ADVISORY SERVICES(Rules & Regulations) Law of Malaysia Act 671 Act 453 Act 498 Programme Objective: This course equips participants with comprehensive understanding and knowledge based on the Module 19 Study Outline. Participants will advance their knowledge and comprehension further via an interactive teaching and learning experience while increasing their confidence in sitting for the examination. This course will be facilitated by an experienced and qualified trainer. Programme Overview It covers the fundamental aspects of financial statements, investment analysis, relevant accounting policies and treatments for financial reporting, characteristics of fixed income and equity securities, time value of money and valuation methods. Who Should Attend Candidates preparing for the Module 19 Licensing Examination New entrants to the capital market industry and staff of investment banks Read more A prudent person who carries on the business of investment advice and/or advising on corporate finance should be aware of the relevant laws and principles regulating his conduct and actions, in particular: (a) Contract law, (b) Tort, and (3) Securities law... Learn more Program Agenda 1.Contractual Issues 2. Negligent Misstatement 3. Licensing of Persons Who Carry On The Business Of Investment Advice, Advising On Corporate Finance And Their Representatives 4. Prohibited Conduct And Insider Trading 5. Conclusion. Reference Materials Reference Materials #1 1. E-Guide - Legal Consideration and Code of Conducts 2. Capital Markets and Services Act 2007 3. Licensing Handbook 4. Guidelines on Prevention of Money Laundering and Terrorism Financing for Reporting Institutions in the Capital Market 5. Guidelines on Implementation of Targeted Financial Sanctions Relating to Proliferation Financing for Capital Market Intermediaries 6. Equity Guidelines 7. Malaysian Code on Take-Over and Mergers/Rules on Takeover, Mergers and Compulsory Acquisitions 8. Prospectus Guidelines 9. Asset Valuation 10. Guidelines on Unlisted Capital Market Products under the Lodge and Launch framework 11. Guidelines on Issuance of Corporate Bond and Sukuk to Retail Investors 12. Guidelines on Islamic Capital Market Products and Services 13. Issuer Eligibility Guidelines - Structured Warrants 14. Guidelines on Conduct for Capital Market Intermediaries 15. Guidance Note on Provision of Investment Advice 16. Guidelines on Submission of Corporate and Capital Market Product Proposals 17. Bursa Malaysia (Main Market, ACE Market and LEAP Market) Listing Requirements Note: Frequently-asked questions - SC GUIDELINES Frequently-asked questions - FUND MANAGEMENT Frequently-asked questions - GUIDELINES ON COMPLIANCE FUNCTION FOR FUND MANAGEMENT COMPANIES Frequently-asked questions on CMSA 2007 Frequently-asked questions on Licensing Handbook Frequently-asked questions on single licensing regime - Licensing handbook CMSA 2007 - Schedule II (Fees payable to Security commission) Coverage/Exam Weightage Section (Slide) Composition of Questions (Max) Number of Question (Max) Related Topics 1 40% 24 Legal Considerations and Code of Conducts (#1-5) 2 80% 48 All others (#6-16) 3 30% 18 Bursa Listing Requirements (MMLR/ACRLR/LEAPLR) (#17) Topic 1Legal Considerations and Code of Conducts This topic introduces the fund management industry in Malaysia. We will examine those participants in the fund management industry who provide investment management services. We will also consider the various structures or ‘funds used in the industry to pool moneys prior to investment. This will provide us with an insight into the clients of fund management companies. We then review some of the other important participants in the industry. Finally, we introduce the rationale for regulation of the fund management industry. Adviser’s Liabilities An adviser can be subjected to: • contractual relationship with customers • tort of negligence – liable for failing to use skill and diligence which a reasonable competent and careful adviser would exercise; and • negligence misstatement – in the issuance of numerous reports and statements Learn more Contractual Issues Principal and Agent • A contract of agency is formed when one person, the agent, has authority to act on behalf of another person, the principal. • The contract of agency is formed by the agreement of the principal and the agent. • The terms of the instructions are given by the client to the Adviser (Licensed Person) and therefore, the terms of the contract may be express or implied, as the following: - Express instructions - Implied instructions Learn more PO and Client Relationship CMSA 2007 • S.91 provides that a licensed person must inform its client of any interest which may influence its recommendation to the client. • S.92 sets out the specific requirements which must be followed when a licensed person provides recommendations to a client. • S.97 provides that a Capital Markets Services Licence (CMSL) holder must inform the client when it is acting as principal in the transaction with the client. Learn more Section 91 of the CMSA 2007 Section 97 of the CMSA 2007 Law of contract • What is a contract? • Section 2 Contract Act 1950 – “..an agreement enforceable by law” • A promise or set of promise that give rise to legal obligations • Need not be in writing Learn more Section 2 of the CA 1950
