commonly known or capable of being described as securities, and includes— (a) shares, debentures, funds, units, interests in a limited partnership or limited liability partnership or unit trust or foundation or protected cell company or corporation; (b) debentures, bonds or notes of or issued by any body (incorporated or unincorporated), government, local government or public authority; *NOTE—The Exchange Control Act 1953 has since been repealed by the Financial Services Act 2013 which comes into operation on 30 June 2013—see sections 271 and 272…
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Report

Read on from s 145

Part X

Self-Regulatory Organizations

Read on from Part X

Part XI

Appeals

Read on from Part XI