Labuan Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part X · Self-Regulatory Organizations
156. Declaration or recognition of a self-regulatory organization
Feedback & support“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.
securities
“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unincorporated), government, local government or public authority; *NOTE—The Exchange Control Act 1953 has since been repealed by the Financial Services Act 2013 which comes into operation on 30 June 2013—see sections 271 and 272…
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—
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;
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;
shall not discriminate unreasonably against a person in offering access to its services or in carrying out its functions as a self-regulatory organization;
is managed or controlled by officers or persons in control who are fit and proper persons under this Act; and
satisfies such criteria as may be specified in the rules stipulated by the Authority.
The Authority may, by written arrangement, delegate a power or function of the Authority to a self-regulatory organization.
An arrangement under subsection (3) shall provide for—
any power or function delegated to the self-regulatory organization by the Authority under subsection (3);
the terms and conditions upon which the power or function has been delegated and may be exercised by the self-regulatory organization;
the persons authorized to exercise the power or function delegated on behalf of the self-regulatory organization;
and
the submission to the Authority of periodical reports in respect of the exercise of a delegated power or function by the self-regulatory organization.