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 V · Labuan Trust Companies

61. Licensing of trust companies

(1)

Subject to section 60, a person incorporated or registered under the Labuan Companies Act 1990 may apply to the Authority, in the specified form, for a licence to carry on trust company business in Labuan.

(2)

An applicant may apply to the Authority for a licence under subsection (1) by meeting the following criteria:

(a)

the applicant has contributed at least the equivalent in any foreign currency of one hundred and fifty thousand ringgit to the capital or working funds of the Labuan company or foreign Labuan company;

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(b)

the applicant either—

(i)

has obtained, or will obtain a professional indemnity insurance policy with a coverage of not less than one million ringgit or its equivalent in any foreign currency or such other amount or denomination as may be determined by the

Authority; or

(ii)

has deposited with the Authority security to the value of one hundred thousand ringgit or its equivalent in any foreign currency or such other amount or denomination as may be determined by the Authority;

(c)

the applicant is able to meet its obligations, including its liabilities to its shareholders; and

(d)

the directors and officers of the applicant who are responsible for the management of the Labuan trust company in Labuan, are fit and proper persons.

(3)

A Labuan trust company shall have—

(a)

at least two trust officers, one of whom shall be based in Labuan; and

(b)

a place of business in Labuan.

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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foreign currency
Defined · s 2
“foreign currency” means any currency other than ringgit;
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foreign Labuan company
Defined · s 2
“foreign Labuan company” means a foreign company registered under Part VIII of the Labuan Companies Act 1990;
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Labuan
Defined · s 2
“Labuan” means the Federal Territory of Labuan;
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Labuan company
Defined · s 2
“Labuan company” has the meaning assigned to it in the Labuan Companies Act 1990;
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Labuan trust company
Defined · s 2
“Labuan trust company” means a person licensed to carry on trust company business under sections 61 and 71;
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liabilities
Defined · s 2
“liabilities” includes debts, duties and obligations of every kind, whether present or future, or whether vested or contingent;
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licence
Defined · s 2
“licence” means a licence granted or renewed under this Act;
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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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policy
Defined · s 101
“policy” means an insurance policy and includes a cover note or any written contract of insurance whether or not embodied in or evidenced by an instrument in the form of an insurance policy; and any reference to a policy of an insurer includes a reference to any policy in respect of which the insurer is under any liability, whether the policy was issued by the insurer or the liability was transferred to the insurer from another insurer;
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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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trust company business
Defined · s 59
“trust company business” means— (a) establishing or using a share transfer office or share registration office; (b) administering, managing or otherwise dealing with property as an agent, legal personal representative or trustee, whether by servant or agent or otherwise; (c) maintaining an agent for the purpose of soliciting or procuring business, whether or not the agent is continuously resident in Labuan; (d) maintaining an office, agency or branch, whether or not that office, agency or branch is also used for any purpose by another entity; (e) the provision of— (i) management and accounting services to; or (ii) directors, secretaries and registered offices for, Labuan companies incorporated or registered under the Labuan Companies Act 1990 and foreign Labuan companies registered under that Act; (f) incorporating or registering companies under the Labuan Companies Act 1990 and generally acting as a lodging agent for any document required to be lodged by a company or person under that Act; and (g) providing such other services as may be approved by the Authority from time to time, to or on behalf or any person;
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working funds
Defined · s 101
“working funds” means— (a) in relation to a Labuan company, the paid-up capital unimpaired by losses; and (b) in relation to a foreign Labuan company or a branch of a Malaysian insurer, the surplus of assets over liabilities to be maintained in the books of its office in Labuan.
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Report

Read on from s 62

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