EdgeProp First Property Crowdfunding to Receive Approval in Principle from SCby Vincent Fong September 25, 2019
The Securities Commission Malaysia (SC) today announced that it has registered EdgeProp Sdn Bhd (EdgeProp) as the first Recognised Market Operator to establish and operate a property crowdfunding platform in Malaysia, following the revision of the SC’s Guidelines on Recognised Markets in May 2019.
This news follows EdgeProp’s earlier launch of the controversial P2P property crowdfunding platform, FundMyHome.
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.
In a media statement, Securities Commission Malaysia pointed out that 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, they added in the statement.
However, some quarters within the industry have doubts about the efficacy of the platform both as a enabler first-time home buyer and as an investment.
Securities Commission Malaysia reiterated that it is an offence under the securities laws to operate a property crowdfunding platform without authorisation from the regulator. 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.