Labuan Financial Services and Securities Act 2010 s 49
s 49 Specific duties of fund managers of public funds
(1) The fund manager of a public fund shall—
(a) ensure that a written agreement is entered into with each client before transactions are carried out on behalf of a client;
(b) understand each client’s investment objectives, instructions, risk profile and investment restrictions, where applicable, which shall be reassessed and updated at least annually;
(c) exercise diligence and thoroughness in, and have reasonable and adequate basis for, preparing the investment policy or investment recommendation;
(d) obtain each client’s approval for the investment policy or investment recommendation prior to its implementation;
(e) provide each client with full and accurate information in order to make an informed investment decision when approving the investment policy or investment recommendation;
(f) avoid any misrepresentation in any investment policy or investment recommendation; and
(g) ensure that sufficient monies and properties are available in the client’s account to carry out transactions.
(2) A written agreement referred to in paragraph (1)(a) shall cover amongst others, the following areas:
(a) the client’s investment objectives, instructions, risk profile and investment restrictions;
(b) notification of any significant change to the investment policy or investment recommendation;
(c) mode and manner of reporting to client;
(d) clear authorisation of discretionary management;
(e) frequency of written report for the performance and review of the client’s monies or properties against an appropriate benchmark;
(f) amount of fees and charges to be paid by the client;
(g) the fund manager’s intention to receive, or practice of receiving, soft commission;
(h) details of the custodian arrangement; and
(i) such other matters as may be specified by the Authority from time to time.
(3) A fund manager who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.
Malay text (authoritative)
Kewajipan khusus pengurus dana bagi dana awam
(1) Pengurus dana suatu dana awam hendaklah—
(a) memastikan bahawa suatu perjanjian bertulis dibuat dengan setiap pelanggan sebelum transaksi dijalankan bagi pihak pelanggan;
(b) memahami objektif pelaburan, arahan, profil risiko dan sekatan pelaburan setiap pelanggan, jika berkenaan, yang hendaklah dinilai semula dan dikemaskinikan sekurangkurangnya setiap tahun;
(c) bersikap wajar dan teliti dalam, dan ada asas yang munasabah dan mencukupi bagi, menyediakan dasar pelaburan atau syor pelaburan;
(d) mendapatkan kelulusan setiap pelanggan mengenai dasar pelaburan atau syor pelaburan sebelum melaksanakannya;
(e) memberikan maklumat lengkap dan tepat kepada setiap pelanggan supaya dapat membuat keputusan pelaburan yang berdasarkan maklumat apabila meluluskan dasar pelaburan atau syor pelaburan itu;
(f) mengelakkan apa-apa salah nyataan dalam mana-mana dasar pelaburan atau syor pelaburan; dan
(g) memastikan bahawa terdapat wang dan harta yang cukup dalam akaun pelanggan untuk menjalankan transaksi.
(2) Sesuatu perjanjian bertulis yang disebut dalam perenggan (1)(a) hendaklah merangkumi antara lain, perkara yang berikut:
(a) objektif pelaburan, arahan, profil risiko dan sekatan pelaburan pelanggan;
(b) pemberitahuan mengenai apa-apa perubahan penting pada dasar pelaburan atau syor pelaburan;
(c) kaedah dan cara membuat laporan kepada pelanggan;
(d) pemberikuasaan jelas mengenai pengurusan menurut budi bicara;
(e) kekerapan laporan bertulis mengenai prestasi dan kajian semula wang atau harta pelanggan yang dibandingkan dengan penanda aras yang sesuai;
(f) amaun fi dan caj yang kena dibayar oleh pelanggan;
(g) niat pengurus dana untuk menerima, atau amalan penerimaan, komisen mudah;
(h) butir-butir mengenai pengaturan penjagaan; dan
(i) apa-apa perkara lain yang ditentukan oleh Lembaga dari semasa ke semasa.
(3) Seseorang pengurus dana yang melanggar subseksyen (1) melakukan suatu kesalahan dan boleh, apabila disabitkan, didenda tidak melebihi satu juta ringgit atau dipenjarakan selama tempoh tidak melebihi tiga tahun atau kedua-duanya
Read this section in the full act → · Open Division 4 →
Find Act 704 on lom.agc.gov.my ↗
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
