5 Simple Requirements to set up your Labuan Private Fund
INFORMATION MEMORANDUM
Containing the following:
- Description of date of issuance, objective of the fund, legal form and structure, tenure, target fund size and geographical focus
- Names, address, profiles and relevant information of the governing Board of the private fund
- The profile of the promoter/custodian/trustee/fund manager/directors, whichever applicable
- The capital and income distribution policy of the fund
- A statement in the information memorandum as follows:
“Labuan FSA takes no responsibility for the contents of this information memorandum, makes no representations as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon any part of the contents of this information memorandum. An investor is advised to clearly understand the risk(s) of the investment, seek professional consultancy, if necessary and request for sufficient information to enable them to make a reasonable evaluation of the investment.”
INVESTMENT STRATEGY
Containing the following:
- Investment policies and objectives and type of securities in which the fund intends to invest
- Summary of the key features of the fund to facilitate an investor in considering and comparing any similar investments on offer which shall include at least the following information: Issue price of the shares, nature and significant expenses to be incurred by the fund and statement of the potential risks of investing the fund.
- The extent to which it intends to invest in derivatives and unlisted securities. If it is intended for the fund not to invest in any of such investments, the information memorandum must include an appropriate statement to that effect.
- The investment and borrowing limitations of the fund. Where applicable, this should include an analysis of the risks by its nature including the risks of the country and region where the fund intends to invest.
FINANCIAL FORECAST
Containing the following:
- The financial projections of the fund including projected cash flows and profits, given its nature, investment policies and objectives.
- Expenses expected to be borne by the fund including fund management fee, custodians fee, advisory fee, etc.
- The proposed minimum subscription proceeds net of costs (e.g. underwriting fees related to the offer).
- The fund’s policy on submission of financial reports including interim results and annual financial statements of the fund to its subscribers.
REDEMPTION POLICIES
Information on fund redemption policy, which include but are not limited to the procedure for redemption, timing, events where redemption right is suspended and pricing redemption or subscription of unit/shares of the fund.
MATERIAL CHANGES
If there is any change which materially affects any of the matters required to be disclosed in the Information Memorandum, or the matters disclosed in the Information Memorandum, the Board of Fund shall within 30 days incorporate such changes to the Information Memorandum and provide a copy of supplementary/amended Information Memorandum to each of investors and Labuan FSA.