Applications open for prospective equity crowdfunding platform operators

• Based on guidelines released Feb 10, applications close May 11
• Singapore launching similar move, private platform announced in March

THE Securities Commission Malaysia (SC) said that operators interested in establishing and operating an equity crowdfunding (ECF) or Shariah-compliant ECF platform can now submit their application.
 
On Feb 10, the SC released the revised Guidelines on Regulation of Markets under Section 34 of the Capital Markets and Services Act 2007 (Guidelines), which introduced requirements for the registration of ECF platforms.
 
These platforms will enable startups and small and medium enterprises (SMEs) to obtain capital through small equity investments from relatively large numbers of investors, using online platforms.
 
The SC first announced its intentions to allow equity crowdfunding in August 2014, saying it considers alternative funding channels such as ECF a crucial and innovative market-based structure to facilitate growth of new small-scale enterprises, which contribute significantly to the national economy.
 
Singapore is also launching a similar move. In February as well, the Monetary Authority of Singapore released a consultation paper setting out proposals for equity crowdfunding, which it called ‘securities-based crowdfunding.’
 
In March, Singaporean entrepreneur Andy Lim announced FundedHere, a private venture to facilitate equity-based funding and venture debt for startups in the region. It is currently awaiting regulatory approval.
 
Meanwhile, the SC’s Guidelines provide a framework for the regulation of registered ECF Platform, duties and responsibilities of an ECF operator, and the type of issuers and investors who can participate in ECF. The Guidelines and the application form are available here at the SC website.
 
For more information contact Puan Azrina Azmel at [email protected]. Applications must be submitted to the address below by May 11 2015:
 
Executive Director 
Markets and Corporate Supervision
Securities Commission Malaysia
No 3 Persiaran Bukit Kiara
50490 Kuala Lumpur
 
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SC releases new guidelines for equity crowdfunding
 
Equity crowdfunding goes private with FundedHere in Singapore
 
Crowdfunding the beginning of a long-term relationship
 
Equity crowdfunding: The good, and not so good
 
 
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