The Labuan Offshore Financial Services Authority (LOFSA), has outlined several changes to its legal framework to enable it to be more business oriented and flexible for investors.
A total of eight new frameworks are being proposed to the government and is expected to be tabled in parliament next March.
The new frameworks are the Labuan Companies Act 1990, Labuan Business Activity Tax Act 1990, Labuan Financial Services Authority Act 1996 (LOFSAA), Labuan Trust Act 1996 (LTA), Labuan Financial Services and Securities Act 2008, Labuan Partnership Act 2008, Labuan Foundation Act 1996 (LFA) and Labuan Islamic Financial Services and Securities Act 2008.
The frameworks will replace the existing Offshore Companies Act 1990 (OCA), Labuan Trust Companies Act 1990 (LTCA), Offshore Banking Act 1990 (OBA), Offshore Insurance Act 1990 (OIA), Labuan Offshore Financial Services Authority Act 1996 (LOFSAA), Labuan Offshore Trust Act 1996 (LOTA), Labuan Offshore Limited Partnership Act 1997 (LOLPA),Labuan Offshore Business Activity Tax Act 1990 (LOBATA) and Labuan Offshore Securities Act 1998 (LOSIA).
A key proposal is to broaden the scope of LOFSA’s statutory objectivities’ under the Labuan Offshore Financial Services Authority Act and to clarify the legal effect of the guidelines and directives that it issues.
The draft of the proposals was submitted to the Ministry of Finance recently for consideration and finalisation.
The legal department of LOFSA provided details of the proposals at a briefing for Datuk Haji Yusoff Haji Mahal, the Member of Parliament for Labuan today.