Section 156
of Labuan Financial Services and Securities Act 2010
Section 156
“Self-regulatory organization” means a self-regulatory organization whose object is to regulate the operations of its members or of the users of its services, their standards of practice and business conduct in order to better protect investors and consumers of securities or related services and includes such other organizations as may be declared or recognized as such by the Authority.
(2)
The Authority may, subject to such terms and conditions as it thinks fit, by publication in the Gazette declare or recognize that a corporation or organization shall be a self-regulatory organization in relation to a specified sector or industry, or any part thereof, where the Authority is satisfied that the corporation or organization—
(a)
has a constitution and internal rules and policies which are consistent with this Act and any written law applicable to such sector or industry, or part thereof;
(b)
has the capacity and the financial and administrative resources necessary or desirable to carry out its functions and the regulatory or supervisory functions it shall perform as a self-regulatory organization, including dealing with breaches of the law or of the applicable standards and guidelines;
Act 704
(c)
shall not discriminate unreasonably against a person in offering access to its services or in carrying out its functions as a self-regulatory organization;
(d)
is managed or controlled by officers or persons in control who are fit and proper persons under this Act; and
(e)
satisfies such criteria as may be specified in the rules stipulated by the Authority.
(3)
The Authority may, by written arrangement, delegate a power or function of the Authority to a self-regulatory organization.
(4)
An arrangement under subsection (3) shall provide for—
(a)
any power or function delegated to the self-regulatory organization by the Authority under subsection (3);
(b)
the terms and conditions upon which the power or function has been delegated and may be exercised by the self-regulatory organization;
(c)
the persons authorized to exercise the power or function delegated on behalf of the self-regulatory organization;
and
(d)
the submission to the Authority of periodical reports in respect of the exercise of a delegated power or function by the self-regulatory organization.