SC issues cease order to Lendingstar

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KUALA LUMPUR (Aug 2): Securities Commission Malaysia (SC) has directed Lendingstar Malaysia Sdn Bhd to cease its activities with immediate effect. The SC said Lendingstar, which offers "auto invest facilities", is not registered with the regulator.

The SC said in a statement today that Lendingstar is operating without a licence from the SC.

"SC's directive was issued on July 23, 2018 after an inquiry found that Lendingstar is not registered to operate a recognised market and is providing auto invest facilities without licence or registration from the SC, as required under the securities law.

"To date, the SC has registered seven equity crowdfunding and six peer-to-peer platform operators. Issuers and investors are advised to exercise diligence and verify the legitimacy of platform operators before participating in any fundraising or investment activities," the regulator said.