ANNOUNCEMENT

 

1.

INTRODUCTION

1.1.

All companies licensed to carry on the regulated activity of trading in futures contracts 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 trading in futures contracts 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.

Modules 14 (Futures & Options) and 16 (Rules & Regulations of Futures and Options)

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 recognize 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:

i.

Recognised degree with at least 3 years direct experience as a compliance officer in the capital market; or

ii.

Recognised degree and at least 5 years relevant experience in the capital market; or

iii.

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:

i.

Recognised degree; or

ii.

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:

i.

Pass Module 11 of SC Licensing Examination;

ii.

Attend SC Licensing Examination Preparatory Courses on the relevant modules i.e Modules 14 & 16; and

iii.

To complete at least 3 Industry Transformation Initiative (ITI) courses that are relevant to the regulated activity that they are supervising.

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 futures broking company. Applicant A must:

i.

Pass SC Licensing Examination – Module 11 and

ii.

Attend SC Licensing Examination Preparatory Courses for Modules 14 and 16 and

iii.

Attend at least 3 ITI courses relevant to futures broking business.

Example 2
Applicant B is seeking registration as a compliance officer of a futures broking company but has passed Modules 11 & 14. Applicant B must:

i.

Attend SC Licensing Examination Preparatory Courses for Modules 16 and

ii.

Attend at least 3 ITI courses relevant to futures broking business.

The SC Licensing Examination, SC Licensing Examination Preparatory Courses and ITI Courses are conducted by the Securities Industry and Development Corporation (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 1 June 2009.

For further clarification, please contact Maizura Abdul Razak at 03-6204 8488 from the SC Authorisation & Licensing Department on registration details and Saadon and Zaine from SIDC Professional Education Services at 03-6204 8667/8665/8664 on examinations, preparatory courses and ITI courses.

June 2009