Familiarisation Programme for Registered Representatives II

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Familiarisation Programme for Registered Representatives II

Duration: 2 days
Venue: Securities Commission Malaysia


This two-day programme focuses on Malaysian stock market and its components, financial statements and asset valuation techniques. On the first day, participants will be exposed to the Exchange functions, types of markets, Islamic capital market, types and classification of companies, capital raising activities, elements of contracts, negligence and misstatement, licensing framework and take-overs activities. On the second day, participants will be introduced financial statements and their components as well as valuation techniques for equity and fixed income instruments. The programme includes assessments to gauge participants’ understanding of the materials presented.

Who Should Attend

Please refer to Chapter 11 of the Licensing Handbook for entry requirements

  • Programme Delivery

    Programme Objective

    The programme aims to help participants identify, understand, and most importantly, apply the relevant knowledge and required skills towards becoming competent Trading Representatives.

    Learning Outcomes

    Upon completion of this programme, participants will be able to:

    • Describe the functions and activities of Bursa Malaysia Securities Berhad, its components and market participants;
    • Identify the screening criteria for Shariah securities  for the Islamic capital market;
    • List and differentiate among the characteristics of the various forms of corporate structure in Malaysia;
    • Outline the various steps and processes of raising capital in the primary market;
    • Describe the essential elements of a contract and common law remedies for breach of contract;
    • Explain essential elements in the tort of negligence misstatement, preconditions for successful claim for damages and responsibilities of a licensed person imposed by statue;
    • Describe the licensing framework which operates in Malaysia;
    • Identify the characteristics and regulations governing take-overs and mergers in Malaysia;
    • Recognise the users and uses of financial statements in financial and investment analysis;
    • Identify elements of financial statements and extract key information available for carrying fundamental analysis;
    • Apply the concepts of time value of money in the pricing and the valuation of fixed income and equity securities; and
    • Evaluate and value fixed income and equity securities based on various evaluation techniques.

    Methodology

    • Presentations,  discussions,  assessment (60 multiple choice questions) 
  • Programme Outline

    DAY ONE
    0900am The Malaysian Stock Market
    • Bursa Malaysia Securities Berhad
    • Main market
    • Ace market
    • Indices
    • Participants and intermediaries in the Malaysian stock market
    Islamic Capital Market
    • Shariah evaluation criteria for listed securities
    Regulation of the Securities Industry
    • Regulatory structure of the capital markets and services
    • Supervisory and monitoring
    • Licensing
      Coffee Break
    1100am Business Structure
    • Range of business
    • Classification of companies
    • General management and administration
    Capital Raising on the Primary Market
    • Equity guidelines
    • Bursa Malaysia Securities Berhad Main market listing requirements
    • Bursa Malaysia Securities Berhad Ace market listing requirements
    • Post-listing requirements
    • Capital raising securities in the secondary market
    1300pm Lunch Break
    1400pm Law of contract
    • What is law of contract?
    • Essential elements of a contract
      • Offer and acceptance
      • Consideration
      • Intention to create legal relations
      • Certainty
      • Capacity to contract
      • Genuine consent
      • Lawfulness of object
      • Formalities
      • Remedies for breach of contract
    Negligent Misstatement 
    • Negligence and statement
    • Precondition for liability
    • Statutory liability
    • Reasonable basis and the “Know Your Client” rule
    1520pm Coffee Break
    1540pm Licensing 
    • Licensing Framework
      • Regulated activities
      • Single licensing framework
      • Two-tiered licensing framework
      • Fit and proper criteria
    • Licensing requirements for CMSL and CMSRL applicants
    • Obligations of the licensed person
    • Licence conditions
      • Revocation or suspension
      • Effect of revocation and suspension
    Take-overs 
    • What are take-overs?
    • Legal framework
    • Penalties for contravention of the code
    1615pm Assessment (45 minutes)
    1700pm End of Day One
     
    DAY TWO
    0900am Importance of Financial Statement Analysis
    • Why financial statement analysis is important?
    • Relationship between share price and company profits
     Elements of Financial Statements
    • Introduction to the Balance Sheet
    • Introduction to Income Statement
    • Introduction to Cash Flow Statements
    • Consolidated Financial Statements
    • Notes to equity
    1040am                       Coffee Break
    1100am Financial Statement Analysis
    • Using financial statement analysis to assess performance
    • Financial ratio analysis
    • Advantages and limitations of ratio analysis
     Equity Markets
    • Fund-raising through equity ownership
    • Introduction to shares
    • Rights and bonus issues
    • Equity hybrids
    • Classification of shares
    • The role of valuation and its approaches
    1300pm Lunch Break
    1400pm Time Value of Money
    • Simple interest
    • Compound interest
    • Compounding and discounting techniques
    • Annuity and perpetuity
    Bond Valuation
    • Price and yield relationship
    • Term structure of interest rates and yield curves
    • Factors affecting bond price
    • Bond valuation
    1645pm Assessment (45 minutes)
    1700pm End of Day Two
  • Programme Fees

    RM950 per participant + 6% GST = RM1,007