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February 2024
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Malaysia regulator cuts time to market for intermediaries in crowdfunding, peer-to-peer lending

SC says the new approach could shorten the time to market for capital market intermediaries to three months, where previously it could take more than six months.
By Goh Thean Eu   
February 8, 2024

Malaysia’s securities regulator has introduced a new gatekeeping approach that seeks to slash in half the time to market for intermediaries and operators in equity and property crowdfunding, peer-to-peer financing and digital asset exchanges.

Officially called Focused Scope Assessment or FSA, it evaluates an applicant’s operational and regulatory readiness in a more targeted and efficient manner and is aimed at “advancing the capital market and complementing the growing landscape”, according to Securities Commission Malaysia (SC).

“The FSA aims to shorten the time to market for capital market intermediaries and recognised market operators to three months, where previously it could take more than six months,” the regulator says in a statement on February 6.

Applicants must have an independent party validating their business policies and procedure in their submissions to the regulator.

“This will give the applicant more control in ensuring efficiency and encouraging readiness to observe the requirements to undertake a regulated activity,” the SC says.

SC Chairman Awang Adek Hussin says equity crowdfunding and peer-to-peer platforms have raised around 5.9 billion ringgit (US$1.24 billion) in total since they were introduced in 2018.

“This commitment to develop a more progressive and robust regulatory framework reflects the SC’s recognition of the crucial role these businesses play in driving the nation’s growth and development,” he says in the statement.