Labuan Islamic Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Chapter 4
46. Duties of a fund manager and fund administrator of an Islamic public fund
Feedback & supportA fund manager or fund administrator of an Islamic public fund and its officers shall, in exercising their powers and duties—
fund manager
“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;
act honestly;
exercise the degree of care and diligence that would be reasonably expected of a person in that position;
act in the best interests of the investors in the Islamic public fund and, where there is a conflict between the interest of the investors and their own interests, give priority to the investors’ interests;
Islamic public fund
“Islamic public fund” means an Islamic mutual fund other than an Islamic private fund;
treat the investors who hold interests of the same class equally and participants who hold interests of different classes fairly;
not make use of information acquired through being a fund manager, fund administrator or its officers to—
fund administrator
“fund administrator” means a person who, for valuable consideration, provides an Islamic mutual fund with administrative services or facilities alone or with accounting services;
gain an improper advantage for themselves or another person; or
cause detriment to the investors in the Islamic public fund;
ensure that all payments out of the property of the Islamic public fund are made in accordance with the constituent documents of the Islamic public fund, this Act and any regulations;
property
“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;
report to the Authority, as soon as practicable after it becomes aware of any breach of—
this Act and any regulations; or
the Islamic public fund’s constituent documents that has had, or is likely to have, a materially adverse effect on the interests of the investors;
and
take reasonable care to make and retain adequate records of all matters, transactions and dealings, including accounting records.