CMDP: Module 2A Business Challenges and Regulatory Expectations – What Directors Need to Know (Equities & Futures Broking)

Learning Hours

* SIDC CPE points are recognised by FIMM, AICB and MIA

Learning Hours

1.5 hours (including Pre & Post Assessments)

Session 1

• Nature of the relevant business (stockbroking, investment banking and futures broking), including its shifting trends and regulatory and competitive changes
• Overview of the expected competencies to understand the nature, conduct and performance of the relevant business, including
  – Duties to clients;
  – Types of risks associated with the relevant business;
  – Performance benchmarking and evaluation
• Challenges in the operations, systems and procedures in terms of minimum requirements and best practices to meet the expectations laid out in the applicable SC Guidelines with particular reference to the following areas of:
  – Customer due diligence;
  – Insider and/or price sensitive information;
  – Real or perceived conflicts of interest situations;
  – Market misconduct, including front running and scalping;
  – Compliance function and compliance officers;
  – Breaches of securities laws, rules and regulations;
  – AML/CFT framework;
  – Bursa Malaysia’s approach to ensuring fair and orderly market intermediaries.

Learning Outcomes

By the end of this session, participants will be able to:

• Discuss the nature, challenges and opportunities in the relevant business (stockbroking, investment banking and futures broking);
• Evaluate the relevant provisions in the applicable guidelines that directors of licensed intermediaries need to be cognizant of;
• Assess the challenges facing directors of relevant business (stockbroking, investment banking and futures broking) in overseeing the application of and conformance with the applicable guidelines;
• Discuss the appropriate judgement exercise in dealing with issues of business challenges and regulatory expectations brought to the board’s attention.

Competencies

Core Risk Management (Proficiency Level 4) Foundational (Regulatory) Capital Market Intermediaries (Proficiency Level 4) Foundational (Regulatory) Capital Market Products Regulations (Proficiency Level 4)