Securities Commission Malaysia to review crowdfunding regulations

The Securities Commission Malaysia (SC) has announced it will review the property crowdfunding framework.

A review will be outlined in the 2019 budget, the SC states, and will be done to support home ownership measures.

The group shall review the proposed structure and its guidelines on recognised markets in order to facilitate the creation of property crowdfunding platforms.

To guarantee proper governance of alternative home ownership financing, any platform operator will be required to register with the commission and meet its various requirements.

As part of the implementation, the regulator will interact with relevant stakeholders via industry consultations in the lead up to the launch of regulations.

In a statement the SC said, “The Securities Commission Malaysia (SC) is supportive of innovative ideas that tap on the transformative power of technology to democratise investments, allowing 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.”

There has been a handful of regulators to take a closer look at the crowdfunding regulations this year.

The FCA announced earlier in the year that it was looking to implement tougher regulations for P2P lending platforms.

Its new rules include proposals to ensure investors receive ‘clear and accurate information’ about a potential investment and understand the risks involved, as well as proposals to extend existing marketing restrictions for investment-based crowdfunding platforms to loan-based platforms.

Also during the year, the European Commission revealed an action plan which will better harness opportunities presented by FinTech, which includes crowdfunding regulations. Its plan will see new rules put forward that will help crowdfunding platforms to grow across the EU’s single market and wants to make markets safer and easier to access.


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