Everything You Need to Know About Malaysia Securities Exam

Introduction

The capital markets of Malaysia are ever changing and ever developing that there is a need to regulate and systematize it. It is of this reason that Securities Commission Malaysia (Suruhanjaya Sekuriti Malaysia) or simply termed as SC was established. SC is a statutory body is entrusted with the responsibility to systematize and regulate the dynamic Malaysian capital markets.

To further implement this rationale, the Securities Industry Development Corporation or the SIDC was also established to become the leading solutions provider when it comes to developing and learning the capital markets of Malaysia. It provides various consultations and programs to Malaysian industry participants in order to produce well-informed industry players in the market.

Being the sole standard bearer of the utmost innovation and quality unique only to the Malaysian capital markets, it has also set the best standards competitive enough for the growing industry in the capital markets. In this connection, SIDC is keen in the development, maintenance and the administration of the SC Licensing examinations which are ultimately geared in producing competency-based and licensed industry players in the market. This is what is commonly known as the Securities Commission Malaysia Licensing Examinations or the SCLE.

What is the point of taking the SCLE?

As mentioned, the SCLEs are examinations that are created in order to establish a standard based competency at least on its minimum scale. In a sense, it is a sort of an entrance examination that is available to individuals or any potential industry players who are intending to represent, in any manner or form, the capital markets of Malaysia. It basically tests individuals who are exposed to the conundrums of the capital market and to prove for themselves that they have all the needed skills and eligibilities necessary for such a position.

Simply put, if you cannot pass this exam, you are not eligible to become an intermediary of the Malaysian capital market.

Is SCLE a standard requirement for certain positions?

Yes.

The following individuals or key positions that you hold or apply for requiring passing the Securities Commission Malaysia Licensing Examinations:

If you consider yourself as a candidate for any vital management in any establishment or firm, it is a mandate that you pass this examination.
If you hold the position of a compliance officer in any service provider dealing with capital markets in Malaysia.
If you consider yourself as an applicant or you are applying for any position directly handling any of the regulated activities as set forth in Table 3, Chapter 4.05 of the Licensing Handbook. These regulated activities can be summarized as follows:
- Those dealing in securities
- Those dealing in derivatives
- Fund management in relation to portfolio management
- Fund management in relation to asset management
- Advising on corporate finance
- Investment advice
- Financial planning

How many modules are there available during the SC Licensure Exam?

Examination applicants are offered a total of 13 modules for the said licensure examination. These modules particularly cover those which involve industry related activities as set forth in Table 3, Chapter 4.05 of the Licensing Handbook. You are to take a particular module depending on the position that you are applying or holding for. For instance, if you intend to apply for a CMSRL or Capital Market Services Representative’s License in order to directly deal in any particular regulated activity, you are to sit and take in a combination of examination modules. You may actually refer to the Licensing Handbook for the list of all the modules that a certain candidate will take depending on nature of the regulated activity that he will be dealing on.

Don’t be confused, however, of the list of the 13 modules available in SCLE as their module numbers do not necessarily indicate the total number of modules available. The 13 modules are the following:

How long does the SC Licensure Exam last?

Depending on the module, an SC Licensing Examination lasts for a day on an average basis. A single examination is normally divided into 2 sessions due to the volume of the exam. The first session usually takes place in the entire morning while the second session covers for the entire afternoon.

Is this an open book or a closed book exam?

Unlike the other licensure exams, the SCLE is an open-book examination but with certain qualifications (Securities Industry Development Corporation, 2020). While proponents of closed book exam will disagree, an open book examination is actually more convenient as it requires less recall and more on context and learning comprehension. Further, it is an authentic way to assess how much the applicants have really understood the subject matter and not just merely memorizing all the important concepts in the books without understanding what they mean.

During the actual examination, there are however a list of Prescribed Reference Materials (PRM) that you are allowed to take in the examination center. It is important that there are no markings or any notes on such materials. Otherwise, they will be prohibited inside the examination center. Other than those that have been prescribed, you are restricted in bringing with you any other books or references that are not permitted by the Securities Commission.

In addition, not all modules allow the open-book examination type. The PRMs are only permitted for Rules and Regulation modules only.

What is the exam format?

The SC Licensing Examinations are purely MCQ type. This means that they take in the form of Multiple Choice Questions. So if you think it is as easy as choosing among A, B, C, D, you are mistaken. Although they are simple multiple choice questions, there is nothing simple about the choices of answers that are provided in a given question. In fact, they can be quite confusing as it would appear that all of them are the answers to the given question. It is important to find the best answer for the question.

What modules are the most relevant?

Ideally speaking, all the modules as listed are important and relevant. However, when it comes to its relevance, the following are considered most common as they specifically refer to the rules and regulations related to securities and capital markets.

What is the passing rate for this exam?

This is indeed a cutthroat examination as the passing mark for the examination is 60% per examination module. Again, depending on the position you are applying, you need to take a combination of modules for securities compliance. The average number of test questions per module is around 60 questions and that it takes an average of 90 minutes to finish a single module examination.

Depending on the modules that you are required to take, a certain module is categorized as either a Level 1 or a Level 2 examination depending on its level of difficulty.

Can I pass the SC Licensure Exam?

Why not? You are only limited by what your mind dictates you.

The only thing that you need to do is study. It is not wise to wait until it is close to the examination date until you start to cram and study. Lucky you it doesn’t require any memorization as you are allowed to bring Prescribed Reference Materials, you only need to really understand what you are reading and apply it real-life scenarios as the very crux of the examination is to test how far you have really understand the scope of your specialty.

William Edwards

William is the Senior Exam Consultant at MASExam. He has worked in a large conglomerate for over 20 years.

Everything You Need to Know About Malaysia Securities Exam

Introduction

Table of Contents

What is the point of taking the SCLE?

Is SCLE a standard requirement for certain positions?

How many modules are there available during the SC Licensure Exam?

How long does the SC Licensure Exam last?

Is this an open book or a closed book exam?

What is the exam format?

What modules are the most relevant?

What is the passing rate for this exam?

Can I pass the SC Licensure Exam?

William Edwards

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