Module 11 Study Note Flashcard

Monitoring compliance with regulations, reporting breaches, implementing compliance programs, and ensuring adherence to internal policies.

A person or entity that engages in the trading of futures contracts on behalf of clients.

To ensure compliance with regulatory requirements and promote ethical conduct within financial institutions.

A financial institution that holds customers' securities for safekeeping to minimize the risk of theft or loss.

To provide a regulatory framework for the operation of the securities market, ensuring fair and orderly trading.

AML involves implementing measures to detect and prevent money laundering activities, including customer due diligence and reporting suspicious transactions.

It refers to the ethical and professional behavior expected from stockbroking companies and their representatives in market activities.

To regulate the establishment, operation, and management of unit trust funds, ensuring investor protection and transparency.

It ensures that the company adheres to all regulatory requirements, thereby protecting investors and maintaining market integrity.

These rules govern the trading, clearing, and settlement of derivative products on Bursa Malaysia Derivatives Berhad.

Specific instructions and guidelines issued to participating organizations to ensure compliance with rules and enhance market integrity.

Entities authorized by Bursa Malaysia to participate in trading activities on the securities exchange.

The mandatory reporting of transactions that appear to be linked to money laundering or terrorist financing to the relevant authorities.

KYC involves verifying the identity of clients, understanding their financial activities, and assessing potential risks of illegal activities.

Ensuring fair trading practices, maintaining records, implementing risk management measures, and complying with regulatory requirements.

Firms or individuals that facilitate trading and investment activities in the capital markets, including brokers, fund managers, and advisors.

Market manipulation involves actions designed to deceive or artificially affect the price of securities, which is prohibited to ensure fair trading.

A collective investment scheme that pools money from many investors to invest in securities such as stocks, bonds, and other assets.

CDD involves assessing the risk profile of clients, verifying their identities, and monitoring transactions for suspicious activity.

A function that independently evaluates the effectiveness of the company's internal controls, risk management, and governance processes.

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

The process of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability of unfortunate events.

The system of rules, practices, and processes by which a company is directed and controlled, ensuring accountability and transparency.

Stockbroking companies must report any breaches of regulations, suspicious transactions, and ensure timely submission of required information.

To continuously review and assess the effectiveness of compliance policies and procedures, ensuring adherence to regulatory requirements.

Ensuring that all clients are treated fairly, transactions are executed at the best possible terms, and conflicts of interest are managed properly.

Standards that ensure compliance officers possess the necessary qualifications, competence, and integrity to perform their duties effectively.

The provision of funds or financial support to individuals or groups engaged in terrorist activities.

The process of identifying, documenting, and reporting any violations of regulatory requirements or internal policies, crucial for maintaining transparency and accountability.

A situation where personal or financial interests may potentially interfere with the duty to act in the best interests of clients or the company.