IAP is an avenue that provides access to wider shariah-compliant investment option to investors and a greater access to financing to ventures.
Please refer to the diagram below for an overview of IA Platform.
The target investors and ventures are as follows;
The features of IAP are as follows:
IAP is owned by an entity called IAP Integrated Sdn Bhd.
All browsers have accessibility to this platform i.e. Internet Explorer, Mozilla Firefox, Google Chrome etc. This platform is designed with compatible mode to be accessed by all browsers.
A customer may register as an IAP user through the platform. Registration can be individual or business. A sole proprietor will have to register as an individual.
The registration cost is free.
Yes, there will be a campaign period to raise fund for each project or venture. The estimated period for the campaign is 30 days.
Individual investors are given income tax exemption on profits earned from qualifying investment for three consecutive years.
You can raise fund via IAP in two(2) ways:
All types of ventures seeking for funding above RM500,000 may apply for financing on IAP.
No. Application for normal financing from banks will be based on the creditworthiness of the venture where upon approval, the financing amount requested will be immediately provided by banks.
In contrast, to IAP, Sponsoring Banks will upon approval list the venture on IAP to raise funds from the investors. Other than disclosing the information of the venture and its projects for assessment by the investors, a credit rating will also be assigned to the venture and its project by a reputable rating agency and displayed on IAP.
You will be notified by IAP via email.
The following scenarios may take place:
The rating of your venture or project will be performed by a reputable credit rating agency.
Information on your venture is only accessible by IAP Admin, Sponsoring Banks, the rating agency and the potential investor with your prior consent.
Performance of your venture will be monitored by your Sponsoring Bank. A performance report will be prepared on quarterly basis to be distributed to all your investors.
Sponsoring banks stipulate different conditions in classifying an investor as HNW individual. For IAP, Sponsoring Banks will determine the HNW status of their respective investors based on their existing practices.
IA products on IAP are marketed by Sponsoring Banks. Under the Islamic Financial Services Act 2013 (IFSA), Islamic banks are required to ensure Shariah compliance of their offerings under the supervision of their respective Shariah Committee and later submit the products to Bank Negara Malaysia (BNM) for approval.
Investors with excess funds who are interested in obtaining higher returns that commensurate with the level of risks associated with their investments.
An indicative return will be provided for each venture based on assessment and terms of offer by the Sponsoring Bank upon listing. Return is also dependent on the performance of the underlying ventures throughout the investment tenure.
No, rate of return for investments via IAP varies based on the level of risk and performance of each underlying venture.
Returns on IA investments can be benchmarked against alternative investment options such as fixed deposits, bond or sukuk of similar rating or unit trust.
Fees applicable to investors are dependent on the type of Shariah contract of the IA:
Individual investors are provided with income tax exemption for profits earned in any three (3) years after the first profit is made for each investment. This exemption applies to investments made from year 2016 to year 2018. For more details, please download Income Tax (Exemption) (No. 3) Order 2016.
Under IA, investors with different risk appetite have the option of placing their surplus funds to earn potentially higher returns from their investments. Naturally, investors are expected to invest according to their risk profile. The SA serves as a standard measurement for Sponsoring Banks in determining the risk profile of the investors. The Sponsoring Bank has the fiduciary duty to caution the investors should the investors decide to invest in an investment that does not match their risk profile. This is to ensure that investors are well-informed on the risks involved in pursuing a specific investment decision.
The Suitability Assessment will assess investors from three key areas namely:
This assessment serves as a check and balance for the Sponsoring Bank in protecting investors from investing beyond their risk profile. While this assessment is designed to provide the most accurate view possible on the risk profile of investors, the accuracy of this assessment is to a certain extent, influenced by investors' genuineness in responding to the questions put forth.
Yes, and your SA result will be categorised under four (4) categories. In the event where an investor is interested to invest in ventures that are beyond his risk profile, the investor will be advised to undertake further consultation at dedicated branches of the Sponsoring Bank.
You can refer to the table below for venture's ratings that suit your risk profile category:
Yes, it is.
Rating provided for each venture or project is based on an independent assessment by a professional rating agency.
Yes, this rating will be uploaded on IAP as part of the information provided on listed ventures to potential investors.
Yes, you can. Through IAP, investors will be able to view a whole range of investment choices on the platform and also the relevant information on each investment.
IAP will advise investors to seek for additional consultation at dedicated branches of the Sponsoring Bank should they intend to invest beyond their risk profile. Upon declaring their understanding on the risks involved and pursue with the investment to the Sponsoring Bank, investors will then be allowed to proceed.
The diagram below illustrates the process flow for investors upon selection of ventures:
Yes, there is. The minimum amount will be determined by the Sponsoring Bank.
No, you can't.
Yes you can, but this is done on a willing buyer willing seller basis and will not involve IAP. You should consult the Sponsoring Bank first before you decide to proceed.
Under normal circumstances, the campaign runs for thirty (30) days unless otherwise agreed with the Sponsoring Bank.
The Sponsoring Bank is required to regularly alert investors on the going-concerns of their IA funds through periodical performance reports. The following process will take place if a venture defaults: