Module 9 Study Note Flashcard
Question:
What is required for individuals to perform regulated activities in Malaysia's capital market?
Answer:
A Capital Markets Services Representative's License (CMSRL).
Question:
What does the Securities Commission Malaysia Act 1993 establish?
Answer:
It establishes the Securities Commission Malaysia (SC), which is responsible for regulating and developing the Malaysian capital market.
Question:
What is the primary legislation governing capital markets in Malaysia?
Answer:
The Capital Markets and Services Act 2007 (CMSA).
Question:
How do auditors ensure the accuracy of financial statements?
Answer:
Through audit procedures like testing transactions, verifying balances, and evaluating internal controls.
Question:
What is the purpose of the Guidelines for the Establishment of Foreign Fund Management Companies?
Answer:
To facilitate the establishment of foreign fund management companies in Malaysia, promoting competition and diversity in the market.
Question:
What are closed-end funds and what guidelines govern their public offerings?
Answer:
Investment funds with a fixed number of shares, governed by the Guidelines for Public Offerings of Securities of Closed-end Funds.
Question:
What is the focus of the Guidelines on Compliance Function for Fund Management Companies?
Answer:
Establishing a robust compliance framework to ensure adherence to regulatory requirements and internal policies.
Question:
What are the key responsibilities outlined in the Licensing Handbook for licensed entities?
Answer:
Ensuring compliance with legal and regulatory requirements, maintaining adequate financial resources, and ensuring proper conduct of business.
Question:
What are the primary objectives of the Guidelines on Unit Trust Funds?
Answer:
To ensure proper management, safeguarding of investors' interests, and transparency in the operations of unit trust funds.
Question:
What does the Lodgement Kit for Unlisted Capital Market Products under the Lodge and Launch Framework provide?
Answer:
Detailed procedures and requirements for lodging unlisted capital market products with the SC.
Question:
What is the Lodge and Launch Framework?
Answer:
A framework allowing for the expedited offering of unlisted capital market products through a streamlined lodgement process.
Question:
What measures are recommended in the Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries?
Answer:
Implementing robust customer due diligence, record-keeping, and reporting suspicious transactions.
Question:
What is the role of a Compliance Officer under the Guidelines on Compliance Function for Fund Management Companies?
Answer:
To ensure the company adheres to all regulatory and internal policies and to manage compliance risk.
Question:
What constitutes a breach of the Capital Markets and Services Act 2007?
Answer:
Engaging in fraudulent, deceptive, or manipulative activities in the capital market.
Question:
What is the focus of the Guidelines on Islamic Fund Management?
Answer:
Establishing principles and standards for the management of funds in accordance with Shariah law.
Question:
What are Exchange-Traded Funds (ETFs) and which guidelines govern them?
Answer:
ETFs are investment funds traded on stock exchanges, governed by the Guidelines on Exchange-Traded Funds.
Question:
What is the purpose of the Lodge and Launch Framework?
Answer:
To expedite the issuance process for unlisted capital market products, enhancing market efficiency and innovation.
Question:
What is the significance of the Licensing Handbook for market intermediaries?
Answer:
It provides detailed requirements for licensing, conduct, and operations of market intermediaries to ensure integrity and investor protection.
Question:
What are the key disclosure requirements under the Guidelines on Unit Trust Funds?
Answer:
Full and accurate disclosure of fund objectives, investment policies, risks, fees, and performance.
Question:
What is a Capital Markets Services License (CMSL)?
Answer:
A license required for companies to conduct regulated activities in Malaysia's capital market.
Question:
What are the responsibilities of market intermediaries under the Guidelines on Prevention of Money Laundering and Terrorism Financing?
Answer:
Conducting customer due diligence, monitoring transactions, and reporting suspicious activities.
Question:
What is an Islamic Fund and how is it managed?
Answer:
An investment fund that operates in accordance with Shariah principles, managed according to the Guidelines on Islamic Fund Management.
Question:
What is required for the establishment of a foreign fund management company under the relevant guidelines?
Answer:
Meeting regulatory requirements, including capital adequacy, fit and proper criteria for directors and officers, and operational readiness.
Question:
What are the main components of a compliance framework as per the Guidelines on Compliance Function for Fund Management Companies?
Answer:
Policies and procedures, compliance monitoring, reporting, and training.
Question:
What is the main objective of the Securities Commission Malaysia Act 1993?
Answer:
To regulate and develop the capital market in Malaysia, ensuring its integrity and stability.
Question:
What is the significance of the Guidelines on Exchange-Traded Funds for investors?
Answer:
They provide a regulatory framework ensuring transparency, liquidity, and investor protection for ETFs.
Question:
How do the Guidelines on Unit Trust Funds protect investors?
Answer:
By ensuring transparency, proper management, and safeguarding of assets through stringent regulatory requirements.
Question:
What information must be included in the prospectus of a closed-end fund?
Answer:
Fund objectives, investment strategy, risks, fees, and governance structure.
Question:
What is the role of the Securities Commission Malaysia?
Answer:
To oversee and regulate the Malaysian capital market, ensuring fair and transparent operations.
Question:
What are the penalties for non-compliance with the Capital Markets and Services Act 2007?
Answer:
Penalties may include fines, imprisonment, or both, depending on the severity of the breach.
