ANNOUNCEMENT

1. INTRODUCTION
  1.1. All companies licensed to carry on the regulated activity of dealing in securities and which are Participating Organisations are required to have a compliance officer (CO) as specified under Para 4.02(17) of the Licensing Handbook. In addition, a company which is licensed to carry on the regulated activity of dealing in securities and is an investment bank or a universal broker is required to have a head of compliance (HoC).
     
  1.2 The HoC and CO must meet the minimum entry criteria including passing the relevant modules of the Securities Commission (SC) examinations before seeking registration with the SC. This announcement sets out an alternative option for applicants to qualify for registration as HoC and CO. Applicants may either fulfill the current qualification and experience requirements as set out in the Licensing Handbook or avail themselves of the option described below.
     
     
2. CURRENT QUALIFICATION AND EXPERIENCE REQUIREMENTS
  2.1 The minimum entry level in terms of qualification and experience requirements for candidates seeking registrations as a HoC or CO are as follows:
    i. Candidates for HoC must possess a degree or professional qualification and have 7 years of working experience, with at least 5 years of relevant experience in the capital market; and
    ii. Candidates for CO must either possess a degree with 3 years of relevant experience in the capital market or a diploma with 5 years of relevant experience in the capital market industry.
     
  2.2 Candidates are also required to pass the relevant SC licensing examinations before being registered with the SC which are as follows:
    i. Module 11 (Fundamentals of Compliance); and
  ii.

Module 6 (Stock Market and Securities Laws) and Module 7 (Financial Statement Analysis and Asset Valuation)

       
       
3. OPTION AVAILABLE TO FULFILL THE EXPERIENCE AND QUALIFICATION REQUIREMENT
  3.1 As an alternative to the above qualification and experience entry criteria, the SC will recognise the following experience and qualification requirements for applicants seeking registration with the SC as a HoC or CO.
       
  3.2 Minimum experience and qualification requirement for applications seeking registration as HoC:
     
  • Recognised degree with at least 3 years direct experience as a compliance officer in the capital market; or
  • Recognised degree and at least 5 years relevant experience in the capital market; or
  • Recognised diploma and at least 8 years relevant experience in the capital market.
       
  3.3 Minimum experience and qualification requirement for applications seeking registration as CO with companies that require a HoC:
     
  • Recognised degree; or
  • Recognised diploma and 3 years relevant experience in the capital market
       
  3.4 Minimum experience and qualification requirement for applications seeking registration as CO with companies that do not require a HoC:
    i. Recognised degree with 3 years relevant experience in the capital market; or
    ii. Recognised diploma and 5 years relevant experience in the capital market.
       
       
4. Registration Qualifications
  4.1 In addition to the above entry requirement, applicants for both HoC and CO must fulfill the following SC related qualifications:
     

Pass Module 11 of SC Licensing Examination;

  • Attend SC Licensing Examination Preparatory Courses on the relevant modules which the applicant will be responsible with regard to compliance; and
  • To complete at least 3 Industry Transformation Initiative (ITI) courses that are relevant to the regulated activity that they are supervising (to note that the ITI courses need not be those which are mandatory for CMSRL holders).
  4.2

Following this change, the position of HoC is to be filled by individuals who fulfill the above requirements. The previous option of fulfilling licensing examination collectively (as contained in Table 6 of Chapter 4.06 of the Licensing Handbook) will no longer be available.

Example
Applicant A is seeking registration as a compliance officer of a stock broking company. Applicant A must:

  • Pass SC Licensing Examination – Module 11 and

  • Attend SC Licensing Examination Preparatory Courses for Modules 6 and 7 and v

  • Attend at least 3 ITI courses relevant to stock broking business.

The SC Licensing Examination, SC Licensing Examination Preparatory Courses and ITI Courses are conducted by the Securities Industry and Development Centre (SIDC). Applicants may refer to the SIDC website (www.sidc.com.my) for details on SC Licensing Examination Preparatory Courses, ITI Courses and SC Licensing Examination schedule.

IMPLEMENTATION DATE
The above qualification and experience requirements take effect from 6 April 2009.

For further clarification, please contact Yusliza Mohd Razalan at 03-6204 8235 or Rosli Ahmad at 03-6204 8182 from the SC Authorisation & Licensing Department on registration details and SIDC Marketing & Corporate Services at 03-6204 8667/8665 on examinations, preparatory courses and ITI courses.

April 2009