SIDC Module 10 key terms

A Malaysian licensing assessment administered under the Securities Commission Malaysia that candidates must pass to be registered as a Capital Markets Services Representative or to hold certain regulated roles.

The statutory regulator that supervises Malaysia's capital market, licenses intermediaries, approves products and issues the rules, codes and guidelines that licensed persons must comply with.

The principal Malaysian statute governing capital market activities, setting out licensing requirements, conduct obligations, market misconduct offences and the enforcement powers of the Securities Commission.

A licence granted by the Securities Commission allowing a corporation to carry on one or more regulated capital market activities, such as dealing in securities, fund management or corporate finance advice.

An individual who is registered with the Securities Commission to act on behalf of a licensed holder, performing regulated activities under that licence and subject to fit-and-proper and competency requirements.

The standards used to assess integrity, solvency, competence and reputation of licence applicants and registered persons, covering criminal records, insolvency, regulatory breaches and past misconduct.

Rules issued by the Securities Commission setting minimum standards of business conduct, including honesty, fair dealing, management of conflicts of interest, confidentiality and client-asset protection.

The process of identifying a client, verifying identity and understanding their financial situation, investment objectives, risk tolerance and experience before providing regulated services.

The evaluation of whether a recommended product or service matches a client's documented objectives, risk appetite, financial capacity and knowledge, forming the basis for responsible advice.

Obligations on licensed persons to conduct customer due diligence, monitor transactions, keep records and report suspicious activity to the Financial Intelligence and Enforcement Department of Bank Negara Malaysia.

A confidential report filed with the financial intelligence authority when a firm knows, suspects or has reasonable grounds to suspect that funds are linked to unlawful activity or terrorism financing.

The offence of disclosing to a client or third party that a suspicious transaction report has been or may be made, thereby risking the compromise of an investigation.

Trading or procuring trading in securities while in possession of material non-public information obtained through a connected relationship, in breach of the market misconduct provisions of the CMSA.

Information about a listed corporation or its securities that is not generally available and would, if published, be likely to materially affect the price or value of those securities.

Conduct that creates a false or misleading appearance of active trading or price movement in securities, such as wash trades, matched orders or ramping, and is prohibited under the CMSA.

Entering into transactions that create a misleading appearance of trading activity in a security without a genuine change in beneficial ownership or commercial purpose.

A transaction, or series of transactions, where there is no real change in beneficial ownership, typically used to generate artificial volume or influence the apparent market price.

The duty of a listed corporation to announce material information promptly to the exchange so that the market remains informed and trading occurs on an informed basis.

The exchange operating Malaysia's securities market, responsible for listing rules, trading surveillance, market supervision and the admission of listed corporations and trading participants.

The Bursa Malaysia rulebook setting admission criteria, continuing obligations, disclosure duties and corporate governance standards for corporations listed on the Main Market.

The first sale of shares by a corporation to the public, accompanied by a prospectus registered with the Securities Commission and admission to the official list of the exchange.

A disclosure document registered with the Securities Commission that must contain all information investors and their advisers would reasonably require to make an informed investment decision.

A concise summary document describing the key features, risks, costs and terms of an investment product, intended to help retail investors compare and understand what they are buying.

An arrangement pooling money from investors for investment in a portfolio managed by a professional, where investors do not have day-to-day control over the assets.

A collective investment scheme constituted under a deed between a management company and a trustee, issuing units to investors and valued by reference to net asset value.

The total value of a fund's assets less its liabilities, usually expressed per unit, and used as the basis for pricing subscriptions and redemptions of fund units.

A licensed person responsible for making investment decisions for a portfolio or collective investment scheme in accordance with the mandate, deed and applicable regulatory requirements.

An independent party holding scheme assets on trust for investors, safeguarding property and monitoring the management company's compliance with the deed and regulatory requirements.

A licensed intermediary that advises corporations on fundraising, takeovers, restructurings and listing exercises, and is subject to specific duties when acting on regulated transactions.

An offer made to shareholders to acquire their shares in a corporation, governed by the Malaysian Code on Take-Overs and Mergers, including mandatory offer triggers and equal treatment rules.

An offer made to all shareholders of a target corporation on the same terms, typically triggered when a person acquires control above the prescribed threshold.

A regulated activity involving buying, selling or subscribing securities as principal or agent, or holding oneself out as willing to do so, and requiring a licence.

The requirement to segregate client money and securities from the firm's own assets, hold them in designated accounts and reconcile them regularly to prevent loss or misuse.

Situations where a firm's or representative's own interests, or those of another client, may improperly influence advice or dealings, requiring disclosure, avoidance or management.

The obligation to maintain accurate, complete and retrievable records of client instructions, transactions, advice and compliance checks for the period prescribed by regulation.

The internal unit responsible for monitoring adherence to laws, regulations and internal policies, advising staff and reporting compliance breaches to senior management and the board.

The process of identifying, measuring, monitoring and controlling exposures such as market, credit, liquidity, operational and compliance risk within a licensed intermediary.

The periodic submission of financial, prudential and conduct information to the Securities Commission or exchange, including audited accounts and breach notifications.

The regulatory objective of ensuring fair treatment, adequate disclosure and access to redress for investors, supported by conduct rules, product regulation and enforcement action.