Labuan International Financial Exchange

These guidelines are for potential Listing Sponsors/Trading Agents applying for Licences for participation on LFX.

1. Application for Licences to be initiated via the web (www.lfx.com.my).
   • Applicant is to access LFX's website, www.lfx.com.my.
   • Applicant is to click "Company" or "Individual" under APPLY LICENCE FOR box.
   • Applicant is to complete the Application Form and submit it electronically 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 (Listing Sponsor) / trading of financial instruments (Trading Agent)
     • Audited financial statements including the auditor's report detailing applicant's net assets and pro-forma profitabilityApplicant'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 Licence 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:
     • Licence Undertaking to comply with all requirements and obligations set out in the terms of Licence 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 licence.
4. Issuance of Licence and User IDs
   • Upon complete submission of the required documents, LFX shall issue the full licence to the approved Listing Sponsor/Trading Agent.
   • The Licence is valid for a period of twelve (12) months from the date of the licence and shall be renewed upon its expiry. Licence renewal fee is USD5,000.00.
   • The Exchange shall also issue the Listing Sponsors and Trading Agents with User IDs to be used to interact with the Exchange.
5. Rejected Applications
   • Upon rejection by the Licensing Committee, the applicant may submit an appeal to the Exchange Committee together with other supporting documents as informed 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 the Exchange Committee, whose decision shall be final.