Regulatory Alerts2024-02-05
Frequently-Asked Questions on Peer-to-Peer Financing Framework
The Securities Commission of Malaysia regulates peer-to-peer financing by registering operators as recognized market operators under the RMO Guidelines, which impose strict obligations on risk scoring, disclosure, and business continuity. The framework defines eligibility for issuers and investors, categorizing investors into retail, angel, and sophisticated tiers with specific investment limits and criteria. Key operational rules include mandatory credit assessments by operators, a minimum 80% funding threshold for issuers to retain capital, and the allowance for secondary market trading subject to regulatory approval.
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