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SIDC eFPMR_2

Total questions: 15

Worksheet time: 30mins

Name
Class
Date
1.

"Undertaking on behalf on any person the management of portfolio of securities or derivatives or a combination of both, whether on a discretionary or otherwise."

Which of the following regulated activities is described by the statement above?

a)

Investment advice

b)

Financial planning

c)

Fund Management

d)

Clearing for securities and derivatives

2.

Which of the following are categories of Participating Organizations?

i. Universal Broker

ii. Investment Banker

iii. Commercial Bank

iv. Special Scheme Broker

a)

(i) and (iv) only

b)

(ii) and (iii) only

c)

(i), (ii) and (iv) only

d)

All of the above

3.

The Guidelines for Marketing Representatives issued by the Securities Commission Malaysia defines a marketing representative as a person who:

i. provides client support services on behalf of his principal

ii. undertakes marketing of the services provided by his principal

iii. is able to conduct on behalf of his principal suitability assessment of a client

iv. acts as a licensed representative of a principal who is a Capital Market Services Licensed holder

a)

(i) and (ii) only

b)

(iii) and (iv) only

c)

(i), (iii) and (iv) only

d)

(ii), (iii) and (iv) only

4.

Thaqifa is a registered marketing representative of a Capital market Services License for the regulated activity dealing in securities. She is meeting Thariq, a prospect. Which of the following is Thaqifa permitted to undertake when she meets Thariq?

a)

Advice Thariq on which securities to buy

b)

Accept Thariq's order for the securities on behalf of her principal

c)

Inform Thariq her remuneration scheme for referring Thariq to her principal

d)

Perform a suitability assessment on Thariq before referring Thariq to her principal

5.

Sure Gain Capital Management Sdn Bhd ("Sure Gain Capital") id deregistering one of its marketing representatives, Mr. Hafiz who has failed to satisfy the fit and proper criteria for marketing representatives. Which of the following statements regarding Mr. Hafiz's deregistration is CORRECT?

i. Mr. Hafiz is required must inform Securities Commission Malaysia (SC) of his deregistration

ii. Sure Gain Capital must inform clients affected by Mr. Hafiz's deregistration

iii. Sure Gain Capital must inform the SC immediately of Mr. Hafiz's deregistration

iv. The SC's approval must be obtained before Sure Gain Capital can deregister Mr. Hafiz

a)

(i) and (ii) only

b)

(ii) and (iii) only

c)

(iii) and (iv) only

d)

(i) and (iv) only

6.

The following are the duties of a Marketing Representative, EXCEPT:

a)

Avoid conflict of interest

b)

Act in the best of the client

c)

Make recommendations that are reasonably suitable to clients

d)

Inform client of any remuneration scheme if requested by client

7.

What is the basic legal relationship that exists between a Principal that is a stockbroking company and a client?

a)

Partnership

b)

Contract of agency

c)

Join venture agreement

d)

Contract of employment

8.

Which of the following statements are CORRECT in relation to the obligations and scope of duties of a dealer's representative?

i. Must give priority to client's instruction

ii. Must provide a reasonable basic when making recommendations

iii. Must ensure clients make payments directly to the dealer's representative own account

iv. Must inform client in concise statement of any interest it has in any securities that would affect his recommendation

a)

(i) and (ii) only

b)

(i), (ii) and (iv) only

c)

(i), (iii) and (iv) only

d)

(ii), (ii) and (iv) only

9.

Which of the following guidelines sets out the definition of a 'Sophisticated Investor'?

a)

Equity Guidelines

b)

Guidelines for Marketing Representatives

c)

Guidelines on Sales Practice of Unlisted Capital Market Products

d)

Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries

10.

Which of the following types of clients are classified as 'High Risk Customers' according to laws and regulation on anti-money laundering and terrorisms financing in Malaysia?

i. Accredited investors

ii. Non-resident customers

iii. Companies that have nominee shareholders

iv. Unregistered investment vehicles with complex legal arrangements

a)

(i) and (ii) only

b)

(i) and (iv) only

c)

(i), (ii) and (iii) only

d)

(ii), (iii) and (iv) only

11.

Which of the following CORRECTLT sets out the steps and sequence or the three (3) stages of money laundering?

a)

Placement, Layering, Integration

b)

Integration, Layering, Placement

c)

Leveraging, Layering, Integration

d)

Placement, Leveraging, Integration

12.

Mr. Nizam is a licensed representative of a Capital Market Services License holder. He makes the following statement to one of his potential client - "Trade with me and I will guarantee you a return of not less that 8% per annum"

In relation to the above, which of the following statement is CORRECT?

a)

Mr. Nizam is committing an offence under the Capital Markets and Services Act 2007 for stock market manipulation

b)

Mr. Nizam is committing an offence under the Capital Markets and Services Act 2007 for false trading and market-rigging

c)

Mr. Nizam did not contravene any provision of the Capital Markets and Services Act 2007 since the amount guaranteed can be reasonably achieved

d)

Mr. Nizam is committing an offence under the Capital Markets and Services Act 2007 for providing false or misleading statements in relation to dealing in securities

13.

Which of the following is/are prohibited conduct of a licensed fund management company?

i. Accept rebates from brokers from executing client's transaction into its own amount

ii. Executing trades through a broker which is not a member of a recognized stock exchange

iii. Buying securities from, or selling securities to, funds under management for the company's own account

iv. Requesting or allowing investors to pre-sign any form relating to their investment

a)

(i) and (ii) only

b)

(i) and (iv) only

c)

(i), (ii) and (iii) only

d)

All of the above

14.

Which of the followings statements show the effective ways of conducting marketing communication?

i. Use close-ended questions to save time of your prospects

ii. Highlight specific value that your product offer to the consumer

iii. Ask non-manipulative open-ended questions to enquire more information about your prospects

iv. Create your elevator pitch within the first 30 seconds of meeting your new prospects

a)

(i), (ii) and (iii) only

b)

(i), (ii) and (iv) only

c)

(i), (iii) and (iv) only

d)

(ii), (iii) and (iv) only

15.

Creating a profile of a prospective client involves the following steps, EXCEPT:

a)

Defining your customers

b)

Knowing how prospects see you

c)

Finding where your customers are

d)

Identifiying your unique goals & most important features