Central to the CPE concept is the need to foster a culture of continuous learning amongst individuals who carry on any capital market activities regulated under the Capital Markets and Services Act 2007 (CMSA).
Through the CPE programme, it is hoped that investors will gain assurance that these capital market professionals do not only satisfy the fit and proper criteria but are also capable to perform their functions effectively, efficiently and fairly. In addition, the confidence of the international community will be enhanced as higher standards are being practised by them.
What is CPE?
The CPE is a mandatory programme for capital market professionals to consistently update and/or refresh their technical knowledge, skills and ethical standards as has been collectively prescribed under the Securities Commission Malaysia’s (SC) Licensing Handbook and the Guidelines on Investor Protection (IP Guidelines) jointly issued by the SC and Bank Negara Malaysia.
Who falls under the CPE requirements?
The CPE applies to all individual licensed persons and employees of registered persons who conduct capital market activities as regulated under the CMSA.
|1.||Capital Markets and Services Representative’s Licence holders|
|All individual licensed persons i.e. the Capital Markets and Services Representative’s Licence (CMSRL) holders are obliged to fulfil the CPE requirements.The CMSA prescribes that all CMSRL holders are no longer required to renew their licence(s) with effect from 3rd October 2011. Consequently, the expiry date of the licence will now be known as the ‘anniversary date of the licence’. In place of the renewals, the CMSRL holders will be required to make yearly submission of information on every anniversary date of their licence, that is Form 6 – ‘Anniversary Reporting for Authorisation of Activity (CMSRL) (“ARAA”)’. This AARA will be used to help the SC to determine the fit and properness of the CMSRL holders to continue to be licensed in order and be allowed to carry out any of the following regulated activities under the CMSA:
|2.||Employees of Registered Persons|
|The employees of registered persons are those individuals employed by the financial institutions that are deemed as the “registered persons” (RPs) under Section 76(1)(a) of the CMSA to carry out the capital market activities listed in Part 1, Schedule 4 of the CMSA on behalf of the RPs (ERPs).Effective from 1 January 2011, all ERPs must comply with the CPE requirements, as part of meeting the ‘fit and proper’ standards laid down in the IP Guidelines. In this regard, the RPs must maintain a proper register containing details of their ERPs who are subjected to CPE compliance. The RPs are also fully responsible to register and/or update the details of their ERPs with the CPE Secretariat accurately and promptly. Any delay in doing so may affect the ERPs’ compliance of CPE requirements since the CPE points accumulated prior to the date of registration by the CPE Secretariat will not be considered and recorded under the ERPs CPE points record.|