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 ANSWERS

  1. 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.


  1. 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.


  1. 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.


  1. Are there any restrictions on foreign participation on LFX?

    There is no restriction on foreign participation on LFX.


  1. Can the funds be used anywhere offshore without restrictions?

    Yes.




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