Frequently asked questions & answers for Secondary Market
The Secondary Market is where investors buy and sell notes they already own.
Anyone can participate! However, to sell your Note(s) on the Secondary Market, you must have invested in a minimum of 10 notes. Subsequently, the remaining principal of the Notes selected for “re-selling” or “transfer of rights” must be at least RM5,000. Investors can select either a singular Note (e.g. RM5k) or multiple Notes (e.g. 50 notes of RM100 each) to be bundled as a portfolio for “re- selling” or “transfer of rights”. The reason why such a balance is set is to ensure that the transaction is a meaningful one for both the existing investor and new investor of the Note(s) hosted in the Secondary Market based on the premise that the Secondary Market is to provide early exits for “emergency” funds and for new investors to be able to build a resilient portfolio in a quicker manner which has a direct bearing on risk mitigations as well.
Partial ‘cash-out’ is not allowed because the contract on 1 investment is signed with 1 investor and therefore the transfer would also be in full to another 1 investor to make it cleaner and for easier tracking. This is to prohibit the intention of splitting an original investment which is done by a singular individual / entity to multiple individuals / entities thus impacting the integrity of the legal documents entered into of which is drafted in such a way that it is from party A to party B or party B to party C only.
Only notes that have the status of ‘Prompt Repayment’ and have a remaining tenure of at least 3 months or 3 remaining payments are allowed to be sold on the Secondary Market.
A note may be sold at least 10 days before the next repayment due date provided the previous due payment was made. Subsequently, notes cannot be sold within 10 days of the next repayment due date.
The Smart Invest feature is currently not available for Secondary Market. It will not pick up Notes hosted on the Secondary Market for investing.
You are allowed to set a discount from 0.5% to 5% (in increments of 0.5%) or a premium from 0.5% to 10% (in increments of 0.5%)
The interest rate of the Note will not change if it is purchased from the Secondary Market.
Yes you can. However, there is a minimum “holding” period i.e. minimum time between the “buying” and “selling” period of 3 months. This is put in place to ensure that investors are still exercising the risk controls in practicing building a portfolio and observing the performance of the portfolio before trading. Because the earnings from a Note or portfolio is already pre-determined upfront, a “holding” period is required to at least allow the investors to experience the performance of the portfolio before trading, be it from the “buying” or “selling” angle.
There are no limits to how much you can transfer but the transfer needs to be a full sum (principal balance) transfer and to a singular party.
Yes, the trading period, or hosting period, for each transfer, notes / portfolio, is limited to 10 days. After 10 days, if no one has purchased your notes / portfolio, the ownership of the notes / portfolio is retained by you for a minimum of 30 days before you are allowed to sell the notes / portfolio again.
Yes. Our full fees and charges for investors can be found by clicking HERE
No, they will not be covered by Principal Protect as the original investor has already taken the first risk involved.
Yes, you can. You can also buy the note if it is a part of a portfolio on the Secondary Market.
This is because none of your notes meet the qualifications to be sold on the Secondary Market. When your notes do meet the qualifications, a ‘Sec Mkt SELL’ tab will appear on the left-hand side of your account’s homepage.