SC to issue regulations on property crowdfunding platforms

In a statement issued yesterday, the SC said the Cabinet Special Committee on Anti-Corruption (JKKMAR) had approved its recommendation to require listed companies to put in place anti-corruption measures and a framework to promote the effective discharge of directors

KUALA LUMPUR: The Securities Commission Malaysia will be reviewing the details of the proposed structure and its guidelines on recognised markets to facilitate property crowdfunding platforms as announced in Budget 2019.

In a statement, the regulator said it is supportive of innovative ideas that tap into technology to democratise investments and allow more financing options for Malaysians to buy their first homes and enhance their socio-economic well being.

"The framework will balance promoting innovation with ensuring proper safeguards to protect the integrity of the scheme and investors’ interest," it said.

It added that platform operators are required to register with the SC and fulfill eligibility, transparency and financial requirements.

The SC will be engaging with relevant stakeholders prior to issuing the regulations. 

The property crowdfunding framework is expected to come into effect in the first quarter of 2019.