SC directs Lendingstar to cease activities

By NUR HAZIQAH A MALEK / Pic By MUHD AMIN NAHARUL

The Securities Commission Malaysia (SC) has issued Lendingstar Malaysia Sdn Bhd a cease order with immediate effect.

The SC issued the order on July 23, 2018, following an inquiry that found Lendingstar not registered to operate a recognised market, while at the same time, providing auto-invest facilities without a licence.

Lendingstar offered two financing solutions for business funding, such as the invoice-to-cash and dynamic discounting which focus highly on giving businesses the option of receiving their funds in advance.

According to Lendingstar’s statistics which were last updated on June 4, 2018, the broker has over 100,000 registered members in its community, RM6.78 million in invoice amount uploaded, 12% per annum minimum investor returns and 63 days for invoice average payment terms.

The financial broker holds the MSC Malaysia Status by the government as an eligible and foreign information and communication technology-related business.