SC Licensing Exam study guide
SC Licensing Exam · Work through your exam, one topic at a time.
The Securities Commission Malaysia (SC) is the statutory regulator of the Malaysian capital market, established on 1 March 1993 under the Securities Commission Act 1993 (SCA). The Capital Markets and Services Act 2007 (CMSA), which took effect on 28 September 2007, repealed the Securities Industry Act 1983 (SIA) and the Futures Industry Act 1993 (FIA) and introduced a single licensing regime for capital market intermediaries. The SC Licensing Exam study guide has 10 sections and about 3,837 words.
01Dealing in Securities
Under the Capital Markets and Services Act 2007 (CMSA), dealing in securities covers acquiring, disposing of, subscribing for or underwriting securities - and inducing or attempting to induce another person to do any of these - whether as principal or agent. The exam tests whether you can spot that conduct, map it to the licensing requirement, and apply the conduct and settlement rules.
420 words, about 2 min02Dealing in Derivatives
A derivative is a contract whose value derives from an underlying - index, commodity, currency, rate or event. Futures, options, forwards and swaps fall under the CMSA definition, and dealing in derivatives is a separate regulated activity requiring its own CMSL and CMSRs, whether the contract is exchange-traded or over-the-counter.
379 words, about 2 min03Clearing for Securities or Derivatives
Clearing is the post-trade layer: trade capture and matching, novation, netting, margining, settlement and default management. The exam tests the clearing house's legal role, who may be a participant, and how risk is mutualised.
383 words, about 2 min04Fund Management
Fund management is managing a portfolio of securities or derivatives for someone else, usually with discretion. It covers collective investment schemes (unit trust funds, wholesale funds, exchange-traded funds) and private mandates for retail, sophisticated or institutional clients.
370 words, about 2 min05Dealing in Private Retirement Scheme
Private retirement schemes are voluntary, long-term retirement savings vehicles established under the Private Retirement Schemes Act 2012 and regulated by the SC. Dealing in private retirement schemes is a distinct regulated activity: a unit trust or insurance licence does not authorise PRS distribution.
371 words, about 2 min06Advising on Corporate Finance
Advising on corporate finance covers advice on corporate proposals: initial public offerings, rights and bonus issues, restructurings, mergers and acquisitions, take-overs, valuations and related-party transactions. The exam tests who may act, the standards of diligence and independence, and the take-over rules.
397 words, about 2 min07Investment Advice
Investment advice means advising another person about securities or derivatives - recommending, opining or issuing research - for a fee or in the course of business. The exam tests the boundary between advice and information, the statutory exclusions, and the conduct rules for research.
367 words, about 2 min08Financial Planning
Financial planning is advice on a person's overall financial affairs - cash flow, protection, investment, retirement, tax and estate planning - delivered as a plan and reviewed over time. The exam tests the process, the ethics, and the line between planning and product selling.
356 words, about 2 min09Licensing Framework, Fitness and Propriety
This module tests how firms and individuals become authorised, what the SC examines before granting a licence, and the duties that continue afterwards. CMSA s.58: no person may carry on a business in a regulated activity without a CMSL.
387 words, about 2 min10Investor Protection
Investor protection in the Malaysian capital market is built from disclosure, suitability, asset segregation, redress and enforcement. The exam tests which protection applies in which situation, and what compensation is - and is not - available.
407 words, about 2 min