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Market Misconduct:  How to Detect and Prevent Them

Market Misconduct: How to Detect and Prevent Them

Dates:  25 April 2018 (8.30am - 5.00pm) 
Venue: Securities Commission Malaysia
Accreditation: SIDC CPE-approved: 10 CPE points


Investors expect the Malaysian capital market to be conducted with fairness, transparency and efficiency. The occurrence of market misconduct such as insider trading, false trading, market rigging or making or disseminating false or misleading statements will affect investors’ confidence and interest in the market, and potentially damage the reputation of the Malaysian capital market in the long run.
 
As part of its regulatory oversight functions and response with credible deterrence when securities laws are breached, in 2016, the Securities Commission Malaysia (SC) had imposed a total of RM1.415 million administrative sanctions for various misconducts and breaches of securities laws. 17 individuals were charged in the Sessions court, out of which, 10 individuals were charged for insider trading, 4 for causing wrongful loss, and 3 for offering and issuing securities without a prospectus. 
 
This one-day programme will focus on the various conduct defined as `market misconduct’ as outlined by the regulators that has occurred in the Malaysian capital market, how these misconducts are carried out and the measures that can be taken to prevent such misconducts from happening. There will be discussions on recent cases containing the findings, penalties and disciplinary actions imposed by regulators, the roles and responsibilities of the capital market intermediary in preventing the occurrence of such misconduct as well as the key lessons learned. This programme will end with discussions on future challenges in detecting market misconduct with the rise of digital technology in the capital market and the tools and infrastructure available out there to prevent a recurrence.

  • Programme Delivery

    Programme Objective

    Based on the Malaysian capital market regulations, the participants will be able to identify market misconduct and prohibited conduct and the measures to prevent, mitigate and deal with such market misconduct and prohibited conduct as well as examine the impact and importance that digital technology has on such conduct.

    Learning Outcomes

    Upon completion of this programme, participants will be able to:
    • identify the various market misconduct and prohibited conduct and the modus operandi of the perpetrators;
    • recognise the capital market rules and regulations relating to market misconduct and prohibited conduct, the penalties, disciplinary actions and impact of such conduct to organisations;
    • discuss measures to prevent, mitigate and deal with market misconduct and prohibited conduct; and
    • examine the impact of digital technology to market misconduct and prohibited conduct.

    Methodology

    Interactive presentation, Discussions on Case Studies and Question-and-Answer (Q&A) sessions

    Target Audience

    Employees of stockbroking firms, fund management companies, unit trust management companies (UTMCs), investment and commercial banks, insurance companies and PLCs, financial planners, investment advisors, lawyers, accountants, compliance and risk management officers

    Competencies

    Foundational (Regulatory Knowledge) - Capital Market Institutions
    Foundational (Regulatory Knowledge) - Capital Market Intermediaries
    Foundational (Regulatory Knowledge) - Anti-Money Laundering
    Process Skills - Compliance
    Technical Skills - Digital Technology Application 
  • Programme Outline

    8.30 am Registration
    9.00 am
     
    Session 1
    Market Misconduct 
    • What is Market Misconduct?
    • Types of Market Misconduct and Prohibited Conduct: How and Why it Happens?
    • Regulations on Market Misconduct
    • Prohibited conduct: Securities, Derivatives, Fund Management
    • Anti-Money Laundering/Counter Financing Terrorism (AML/CFT): Practical application/obligation on AML/CFT as required by Securities Commission Malaysia and Bank Negara Malaysia
    • Other Market Misconduct
    10.30 am Coffee Break
    10.45 am
    Session 2
    Insider Trading
    • Who is an `insider’?
    • What is `inside information’?
    • Recognising what constitutes insider trading   
    • Conflict of interest and how to manage them?
    11.15 am
    Session 3
    Digital Technology: The Rise of New Types of Crime
    • Compliance and Cyber Security: Satisfying regulatory demands from a cyber-security perspective
    • Latest misconduct techniques employed via Digital Technology
    • Identifying and overcoming the continuing cyber security threat: A Fight against Digital Crime
    11.45 am
    Session 4
    Detecting Market Misconduct and Prohibited Conduct
    • How to detect market misconduct and prohibited conduct
    • What are the red flags and indicators?
    • Internal policies and tools on market misconduct and prohibited conduct prevention
    1.00 pm Lunch Break
    2.00 pm
    Session 5
    Preventing Market Misconduct
    • Effective Governance and Internal Control: Measures to mitigate and manage market misconduct and prohibited conduct
    • Gatekeepers: The Roles and Responsibilities of Personnel
    • Dealing with market misconduct and prohibited conduct  situations
    3.30 pm Tea Break
    3.45 pm
    Session 6
    Case Studies
    • Key lessons learnt from cases and regulator findings related to market misconduct and prohibited conduct, penalties and disciplinary actions
    4.30 pm Q&A Session
    5.00 pm End of Programme
  • Programme Fees

    Group of 3 or more pax Normal Price
    RM 906.30 RM 1007
    *Inclusive of 6% GST