CMDP: Module 4 Emerging and Current Regulatory Issues in the Capital Market

CPD*

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

Learning Hours

2.5 hours (including Pre & Post Assessments)

Session 1

Recognise the emerging issues potentially affecting the business of licensed intermediaries:

• Systemic risk, prudential standards, capital adequacy and stress test;
• Reputation risks arising from counterparties and/or service vendors/providers;
• Remuneration driving malpractices;
• Not adhering to KYC protocols;
• Conflict of interests;
• Churning customer accounts;
• Dealing with customer complaints and alternative dispute resolutions;
• Use of social media (e.g. Facebook and twitter) by market participants and intermediaries to differentiate between advice and guidance;
• Cyber-threats (including examples below) and the impact on the capital markets:
  – Loss of critical data or data leakage – whether caused by unintentional or deliberate act;
  – Social engineering in which customers are manipulated into disclosing confidential information which could lead to identity thefts, email frauds, and spams; and
  – Loss of control over internet protocol (IP) addresses resulting from distributed denial of service (DDoS) attacks.

Learning Outcomes

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

• Discuss and articulate the emerging issues potentially affecting the business of licensed intermediaries;
• Identify and understand the red flags of potential misconducts

Session 2

The Securities Commission Malaysia: Regulatory Expectations

• Understand the role of the Securities Commission Malaysia as primary stakeholder in ensuring proper conduct through sound appreciation of:
• SC’s supervisory objectives and philosophy;
• Eleven core principles of SC supervision
• Importance of strong compliance framework and culture of compliance
• Core supervisory process;
• Spectrum of supervision including risk posed to the intermediaries from the perspective of conduct, microprudential, AML/CFT and systemic issues; and
• Common supervisory findings in the areas of Compliance framework and culture;
  – Awareness and understanding of regulatory requirements;
  – Adequacy of resources and controls.
• Based on interactive discussions regarding red flags identify indicators of possible market misconduct.

Learning Outcomes

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

Exercise judgement appropriately in ensuring

1. proper conduct of licensed intermediaries
2. effective dealings with the regulator – the Securities Commission Malaysia

Competencies

Core Risk Management (Proficiency Level 4) Foundational (Product) Capital Market Environment (Proficiency Level 4) Behavioural (Organisational Leadership) Strategic Thinking (Proficiency Level 4)