Licensed intermediary institutions play an important systemic role in the capital market ecosystem. The growth or decline of the capital market is influenced by, among others, the success and failure of these institutions. Hence, the quality of leadership at these institutions is paramount. Kiel et al., 2012 suggest four levels of competence required of a board. They are as follows: Industry: Experience in and knowledge of the industry in which the organisation operates Technical: Technical/professional skills and specialist knowledge to assist with ongoing aspects of the board’s role Governance: The essential governance knowledge and understanding all directors should possess or develop if they are to be effective board members Behavioural: The attributes and competencies enabling individual board members to use their knowledge and skills to function well as team members and to interact with key stakeholders

Programme Objective

The Capital Market Director Programme (CMDP) is an exclusive platform for directors and other strategic personalities of licensed intermediary institutions to equip themselves with new and relevant knowledge, skills and abilities (basic to intermediate level). The programme is also designed to allow them to explore and deliberate on pertinent issues affecting the industry from multi-stakeholders’ perspectives. The specific objectives of the programme are as follows:

Equip members of the board with knowledge and skills to provide leadership and oversight in the running of licensed intermediary institutions;
Assist directors of licensed intermediary institutions in becoming an effective member of the board through the latest developments in regulations and challenges, business and governance in the capital market; and
Promote a thorough understanding of the role of the Securities Commission in regulating a dynamic and competitive capital market.

This programme will also “strengthen intermediation standards and capabilities” as espoused by the Capital Market Masterplan 2 (CMP2). Securities Commission Malaysia (2011) Capital Market Masterplan 2. Securities Commission, Kuala Lumpur.

Learning Outcome

Module 4: Emerging and Current Regulatory Issues In The Capital Market At the end of the module, participants will be able to:

Understand and articulate the emerging issues potentially affecting the business of licensed intermediaries;
Identify and understand the red flags of potential misconducts; and
Exercise judgement appropriately in ensuring (i) proper conduct of licensed intermediaries and (ii) effective dealings with the regulator – the Securities Commission Malaysia.

Methodology

Competencies

CC03 Corporate Governance

FOR02 Capital Market Institutions

FOP01 Capital Market Environment

BOL02 Strategic Thinking

Entry Requirements

Duration of Modules

DURATION MODULES

2.5 hours

Target Audience

TARGET AUDIENCE

Newly appointed directors and directors of CMSL holders

Completion Requirements

9.00 am	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; Conflicts Of Interest; Churning Customer Accounts; Dealing With Customer Complaints And Alternative Dispute Resolutions; Use Of Social Media (E.G. Facebook, Tik Tok 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.
10.30 am	Screen Break
10.45 am	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 – Integrity Skill, care and diligence Supervision and control Financial requirements Market conduct Priority to client’s interests Communication with clients No conflicts of interests Safeguarding clients’ assets Compliance culture Dealing with regulators 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.
12.30 pm	End of Programme

Price Listing

DURATION MODULES

TARGET AUDIENCE