What each regulator covers

Labuan FSA licenses and supervises financial businesses in the Labuan International Business and Financial Centre (Labuan IBFC), under Labuan laws including the Labuan Financial Services and Securities Act 2010. Its licences include Labuan banks, money brokers, fund managers and insurers.

The Securities Commission Malaysia (SC) was set up under the Securities Commission Act 1993 to regulate and develop Malaysia’s capital market. It licenses the firms and people who deal in securities and derivatives for the Malaysian investing public.

Labuan FSA’s money broking guidelines, dated 9 September 2024, say the money broking licence is intended for institutional investors and high-net-worth individuals, with retail clients making up less than half of a broker’s clients.

Labuan FSA: its lists of licensed entities by licence type, its business restriction notice and its investor alerts, at labuanfsa.gov.my.

SC: the Investment Checker and the Investor Alert List, at sc.com.my.

What this means for you

Check the right register for the right product. If a company offers you capital market products in Malaysia, the SC’s records are the ones that matter, even if it also holds a Labuan licence.

A company can appear in both. It may be on a Labuan FSA licensed list and also on the SC Investor Alert List, if the SC considers it to be carrying on capital market activities in Malaysia without SC authorisation.

Protections differ. The SC says that if you invest through an entity it has not authorised, you will not be protected under Malaysian securities laws.

Common questions

Is Labuan part of Malaysia’s regulatory system? Yes. Labuan FSA is a Malaysian statutory authority, but it regulates Labuan IBFC under its own set of laws, separate from the SC and Bank Negara Malaysia.

Can a Labuan-licensed broker offer services to Malaysians? Labuan FSA’s guidelines say the money broking licence is aimed at institutional and high-net-worth clients, and Ringgit business needs approval from domestic authorities. Check the SC Investment Checker as well.

Which one should I trust if they disagree? Read both records. A licence from one regulator does not cancel a warning from the other.