SC un­veils six P2P fi­nanc­ing plat­form oper­a­tors

The Sun (Malaysia) - - SPEAK UP -

KUALA LUMPUR: Se­cu­ri­ties Com­mis­sion Malaysia (SC) yes­ter­day in­tro­duced six reg­is­tered peer-to-peer (P2P) fi­nanc­ing plat­form oper­a­tors in Malaysia to widen fund­ing av­enues for small and medium en­ter­prises (SMEs).

The six reg­is­tered oper­a­tors are B2B FinPAL, Ethis Kap­i­tal, Fund­edByMe Malaysia, Man­agePay Ser­vices, Mo­dalku Ven­tures and Peo­plen­der. They are ex­pected to be fully op­er­a­tional in 2017.

This makes Malaysia the first coun­try in the Asean re­gion to reg­u­late P2P fi­nanc­ing. SC was also the first to put in place a reg­u­lated frame­work for eq­uity crowd­fund­ing (ECF) in 2015. As of Oc­to­ber 2016, 11 Malaysian SMEs have raised a to­tal of RM8 mil­lion via the six ECF plat­forms.

The SC in­tro­duced ECF in 2015 to pro­vide early-stage fi­nanc­ing for start-up en­trepreneurs while the P2P fi­nanc­ing frame­work, in­tro­duced in April this year, aims to ad­dress fund­ing needs of SMEs to raise work­ing cap­i­tal or cap­i­tal for growth.

SC chair­man Tan Sri Ran­jit Ajit Singh said the SC’s dig­i­tal agenda aims to achieve four key ob­jec­tives – to en­hance ac­cess to fi­nanc­ing, in­crease in­vestor par­tic­i­pa­tion, aug­ment the in­sti­tu­tional mar­ket and de­velop a syn­er­gis­tic ecosys­tem.

“Mar­ket-based fi­nanc­ing in­clud­ing P2P and ECF will help en­hance ac­cess to fi­nanc­ing for en­trepreneurs and SME busi­nesses in Malaysia,” said Ran­jit.

To meet the in­vest­ment needs of the emerg­ing dig­i­tal gen­er­a­tion and in­crease in­vestor par­tic­i­pa­tion, SC will also be in­tro­duc­ing its Dig­i­tal In­vest­ment Ser­vices frame­work in 2017. This will al­low ap­proved li­censees to of­fer au­to­mated dis­cre­tionary port­fo­lio man­age­ment which is a more cost­ef­fec­tive, ac­ces­si­ble and con­ve­nient chan­nel for in­vestors to man­age and grow their wealth.

While the SC is ad­vo­cat­ing the ben­e­fits of dig­i­tal fi­nance, the reg­u­la­tor is also mind­ful of the new forms of risks and chal­lenges posed by tech­nol­ogy. To ad­dress that, the SC has is­sued a cy­ber risk frame­work to raise wider aware­ness and put in place guide­lines to im­prove in­dus­try­wide re­silience.

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