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

Scope of Coverage

1. Recognise the emerging issues potentially affecting the business of licensed intermediaries:
2. Systemic risk, prudential standards, capital adequacy and stress test;
3. Reputation risks arising from counterparties and/or service vendors/providers;
4. Dealing with customer complaints and alternative dispute resolutions;
5. Use of social media (e.g. Facebook and Twitter) by market participants and intermediaries to differentiate between advice and guidance;
6. Cyber-threats (including examples below) and the impact on the capital markets:
7. Understand the role of the Securities Commission 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
8. Based on interactive discussions regarding red flags identify indicators of possible market misconduct

Learning Outcomes

At the end of the programme, participants will be able to:

1. Understand and articulate the emerging issues potentially affecting the business of licensed intermediaries
2. Identify and understand the red flags of potential misconducts and;
3. Exercise judgement appropriately in ensuring proper
   • conduct of licensed intermediary and
   • effective dealing with the regulator – the Securities Commission.