C8. Guidelines on Investor Protection

Question 1

what is the objectives of the guidelines on Investor Protection?

Answer 1

a) To ensure level playing field and to preserve market integrity
b) To promote confidence in the capital market
c) To ensure that employees of a registered person (ERP) carrying out permitted capital market activities meet the fit and proper requirements
d) To ensure investors’ interest are safeguarded and protected

Question 2

can ERPs carry out capital market activities on behalf of registered persons (RPs) without a capital markets services representative’s license (CMRSL)?

Answer 2

Yes, under the Guidelines, ERPs carrying out permitted capital market activities on behalf of a registered person (RP) are not required to hold a capital markets services representative’s license (CMRSL).

Question 3

what are the Guidelines’ 3 fit and proper criterias?

Answer 3

1. Comply with the minimum fit and proper criteria
2. Comply with the examination requirements
3. Comply with the Continuing Professional Education (CPE) requirements

Question 4

what is the minimum fit and proper criteria?

Answer 4

i. The employee is not an undischarged bankrupt
ii. The employee is not liable for a judgment debt that has been returned unsatisfied in whole or in part
iii. The employee is not convicted of an offence involving fraud/dishonesty/violence
iv. The employee is not convicted of an offence in respect of banking, securities and insurance laws
v. The employee has not engaged in any deceitful or oppressive business practices
vi. The employee has not been engaged in business practices or conducted himself in such a way where his competence and soundness of judgment is doubtful

The above offences apply irrespective of whether they are committed within or outside of Malaysia.

Question 5

what are the examination requirements?

Answer 5

ERPs carrying out permitted capital market activities are:
i. Required to pass all relevant examination modules in Appendix 2 prior to carrying out those activities.
ii. Only required to take the examination once. The validity period of the results is 2 years from the date of passing of each examination module.

Question 6

are there any exemptions on the examination requirements?

Answer 6

yes, ERPs may apply for exemption from BNM if he is an individual with distinguished service, which shall include, having a total of at least 20 years of working experience in relevant financial services industry and was in a senior management position during his tenure in the capital market or the financial services industry or in a regulatory body.

Question 7

how many CPE points are ERPs required to obtain every 1 year cycle?

Answer 7

All ERPs are required to obtain 20 CPE points for every one-year cycle period from the date of registration with the Secretariat.

Question 8

within how many days must RP or its employee enter the securities details when RP or its employee is aware of the acquisition?

Answer 8

A RP and its employee shall maintain a register of securities (in physical or electronic form) which is readily available upon request by BNM. Particulars of the securities in which a RP or its employee has an interest shall be entered into the register within 14 days from the time at which the RP or its employee is reasonably aware of the acquisition.