KUALA LUMPUR (Nov 5): The Securities Commission Malaysia (SC) (pictured) said today it is supportive of innovative ideas that tap into 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.
In a statement today, the regulator said it will be reviewing the details of the proposed structure and its Guidelines on Recognised Markets (RMO Guidelines) to facilitate the establishment of property crowdfunding platforms as announced in Budget 2019.
"The framework will balance promoting innovation with ensuring proper safeguards to protect the integrity of the scheme and investors' interest," it added.
To ensure proper governance of this alternative home ownership financing scheme, the SC said platform operators are required to register with it and fulfil eligibility, transparency and financial requirements.
"The property crowdfunding framework is expected to come into effect in the first quarter of 2019. As part of our process, the SC will engage the relevant stakeholders through industry consultations prior to issuing the regulations," it added.
Yesterday, Finance Minister Lim Guan Eng said the government will engage with stakeholders like the National House Buyers Association before implementing the peer-to-peer (P2P) home financing exchange platforms.
When tabling the Budget 2019 on Friday, Lim had said the government will be approving private sector-driven property crowdfunding platforms which will serve as an alternative source of financing for first-time home buyers.
Lim had said these exchange platforms will be regulated by the SC under the P2P financing framework. — theedgemarkets.com