SC to review structure, guidelines for property crowdfunding framework

KUALA LUMPUR: The Securities Commission Malaysia (SC) 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.
"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," SC said in a statement.
To ensure proper governance of this alternative home ownership financing scheme, platform operators are required to register with the SC and fulfill 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."