Malaysia Co-Investment Fund (MyCIF)
TERMS & CONDITIONS RELATING TO MALAYSIA CO-INVESTMENT FUND SCHEME
Effective on 27 September 2019
  • General Provisions
    1. All participants to the Malaysia Co-Investment Fund scheme (”MyCIF”) administered by the Securities Commission Malaysia (“SC”) shall be subject to the terms and conditions hereinafter set out.
    2.

    The terms and conditions herein shall apply to and be read together with other provisions as set out by the SC in relation to the participation of MyCIF by other means including but not limited to electronic mail. In the event of any discrepancy or inconsistency between the terms and conditions herein and those other provisions as set out by the SC, the specific provisions applicable to each MyCIF participant shall prevail.

    3. The SC reserves the right to vary (by adding, deleting, or modifying in any way)(hereinafter called the “Amendment”) any of these terms and conditions at any time and from time to time, upon giving notice to the MyCIF participants.
    4.

    Any Amendment to the terms and conditions shall be deemed to have been notified to MyCIF participants of the Amendment:

    • by its display at the SC’s website; or
    • via electronic mail; or
    • by any other means of notification which the SC may select,

    and the Amendment shall be deemed effective and binding on the MyCIF participants as from the date of notification of the Amendment or from such other date as may be specified by the SC in the notification.

    5.

    The MyCIF participants shall refer to the SC’s website www.sc.com.my for the latest terms and conditions.

    6.

    The MyCIF participants’ continued participation in the MyCIF is subject to the SC’s ongoing review and monitoring, and the SC may suspend and/or terminate any MyCIF participant’s right to receive/apply for further MyCIF investment at any time upon giving seven (7) calendar days’ prior notice.

    7.

    The SC reserves the right and discretion at any time to withdraw the investment funds allocated to MyCIF participants in the event of non-compliance with any of the terms and conditions, or any other provisions as set out by the SC in relation to the participation of MyCIF.

    8.

    For avoidance of doubt, the SC may at any time without having to assign any reason to the MyCIF participants to suspend, cancel and/or terminate the MyCIF upon giving thirty (30) calendar days’ prior notice.   

    9. All communications in writing including any report by the MyCIF participants to the SC’s MyCIF secretariat must be made via electronic mail at [email protected].
  • Co-Investment in Equity Crowdfunding ("ECF")
    The additional terms and conditions applicable to MyCIF participants who operate ECF platforms are set out as follows:
    10.

    Subject to these terms and conditions, MyCIF will invest in ECF campaigns that are hosted on the MyCIF participants' platforms in accordance with the following co-investment criteria:

    • MyCIF will invest in ECF campaigns based on a 1:4 ratio, in which MyCIF will invest RM1 for every RM4 successfully raised from private investors on the MyCIF participants' platforms;
    • MyCIF co-investment is open to all Micro, Small and Medium Enterprises who meet the listing requirements set forth by respective MyCIF participant's platform ("ECF Issuer");
    • MyCIF's maximum investment in each ECF campaign is limited to RM500,000;
    • In the event where ECF campaign exceeds 50% of its initial investment target, MyCIF may consider reducing the co-investment percentage.
    11.

    In relation to ECF campaigns, the MyCIF participants must submit the proposed co-investment allocation for the next calendar quarter to the MyCIF secretariat in writing, five (5) business days before the end of the calendar quarter. The MyCIF participants must provide the following information in the proposal:

    • estimated number of ECF campaign for the calendar quarter;
    • estimated amount of total fundraising for the calendar quarter; and
    • the amount of co-investment sought from MyCIF.
    12.

    As and when an ECF campaign fulfills the co-investment criteria in accordance with paragraph 10, the MyCIF participants shall submit an application to the MyCIF secretariat in writing for the disbursement of MyCIF co-investment fund into the ECF campaign. The MyCIF participants must provide the following information in the application:

    • name of ECF Issuers;
    • the amount of co-investment sought from MyCIF;
    • the total amount raised by the ECF Issuer from private investors on the MyCIF participants' platforms;
    • the number of private investors who invested into the ECF campaign;
    • current revenue base of the ECF Issuer;
    • current customer base of the ECF Issuer; and
    • current number of employees of the ECF Issuer.
    13. MyCIF co-investment fund is disbursed on a first-come, first-served basis. Once the maximum amount to be invested is reached, MyCIF reserves the right to halt any further investment.
    14.

    The MyCIF participants must also submit a post-MyCIF investment report to the MyCIF secretariat based on the following milestones:

    • 1 year post-investment;
    • 3 years post-investment; and
    • at the point of MyCIF's exit from the ECF Issuer.
    15.

    The post-MyCIF investment report in paragraph 14 must contain the following information:

    • Progress of business/growth of ECF Issuer since MyCIF investment;
      • Revenue growth;
      • Customer acquisition;
      • Regional expansion;
      • No. of employees; and
      • Other information as may be determined by the SC;
    • Utilization of investment fund;
    • Estimated valuation of ECF Issuer; and
    • Proposed exit plan for ECF investors (if any).
  • Co-Investment in Peer-to-Peer Financing ("P2P")
    The additional terms and conditions applicable to MyCIF participants who operate P2P platforms are set out as follows:
    16.

    16. Subject to these terms and conditions, MyCIF will invest in P2P campaigns that are hosted on the MyCIF participants' platforms in accordance with the following co-investment criteria:

    • MyCIF will invest in P2P campaigns based on a 1:4 ratio, in which MyCIF will invest RM1 for every RM4 successfully raised from private investors on the MyCIF participants' platforms;
    • MyCIF co-investment is open to all Micro, Small and Medium Enterprises who meet the listing requirements set forth by respective MyCIF participant's platform ("P2P Issuer");
    • MyCIF's maximum investment in each P2P campaign is limited to RM500,000;
    • For P2P campaigns, MyCIF will maintain the overall investment value in the following ratio:
      • 20% in investment note or Islamic investment note with tenor of 12 months and below;
      • 40% in investment note or Islamic investment note with tenor of 13 to 24 months; or
      • 40% in investment note or Islamic investment note with tenor of 25 to 36 months.
    17.

    In relation to P2P campaigns, the MyCIF participants must submit the proposed co-investment allocation for the next calendar quarter to the MyCIF secretariat in writing, five (5) business days before the end of the calendar quarter. The MyCIF participants must provide the following information in the proposal:

    • estimated number of P2P campaigns for the calendar quarter;
    • estimated amount of total fundraising for the calendar quarter; and
    • the amount of co-investment sought from MyCIF.
    18. MyCIF co-investment fund is disbursed on a first-come, first-served basis. Once the maximum amount to be invested is reached, MyCIF reserves the right to halt any further investment.
    19.

    The MyCIF participants must, within five (5) business days after the end of the calendar quarter, provide to MyCIF's appointed trustee the following information for every MyCIF investment made during the calendar quarter:

    • the total amount raised by the P2P Issuer from private investors on the MyCIF participants' platforms;
    • the number of private investors who invested into the P2P campaign;
    • current revenue base of the P2P Issuer, in the case of investment note or Islamic investment note with tenor of six (6) months and above;
    • current customer base of the P2P Issuer, in the case of investment note or Islamic investment note with tenor of six (6) months and above; and
    • current number of employees of the P2P Issuer, in the case of investment note or Islamic investment note with tenor of six (6) months and above.
    20. The MyCIF participants must also submit a post-MyCIF investment report to the MyCIF secretariat every 6 months of the calendar year, until the maturity of the investment note or Islamic investment note.
    21.

    The post-MyCIF investment report in paragraph 20 must contain the following information:

    • Progress of business/growth of P2P Issuer since MyCIF investment;
      • Revenue growth;
      • Customer acquisition;
      • Regional expansion;
      • No. of employees; and
      • Other information as may be determined by the SC; and
    • Utilization of investment fund.
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