Examination Study Guide / Study Update / Study Outline / Additional Reading Material

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SC LICENSING EXAMINATIONS

Module 6: Stock Market and Securities Law

OVERVIEW

Please read the materials in this section carefully before you begin your studies. It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

This examination is designed to test the candidate’s knowledge and understanding of the rules and regulations governing the Malaysian equity market. It is one of the examinations to be passed by individuals who:

  1. intend to apply for a Capital Market Services Representative's Licence (CMSRL) to carry on the regulated activity of dealing in securities;
    Or
  2. intend to hold the following positions in  a firm which is a holder of a Capital Markets Services Licence (CMSL), for carrying on the business of dealing in securities:
    • Head of Operations
    • Head of Compliance
    • Compliance Officer;
    Or
  3. intend to be employees of registered persons who carry out the capital markets activities as stipulated in Item 1 of Part 1 of Schedule 4 of the Capital Markets and Services Act 2007.

Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.
 

OUTLINE
pdf Study Outline (July - December 2017)  
 
REFERENCES

Study Guide

Prescribed Reference Material

  • Securities Commission Act 1993
  • Capital Markets and Services Act 2007
  • Rules of Bursa Malaysia Securities Berhad
  • Bursa Malaysia Securities Berhad Participating Organisations’ Trading Manual
  • Rules of Bursa Malaysia Securities Clearing Sdn Bhd
  • Bursa Malaysia Securities Berhad Main Market Listing Requirements
  • Bursa Malaysia Securities Berhad ACE Market Listing Requirements
  • Licensing Handbook
  • Guidelines on the Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries
  • Guidelines on Market Conduct and Business Practices for Stockbroking Companies and Licensed Representatives
  • Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework
 
LINKS

Module 7: Financial Statement Analysis and Asset Valuation

OVERVIEW
Please read the materials in this section carefully before you begin your studies. It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

Module 7 is designed to convey the essentials of financial statement analysis, fixed income and equity securities and markets in the context of investment analysis at undergraduate level. For purposes of entry-level licensing examinations, the target audience for this study guide is invariably wide. It is hoped that certain introductory areas would familliarise the newcomer to the accounting, financial mathematics and investment analysis scene, providing the basics for a sound foundation in these areas of study.

On the other hand, areas concerning, for example, important issues in the theory and concepts, limitations of methods used, problems of comparability and how they arise, are available to point out the necessity for adjustments to be made before intra-company and inter-company comparisons. The latter are considered as 'refreshers' for those initiated in one or another of the areas of study in the guide.

This examination is designed to test the candidate’s knowledge and understanding of the Malaysian capital market. It is one of the examinations to be passed by individuals who:
 
  1. intend to apply for a Capital Market Services Representative's Licence (CMSRL) to carry on the regulated activity of dealing in securities;
    Or
  2. intend to hold the following positions in a firm which is a holder of a Capital Markets Services Licence (CMSL) for carrying on the business of dealing in securities:
    • Head of Operations
    • Head of Compliance
    • Compliance Officer;
    Or
  3. intend to be employees of registered persons who carry out the capital markets activities as stipulated in Item 1, Part 1 of Schedule 4 of the Capital Markets & Services Act 2007.

Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.
 
OUTLINE
pdf Study Outline (July - December 2017)

 

REFERENCES

Module 9: Funds Management Regulation

OVERVIEW
Please read the materials in this section carefully before you begin your studies.  It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

This examination is designed to the test candidate’s knowledge and understanding of the rules and regulations governing the Malaysian fund management industry. It is one of the examinations to be passed by individuals who:
  1. intend to apply for a Capital Markets Services Representative's Licence (CMSRL) to carry on the regulated activity of fund management in relation to portfolio management;
    Or
  2. intend to hold the position of compliance officer in a firm which  is  a holder of a Capital Markets Services Licence (CMSL) for carrying on the business of fund management in relation to portfolio management;
    Or
  3. intend to be employees of registered persons who carry out the capital markets activities as stipulated in Item 4, Part 1 of Schedule 4 of the Capital Markets and Services Act 2007.

Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.
 
OUTLINE
pdf Study Outline (July - December 2017)
 
REFERENCES
Study Guide
  • Examination Study Guide For Module 9: Funds Management Regulation (Fifth Print, 2016 Revised)

Prescribed Reference Material
  • Capital Markets and Services Act 2007
  • Securities Commission Act 1993
  • Licensing Handbook
  • Guidelines on Compliance Function for Fund Management Companies
  • Guidelines for Public Offerings of Securities of Closed-end Funds
  • Guidelines for the Establishment of Foreign Fund Management Companies
  • Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market
  • Intermediaries
  • Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework
  • Lodgement Kit: Unlisted Capital Market Products under the Lodge and Launch Framework
  • Guidelines on Unit Trust Funds
  • Guidelines on Exchange-Traded Funds
  • Guidelines on Islamic Fund Management
 
LINKS

Module 10: Asset and Funds Management

OVERVIEW
Please read the materials in this section carefully before you begin your studies. It details the module objectives, the outline and the requirements you must fulfil to successfully complete the module.

This examination is designed to test the candidate’s knowledge and understanding of the financial issues relevant to the fund management industry. It is one of the examinations to be passed by individuals who:
 
  1. intend to apply for a Capital Market Services Representative's Licence (CMSRL) to carry on the regulated activity of fund management;
           Or

      2.  intend to hold the position of compliance officer in a firm which  is  a holder of a Capital Markets Services
           Licence (CMSL) for carrying on the business of fund management;
           
          Or

      3. intend to be employees of registered persons who carry out the capital markets activities as stipulated in
          Item 4, Part 1 of Schedule 4 of the Capital Markets and Services Act 2007.

Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.
 
OUTLINE
pdf Updates for Module 10 Study Guide (First Edition 2015)
pdf Study Outline (July - December 2017)
 
REFERENCES
  • Examination Study Guide for Module 10: Asset and Fund Management (First Edition, 2015)

Module 11: Fundamentals of Compliance

OVERVIEW
Please read the materials in this section carefully before you begin your studies.  It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

This examination is designed to test the candidate’s knowledge and understanding on the concepts and rules and regulations pertaining to the compliance function. It is one of the examinations to be passed by individuals who intend to hold the position of Head of Compliance or Compliance Officer in a firm which is a holder of a Capital Markets Services Licence (CMSL) carrying on the following regulated activities:
 
  • dealing in securities;
  • dealing in derivatives; or
  • fund management in relation to portfolio management.

Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.
 
OUTLINE
pdf Study Outline (July - December 2017)

 

REFERENCES

Study Guide

  • Examination Study Guide for Module 11: Fundamentals of Compliance (Second Edition, 2013)


Prescribed Reference Material

  • Guidelines for Compliance Officers 
  • Compliance Guidelines for Futures Brokers 
  • Guidelines on Compliance Function for Fund Management Companies 
  • Guidelines on Unit Trust Funds 
  • Guidelines on Market Conduct and Business Practices for Stockbroking Companies and       Licensed Representatives 
  • Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries 
  • Rules of Bursa Malaysia Securities Berhad 
  • Bursa Malaysia Securities Berhad Participating Organisations’ Directives and Guidance 
  • Rules of Bursa Malaysia Derivatives Berhad 
 
LINKS

Module 12: Investment Management and Corporate Finance

OVERVIEW
Please read the materials in this section carefully before you begin your studies.  It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

This examination is designed to test the candidate’s knowledge and understanding of the financial issues relevant to the investment advisory and corporate finance services in the Malaysian capital market. It is one of the examinations to be passed by individuals who:
 
  1. intend to apply for a Capital Markets Services Representative’s Licence (CMSRL) to carry on any of the following regulated activities:
    • Advising on corporate finance;
    • Investment advice;
    Or
  2. intend to be employees of registered persons who carry out the capital markets activities as stipulated in Items 2 and 3, Part 1 of Schedule 4 of the Capital Markets and Services Act 2007.

Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.
 
OUTLINE
pdf Study Outline (July - December 2017)
 
REFERENCES 

Module 14: Futures and Options

OVERVIEW

Please read the materials in this section carefully before you begin your studies.  It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

This examination is designed to test the candidate’s knowledge and understanding of futures and options in Malaysia. It is one of the examinations to be passed by individuals who:
 

  1. intend to apply for a Capital Markets Services Representative's Licence (CMSRL) to carry on the regulated activity of dealing in derivatives;
    Or
  2. intend to hold the position of Compliance Officer in a firm which is a holder of a Capital Markets Services Licence (CMSL) for carrying on the business of dealing in derivatives.


Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.
 

OUTLINE
pdf Study Outline (July - December 2017)

 

REFERENCES

Module 16: Rules and Regulations of Futures and Options

OVERVIEW

Please read the materials in this section carefully before you begin your studies.  It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

This examination is designed to test the candidate’s knowledge and understanding of the rules and regulations governing the Malaysian futures and options market, the overall structure of the futures and options market and the Rules of Bursa Malaysia Derivatives Berhad. It is one of the examinations to be passed by individuals who:

  1. intend to apply for a Capital Markets Services Representative's Licence (CMSRL) to carry on the regulated activity of dealing in derivatives;
    or
  2. intend to hold the position of Compliance Officer in a firm which is a holder of a Capital Markets Services Licence (CMSL)  for carrying on the business of dealing in derivatives.

Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.

 

OUTLINE
pdf Study Outline (July - December 2017)
 
REFERENCES

Study Guide

Prescribed Reference Material
  • Capital Markets and Services Act 2007
  • Securities Commission Act 1993
  • Rules of Bursa Malaysia Derivatives Berhad
  • Bursa Malaysia Derivatives Berhad Trading Manual
  • Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries
  • Licensing Handbook
 
LINKS

Module 17: Securities and Derivatives Trading (Rules and Regulations)

OVERVIEW

Please read the materials in this section carefully before you begin your studies.  It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

This examination is designed to test the candidate’s knowledge and understanding of the Malaysian capital market. This is one of the dual-activity examination modules intended to facilitate individuals who wish to apply for a Capital Markets Services Representative's Licence (CMSRL) to undertake both of the following regulated activities:

  • Dealing in securities; and
  • Dealing in derivatives.

It is also an alternate examination module to Module 6: Stock Market & Securities Law (one of the examination modules to be passed by (i) individuals who intend to apply for a CMSRL for the regulated activity of dealing in securities; or (ii) individuals who intend to hold the position of Head of Operations, Head of Compliance or Compliance Officer in  a firm which is a holder of a Capital Markets Services Licence (CMSL) for carrying on the business of dealing in securities; or (iii) individuals who intend to be employees of registered persons who carry out the capital markets activities as stipulated in Item 1, Part 1 of Schedule 4 of the Capital Markets and Services Act 2007) and to Module 16: Rules and Regulations of Futures and Options (one of the examination modules for the regulated activity of dealing in derivatives). 

Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.
 

OUTLINE
pdf Study Outline (July - December 2017)

 

REFERENCES

Study Guide

  • Examination Study Guide for Module 1: Regulations (Malaysia Futures and Options)(Fifth Print, 2011 Revised)
  • Examination Study Guide for Module 6: Malaysian Stock Market & Securities Law (Fourth Print, 2012 Revised)
  • Additional Reading Material on Structure Products


Prescribed Reference Material

  • Rules of Bursa Malaysia Securities Berhad
  • Rules of Bursa Malaysia Derivatives Berhad
  • Rules of Bursa Malaysia Securities Clearing Sdn Bhd
  • Bursa Malaysia Securities Berhad Participating Organisations’ Trading Manual 
  • Bursa Malaysia Derivatives Berhad Trading Manual
  • Bursa Malaysia Securities Berhad Main Market Listing Requirements 
  • Bursa Malaysia Securities Berhad ACE Market Listing Requirements 
  • Capital Markets and Services Act 2007
  • Securities Commission Act 1993
  • Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries
  • Guidelines on Market Conduct and Business Practices for Stockbrokers and Licensed Representatives
  • Licensing Handbook

 

LINKS

Module 18: Securities and Derivatives Trading (Products and Analysis)

OVERVIEW

Please read the materials in this section carefully before you begin your studies.  It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

This examination is designed to test the candidate’s knowledge and understanding of the Malaysian capital market. This is one of the dual-activity examination modules intended to facilitate individuals who wish to apply for a Capital Markets Services Representative’s Licence (CMSRL) to undertake both of the following regulated activities:

  • Dealing in securities; and
  • Dealing in derivatives
It is also an alternate examination module to Module 7: Financial Statement Analysis & Asset Valuation (one of the examination modules to be passed by (i) individuals who intend to apply for a CMSRL for the regulated activity of dealing in securities; or (ii) individuals who intend to hold the position of Head of Operations, Head of Compliance or Compliance Officer in a firm which is a holder of a Capital Markets Services Licence (CMSL) for carrying on the business of dealing in securities; or (iii) individuals who intend to be employees of registered persons who carry out the capital markets activities as stipulated in Item 1, Part 1 of Schedule 4 of the Capital Markets and Services Act 2007) and to Module 14: Futures and Options (one of the examination modules for the regulated activity of dealing in derivatives). 

Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.
OUTLINE
pdf Study Outline (July - December 2017)

 

REFERENCES

Module 19: Advisory Services (Rules and Regulations)

OVERVIEW

Please read the materials in this section carefully before you begin your studies.  It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

This examination is designed to test the candidate’s knowledge and understanding of the rules and regulations governing advisory services in the Malaysian capital market. It is one of the examinations to be passed by individuals who:

  1. intend to apply for a Capital Markets Services Representative's Licence (CMSRL) to carry on the regulated activities of advising on corporate finance or investment advice;
    Or
  2. intend to be employees of registered persons who carry out the capital markets activities as stipulated in Items 2 and 3 of Schedule 4 of the Capital Markets and Services Act 2007.

Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.
 

OUTLINE
pdf Study Outline (July - December 2017)

REFERENCES
Prescribed Reference Material
  • Examination Study Guide on Legal Considerations and Code of Conduct 
  • Capital Markets and Services Act 2007 
  • Licensing Handbook 
  • Equity Guidelines 
  • Principal Adviser Guidelines 
  • Guidelines on Due Diligence Conduct for Corporate Proposals 
  • Malaysian Code on Take-Overs and Mergers 
  • Asset Valuation Guidelines 
  • Prospectus Guidelines 
  • Guidelines on Issuance of Private Debt Securities and Sukuk to Retail Investors 
  • Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework 
  • Issuer Eligibility Guidelines – Structured Warrants 
  • Bursa Malaysia Securities Berhad Main Market Listing Requirements 
  • Bursa Malaysia Securities Berhad ACE Market Listing Requirements

LINKS

Module 19A: Advisory Services (Rules and Regulations) - Part A

OVERVIEW

Please read the materials in this section carefully before you begin your studies.  It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

This examination is designed to test the candidate’s knowledge and understanding of the rules and regulations governing advisory services in the Malaysian capital market. It is one of the examinations to be passed by individuals who:

  1. intend to apply for a Capital Markets Services Representative's Licence (CMSRL) to carry on the regulated activities of investment advice;
    Or
  2. intend to be employees of registered persons who carry out the capital markets activities as stipulated in Item 3 of Part 1 of Schedule 4 of the Capital Markets and Services Act 2007.


Candidates who intend to apply for a CMSRL to carry on the regulated activity of advising on corporate finance or who intend to be employees of registered persons who carry out the capital markets activities as stipulated in Item 2, Part 1 of Schedule 4 of the Capital Markets and Services Act 2007 will need to pass this examination together with Module 19B: Advisory Services (Rules and Regulations) – Part B to be considered as having completed the rules and regulations examination. 

Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.
 

OUTLINE
pdf Study Outline (July - December 2017)
 
REFERENCES

Prescribed Reference Material
  • Examination Study Guide on Legal Considerations and Code of Conduct 
  • Capital Markets and Services Act 2007 
  • Licensing Handbook  
  • Equity Guidelines 
  • Principal Adviser Guidelines  
  • Malaysian Code on Take-Overs and Mergers 
  • Bursa Malaysia Securities Berhad Main Market Listing Requirements 
  • Bursa Malaysia Securities Berhad ACE Market Listing Requirements

LINKS

Module 19B: Advisory Services (Rules and Regulations) - Part B

OVERVIEW

Please read the materials in this section carefully before you begin your studies.  It details the module objectives, the outline and the requirements you must fulfil to successfully complete the examinations.

This examination is designed to test the candidate’s knowledge and understanding of the rules and regulations governing advisory services in the Malaysian capital market. Candidates will need to pass this examination together with Module 19A: Advisory Services (Rules and Regulations) – Part A to be considered as having completed the rules and regulations examinations:

  1. for an application for a Capital Markets Services Representative’s Licence (CMSRL) to carry on the regulated activity of advising on corporate finance;
    Or
  2. for those who intend to be employees of registered persons who carry out the capital markets activities as stipulated in Item 2, Part 1 of Schedule 4 of the Capital Markets and Services Act 2007.


Candidates are advised to refer to the Licensing Handbook for the detailed combination of examinations required for each regulated activity.

OUTLINE
pdf Study Outline (July - December 2017)
 
REFERENCES
Prescribed Reference Material
  • Equity Guidelines 
  • Guidelines on Due Diligence Conduct for Corporate Proposals 
  • Asset Valuation Guidelines 
  • Prospectus Guidelines 
  • Guidelines on Issuance of Private Debt Securities and Sukuk to Retail Investors 
  • Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework 
  • Issuer Eligibility Guidelines – Structured Warrants

LINKS