ii. issues interests in a mutual fund which entitles the holder to redeem his investments that is agreed upon by the parties and received 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 subfunds and whose participants are entitled to exchange rights in one part for rights in another.
Two types of funds are prescribed under the Labuan Financial and Services and Securities Act 2010, namely the private funds and public funds.
Private fund means a mutual fund:-
a. whose securities are owned or held by:
b. which is designated as a private fund under regulations made under the Labuan Financial Services and Securities Act 2010.
Islamic private funds are private funds with similar definition of the above and are in compliance with Shariah principles.
A private fund can carry on its affairs by giving notice in writing of its scope and nature of business to Labuan FSA. The notification shall be accompanied with an information memorandum or such other offering document and should be lodged through a Labuan licensed entity.
Public funds are mutual funds other than private funds and Islamic public funds are public funds that are in compliance with Shariah principles.
Fund Management Companies
A fund management company or fund manager is 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 Labuan FSA.
Offer of Securities/Sukuk
"Securities" means any investments commonly known or capable of being described as securities as defined under Labuan Financial Services and Securities Act 2010 (LFSSA) and Labuan Islamic Financial Services and Securities Act 2010 (LIFSSA) which includes-
a. Shares, debentures, funds, units, interest 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;
c. Certificates of interest or participation in, temporary or interim certificates for, receipts for or warrants to subscribe to or purchase any of the investments described under (a) and (b) above; and
d. Securities as defined under the LFSSA.
For Islamic securities, in addition to a, b and c, those which are issued expressly to be in compliance with Shariah principles including Sukuk.
Debenture includes debenture stocks, bonds, notes and any other evidence of indebtedness of a corporation for borrowed monies, whether or not constituting a charge on the assets of the corporation as defined under section 2 of LFSSA.
Sukuk includes any certificates, instruments, notes and any other evidence of payment obligations of a corporation, body (incorporated or unincorporated), government, local government or public authority pursuant to any form of financing in accordance with Shariah principles whether or not constituting a charge on the assets of the corporation, body (incorporated or unincorporated), government, local government or public authority as defined under section 2 of LIFSSA.