EXAMINATION STUDY GUIDE:
COMPLIANCE
(MODULE 11)
[Applicable to Examination Study Guide
Module 11 – First Edition, 2002]
UPDATES
(As at 1 January 2013)
Copyright 2012
Securities Industry Development Corporation
3, Persiaran Bukit Kiara
Bukit Kiara, 50490 Kuala Lumpur
This document consists of 20 pages including the cover page
1.
2.
Notice to readers/candidates:

Purpose of these updates is to reflect the provisions of the Capital
Markets and Services (Amendment) Act 2011 (CMSA).

All corrections are highlighted in bold. Please ensure that the relevant
topics are updated accordingly.
All topics:
(a)
All of the terms as stipulated in Column 1, where used, unless otherwise
stipulated, to be replaced with the new terms as stipulated in Column 2
as follows:
Column 1
Column 2
Executive
Director
Compliance/EDC
of Head of Compliance
Executive Director of Dealing/EDD
Executive
Director
Operations/EDO
Head of Dealing
of Head of Operations
Fund Manager(s)
Person(s) who carries(carry)
business of fund management
Futures Fund Manager(s)
Fund Manager(s) Licence
the
The Capital Markets Services Licence
(CMSL*) for carrying on the business of
fund management
Futures Fund Manager(s) Licence
Fund Manager’s Representative(s)
Futures
Fund
Representatives
on
Representatives
of
person(s)
who
carries(carry) on the business of fund
management
Manager’s
Fund Manager’s Representative(s) The Capital Markets Representatives
Licence
Services Licence (CMSRL**) for carrying on
Futures
Fund
Manager’s the business of fund management
Representatives Licence
Dealer(s)
Person(s) who carries(carry)
business of dealing in securities
2
on
the
Dealer(s) Licence
The Capital Markets Services Licence
(CMSL*) for carrying on the business of
dealing in securities
Dealer’s Representative(s)
Representatives
of
person(s)
who
carries(carry) on the business of dealing
in securities
Dealer’s Representative(s)
Licence
The
Capital
Markets
Services
Representatives Licence (CMSRL**) for
carrying on the business of dealing in
securities
Futures Broker(s)
Person(s) who carries(carry) on
business of dealing in derivatives
Futures Broker(s) Licence
The Capital Markets Services Licence
(CMSL*) for carrying on the business of
dealing in derivatives
Futures Broker’s
Representative(s)
Representatives
of
person(s)
who
carries(carry) on the business of dealing
in derivatives
Futures Broker’s
Representative(s) Licence
The
Capital
Markets
Services
Representatives Licence (CMSRL**) for
carrying on the business of dealing in
derivatives
Investment Adviser(s)
Person(s) who carries(carry)
business of investment advice
on
the
the
Futures Trading Adviser(s)
Investment Adviser(s) Licence
The Capital Markets Services Licence
(CMSL*) for carrying on the business of
investment advice
Futures Trading Adviser(s)
Licence
Investment Representative(s)
Representatives of person(s) of a Capital
Markets and Services Representative’s
Licence (CMSRL**) who carries(carry) on
the business of investment advice
Futures Trading Adviser’s
Representative(s)
Investment Representative(s)
Licence
The
Capital
Markets
Services
Representatives Licence (CMSRL**) for
carrying on the business of investment
advice
Futures Trading Adviser’s
Representative(s) Licence
3
* CMSL may be used throughout the Study Guide in place of Capital Markets
and Services Licence
** CMSRL may be used throughout the Study Guide in place of Capital Markets
and Services Representative’s Licence
3.
Introduction, Using this Examination Study Guide to prepare for Your
Examination:
(a)
Glossary and abbreviations, page v-vi
All of the existing general terms and abbreviations as stipulated in
Column 1 to be replaced with the new general terms and abbreviations
as stipulated in Column 2 as follows:
Column 1
Column 2
MDEX – Malaysia
Exchange Bhd.
Derivatives Bursa Malaysia Derivatives–Bursa Malaysia
Derivatives Berhad
MDEX Business Rules – refers to Bursa Malaysia Derivatives Rules - refers
the Business Rules of the Malaysia to the Rules of Bursa Malaysia Derivatives
Derivatives Exchange Bhd.
exchanges
–
MESDAQ, MDEX
includes
KLSE, exchanges – includes Bursa Malaysia
Securities, Bursa Malaysia Derivatives
FIA - Futures Industry Act 1993
KLSE – Kuala
Exchange
Lumpur
CMSA - Capital Markets and Services Act
2007
Stock Bursa Malaysia Securities – Bursa Malaysia
Securities Berhad
KLSE Business Rules – refers to the Bursa Malaysia Securities Rules– refers to
Memorandum and Articles of the Rules of Bursa Malaysia Securities
Association and Rules of Kuala
Lumpur Stock Exchange
KLSE Listing Rules – refers to the Bursa
Malaysia
Securities
Listing
Listing Requirements of Kuala Requirements – refers to the Listing
Lumpur Stock Exchange
Requirements
of
Bursa
Malaysia
Securities
KLSE/MESDAQ
Compliance Guidelines for Compliance OfficersGuidelines – KLSE/MESDAQ Joint Guidelines for Compliance Officers
Guidelines
for
Compliance
Officers
4
MCD
–
Malaysian
Depository Sdn Bhd
MDCH – Malaysian
Clearing House Bhd
Central Bursa Malaysia Depository
Malaysia Depository Sdn Bhd
–
Bursa
Derivatives Bursa Malaysia Derivatives Clearing –
Bursa Malaysia Derivatives Clearing Sdn
Bhd
MDCH Business Rules– refers to Bursa Malaysia Derivatives Clearing Rules
the Clearing Member’s Manual of – refers to the Rules of Bursa Malaysia
Malaysian Derivatives Clearing Derivatives Clearing
House Bhd
MESDAQ Business Rules
To delete
MESDAQ Listing Rules – refers to To delete
the Listing Rules of Malaysian
Exchange of Securities Dealing
rules – unless specific rules are
referenced, rules in general
include the Business Rules of
KLSE, MESDAQ and MDEX. When
specific rules are referred to, for
example, KLSE Rule 9.2.2 or MDEX
rule 302, they refer to the
relative business rules of the
exchanges
rules – unless specific rules are
referenced, rules in general include the
Bursa Malaysia Securities Rules and Bursa
Malaysia Derivatives Rules.
SCANS - Securities Clearing Bursa Malaysia Securities Clearing - Bursa
Automated Network Services Sdn Malaysia Securities Clearing Sdn Bhd
Bhd
SCANS Business Rules – refers to Bursa Malaysia Securities Clearing Rules the Rules of Securities Clearing refers to the Rules of Bursa Malaysia
Automated Network Services Sdn Securities Clearing Sdn Bhd
Bhd
Securities Laws – includes SCA, Securities Laws – includes SCA, CMSA and
SIA, SICDA and FIA
SICDA
SIA – Securities Industry Act 1983
(b)
CMSA - Capital Markets and Services Act
2007
Websites, page vi
Bullet 2, to delete www.klse.com.my and replace with
www.bursamalaysia.com.my
Bullet 3, to delete www.mesdaq.com.my and replace with
www.sidc.com.my
Bullet 4, to delete www.mdex.com.my
5
4.
Topic 1: Fundamentals of Compliance
(a)
Contents page
Subtopic 4 Compliance and the Universal Broker to be amended to the
following:4
Compliance and the Participating Orgainsation
Subtopic 4.2 Executive Director of Compliance (EDC) to be amended to
Subtopic 4.2 Head of Compliance
Subtopic 4.3 Corporate finance activities by Universal Brokers, to add
and Investment Banks after Universal Brokers
Subtopic 4.4 Risk Management Department and Committee for
Universal Brokers to be amended to Subtopic 4.4 Risk Management
Committees for Participating Organisations
Subtopic 4.5 Audit Committees of Universal Brokers to be amended to
Subtopic 4.5 Audit Committees of Participating Organisations
Subtopic 4.6 Internal Audit Department of Universal Brokers to be
amended to Subtopic 4.6 Internal Audit Functions in Participating
Organisations
(b)
Preview, Page 1-1
Topic objectives
Bullet 9, amend Universal Brokers to Participating Organisations
Bullet 10, amend Executive Director-Compliance to Head of Compliance
(c)
Self-assessment Exercise 1, Page 1-8
To delete the exercise
6
(d)
Subtopic 1.5, Levels of compliance, Financial, Page 1-10:
Paragraph 1
To replace membership with participantship
(e)
Self-assessment Exercise 2, Page 1-11
To re-number Self-assessment Exercise 2 as Self-assessment Exercise 1
(f)
Self-assessment Exercise 3, Page 1-12
To re-number Self-assessment Exercise 3 as Self-assessment Exercise 2
(g)
Subtopic 4 Compliance and the Universal Broker, Page 1-20
Heading
4
Compliance and the Universal Broker to be amended to the
following:4
(h)
Compliance and the Participating Organisation
Subtopic 4.1 Background, Page 1-20
To delete Paragraph 1 and 2 and to replace with the following:Bursa Malaysia Securities Rule 307.1(1) states that every Universal
Broker and Investment Bank shall appoint at least one (1) Head of
Compliance unless exempted under Rule 307.1(3).
(i)
Subtopic 4.2 Executive Director Compliance (EDC), Pages 1-20 and 1-21
The entire subtopic to be amended and replaced with the following:4.2
Head of Compliance
The requirements to be a Head of Compliance are as set out in
Chapter 4 of the Licensing Handbook and Bursa Malaysia Securities
Rule 307.2.
7
The Head of Compliance is responsible for all compliance matters as
envisaged in the Bursa Malaysia Securities Rule and carry out such
duties of a Compliance Officer as stipulated in Rule 309 and as may
be prescribed by Bursa Malaysia Securities from time to time.
It is the responsibility of the Head of Compliance to report to the
Universal Broker’s or Investment Bank’s board of directors upon him
becoming aware of any matter which in his opinion may:
constitute a breach of any provision of the Securities Laws

involve the potential default of the Universal Broker or the
Investment Bank against the Clearing House or the
counterparty

have a material effect upon the minimum financial
requirements prescribed pursuant to Section 67 of the Capital
markets and Services Act and Bursa Malaysia Securities Rules
to be complied by the Universal Broker and the Investment
Bank

jeopardise the monies, funds, collateral, property or assets of
the clients held by the Universal Broker and Investment
bank;and/or

significantly affect the risk position and financial integrity of
the Universal Broker and Investment Bank.
In addition to the reporting requirement of the Head of Compliance
to Board of Directors, the Head of Compliance shall immediately
report to the SC upon him becoming aware of any matter, may
constitute breach of any provisions of the securities laws.
For all matters reported to the Universal Broker’s or Investment
Bank’s board of directors, the Head of Compliance shall thereafter
keep the SC and Bursa Malaysia Securities informed of any decision of
the Universal Broker’s or Investment Bank’s board of directors and
particulars of any corrective measures and decided course of actions
taken or to be taken, as the case may be, within 30 days of his
reporting thereof to the board of directors and thereafter, of the
completion of the measures and actions taken, if any.
(j)
Subtopic 4.3 Corporate Finance activities by Universal Brokers, Pages 121
Heading
To add and Investment Banks after Universal Brokers
To replace the entire subtopic with the following:8
4.3
Corporate finance activities by the Universal Brokers and/or
Investment Banks
One of the activities that a Universal Broker and/or
Investment Bank may be allowed to undertake is corporate
financing. In order for the Universal Broker and/or Investment
Bank to perform the corporate finance function, the Universal
Broker and/or Investment Bank must establish and maintain a
Corporate Finance Department that is separated from other
departments. The Universal Broker and/or Investment Bank
must appoint a head for the Corporate Finance Department at
the principal office and one head to be responsible for all
matters relating to the Universal Broker’s or Investment
Bank’s corporate finance activities at each branch office.
As the activities of corporate financing are often exposed to
confidential and privileged information, the Universal Broker
and/or Investment Bank must establish and maintain a
reporting structure for the Corporate Finance Department
that will ensure that the confidentiality of all information
pertaining to the corporate finance activities are upheld.
The Universal Broker and/or Investment Bank must also
ensure there are firewalls between the Corporate Finance
Department with the various other businesses permitted to be
carried out by the Universal Broker and/or Investment Bank.
To achieve physical segregation, the Corporate Finance
Department should be located either on a different floor with
controlled access or, if not, with physical barriers from the
other activities of the Universal Broker and/or Investment
Bank.
Apart form the physical segregation, the Universal Broker
and/or Investment Bank must ensure other activities,
particularly dealing activities, have no direct or indirect
access to the corporate finance activities. Bursa Malaysia
Securities rule 508.5(3) contains provisions requiring the
establishment of `Chinese Walls’ to maintain proper
segregation of those functions, particularly with regard to the
flow of information. See Topic 3, Segregation through
Firewalls
9
(k)
Subtopic 4.4 Risk Management Department and Committee for Universal
Brokers, Pages 1-22
Heading
4.4
Risk Management Department and Committee for Universal
Brokers to be deleted and replaced with 4.4
Risk
Management
Committees for Participating Organisations
Paragraph 1
To delete Universal Brokers are required to establish and maintain a
Risk Management Department at its principal office. The Risk
Management Committee shall report to the Executive DirectorOperations on a daily basis. In addition, a risk management committee
must be established. and replace with the following:Every Participating Organisation who carries out any of the activities
set out in Bursa Malaysia Securities Rules 503.1 and 503.2 other than
dealing in securities and margin financing shall ensure the
establishment and maintenance of a Risk Management Committee
which shall report to its board of directors on any matters relating to
risk management and the Participating Organisation shall ensure the
proper carrying out of risk management functions by the relevant
department and the reporting of the same to the Risk Management
Committee (Bursa Malaysia Securities rule 509.1).
Bullet 1 to 4, to amend all references to Universal Broker and replace
with Participating Organisation
Paragraph 2
Line 1, to amend The risk management committee with The
department carrying out the risk management functions
Line 2, to add risk management between formulated by the and
committee
Paragraph 3
To replace the entire paragraph with the following:The risk management committee shall comprise persons who are
competent, have no conflict of interest in the discharge of their
functions and collectively have the relevant skills and experience to
carry out the functions of the Risk Management Committee. The
Participating Organisation must ensure that the majority of the
members of the Risk Management Committee are not persons who
hold a dealer’s representative’s licence.
10
Paragraph 4
To be deleted and to be replaced with the following paragraph:Bursa Malaysia Securities rule 509.4 states that all provisions in Rule
509 relating to the Risk Management Committee shall not be
applicable to an Investment bank and shall be substituted with the
relevant provisions in the Guidelines on Investment Banks and/or
requirements of the Central Bank pertaining to the same.
(l)
Subtopic 4.5 Audit Committee of Universal Brokers, Page 1-22
Heading
4.5
Audit Committee of Universal Brokers to be deleted and
replaced with 4.5
Audit Committees of Participating Organisations
Paragraph 1
To amend all references to Universal Broker and replace with
Participating Organisation
To add or at Group level according to Bursa Malaysia Securities rule
511 between its own audit committee and who would ensure regular
review
To add (Bursa Malaysia Securities rule 510.1(2)) after of the firm’s
internal controls.
To delete However, the Universal Broker shall not be permitted …is the
business of dealing in securities.
Paragraph 2
To delete the entire paragraph and replace with the following:The Participating Organisation must ensure that the Audit Committee
comprises persons who are competent, have no conflict of interest in
the discharge of their functions as members of the Audit Committee
and collectively have the relevant skills and experience in carrying
out the functions of the Audit Committee.
To add the following as paragraph 3:Bursa Malaysia Securities rule 510.4 states that all provisions in Rule
510 relating to the Audit Committee shall not be applicable to an
Investment bank and shall be substituted with the relevant provisions
in the Guidelines on Investment Banks and/or requirements of the
Central Bank pertaining to the same.
11
(m)
Subtopic 4.6 Internal Audit Department of Universal Brokers, page 1-23
Heading
4.6
Internal Audit Department of Universal Brokers to be deleted
and replaced with 4.6 Internal audit functions in Participating
Organisations
Paragraph 1
To amend A Universal Broker is required to establish and maintain … of
the firm’s management, operations and internal controls. And replace
with the following:A Participating Organisation is required ensure that it carries out
internal audit functions whether on its own or in accordance with
Bursa Malaysia Securities rule 511 to examine, evaluate and report
the adequacy and efficiency of the firm’s management, operations
and internal controls.
To delete However, the Universal Brokers shall not…at its holding
company. Nevertheless, the Internal Audit Department …the functions
and activities contemplated.
(n)
Answers to Self-assessment Exercise 1, Page 1-34
To delete the entire answer
(o)
Answers to Self-assessment Exercise 2, Page 1-34
To re-number Answers to Self-assessment Exercise 2 as Answers to Selfassessment Exercise 1
(p)
Answers to Self-assessment Exercise 3, Page 1-34
To re-number Answers to Self-assessment Exercise 3 as Answers to Selfassessment Exercise 2
12
5.
Topic 2: Roles and Responsibilities
(a)
Subtopic 1 Directors, Page 2-2
Paragraph 4, to delete the following sentence:
If the Board fails to act upon a notification from the Compliance
Officer, the exchange deems it a failure to act on the part of the
board. See KLSE/MESDAQ Compliance Guidelines p.11 and KLSE rule
3.6.4-3.6.5, and Futures Compliance Guidelines pp. 8,10.
(b)
Subtopic 2 Managers, Page 2-3
Paragraph 1, to delete the entire paragraph.
Paragraph 2, to add of a firm between the managers and in carrying
their duties and obligations
(c)
Subtopic 3.2 Compliance Officer, Functions Page 2-5 to 2-6
Paragraph 6
Bullet 1, to delete subparagraph 2 and 3
Bullet 5, subparagraph 3
To amend all references to section 20A of the SIA and replace with
section 67 of the CMSA
(d)
Subtopic 4 Audit Committee, Page 2-7
Paragraph 3 and 4, to delete
Paragraph 5 and Bullets 1 – 5, to be deleted and replaced with the
following:As set out in the Malaysian Code on Corporate Governance 2012, the
audit committee should:
Ensure financial statements comply with applicable financial
reporting standards

Have policies and procedures to assess the suitability and
independence of external auditors
13
Paragraph 6
To amend KLSE Rule 10.2.1(2) and replace with Bursa Malaysia
Securities Rule 510.1(2)
(e)
Subtopic 5 Internal Audit, Page 2-8 to page 2-9
Paragraph 1
To amend KLSE rule 10.2.2 with Bursa Malaysia Securities Rule
510.2(2)
Paragraph 4
To be deleted and replaced with the following:The Malaysian Code on Corporate Governance 2012 provides that the
board should establish an internal audit function and identify a head
of internal audit who reports directly to the audit committee. The
head of internal audit should have the relevant qualifications and be
responsible for providing assurance to the board that the internal
controls are operating effectively. Internal auditors should carry out
their functions according to the standards set by recognised
professional bodies. Internal auditors should also conduct regular
reviews and appraisals of the effectiveness of the governance, risk
management and internal controls processes within the company.
(f)
Answers to Self-assessment Exercise 1, Page 2-10
Paragraph (a)
Bullet 1, to amend KLSE rule 3.6.5 and replace with Bursa Malaysia
Securities Rule 309.7
Bullet 2, to amend MDEX rule 610.1 and replace with Bursa Malaysia
Derivatives Rule 610.1 (a)
Bullet 3, to amend MESDAQ rule 508(1) read in conjunction with the
KLSE/MESDAQ Compliance Guidelines. and replace with Guidelines for
Compliance Officers p. 11 Bullet 4, to amend and replace the entire paragraph with the following:
For a unit trust scheme, Guidelines on Unit Trust Funds 3.11
provides that ‘a management company should appoint a
compliance officer to ensure compliance with the deed,
prospectus disclosures, these guidelines and securities laws.’
14
Paragraph (b)
Bullet 1, to delete all references to KLSE rule 10.2.2 and replace with
Bursa Malaysia Securities Rule 510.2
Bullet 2, to amend Unit Trust Guideline 7.3.4 and replace with
Guidelines on Unit Trust Funds 3.15
(g)
Checklist, Page 2-11
Bullet 9, to delete the following sentence:
However, the Compliance Officer needs to be represented at the audit
committee level
6.
Topic 3: Establishing and Monitoring Compliance
(a)
Subtopic 1.1 Establishment, Self-assessment Exercise, Page 3-3
Paragraph (a)
To delete MESDAQ
To delete MDEX and KLSE and replace with Bursa Malaysia Derivatives
Berhad and Bursa Malaysia Securities Berhad
(b)
Subtopic 1.2 With what do we need to comply?, Page 3-3
Paragraph 1
To delete and the self-regulatory organisations (the exchanges and
clearing houses), as the front-line regulators. and replace with and the
front-line regulators (the exchanges and clearing houses).
(c)
Subtopic 1.2 With what do we need to comply?, Statutory regulation,
Page 3-3 to Page 3-4
Paragraph 1
Bullet 1, to amend (See Part II of the FIA and Part III of the SIA) and
replace with (See Part II of the CMSA)
Bullet 2, to amend (Part IV of the SIA, Part III of the SIA) with (Division
1 of Part III of the CMSA)
Bullet 3, to amend (Part VI of the SIA, Part VI of the FIA) with (Division
3 of Part III of the CMSA) and to amend (Part IX of the SIA, Part VII of
the FIA) with (Part V of the CMSA)
15
(d)
Subtopic 1.2 With what do we need to comply?, Guidelines and Policies,
Page 3-4
Paragraph 3
To amend There are currently six-front line self-regulatory
organisations regulated by the SC: and replace with The following are
the front-line organisations regulated by the SC:
Paragraph 4
To amend the paragraph Transactions on the KLSE and MESDAQ ….in
accordance with the business rules of MDEX and MDCH as follows:Transactions on Bursa Malaysia Securities are subject to the Bursa
Malaysia Securities Rules and the Bursa Malaysia Securities Clearing
Rules, whereas transactions involving derivatives are traded in
accordance with the Bursa Malaysia Derivatives Rules and the Bursa
Malaysia Derivatives Clearing Rules
(e)
Subtopic 3 Segregation through Firewalls, Page 3-16
Paragraph 6 (Last paragraph)
To delete the entire paragraph.
(f)
Appendix 3, Page 3-34
To delete the entire Appendix 3.
(g)
Checklist, Page 3-51
Bullet 3
To amend and the self-regulatory organisations (the exchanges and
clearing houses), as the front-line regulators. and replace with and the
front-line regulators (the exchanges and clearing houses).
16
7.
Topic 4: Risk Management
(a)
Subtopic 3.1 Risk Management Infrastructure, Separation of duties, Page
4-13
Paragraph 1
To replace KLSE rule 2.3.2 with Bursa Malaysia Securities Rule
304.(1)(a)
To replace Executive Directors with Head
Paragraph 2
To replace Executive Directors with Head
(b)
Subtopic 3.1 Risk Management Infrastructure, System adequacy, Page 413
Paragraph 1
To replace KLSE rule 5.1.2 with Bursa Malaysia Securities Rule
701.2(1)
To replace all references to Member Company with Participating
Organisation
To replace For example, KLSE rule 17F requires a Member Company to
ensure that a client’s outstanding balance for normal and margin does
not exceed 100% and 30% of its adjusted capital, respectively. with the
following sentence:
For example, Bursa Malaysia Securities Rule 703.4 states that a
client’s outstanding balance in its margin account shall not exceed
200% the Effective Shareholders’ Funds of the Participating
Organisation.
(c)
Subtopic 3.1 Risk Management Infrastructure, Reporting, Page 4-14
Paragraph 1
To replace all references to Member Company with Participating
Organisation
To delete is required under KLSE rule 3.4.1(6) to and replace with
should
17
Paragraph 2
To replace all references to Member Company with Participating
Organisation
To replace KLSE rule 9.2.2 with Bursa Malaysia Securities Rule
1105.3(4) and KLSE rule 9.5 with Bursa Malaysia Securities Rule
1105.4
8.
Topic 6: Structural Framework and Principles of capital market Regulation
(a)
Subtopic 1.2 Corporate Governance, Page 6-2
Paragraph 3
To replace The Malaysian Code on Corporate Governance sets out
recommendations which relate to the broad principles of corporate
governance and the best practice principles for companies. with the
following sentence:
The Malaysian Code on Corporate Governance 2012 sets out the
broad principles and specific recommendations on structures and
processes which companies should adopt in making good corporate
governance an integral part of their business dealings and culture.
(b)
Subtopic 2.2 Prudential capital requirements, Page 6-3
Paragraph 3
To amend Chapter 9 of the KLSE Business Rules with Chapter 11 of the
Bursa Malaysia Securities Rules
(c)
Subtopic 2.3 Transparency, Page 6-5
Paragraph 1
To delete The enhancement of market transparency is one of the areas
targeted by the amendments to the laws governing the securities
industry.
(d)
Self-assessment Exercise 3, Page 6-5
Paragraph (a), to delete business rules of MDEX and MESDAQ and
replace with Bursa Malaysia Derivatives Rules
18
(e)
Answer to Self-assessment Exercise 2, Page 6-13
Paragraph (a)
Bullet 1, to amend KLSE rule 9.5 with Bursa Malaysia Securities Rule
1102 and 1105
Bullet 2, to amend KLSE rule 3.4.7(2) with Bursa Malaysia Securities
Rule 404.7
Bullet 3, to amend KLSE rule Chapter 7 with Bursa Malaysia Securities
Rule 902.2
Paragraph (b)
Bullet 1, to amend KLSE rule 602.3 with Bursa Malaysia Securities Rule
404.4(4)
Paragraph (c)
Bullet 1, to amend KLSE rule 3.4.3(7)(a) with Bursa Malaysia Securities
Rule 404.3(7)(a)
(f)
Answer to Self-assessment Exercise 3, Page 6-13
Paragraph (a)
To delete Bullet 2
Paragraph (b)
Bullet 1, to amend KLSE rule 9.1.1 with Bursa Malaysia Securities Rule
1101.1(1)
Bullet 2, to delete For a corporation applying for Trading Permit (rule
319.3A[a]), a minimum issued and paid-up share capital of RM5 million
(g)
Answer to Self-assessment Exercise 4, Page 6-14
Paragraph (b)
Bullet 1, to amend KLSE rule 5.2.2 with Bursa Malaysia Securities Rule
702
19
(h)
Answer to Self-assessment Exercise 6, Page 6-15
Paragraph (a)
Item (a), to amend KLSE rule 9.5.8 with Bursa Malaysia Securities Rule
1105.8(1)
Item (b), to amend MDEX rule 711 – Emergency Rules with Bursa
Malaysia Derivatives Rule 707.4
9. Topic 7: Guidelines for Compliance
(a)
Subtopic 2.3 MESDAQ Business Rules (Rule 500), Page 7-95
The entire subtopic to be deleted
(b)
Subtopic 2.4 Code of Conduct for Market Institutions, Page 7-96
The entire subtopic to be deleted
20