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 III

47. Duties of fund managers and fund administrators of public funds

The fund manager or the fund administrator of a public fund and its officers shall, in exercising their powers and duties—

(a)

act honestly;

(b)

exercise the degree of care and diligence that would be reasonably expected of a person in that position;

(c)

act in the best interests of the investors in the public fund and, where there is a conflict between the interest of the investors and their own interests, give priority to the investors’ interests;

(d)

treat the investors who hold interests of the same class equally and participants who hold interests of different classes fairly;

(e)

not make use of information acquired through being a fund manager or fund administrator or its officer to—

(i)

gain an improper advantage for themselves or another person; or

(ii)

cause detriment to the investors in the public fund;

(f)

ensure that all payments out of the property of the public fund are made in accordance with the constituent documents of the public fund, this Act and any regulations;

Labuan Financial Services and Securities 65

(g)

report to the Authority, as soon as practicable after it becomes aware of any breach of—

(i)

this Act and any regulations; or

(ii)

the public fund’s constituent documents that has had, or is likely to have, a materially adverse effect on the interests of the investors; and

(h)

take reasonable care to make and retain adequate records of all matters, transactions and dealings, including accounting records.

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;
Open s 2
constituent documents
Defined · s 2
“constituent documents” means the statute, charter, memorandum of association and articles of association, rules, by-laws, partnership agreement, or other instrument, under or by which a person is established and the scope of that person’s functions, business, powers and duties are set out, whether contained in one or more documents;
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fund
Defined · s 2
“mutual fund” or “fund” means a Labuan company, a corporation incorporated under the laws of any recognized country or jurisdiction, a partnership, a protected cell company, a foundation, or a unit trust which— (a) collects and pools funds for the purpose of collective investment with the aim of spreading investment risk; and (b) issues interests in a mutual fund which entitles the holder to redeem his investments that is agreed upon by the parties and receive an amount computed by reference to the value of a proportionate interest in the whole or part of the net assets of the aforesaid types of entities, as the case may be, and includes an umbrella fund whose interests in a mutual fund or units are split into a number of different class funds or sub-funds and whose participants are entitled to exchange rights in one part for rights in another;
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fund administrator
Defined · s 2
“fund administrator” means a person who, for valuable consideration, provides a mutual fund with administrative services or facilities alone or with accounting services;
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fund manager
Defined · s 2
“fund manager” means a person who, for valuable consideration, provides management services alone or with investment advice or administrative services in respect of securities for the purposes of investment, including dealing in securities or such other activity as may be specified by the Authority;
Open s 2
Labuan
Defined · s 2
“Labuan” means the Federal Territory of Labuan;
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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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property
Defined · s 86
“property” includes any plant, machinery, equipment or other chattel attached or to be attached to the earth and “charters of ships” means bareboat charters only and does not include the transportation of passengers or cargo by sea or the charter of ships on a voyage or time charter;
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public fund
Defined · s 2
“public fund” means a mutual fund other than a private fund;
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regulations
Defined · s 2
“regulations” means regulations made under this Act;
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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 48

Part IV

Market Intermediaries

Read on from Part IV

Part V

Labuan Trust Companies

Read on from Part V

Part VI

Labuan Banking

Read on from Part VI

Part VII

Labuan Insurance

Part VIII

Company Management

Read on from Part VIII

Part IX

Read on from Part IX

Part X

Self-Regulatory Organizations

Read on from Part X

Part XI

Appeals

Read on from Part XI