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Stashaway receives first robo licence in Malaysia

The Singapore-based firm also intends to bring its robo-advisory platform to other Southeast Asian markets.

Stashaway received its fund management licence from the Securities Commission (SC) Malaysia regulator last month, according to records from the regulator.

The firm claims in a statement that it is the first company in Malaysia to be awarded a capital market services licence and carry out fund management activities as set out by the digital investment management (DIM) licence framework.

The DIM framework, which was introduced last year, outlines application details for firms that plan to be involved in “automated discretionary portfolio management services”.

Another robo-advisory in Malaysia is Algebra, a shariah-compliant platform that is operated by Kuala-Lumpur based Farringdon Group and  launched in July last year. Farringdon Group is regulated by the Labuan Financial Service Authority, which licences entities operating within the Malaysian territory of Labuan.

Stashaway is also thinking about bringing the product to other markets in Southeast Asia, according to a Singapore-based spokeswoman of the firm.

“We see great potential to bring a customer-centric platform to countries across Southeast Asia, and as such, we will continue to talk to regulators across regional markets,” she said.

Initial subscribers

Stashaway was launched on 1 November to around 5,000 Malaysian investors who are on a waiting list, according to the statement.

However, the firm expects to open the platform to the public early this month. The target is both retail and accredited investors in Malaysia.

“When you think about how 43% of gross financial assets in Malaysia are in bank deposits, it’s clear that the current investment options aren’t doing their jobs of enabling Malaysians to build their long-term wealth through intelligent investing,” Michele Farrario, Stashaway’s co-founder and group CEO, said in the statement.

“This huge amount of wealth sitting in cash proves that the financial services industry has failed thus far to equip Malaysians with the right investment tools.”

Stashaway makes use of macroeconomic data to maintain each investors’ personal risk preference through any economic environment, according to the statement. The platform has 31 risk profiles and makes use of ETFs, which cover 19 asset classes globally, according to the firm’s website.

The firm offers its service with no minimum balance, no lock-up period and annual management fees between 0.2% and 0.8%.

Stashaway, which was founded in 2016, first launched in Singapore in July last year, and was also the first robo-advisor in the Lion City to operate with a capital markets service licence, according to the statement.

The firm declined to disclose the number of Singapore-based investors subscribed to the platform.

Part of the Mark Allen Group.