Generally, all Capital Markets and Services Representative’s Licence (CMSRL) holders and the employees of registered persons (ERPs) must obtain the requisite CPE points by performing any activity listed in the Guidelines of Awarding CPE Points (CPE Guidelines) within a specified period in order to fulfill the CPE requirements. Please refer to the CPE Guidelines for more details on the said recognised activities.
Briefly, the CPE Guidelines states that a CMSRL holder or an ERP can collect CPE points through the following activities specified under the Active Learning and/or Development of Others category:
A. Active Learning
- Attending CPE-approved courses; and
- Obtaining CPE-recognised qualifications.
B. Development of Others
- Serving in CPE-approved industry associations or committees;
- Public speaking on topics or subjects relating to the capital market;
- Writing materials or works in recognised business publication; and
- Serving the Securities Commission Malaysia (SC) as an expert witness.
Upon satisfying the CPE requirements and subject to the fulfillment of other licence conditions (if any), a CMSRL holder will need to submit their Anniversary Reporting for Authorisation of Activity (ARAA) on a yearly basis to the SC’s Licensing Department via the Electronic Licensing Application (ELA) system.
On the other hand, the relevant registered persons (RPs) will be solely responsible for monitoring the ERPs’ adherence to the CPE requirements. RPs who wish to verify their ERPs’ CPE compliance status may access the CPE Tracker System using the respective ERPs’ reference numbers.
CPE Points Collection
The CPE points collection structure that applies to both the CMSRL holders and ERPs are as follows:-
- CMSRL Holders
Under Chapter 8 of the SC Licensing Handbook, all CMSRL holders must obtain 20 CPE points in a year on or before the anniversary date of their licence as required in their yearly submission of ARAA in order to continue holding their licence. Failure to comply with the CPE requirements may result in the SC initiating or administering the necessary regulatory action against the CMSRL holders.
Pursuant to the Guidelines of Investor Protection (IP Guidelines), all ERPs will be subjected to the CPE requirements effective 1st January 2011. This means that ERPs who have passed the requisite examination modules BEFORE 1st January 2011 must collect 40 CPE points for every two year cycle period from the 1st January 2011 itself. As for those who have passed the said examinations or have been granted with the exemption prescribed in the IP Guidelines after 1st January 2011, such obligation will commence from the date of registration by the CPE Secretariat.
CPE Working Committee
The CPE Working Committee is one of CPE governing bodies which comprise of the representatives from the Securities Commission Malaysia, Bursa Malaysia Berhad, SIDC, industry associations and other relevant organisations. Among others, the committee undertakes the review of courses and other CPE related applications as submitted by training providers and grants approval to such applications.
All CPE-approved courses will clearly indicate the endorsement by the CPE Working Committee as well as the applicable CPE points for participating in the respective courses. Details of such courses are available on the CPE Training Calendar.
CPE Training Providers
The current CPE-approved training providers are from various backgrounds including but not limited to the following:-
- Bursa Malaysia Berhad
- Market intermediaries
- Professional bodies
- Industry associations
- Private training providers
The fees for CPE-approved courses are left to market forces and are not regulated by the Secretariat in any way. Nevertheless, the Secretariat will monitor the pricing for the courses remains reasonable and more importantly, commensurate with the quality of the offered courses. The Secretariat will also endeavour to ensure that CMSRL holders and ERPs have the options and able to choose from a range of affordable courses.
The Secretariat will closely monitor the content, coverage and quality of CPE-approved courses to ensure its relevance to the training needs of CMSRL holders and ERPs.
A comprehensive review of the CPE curriculum will be undertaken from time to time to maintain its relevancy, currency and timeliness to the work of the CMSRL holders and ERPS as well as to meet the appropriate standards of competence in the capital market industry.
CPE approved training providers must ensure that the course content covers any of these two categories:
- Capital market development
- Capital market regulations
Capital Market Development
Generally, the capital market development courses should cover the areas relating to characteristics of capital market products and players, tools of the trade, its trading environment and scope of business services for liquidity, competition and value creation. These may include, though not limited to the following:
- 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.
Capital Market Regulations
The market regulations courses should generally cover the areas pertaining to the laws and regulations, market integrity, business ethics as well as the professional conduct for investor protection and value creation which may include, but not limited to the following:
- Regulatory developments
- Principles of corporate governance, transparency and accountability
- Business ethics
- Market integrity
The content for the market regulations courses may be derived from the securities law, business rules of market institutions, regulations, codes, guidelines and practice notes and the industry and international standards of best practices.
Most of the CPE-approved courses will be conducted at an intermediate to advanced levels as the CMSRL holders and ERPs are assumed to have acquired the basic knowledge of the subjects provided in the CPE curriculum.
However, refresher courses will also be provided with the intention to update and refresh the CMSRL holders and ERPs, in particular those who have long been in the industry.