SC registers first property crowdfunding operator
By Digital News Asia September 27, 2019
- EdgeProp was granted an approval in principle in September 2019
- Property crowdfunding provides alternative financing for first-time homebuyers
THE Securities Commission Malaysia (SC) announced that it has registered EdgeProp Sdn Bhd (EdgeProp) as the first Recognised Market Operator to establish and operate a property crowdfunding (PCF) platform in Malaysia, following the revision of the SC’s Guidelines on Recognised Markets in May 2019.
EdgeProp was granted an approval in principle in September 2019.
PCF is an initiative announced in Budget 2019 to provide an alternative financing avenue for first-time homebuyers through a property crowdfunding scheme.
Property crowdfunding offers the same potential as that of ECF and P2P financing platforms in providing an alternative source of financing but is specifically tailored for first-time homebuyers. At the same time, it will provide investors access to a new investment option.
The SC would like to caution that it is an offence under the securities laws to operate a PCF platform without authorisation from the SC. Any persons found to be in breach may be liable to a fine not exceeding RM10 million or imprisonment term not exceeding ten years or both.
The public may visit www.sc.com.my for the latest list of Recognised Market Operators.