Surrendered vs revoked: the difference
A Labuan financial business needs a licence from the Labuan Financial Services Authority (Labuan FSA) to operate.
A licence can end in two main ways. It is surrendered when the company itself chooses to give it up. It is revoked when Labuan FSA takes it away.
For the public, the result is the same: the company is no longer licensed by Labuan FSA for that business.
In one published notice, Labuan FSA said a money broker that had surrendered its licence was no longer a licensed money broker and was no longer allowed to carry out financial services activities under that licence.
What a company must do to surrender a licence
Labuan FSA's application form for surrendering a licence asks the company for a board resolution, its latest audited financial statements and its latest management accounts.
The company must also return its original licence certificate and give a letter of guarantee or undertaking from its shareholder or head office to take on all outstanding liabilities.
A statutory declaration confirms the information is true. The form notes that misrepresentation is an offence under the Labuan Financial Services and Securities Act 2010 (LFSSA).
What happens when Labuan FSA revokes a licence
Revocation is an action taken by the regulator. In a 2013 notice, Labuan FSA revoked a trust company licence under section 167 of the LFSSA.
In that case, Labuan FSA also appointed a person to take control of the company's affairs. It asked companies and owners under that trust company's management to contact the appointee immediately.
Labuan FSA publishes revocation and surrender notices under its investor alerts. Not every notice explains why a licence was revoked.
How to check a Labuan company's status
Labuan FSA publishes lists of surrendered and revoked entities by area of business on labuanfsa.gov.my. There are separate lists for banks and investment banks, insurance entities and capital market licensees. The capital market list also shows entities that were struck off or went into liquidation.
Each list shows the entity's name, its type of licence and the date the licence was surrendered or revoked.
Compare the exact company name and licence type with these lists and with Labuan FSA's lists of current licensed entities. A company whose licence was surrendered or revoked is not licensed for that business.
Labuan FSA also keeps a list of unregulated or unauthorised individuals, entities, websites and funds under its investor alerts.
If you have concerns about a Labuan entity, Labuan FSA advises the public to do its own checks, including checks with Labuan FSA. Its enquiry email is communication@labuanfsa.gov.my.
SmartChecker shows register records and reviews for the companies it lists, which can help you start your checks.
Common questions
Can a company with a surrendered licence still offer financial services? Not under that licence. Labuan FSA has said a company that surrendered its licence was no longer allowed to carry out financial services activities under it.
Does a surrendered licence always mean something went wrong? No. Surrender is the company's own choice. In the banking list, some surrenders are noted as linked to re-licensing or a change in licence type.
Where can I find the lists? On labuanfsa.gov.my, under each area of business such as banking, insurance and capital market, and in the investor alerts section.
What if I already deal with an affected company? Read any notice Labuan FSA has issued about that company and contact Labuan FSA for guidance.