The Labuan Financial Services and Securities Act 2010 (LFSSA, Act 704) was enacted and came into force in 2010. It is administered by the Labuan Financial Services Authority (Labuan FSA) and is the principal legislation governing the financial industry of the Labuan International Business and Financial Centre (Labuan IBFC).

Core provisions relating to captive insurers:

1. Part VII establishes the regulatory framework for insurance business. Section 101 defines Labuan captive insurance business: the risks underwritten are limited to those of related companies, associated companies or other entities approved by Labuan FSA.

2. Section 102(1) provides that a captive insurer must obtain a licence issued by Labuan FSA in order to carry on captive insurance business in Labuan.

3. Islamic captive (takaful) business is correspondingly governed by section 77(1) of the Labuan Islamic Financial Services and Securities Act 2010 (LIFSSA 2010).

Legislation:Principal Legislation - Act 704 on the Labuan FSA website