Product and Services Knowledge
This domain tests the features, risks and distribution rules of the main capital market products. You must be able to match a product to investor needs and identify suitability issues.
Core rules
- Equities carry voting and dividend rights; Main, ACE and LEAP markets differ in investor access and disclosure obligations.
- Sukuk represent ownership in Shariah-compliant assets or usufruct, using contracts such as ijarah, murabahah or wakalah. They are not simply interest-bearing bonds.
- Unit trusts pool investor money under a trustee and fund manager; ETFs track an index and trade on an exchange, so price can differ from net asset value.
- Derivatives such as futures and options are leveraged and marked to market; margin calls are a key risk.
- Malaysian REITs must distribute at least 90% of distributable income to qualify for tax transparency.
- Equity crowdfunding and P2P platforms must be SC-registered; digital asset exchanges also require SC registration and digital assets are not legal tender.
Worked example
A retiree wants regular income and low capital risk. A short-duration sukuk fund may suit better than an equity fund because the underlying assets generate predictable returns and the sukuk structure avoids interest. The recommendation must still document risk tolerance, horizon and Shariah preference.
Traps
Treating sukuk as identical to bonds; assuming ETF market price equals NAV; ignoring leverage and margin in derivatives; confusing sophisticated-investor thresholds; recommending a product without documenting suitability.