Malaysia Co-Investment Fund (MyCIF)
List of MyCIF participants

Publication

Terms & Conditions Relating to Malaysia Co-Investment Fund Scheme
Amended on 22 November 2021
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 terms and conditions, instructions or communication issued by the SC through any communication channel including electronic mail. In the event of any discrepancy or inconsistency between the terms and conditions herein and the terms and conditions, instructions or communication issued by the SC, the latter 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, by 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:
    (a)

    once it is displayed on the SC’s website; or

    (b) sent to MyCIF participants via electronic mail; or
    (c) by any other means of notification which the SC determines fit,
    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.

    MyCIF participants are required to refer to the SC’s website www.sc.com.my for the latest terms and conditions applicable to them.

    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 sufficient notice or with immediate effect if the SC deems fit.

    7.

    For avoidance of doubt, the SC reserves the right and discretion at any time to refuse disbursement of funds into any campaign without having to assign any reason.

    8.

    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, instructions or communication issued by the SC, or any other reasons in order to safeguard MyCIF’s funds.

    9. For avoidance of doubt, the SC may at any time without having to assign any reason to the MyCIF participants but subject to approval or instruction by the Government of Malaysia, suspend, cancel and/or terminate the MyCIF upon giving fourteen (14) calendar days’ prior notice to the MyCIF participants.
    10. All communications in writing including any report by the MyCIF participants to the SC’s MyCIF secretariat must be made via electronic mail to [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:

    11.

    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:

    (a)

    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;

    (b) MyCIF co-investment is open to all Micro, Small and Medium Enterprises who meet the requirements set forth by respective MyCIF participant's platform ("ECF Issuer");
    (c) MyCIF’s maximum investment in each ECF campaign is limited to RM1 million; and
    (d)

    In the event where ECF campaign exceeds 50% of its initial investment target, MyCIF may consider reducing the co-investment percentage.

    12.

    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, at least five (5) business days before the end of the calendar quarter. The MyCIF participants must provide the following information in the proposal:

    (a) estimated number of ECF campaign for the calendar quarter;
    (b) estimated amount of total fundraising for the calendar quarter;
    (c) the amount of co-investment sought from MyCIF; and
    (d) other information as may be determined by the SC.
    13.

    As and when an ECF campaign fulfills the co-investment criteria in accordance with paragraph 11, 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:  

    (a) name of ECF Issuers;
    (b) sector;
    (c) business location of ECF issuer;
    (d) purpose of fundraising;
    (e) the amount of co-investment sought from MyCIF;
    (f) the total amount raised by the ECF Issuer from private investors on the MyCIF participants' platforms;
    (g) information in relation to the shares issued, as may be determined by the SC;
    (h) current revenue base of the ECF Issuer;
    (i) current customer base of the ECF Issuer; and
    (j) current number of employees of the ECF Issuer.
    14. Once the ECF campaign is successfully funded and closed, MyCIF participants must submit the transaction reporting within five (5) business days once the cooling-off period ends. The transaction report must contain details in paragraph 13 as well as the following information:
    (a) operator name;
    (b) platform name;
    (c) sector;
    (d) business location of ECF issuer;
    (e) purpose of fundraising; and
    (f) other information as may be determined by the SC.
    15. 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.
    16.

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

    (a) 1 year post-investment;
    (b) 3 years post-investment; and
    (c) at the point of MyCIF's exit from the ECF Issuer.
    17.

    The post-MyCIF investment report in paragraph 16 must contain the following information:

    (a) Progress of business/growth of ECF Issuer since MyCIF investment;
      (i) Revenue growth;
      (ii) Customer acquisition;
      (iii) Regional expansion;
      (iv) No. of employees; and
      (v) Other information as may be determined by the SC;
    (b) Utilization of investment fund;
    (c) Estimated valuation of ECF Issuer; and
    (d) 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:
    18.

    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:

      (a) 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;
      (b) MyCIF co-investment is open to all Micro, Small and Medium Enterprises who meet the requirements set forth by respective MyCIF participant's platform ("P2P Issuer");
      (c) MyCIF’s maximum investment in each P2P campaign is limited to RM1 million.
    19.

    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:

      (a) estimated number of P2P campaigns for the calendar quarter;
      (b) estimated amount of total fundraising for the calendar quarter;
      (c) the amount of co-investment sought from MyCIF; and
      (d) other information as may be determined by the SC.
    20. 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.
    21.

    The MyCIF participants must, within five (5) business days after the end of the calendar quarter, provide to MyCIF's appointed trustee a post-MyCIF investment report, until the maturity of the investment note or Islamic investment note. The post-MyCIF investment report in this paragraph must contain the following information:

      (a) name of P2P issuer;
      (b) campaign ID;
      (c) sector;
      (d) business location of P2P issuer;
      (e)

    purpose of fundraising;

      (f) total amount of co-investment sought from MyCIF;
      (g) the total amount raised by the P2P Issuer from private investors on the MyCIF participants' platforms;
      (h) tenor of investment note / Islamic investment note;
      (i) 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;
      (j) 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;
      (k) 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;
      (l) net return; and
      (m)

    total amount principal repaid;

      (n) total amount interest paid;
      (o) status update of all outstanding investment notes and Islamic investment notes at the time of reporting, e.g. repayment status of investment note and/or Islamic investment note, default cases, etc.; and
      (p) other information as may be determined by the SC.
         

    Participation in informal sector pilot

    22. A MyCIF participant who operates a P2P platform may apply to carry out an informal sector pilot in accordance with such criteria as may be specified by the SC.
    23. The SC may upon application by a MyCIF participant who operates a P2P platform, approve the MyCIF participant to carry out an informal sector pilot, subject to any terms and conditions as the SC considers necessary.
    24. For the avoidance of doubt, paragraphs 18, 19, and 21 do not apply to the P2P campaigns that are part of an informal sector pilot (“informal sector campaigns”).
    25. The informal sector campaigns must be hosted separately on the MyCIF participant’s platform.
    26. The overall portfolio size of an informal sector pilot is limited to RM2 million.
    27. The maximum financing for a single P2P issuer under an informal sector pilot is limited to RM50,000.
    28. MyCIF will invest in each informal sector campaign based on a 1:1 ratio, in which MyCIF will invest RM1 for every RM1 successfully raised from private investors on the MyCIF participants’ platforms.
    29. For the purposes of informal sector pilot, private investors are limited to a total of not more than 10 institutional / corporate / sophisticated investors.
    30. The duration of an informal sector pilot is limited to a period of 12 months post-operationalisation, and the MyCIF participant is to provide 6-month periodic review to the SC on the outcomes of the pilot or such other information as may be specified by the SC.
    31. The SC’s concurrence must be sought in relation to any proposed changes to the informal sector pilot including the scope and administration of the informal sector pilot.
    32. After the SC has granted approval under paragraph 23, the MyCIF participant may submit an initial request for disbursement. The MyCIF participant may submit application for additional funds as and when is necessary, subject to the relevant limits. The MyCIF participant must provide the following information in the request:
      (a) estimated number of P2P campaigns;
      (b) estimated amount of total fundraising;
      (c) the amount of co-investment sought from MyCIF; and
      (d) other information as may be determined by the SC.
    33. The MyCIF participants must, within five (5) business days after the end of the calendar quarter submit a post-MyCIF investment report to the MyCIF Secretariat, until the maturity of the investment note or Islamic investment note. The participant must submit the following information:
      (a) name of P2P issuer;
      (b) campaign ID;
      (c) sector;
      (d) business location of P2P issuer;
      (e) purpose of fundraising;
      (f) total amount of co-investment sought from MyCIF;
      (g) the total amount raised by the P2P Issuer from private investors on the MyCIF participants’ platforms;
      (h) tenor of investment note / Islamic investment note;
      (i) net return;
      (j) total amount principal repaid;
      (k) total amount interest paid;
      (l) status update of all outstanding investment notes and Islamic investment notes at the time of reporting, e.g. repayment status of investment note and/or Islamic investment note, default cases, etc.; and
      (m) other information as may be determined by the SC.
  • Co-Investment in Social Enterprises via Peer-to-Peer Financing ("P2P")

    The additional terms and conditions applicable to MyCIF participants who facilitate fundraising for Social Enterprises via their P2P platforms are set out as follows:

    34.

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

    (a) MyCIF will invest in P2P campaigns by Social Enterprises based on a 1:1 ratio, in which MyCIF will invest RM1 for every RM1 successfully raised from private investors on the MyCIF participants’ platforms;
    (b) MyCIF will invest in P2P campaigns by Social Enterprises at 0% financing rate;  
    (c) MyCIF co-investment is open to all Social Enterprises which-
    (i) have been granted Basic SE, SE Accreditation (“SE.A”) or SE Accreditation Plus (“SE.A Plus”) status by the Ministry of Entrepreneurship Development under the Social Enterprise Accreditation program; and
    (ii) meet the requirements set forth by respective MyCIF participant’s platform; and
    (d) MyCIF’s maximum investment in each P2P campaign by Social Enterprise is limited to RM500,000.
    35. As and when a P2P campaign by Social Enterprise fulfills the co-investment criteria in accordance with paragraph 34, the MyCIF participants shall submit an application to the MyCIF secretariat in writing for the disbursement of MyCIF co-investment fund into the P2P campaign by Social Enterprise. The MyCIF participants must provide the following information in the application:
    (a) Name of Social Enterprise P2P Issuer;
    (b) Campaign ID;
    (c) Status / stage of Social Enterprise accreditation;
    (d) Description of business;
    (e) Cause / Target beneficiary;
    (f) Business location of Social Enterprise P2P Issuer;
    (g) Purpose of fundraising;
    (h) Total amount of co-investment sought from MyCIF;
    (i) Total amount raised by the Social Enterprise P2P Issuer from private investors on the MyCIF participants' platforms;
    (j) Tenor of investment note / Islamic investment note;
    (k) Financing rate for Social Enterprise P2P Issuer (take into account MyCIF's financing rate of 0%);
    (l) Number of private investors who invested into the P2P campaign by Social Enterprise;
    (m) Current base of beneficiary of the Social Enterprise P2P Issuer; and
    (n) Current number of employees of the Social Enterprise P2P Issuer.
    36. 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.
    37. The MyCIF participants must, within five (5) business days after the end of the calendar quarter submit a post-MyCIF investment report to the appointed trustee, until the maturity of the investment note or Islamic investment note.
    38.

    The post-MyCIF investment report in paragraph 37 must contain details from paragraph 35 as well as the following information:

    (a) Total amount principal repaid; and
    (b) Status update of all outstanding investment notes and Islamic investment notes at the time of reporting, e.g. repayment status of investment note and/or Islamic investment note, default cases, etc.
GET IN TOUCH
General Line: +603-6204 8000
related sites
© Copyright Securities Commission Malaysia   |   Contact Us   |  Disclaimer  |  The site is best viewed using Internet Explorer 11 and Google Chrome with mimimum resolution of 1280x1024
Ooops!
Generic Popup