Labuan Islamic Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part XI · Islamic Self-Regulatory Organizations
113. Declaration or recognition of an Islamic self-regulatory organization
Feedback & supportThe 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 an Islamic 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 enactment 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 an Islamic 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 an Islamic self-regulatory organization;
is managed or controlled by officers or persons in control who are fit and proper persons under this
Act; and
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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 an Islamic self-regulatory organization.
Islamic self-regulatory organization
“Islamic self-regulatory organization” means a self-regulatory organization established under Part XI expressly with a view that the aims and operations of such self-regulatory organization are in compliance with Syariah principles, whose object is to regulate the operations of its members or of the users of its services, their standards or practice and business conduct in order to better protect investors and consumer of securities or related services and includes such other organizations as may be declared or recognized as such by the Authority;
The arrangement referred to in subsection (2), shall provide for—
any power or function delegated to the Islamic self-regulatory organization by the Authority under subsection (2);
the terms and conditions upon which the power or function has been delegated and may be exercised by the Islamic self-regulatory organization;
the persons authorized to exercise the delegation on behalf of the Islamic 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 Islamic self-regulatory organization.