Regulatory Alerts2025-01-06
Frequently-Asked Questions on Equity Crowdfunding Framework
The Securities Commission Malaysia regulates equity crowdfunding by registering operators as recognized market operators under the RMO Guidelines to ensure investor protection and market integrity. The framework establishes strict eligibility criteria for issuers, imposes lifetime fundraising caps of RM20 million, and enforces investment limits for retail and angel investors while allowing sophisticated investors unrestricted access. Key operational requirements include mandatory due diligence by operators, safeguarding of funds in trust accounts, a six-business-day cooling-off period for investors, and an 'all or nothing' funding model for campaigns.
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