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 2A: Business Challenges and Regulatory Expectations – What Directors Need To Know (Equities and Future Broking) At the end of the module, participants will be able to:

Identify and 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;
Exercise judgement appropriately in dealing with issues of business challenges and regulatory expectations brought to the attention of the board.

Methodology

Competencies

Entry Requirements

Duration of Modules

DURATION MODULES

1.5 hours

Target Audience

TARGET AUDIENCE

Individual

Newly appointed directors and directors of CMSL holders

Completion Requirements

9.00 am	Nature of the relevant business (stockbroking, investment banking and futures broking), including its shifting trends and regulatory and competitive changes; Effects of demographic shifts – e.g. ageing population, expectations of Millennial and Gen Y as customers and workforce; Changes in business models due to availability of financial resources, diversification of revenue/income streams and cost efficiency pressures; Impacts from expectatiDgeing population, expectations of Millennial and Gen Y as customers and workforce; Changes in business models due to availability of financial resources, diversification of revenue/income streams and cost efficiency pressures; Impacts from expectations, activities and cost related to market surveillance and complianceOverview 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
10.30 am	Screen Break
10.45 am	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.
12.30 am	End of Programme

Price Listing

DURATION MODULES

TARGET AUDIENCE

Individual