Investor Protection Professional Certification (IPPC)

What is Investor Protection Professional Certification (IPPC)?


The Investor Protection Professional Certification (IPPC) is a certification jointly awarded by AICB with ACI – Financial Markets Association of Malaysia (FMAM) and is designed for employees of registered persons (as defined in the Guidelines on Investor Protection, jointly issued by Bank Negara Malaysia and the Securities Commission) involved in the selling and marketing of structured products and unlisted debt securities to meet the regulatory requirements under the above mentioned Guidelines.

All candidates registering for the IPPC must first be accepted as a member of ACI-FMAM. For ACI-FMAM membership registration or enquiries, please contact ACI-FMAM at +603-9282 0728 or +603-9282 3728 or via email, seccom33@gmail.com.

It is mandatory for all new candidates who register for this examination for the first time to attend and complete a structured 2-day preparatory workshop covering all study areas.

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Syllabus Structure

Section 1: Market Structure (15%)


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1.1 Structure of the Malaysian Financial System
1.1.1 Foreign exchange and money markets
1.1.2 Capital Markets
  1. Equity Market
  2. Debt Market

1.1.3 Commodities Markets
1.1.4 Derivatives Market
1.1.5 Conventional and Islamic Banking
1.1.6 Market Structure

  1. Exchange traded and over-the-counter market
  2. Onshore and offshore markets
  3. Primary and secondary markets

1.2 Market Participants1.2.1 Regulators
1.2.2 Financial Institutions
1.2.3 Dealers
1.2.4 Brokers
1.2.5 Investors
1.2.6 Speculators
1.2.7 Arbitragers
1.2.8 Rating Agency1.3 Regulatory Authorities

1.3.1 Bank Negara Malaysia

  1. Principle functions and objectives
  2. Monetary instruments in ensuring financial stability

1.3.2 Securities Commission

  1. Principle functions and objectives
  2. Securities Commission’s principles and standards

1.3.3 Bursa Malaysia Berhad

  1. Principle activities
  2. Regulatory approach/philosophy

1.4 Perbadanan Insurance Deposit Malaysia1.4.1 What is deposit  insurance?
1.4.2 Types of products covered

 

Section 2: Guidelines on Investor Protection, Law and Regulations (30%)


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2.1 BNM/SC: Guidelines on Investor Protection (GIP)
2.1.1 Issuers
2.1.2 Applicability
2.1.3 Purpose of guidelines
2.1.4 Scope of activities by registered persons – Sections 76, 91, 92, 93 and 97 of CMSA
2.1.5 Standard on ‘Fit and Proper’ – Sections 8, 10, 11, 12, 13 of GIP
2.1.6 Examination Requirements – Examination modules: Schedule 2 and 4 of CMSA
2.1.7 Continuing Professional Education Requirements
2.2 Acts and Guidelines
2.2.1 Financial Services Act 2013 (FSA)

  1. Section 133 (Secrecy)
  2. Section 134 (Permitted Disclosures)
  3. Penalties for non?compliance with these provisions

2.2.2 Islamic Financial Services Act 2013 (IFSA)

  1. Section 145 (Secrecy)
  2. Section 146 (Permitted Disclosures)
  3. Penalties for non?compliance with these provisions

2.2.3 Capital Markets and Services Act 2007

  1. Section 92
  2. Section 93
  3. Section 94
  4. Section 97
  5. Section 178
  6. Section 179(c)
  7. Section 232
  8. Section 255
  9. Section 362 (3)
  10. Schedule 2 (Regulated activities)
  11. Schedule 4 (Registered persons)

2.2.4 SC: Guidelines on Sales Practices of Unlisted Capital Market Products

  1. Purpose of the guidelines
  2. Treating investors fairly
  3. Product Highlight Sheet
  4. Suitability of assessment

2.2.5 Anti-Money Laundering and Anti-Terrorism Financing Act 2001

  1. Statutory responsibilities borne by a financial institution as a Reporting Institution
  2. Penalties imposed for breaches

2.2.6 BNM UPW/GP1 – Standard Guidelines on AML/CFT
2.2.7 BNM UPW/GP1(1) – Sectorial Guidelines on AML/CFT for banks and financial institutions
2.2.8 SC: Guidelines on AML
2.2.9 Malaysia Deposit Insurance Corporation Act 2011
2.2.10 Guidelines on Disclosure of Deposit Insurance Information
2.2.11 Guidelines on Introduction of New Products

  1. Section 7 (Fair treatment of customers)

2.2.12 SC: Guidelines on the Offering of Structured Products

  1. Section 1 (Introduction)
  2. Section 7 (Requirement for disclosure)
  3. Section 8 (Suitability & fair dealing requirements)

2.2.13 BNM: Guidelines on Product Transparency and Disclosures

  1. General policy requirements
  2. Deposit products and investment products under Schedule I & II

2.2.14 SC: Guidance Notes on Secondary Trading of FCY Denominated Debentures and FCY Denominated Islamic Securities

  1. Section 2 (Definition of “sophisticated” investor)
  2. Section 5 (Fair dealing)

2.2.15 SC: Guidelines on Private Debt Securities

  1. Purpose of the guidelines
  2. Responsibility of Issuer and Principal Adviser
  3. Disclosure of material information
  4. Retail Private Debt Securities

2.2.16 SC: Guidelines on Sukuk

  1. Purpose of the guidelines
  2. Responsibility of Issuer and Principal Adviser
  3. Disclosure of material information
  4. Retail Sukuk
2.3 Foreign Exchange Administration Rules
2.3.1 Notice 3 – Investment in Foreign Currency (previously ECM 9)

  1. Definition of investments abroad
  2. Rules on source of funds for such investments and the registration requirements

2.3.2 Notice 4 – Payments (previously ECM 7)

  1. Foreign Currency Account (FCA)
  2. Payments and Receipt in Ringgit
  3. Payments and Receipt in Foreign Currency

Section 3: Know Your Client and Financial Needs Analysis (15%)


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3.1 Understanding the Client (Know Your Client) and Due Diligence
3.2 Risk Profiling and Client Suitability
3.3 Fair Client Dealing and Misrepresentation
3.4 Risk Return Analysis
3.5 Code of Conduct for Employees

Section 4: Products (40%)


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4.1 Debt Securities
4.1.1 Introduction on debt securities

  1. Definition of debt securities, background of the market and importance of bonds (capital raising/investments)

4.1.2 Types of fixed income securities in Malaysia

  1. Straight bonds
  2. Floating rate bonds
  3. Zero coupon bonds
  4. Callable bonds
  5. Commercial papers

4.1.3 Characteristics of bonds

  1. Par values/face values and bond proceeds
  2. Term to maturity
  3. Coupon rate and calculation
  4. Trustee and trust deed
  5. Yield

4.1.4 Considerations when investing in bond

  1. Credit rating
  2. Maturity
  3. Yield
  4. Call or conversion
  5. Tax

4.1.5 Risk of investing in bonds 4.1.6 Factors affecting interest rates

  1. Supply and demand
  2. Economic factors
  3. Government and central bank policies
  4. Market expectation and psychology
  5. International political events
4.2 Structured Investments
4.2.1 Introduction 4.2.2 Types of structured products 4.2.3 Characteristics of structured products

  1. Principal repayment
  2. Payoff structures
  3. Participation rate
  4. Pre-termination
  5. Secondary market
  6. Comparison of structured investments against other investments

4.2.4 Basic building blocks of a structured investment 4.2.5 Underlying assets and examples

  1. Equities
  2. Stocks and indices
  3. Commodities
  4. Currencies
  5. Interest rates
  6. Fixed income securities
  7. Real estate
  8. Hybrids

4.2.6 Risks

  1. Credit risk
  2. Mismatch risk
  3. Market risk
  4. Legal risk
  5. Liquidity risk
  6. Currency risk
  7. Option risk
  8. Tax risk

4.2.7 Legal documents

  1. Structured Products – Master Agreement, Product Agreement,  Product Disclosure Sheet, Risk Disclosure Statement,  Customer Suitability Questionnaire
  2. NIDs – NID application form, Product Disclosure Sheet,  Risk Disclosure Statement, Customer Suitability Questionnaire

Programme Fees (Inclusive 6% GST)

 2017 Workshop Fee*
(RM)
Exam Fee**
(RM)
Exam Re-sit Fee**
(RM)
848 212 212

*Fees payable to Asian Banking School Sdn Bhd

**Fees payable to Asian Institute of Chartered Bankers

Enrolment & Exemption


The new process of enrolment into the IPPC qualification, registration of seminar / workshop and registration of examination is illustrated below:-

steps

Step 1: User enrols for IPPC qualification at www.aicb.org.my
(User will receive notification from AICB once their application has been approved)
Step 2: User registers for seminar / workshop at www.asianbankingschool.com
Step 3: User attends seminar / workshop
(Upon receiving confirmation from Asian Banking School)
Step 4: After attending seminar / workshop, user login to their student account at www.aicb.org.my to register for exam
(User will receive email confirmation upon successful registration)

Important Note: Before registering for seminar / workshop, kindly make sure user already has a valid FMAM (PPKM) membership number.

If you need assistance on this please contact the following individuals: 

  • For qualification enrolment and examination registration queries, please contact Eshodhara (AICB) at 603-2095 6833 ext. 187 or Kalvinder (AICB) at 603-2095 6833 ext. 122.
  • For induction seminar/workshop registration, please contact Noor Zawani (ABS) at 603 2742 7822 ext. 305.

Additional information on IPPC enrolment:

(a) In order to enrol as a candidate for the IPPC an applicant must be a member of ACI-FMAM in the prescribed membership category for the qualification and comply with such other requirements as may be stipulated by ACI-FMAM.

(b) A candidate is not required to be a member of AICB to enrol for these regulatory qualifications.

(c) Please refer to ACI-FMAM website at www.ppkm.net for further details of eligibility requirements for IPPC.

Investor Protection Professional Certification (IPPC)


(a) Examination Format
Question Format Multiple choice questions
No. of Questions 80
Duration of Exam 2 hours
Pass Mark 70%
Examination Type Closed book.
Question paper is collected and returned after the examination.
(b) Grade Bands
Grade Band Marks
Pass 70% – 100%
Fail 1 60% – 69%
Fail 2 40% – 59%
Fail 3 20% – 39%
Fail 4 0% – 19%
(c) Four study area will be access

Section 1 – Market Structure
Section 2 – Laws and Regulation
Section 3 – Know-Your-Client and Financial Needs Analysis
Section 4 – Products

Investor Protection Professional Certification (IPPC)

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EXAM ACTIVITY SCHEDULE 2018 EXAM SITTING
MARCH 2018
JUNE 2018
SEPTEMBER 2018
DECEMBER 2018
Application Submission Closing Date (New Applicant)* 17 Nov 2017
(Friday)
2 Mar 2018
(Friday)
1 Jun 2018
(Friday)
24 Aug 2018
(Friday)
Workshop Registration Closing Date at ABS 30 Nov 2017
(Thursday)
16 Mar 2018
(Friday)
14 Jun 2018
(Thursday)
7 Sep 2018
(Friday)
Workshop Dates at ABS
Group 1:
11 – 12 Dec 2017
Group 2:
11 – 12 Dec 2017
Group 3:
13 – 14 Dec 2017
Group 4:
13 – 14 Dec 2017
Group 1:
26 – 27 Mar 2018
Group 2:
26 – 27 Mar 2018
Group 3:
28 – 29 Mar 2018
Group 4:
28 – 29 Mar 2018
Group 1:
27 – 28 Jun 2018
Group 2:
27 – 28 Jun 2018
Group 3:
2 – 3 Jul 2018
Group 4:
2 – 3 Jul 2018
Group 1:
19 – 20 Sep 2018
Group 2:
19 – 20 Sep 2018
Group 3:
24 – 25 Sep 2018
Group 4:
24 – 25 Sep 2018
Last day to register for Exam (with payment / LND Approval) 12 Jan 2018
(Friday)
13 Apr 2018
(Friday)
13 Jul 2018
(Friday)
12 Oct 2018
(Friday)
Exam Dates 3 Mar 2018
(Saturday)
3 Jun 2018
(Sunday)
1 Sep 2018
(Saturday)
1 Dec 2018
(Saturday)
Exam Time 9.30am – 11.30am
Exam Result Release 30 Mar 2018
(Friday)
29 Jun 2018
(Friday)
28 Sep 2018
(Friday)
11 Jan 2019
(Friday)
Exam Centre KL, JB, KK, PG KL, JB, KK, PG KL, JB, KK, PG KL, JB, KK, PG

Important Note:

* New candidates are required to complete their qualification enrolment with AICB by the application submission closing date before registering  for training workshops with Asian Banking School (ABS), through ABS’ website: www.asianbankingschool.com.

 Disclaimer:

  1. AICB reserves the right to cancel, suspend, interrupt or reschedule any examination to another date and will not be liable for any claims, actions, costs, charges, expenses, damages, loss and liability due to the cancellation/deferment of these examinations.
  2. Training workshops for AICB qualifications are conducted by Asian Banking School (ABS). Candidates are required to check ABS’ website for the latest workshop dates at https://www.asianbankingschool.com/our-programmes/professional-qualifications.
  3. Please adhere to the above closing dates, otherwise AICB will not be responsible for any delay in the enrolment or registration.
EXAM ACTIVITY SCHEDULE 2017 EXAM SITTING
MARCH 2017
JUNE 2017
SEPTEMBER 2017
DECEMBER 2017
Enrolment Closing Date (New Applicant) Closed 31 Mar 2017 (Friday) 30 Jun 2017 (Friday) 8 Sep 2017 (Friday)
Workshop Registration Closing Date at ABS Closed 14 Apr 2017 (Friday) 14 Jul 2017 (Monday) 26 Sep 2017 (Tuesday)
Workshop Dates at ABS
13 – 14 Feb 2017 24 – 25 Apr 2017 24 – 25 Jul 2017 11 – 12 oct 2017
Last day to register for Exam (with payment / LND Approval) 28 Feb 2017 (Tuesday) 5 May 2017 (Friday) 11 Aug 2017 (Friday) 10 Nov 2017 (Friday)
Exam Dates 18 Mar 2017 (Saturday) 4 Jun 2017 (Sunday) 10 Sep 2017 (Sunday) 9 Dec 2017 (Saturday)
Exam Time 9.30am – 11.30am
Exam Result Release 14 Apr 2017 (Friday) 30 Jun 2017 (Friday) 6 Oct 2017 (Friday) 5 Jan 2018 (Friday)
Exam Centre KL Only KL, Penang, JB, KK KL, Penang, JB, KK KL, Penang, JB, KK

Disclaimer:

  1. AICB reserves the right to cancel, suspend, interrupt or reschedule any examination to another date and will not be liable for any claims, actions, costs, charges, expenses, damages, loss and liability due to the cancellation/deferment of these examinations.
  2. Training workshops for AICB qualifications are conducted by Asian Banking School (ABS). Candidates are required to check ABS’ website for the latest workshop dates at https://www.asianbankingschool.com/our-programmes/professional-qualifications.
  3. Candidates are required to complete their qualification enrolment with AICB before registering for training workshops with Asian Banking School (ABS), through ABS’ website: www.asianbankingschool.com. Terms and conditions apply.

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