FAMILIARISATION PROGRAMME FOR TRADING REPRESENTATIVES (FPTR)

ASSESSMENT OUTLINE

For July to December 2020 FPTR II Assessments 

Module 1

The Malaysian Stock Market

• The Capital Market and the Banking System Form the Financial System
• Capital Market Functions
• Malaysian Capital Market Framework
• Capital Markets & Services Act 2007 (CMSA)
• Bursa Malaysia Berhad (BMB) and Bursa Malaysia Securities Berhad (BMSB)
• Participants and Intermediaries in The Malaysian Stock Market
• Overview of The Islamic Capital Market

Module 2

Business Structure

• Range of business
• Classification of Companies
• General Management and Administration
• Administration and Management of a Participating Organisation

Module 3

Relationship between Participating Organisations (POs) and Clients

• Rules Governing Participating Organisation and Client Relationship
• Participating Organisations’ Duties to Clients
• Participating Organisations’ Rights
• Keeping of Records
• Obligations of CMSRL

Module 04

Types of Securities Offences

• Short Selling
• False Trading and Market-Rigging Transactions
• Stock Market Manipulation
• False or Misleading Statements in Relation to Securities
• Fraudulently Inducing Persons to Deal in Securities
• Use of Manipulative and Deceptive Devices
• Dissemination of Information about Illegal Transactions
• Insider Trading

Penalties for Contravention

Module 5

Anti-Money Laundering and Protection of Clients’ Information

• Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries
• Obligation on Protection of Clients’ Information and Common Abuses on Confidentiality

Module 6

Capital Raising on the Primary Market

• Equity guidelines
• Bursa Malaysia Securities Berhad Main Market listing requirements
• Bursa Malaysia Securities Berhad ACE Market listing requirements
• Bursa Malaysia Securities Berhad LEAP Market listing requirements
• Post-Listing Requirements
• Capital Raising Securities in The Secondary Market

Module 7

Law of Contract

• What is Law of Contract?
• Essential Elements of a Contract
• Remedies for Breach of Contract

Module 8

Licensing

• Licensing Framework
• Fit and Proper Criteria
• Regulated Activities
• Licensing Requirements for CMSL and CMSRL
• Obligations of the Licensed Person
• Licence Conditions and Variation
• Revocation or Suspension
• Effect of Revocation and Suspension
• Obligations of Dealer’s Representatives

Module 9

Trading on Bursa Malaysia Securities Berhad

• Central Depository System (CDS)
• Automated Trading System (ATS)
• Bursa Trade Securities (BTS)
• Fees and Charges
• Delivery and Settlement
• Corporate Actions
• Modification and Cancellation
• Margin Financing
• The Fixed Delivery & Settlement System (FDSS)
• Delivery and Settlement Time for On-Market Transactions and Direct Business Transactions
• Circuit Breaker and Trading Halts
• Clients’ Rights
• Market Makers
• Conduct of Business (by a Participating Organisations)
• Dealing in Securities
• Direct Business Transactions
• Accounting, Audit and Financial Reporting Requirement
• Capital Requirement (of a Participating Organisations)
• Inspection and Investigation
• Disciplinary Actions

Module 10

Take-overs

• What are Take-Overs?
• Legal Framework
• Penalties for Contravention of the Code

Module 11

Overview of Fundamental Analysis

• Importance of Fundamental Analysis
• Economic, Industry and Company Analysis (EIC)
• Fundamental Analysis vs. Technical Analysis

Module 12

Financial Statement Analysis

• Component of Financial Statements
• Using Financial Statement Analysis to Assess Performance
• Various Techniques of Analysis
• Financial Ratios
• Advantages & Limitation of Ratio Analysis

Module 13

Equity

• Rights and Bonus Issues
• Equity Hybrids
• Convertible Unsecured Loan Stock (CULS)
• Warrants
• Equity Valuation

Module 14

Fixed Income and Money Market 

• Fixed Income Valuation:
  • Time value of money (Simple interest, Compound interest, Compounding and discounting techniques)
  • Valuation of fixed income securities
• Bond Valuation
  • Bond Pricing: Pricing of a Straight Bond, Zero Coupon Bond
  • Factors Affecting Bond Price, Zero Coupon Bond
  • Bond Yield: Current yield, Yield to Maturity, Yield to Call, Realised yield
  • Relationship Between Price, Required Yield and Coupon Rate
  • Term Structure of Interest Rates and Yield Curves

Module 15

Exchanged-Traded Funds (ETFs)

• What are ETFs?
• Structures and Types of ETFs
• Advantages and Risks of ETFs

Module 16

Technical Analysis

• What is Technical Analysis?
• Forecasting the Direction or Trend: Demand & Supply
• Bloomberg, Reuters, Trading Platform, Technical Analysis Software
• The Use of Trend:
  • Types of Trends (Uptrends, Downtrends & Sideways/ Horizontal Trends)
  • Trend Lengths
  • Trendlines
  • Channels
• Support and Resistance: Round Numbers; Role Reversal
• Chart Types
  • Chart properties: time scale, price scale & price point properties
  • Chart types: line (closing prices), bar (high, low, opening & closing price), candlestick (trading range & difference b/w open & close), point & figure (reflects price movements, not concerned with time & volume)