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Frequently
Asked Questions
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Can Malaysians participate in LFX?
Currently,
the Labuan Offshore Securities Industries Act
(LOSIA) 1998 allows only exempt purchasers who
are high net worth individuals with net assets
of RM10 million. However, LFX is currently discussing
with the authorities for a more relaxed requirement.
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How are investors protected?
All
Trading Agents will be required to obtain professional
trade indemnity insurance as a protective measure
against any losses due to insolvency of a licensee
of the market/exchange. Potential investors will
need to find out the extent of the insurance coverage
of the Trading Agents concerned before using them
as facilitators. Furthermore, Trading Agents would
be pre-qualified by the payment bank to ensure
that they are credible and creditworthy to undertake
trading on LFX.
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Will LFX provide a potential for leakage of funds?
No.
In fact, it is expected that foreign capital inflows
will occur to provide capital for Malaysian companies.
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Are there any restrictions on foreign participation
on LFX?
There
is no restriction on foreign participation on
LFX.
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Can the funds be used anywhere offshore without
restrictions?
Yes.
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