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LAWS OF MALAYSIA
REPRINT
Act 579
PUBLISHED BY
THE COMMISSIONER OF LAW REVISION, MALAYSIA
UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968
IN COLLABORATION WITH
PERCETAKAN NASIONAL MALAYSIA BHD
2006
PREVIOUS REPRINT
Act 579
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
PART II
MUTUAL FUNDS
PART III
EXCHANGE
MISCELLANEOUS
Section
40. Indemnity
41. Conflict between laws
42. Power of exemption
43. General offence and penalty
44. Service of notices, documents, etc.
45. Fees
46. Misrepresentation
47. Compounding of offences
48. Prosecution
49. Fees and penalties
50. Regulations
51. Direction by Minister
52. Power of the Minister to make modifications
53. Procedure where none laid down
54. Disapplication of certain existing legislation
55. Transitional
56. Saving provision
Act 579
PART I
PRELIMINARY
(2) The Minister may appoint different dates for the coming
into force of different provisions of this Act.
Interpretation
“business day” means a day during any part of which the facilities
of the Exchange are available to its trading agents for trading
purposes or would have been available but for a suspension of
trading ordered by the Authority under section 38;
and includes an umbrella fund whose shares are split into a number
of different class funds or subfunds and participants in which are
entitled to exchange rights in one part for rights in another;
“secretary” means the secretary for the time being of the Exchange
and includes an acting or assistant secretary;
“unit trust” means any trust established under the laws of Malaysia
relating to Labuan or the laws of any recognized country or jurisdiction
for the purpose, or having the effect, of providing facilities for the
participation by persons as beneficiaries under the trust in any
profits or income arising from the acquisition, holding, management
or disposal of any property.
MUTUAL FUNDS
Registers
(4) The Authority may issue to any person, upon request by the
person, a certificate of compliance in such form, upon payment of
such fee, as may be prescribed.
Registration procedure
Private funds
Public funds
12A. Any person who has received written permission from the
Authority to carry on business as trustee, custodian, manager or
administrator shall be a fit and proper person and continue to be
a fit and proper person throughout the operation of the business.
Prospectus
(3) The Authority shall not accept for filing a copy of a prospectus
unless—
(a) it is accompanied by a certificate from an expert certifying
that it complies with the requirements of subsection 17(2);
and
(b) where all or any part of the prospectus is not in the
national language or English language, a translation into
the national language or English language of the prospectus
or that part of the prospectus, verified in a manner
satisfactory to the Authority, is filed with the prospectus.
Investors’ rights
Limitation
whichever is earlier.
Certificate of compliance
Revocation procedure
Appeals
(4) For the purposes of subsection 25(3), the appellant shall not
carry on any business or activity without the prior written consent
of the Authority.
Appeal procedure
Enforcement
27. (1) For the purpose of discharging the duties imposed upon
the Authority under this Act the Authority or any person authorized
by it may at all reasonable times in writing direct any person to
whom this Act applies to—
(a) furnish any information; or
(b) provide access to and copies of any records, books or
other documents, relating to the business of that person
being carried on under this Act which, in the opinion of
the Authority, are necessary to enable it to ascertain
compliance with the provisions of this Act.
(2) Where—
(a) a fund is insolvent or is likely to become unable to meet
all or any of its obligations or is about to suspend payment
to any extent; or Adam Haida & Co
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(b) any fund, manager, administrator, operator or promoter
is carrying on business in a manner the Authority reasonably
believes to be detrimental to the interest of the investors;
or
(c) any fund, manager, administrator, operator or promoter
has contravened any provision of this Act or any other
written law for the time being in force,
Confidentiality
(5) The provisions of the Trustee Act 1949 [Act 208] shall not
apply to a trustee of a mutual fund established or registered under
this Act.
EXCHANGE
31. The Authority may, with the approval of the Minister, prescribe
such by-laws as may be expedient or necessary for the purpose of
carrying out the provisions and matters connected with the Exchange.
32. The Exchange may, with the approval of the Authority, make
rules which provide for—
(a) the conditions and administration of licences issued by
the Exchange and for the regulation generally of the
conduct of trading agents and listing sponsors in connection
with the business of the Exchange;
(b) the financial, accounting, record-keeping, disclosure and
capital adequacy requirements applicable to trading agents
and listing sponsors;
(c) the conditions under which securities may be listed for
trading in the securities market proposed to be operated
by the Exchange;
(d) the conditions governing dealings in securities by trading
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agents and listing sponsors;
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32 Laws of Malaysia ACT 579
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(e) the class or classes of securities that may be dealt in by
trading agents and listing sponsors or listed in the Exchange;
(f) confidentiality with respect to information relating to the
affairs of the Exchange and of any trading agent or listing
sponsor in connection with the business of the Exchange;
(g) the arbitration of disputes arising out of or in connection
with any securities market operated by the Exchange;
(h) the suspension of trading in and the delisting of any
security listed on the Exchange;
(i) (Deleted by Act A1191);
(j) the carrying on of the business of the Exchange with due
regard to the interests of the public;
(k) a fair and independent market for the listing and trading
of securities;
(l) such other matters as the Exchange deems necessary or
desirable for the proper and efficient regulation,
management and control of the Exchange and the securities
market operated by it.
(2) Subject to Part III, the committee shall have full power in
all matters relating to listing, licensing, securities or dealings on
the Exchange and other matters related thereto.
Dealing in securities
34. (1) No person other than a trading agent shall engage in or
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hold himself out as engaging in the business Haida & Co
dealing in securities
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Labuan Offshore Securities Industry 33
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(2) Any person who contravenes subsection 34(1) commits an
offence and shall be liable on conviction to a fine not exceeding
two hundred thousand ringgit or to imprisonment for a period not
exceeding five years or to both.
35. (1) The Exchange shall keep a register of the trading agents
and listing sponsors and shall enter therein the names and addresses
of the trading agents and listing sponsors and the date upon which
each was admitted and ceased to be a trading agent or listing
sponsor.
(3) Any person may require, and if required the Exchange shall
forthwith provide, a copy of the register or any part thereof on
payment of such fee as may be prescribed in writing by the Exchange.
36. Within six months of the end of each financial year the
Exchange shall file with the Authority a copy, certified by the
secretary as a true copy, of the financial statements of the Exchange
for that year prepared and audited in accordance with the provisions
of Part VI of the Offshore Companies Act 1990.
38. (1) The Authority may direct the Exchange by written notice
to suspend trading, or the committee may, after notifying the
Authority, suspend trading, on the Exchange either wholly for a
period not exceeding five consecutive business days or in respect
of specified securities for such period as the Authority deems fit
if the Authority after consultation with the committee determines
that the orderly conduct of such trading is being or is likely to be
prevented by reason of force majeure, natural disaster, strike or
lockout, revolution or other political upheaval or economic or
financial crisis, wherever occurring.
(4) The Authority shall within two clear business days give a
written notice of such extension to the Exchange indicating therein
the reason therefor and duration thereof and such notices shall take
effect upon its delivery to the Exchange.
(3) The powers conferred under this section are, in addition to,
and not in derogation of, any other powers conferred by law.
PART IV
MISCELLANEOUS
Indemnity
40. No person shall be liable to be sued in any court for any act
or matter done or ordered to be done or omitted to be done by him
in good faith and in the intended exercise of any power or discharge
of any duty conferred or imposed on him under this Act.
Power of exemption
(2) A person who commits an offence against this Act for which
no penalty is expressly provided is liable—
(a) in the case of a body, incorporated or unincorporated, to
Adam ringgit;
a fine not exceeding five million Haida &or
Co
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Labuan Offshore Securities Industry 39
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(b) in the case of an individual, to a fine not exceeding two
and a half million ringgit or to imprisonment for a period
not exceeding three months or to both.
44. (1) Subject to any express provision of this Act, a notice may
be served personally or by registered post.
the notice shall be deemed to have been served upon him on the
date on which he was informed that the letter was awaiting him
or on which the letter was tendered to him, as the case may be.
there shall be payable for the year such fee as may be prescribed
by regulations.
Misrepresentation
47. (1) The Authority may, with the consent of the Public Prosecutor,
compound any offence committed by any person under this Act,
by making a written offer to such person to compound the offence
by paying to the Authority within such time as may be specified
in the offer such sum of money as may be specified in the offer,
which shall not exceed fifty per centum of the amount of the
maximum fine to which that person would have been liable if he
had been convicted of the offence.
Prosecution
49. (1) All fees and penalties paid to the Authority under this Act
and all sums of money paid under section 47 shall be paid into
and form part of the Fund established under section 29 of the
Labuan Offshore Financial Services Authority Act 1996.
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(2) Notwithstanding subsection 49(1), all fees paid under
subsection 35(4) shall be paid into the fund of the Exchange and
may be used in accordance with the provisions of the by-laws.
Regulations
(2) The Minister shall not exercise the power conferred under
subsection 52(1) after the expiration of two years from the
commencement of this Act.
(3) The provisions of the Holidays Act 1951 [Act 369] shall not
apply to the Exchange and the Exchange may carry on its business
for twenty-four hours in each day on any and all days of each week
subject to any limitation or restriction imposed by or pursuant to
the by-laws or the rules, as the case may be.
Transitional
55. Any person who, on the date of the coming into force of this
Act, is carrying on any business or engaged in any activity relating
to mutual funds in or from within Labuan shall within six months,
or such longer period as the Authority may prescribe in writing,
from such date comply with this Act.
Saving provision
Act 579
LIST OF AMENDMENTS
Act 579
DICETAK OLEH
PERCETAKAN NASIONAL MALAYSIA BERHAD,
KUALA LUMPUR
Adam Haida & Co
BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA
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