**POSTPONED**Familiarisation Programme For Trading Representative 2 (FPTR 2)

Laws & Regulations

Sep 2020

8:30 am - 5:30 pm

Securities Commission Malaysia

MYR 1100 *Fee is not inclusive of 6% SST



This two-day programme is designed to provide comprehensive understanding of the Malaysian securities market for Trading Representatives (TRs) working with Participating Organisations (POs) to carry out their duties effectively and in compliance with the law. It covers the securities industry with specific focus on Malaysian market, regulatory structure and its governing laws, duty and standard care of dealing in securities, various offences and stock market operations.

The following day will look into financial statements and its significance in financial and investment analysis together with the features, characteristics and risk associated to various capital market products. It also discusses the appropriate concepts in the pricing and valuation of equity securities, fixed income and bond contracts; and apply technical analysis in evaluating the performance of a stock

At the end of the programme assessments will be carried out to gauge participants’ understanding of the materials presented.

Learning Outcomes
Upon completion of this programme, participants will be able to:

  1. explain the Malaysian capital market regulatory framework;
  2. describe the functions and activities of Bursa Malaysia Securities Berhad ,its components and market participants;
  3. identify the screening criteria for Shariah securities for the Islamic capital market;
  4. distinguish the characteristics of the various forms of corporate structure in Malaysia;
  5. explain the duties and rights of Participating Organisations (POs) as well as the rules governing their relationship with clients;
  6. identify the various types of securities offences under the Capital Market and Services Act;
  7. explain the key essence of money laundering and terrorism financing as well as the obligation to protect clients’ information;
  8. outline the various steps and processes of raising capital in the Main market, ACE Market and LEAP Market;
  9. describe the essential elements of a contract and common law remedies for breach of contract;
  10. describe the licensing framework which operates in Malaysia;
  11. identify the characteristics and regulations governing take-overs and mergers in Malaysia;
  12. explain the trading conducts and mechanism on Bursa Malaysia Securities Berhad;
  13. distinguish between fundamental and technical analysis in analysing stock performance;
  14. recognise the users and uses of financial statements in financial and investment analysis;
  15. identify elements of financial statements and extract key information available for carrying fundamental analysis;
  16. describe and distinguish the various available capital market products such as equity, fixed income, bonds, structured products and exchange-traded funds;
  17. apply the appropriate concepts in the pricing and valuation of equity securities, fixed income and bond contracts; and
  18. apply technical analysis in evaluating the performance of a stock.

Candidates’ Prerequites
It is estimated that this module will require a minimum of 80 hours of study time. Candidates are expected to possess good knowledge and understanding of the subject matter provided in this study outline and specified references. The amount of study hours needed depends on the education background and work experience of the candidates. Candidates are also expected to update themselves with the latest changes relevant to this module as all questions will be continuously updated to reflect these changes.

This programme will be delivered using effective learning methods which include presentations and discussions.

Day One
9.00 am 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 and Bursa Malaysia Securities Berhad
  • Main Market and ACE Market
  • LEAP Market
  • Participants and intermediaries in the Malaysian stock market
  • Overview of the Islamic Capital Market
    • Islamic Stockbroking
    • Shariah screening process
    • Bursa Suq al Sil
10.40 am Coffee Break
11.00 am Licensing

  • Licensing Framework
  • Regulated activities
  • Fit and proper criteria
  • Licensing requirements for CMSL and CMSRL applicants
  • Obligations of the licensed person
  • License conditions and variation
  • Revocation or suspension
  • Effect of revocation and suspension
  • Obligations of Dealer’s Representatives

Law of Contract

  • What is law of contract?
  • Essential elements of a contract
  • Offer and acceptance
  • Consideration
  • Intention to create legal relations
    • Certainty
    • Capacity to contract
    • Genuine consent
    • Lawfulness of object
    • Formalities
    • Remedies for breach of contract

Relationship between Participating Organisations (POs) and Clients

  • Rules governing the relationship between POs and clients
  • POs’ duties to clients
  • POs rights
  • Keeping of records
  • Obligations of CMRSL

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
1.00 pm Lunch Break
2.00 pm Trading on Bursa Malaysia Securities Berhad

  • Central Depository System (CDS)
  • Automated Trading System (ATS)
  • 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
  • Circuit breaker and trading halts
  • Clients’ rights
  • Market makers
  • Conduct of business
  • Dealing in securities
  • Direct business transactions
  • Accounting, audit and financial reporting requirement
  • Capital requirement
  • Inspection and investigation
  • Disciplinary actions

Types of Securities Offences

  • Short selling
  • False trading and market-rigging transactions
  • Stock market manipulation
  • Market abuses and unethical business conduct
  • 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
  • Clients’ rights
  • Penalties for contravention
3.20 pm Coffee Break
3.35 pm Business Structure

  • Range of business
  • Classification of companies
  • General management and administration
  • Administration and management of a Participating Organisation

Capital Raising on the Primary Market

  • Equity guidelines
  • Bursa Malaysia Securities Berhad listing and post listing requirements
    • Main Market
    • ACE Market
    • LEAP Market
  • Capital raising securities in the secondary market


  • What are take-overs?
  • Legal framework
  • Penalties for contravention of the code
4.15 pm Assessment – Proposed 20 Multiple Choice Questions (45 minutes)
5.00 pm End of Day One

Day 2

8.30 am Registration
9.00 am Financial Statement Analysis

  • Component of Financial Statements
  • Using financial statement analysis to assess performance
  • Techniques of Analysis
  • A Working Example of ratio Analysis
  • Advantages and Limitations of Ratio Analysis
  • Statement of Financial Position, Income Statement & Statement of Other Comprehensive Income and Statement of Cash Flows.
  • Horizontal and Common Size Statement Analysis
  • Cash Flow Analysis
  • Financial Ratio Analysis
10.40 am Coffee Break
11.00 am Equity

  • Fund-raising through equity ownership
  • Introduction to shares
  • Rights and bonus issues
  • Equity hybrids
  • Preference shares
  • Convertible Unsecured Loan Stock (CULS)
  • Warrants
  • Classification of shares
  • Equity Valuation
  • The role of valuation
  • Valuation approaches : Required rate of return, DCF method and PE multiple

Fixed Income and money market

  • Introduction of fixed income  and money market
  • Money market securities
  • Bonds and Private Debt Securities
  • 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
  • Bond Yield : current yield, yield to maturity, yield to call, realised yeild
  • Relationship between price, required yield and coupon rate
  • Term structure of interest rates and yield curves

Structured Products

  • What is a structured product?
  • Underlying assets of structured products
  • Risk of investing in structured products

Exchanged-Traded Funds (ETFs)

  • What are ETFs?
  • Structures and types of ETFs
  • Advantages and risks of ETFs
1.00 pm Lunch Break
2.00 pm Overview of Fundamental Analysis

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

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)
3.40 pm Coffee Break 
4.15 pm Assessment – Proposed 30 Multiple Choice Questions (45 minutes)
5.00 pm End of Day Two

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