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Business Process

Labuan, Malaysia, was designated as an international financial centre in 1990. As part of its development, an international financial exchange, LFX, was launched on 23 November 2000.

Licensing Guidelines

Licensing

Licensing Guidelines

These guidelines are for potential Listing Sponsors applying for licenses for participation on LFX.

  1. Application for licenses to be initiated via the web (www.lfx.com.my).
    • Applicant is to access LFX's website, www.lfx.com.my.
    • Applicant download "Company" or "Individual" form under the License Application panel.
    • Applicant to complete the Application Form and submit it via email (email address is provided in form) to LFX.
    • Applicant to remit USD1,000.00 (non-refundable) application fee.
  2. Preparation for Submission of Licensing Application
    • Applicant is to prepare Licensing Documents in accordance with the LFX's Rules of the Exchange, which shall include the following details of the Applicant:
      • Copy of constitution (for corporations) / Copy of passport and curriculum vitae (for individuals)
      • Report detailing the background of applicant:
        • Individual / Company's profile
        • Individual / Business history
        • Individual / Company's principal business activities
        • Capital and shareholders' structure
        • Future plans of the individual / company
        • Company's strengths
    • Proof of applicant's experience and expertise in the business of investment
    • Audited financial statements including the auditor's report detailing applicant's net assets and pro-forma profitability Applicant's business plan and strategy as a Listing Sponsor / Trading Agent containing:
      • Budget proposed for applicant's business plan / planned projects
      • Target market and areas of expertise
      • Composition of the project team (and their qualification) with respect to the business plan
      • Proposed strategic alliances with external parties (if any)
      • Qualification of management personnel
    • Applicant's annual report (if available)
    • Relevant supporting documents as stated in LFX's Rules of the Exchange
  3. Upon Approval of license by LFX Licensing Committee
    • The applicant shall be notified of the Licensing Committee's decision through their 
      e-mail address.
    • Upon approval of the licensing application, the applicant is required to submit the following:
      • License undertaking to comply with all requirements and obligations set out in the terms of license and the LFX Rules;
      • Payment of initial fees (Remittance of Fees) of USD10,000.00; and
      • Proof of Professional Indemnity Insurance taken for the value of USD5,000,000. The Professional Indemnity Insurance shall be maintained throughout the validity period of the license.
  4. Issuance of license and User IDs
    • Upon complete submission of the required documents, LFX shall issue the full license to the approved Listing Sponsor.
    • The license is valid for a period of twelve (12) months from the date of the license and shall be renewed upon its expiry. License annual renewal fee is USD5,000.00.
  5. Rejected Applications
    • Upon rejection by the Licensing Committee, the applicant may submit an appeal together with other supporting documents as advised by LFX.
    • The applicant has within twenty-one (21) days from the date the application was rejected by the Licensing Committee to submit an appeal to LFX, whose decision shall be final.