How does CPE work?

A CMSRL holder can collect CPE points through the following channels:

  • Attends to CPE-approved seminars, workshops, conferences
  • Enrols to the online courses
  • Serves in approved industry associations / committees
  • Speaks at CPE-approved courses / any other courses that are related to the development of the capital market
  • Writes articles in a recognised business or financial publication
  • Obtains CPE-recognised professional qualifications; or
  • Serves the Securities Commission as an expert witness

The training provider is responsible to send the participation records of the CMSRL holders who attended and fulfilled the attendance requirement after the completion of the course through the CPE Tracker System. The system will keep the CPE points in the respective CMSRL holders’ accounts once the CPE Secretariat accepts the submission.

Please refer to the Guidelines for Awarding CPE Points section for details of other types of accreditation.

Having complied with the minimum requirement for licence renewal, the CMSRL holder need to obtain an attestation from their principal companies before applying to the SC’s Licensing Department to have their licences renewed. All licence renewal applications must be sent through the Electronic Licensing Application (ELA) system.

CPE is mandatory

The CPE requirement has been made one of the conditions that the CMSRL holders must comply if they wish to renewal their licences for the following year(s). The minimum requirement for a one (1) year licence renewal period is 20 CPE points. For a two (2) year licence period, 40 CPE points will be required to enable you to renew your licence.

Any licensed holder who failed to meet this requirement will not have his licence renewed. It is the responsibility of the CMSRL holders and their principal companies to maintain CPE records and produce them upon demand by the relevant authorities. Making any incorrect or false declaration to the SC may lead to suspension and if necessary revocation of licence , following a disciplinary inquiry.

CPE point system

A simple CPE point model will be used:

  • 5 CPE points for a half-day course (3 hours and above) and
  • 10 points for a one or more-days course (6 hours and above)

CPE curriculum

The course content covers two broad categories:

  • Capital market development
  • Capital market regulation

The market development module generally covers the following areas:

  • General investment features of products and services
  • Basic factors determining the value of investment products and strategies
  • Risk factors affecting investment strategies, interest rates, political stability, currency, inflation and related risks
  • Product liquidity including considerations affecting it such as monetary and fiscal policies, conversion and calls
  • Suitability of products, services or strategies for different types of investors, given their investment objectives and constraints, financial position and level of sophistication

The market regulation module will broadly focus on the following areas:

  • Compliance
  • Regulatory developments
  • Ethics
  • Sales practice standards.

Most of the CPE-approved courses will be conducted at an intermediate to advanced levels as the CMSRL holders are assumed to have acquired the basic knowledge of the CPE curriculum before they are being licensed.

However, refresher courses will also be provided, and this will include subjects such as Securities Laws and Regulations, Code of Ethics and Exchange Business Rules. These courses are intended to update and refresh licensed persons, in particular those who have long been in the industry.

A CPE Working Committee comprising representatives from SIDC and the Licensing Department of the Securities Commission, the exchange and the industry reviews in-house courses conducted by stockbroking companies, investment banks, futures broking companies, asset management companies, as well as courses offered by the exchange, industry/professional bodies, private training providers, institutions of higher learning and other relevant organisations . The SIDC will endeavour to develop courses, in particular on market regulation, aimed at ensuring a balance in the choice of courses being offered under the CPE.

All CPE-approved courses will clearly indicate endorsement by the CPE Working Committee as well as the approved number of CPE points for participation. Details of CPE courses are available on the SIDC website at http://www.sc.com.my/eng/cpe/fs_CPE.html

CPE providers

The CPE Working Committee selects a pool of CPE providers to conduct the courses. These training providers are:

• SIDC
• Exchange
• Stockbroking companies/Investment banks
• Professional bodies

• Industry association
• Private training providers

Pricing and fees

Pricing and fees will be left to market forces but every effort will be made to ensure fees are reasonable and, more importantly, commensurate with the quality of the courses offered. The CPE Working Committee will endeavour to ensure that participants will be able to choose from a range of affordable courses.

Quality control

To ensure its relevance to the training needs of CMSRL holders, the content, coverage and quality of these courses will be closely monitored.

A comprehensive review of the CPE curriculum will be undertaken from time to time to ensure that it is relevant to the work of the licensed persons and meet the appropriate standards of competence in the capital market industry.