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.

Save

Save

Syllabus Structure

Section 1: Market Structure (15%)


VIEW MORE

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%)


VIEW MORE

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%)


VIEW MORE

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%)


VIEW MORE

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 

Workshop Fee (RM)
(Inclusive of 6% Service Tax)
Exam Fee (RM)
(Inclusive of 6% Service Tax)
Exam Re-sit Fee (RM)
(Inclusive of 6% Service Tax)
848 212 212

 

Enrolment


The new enrolment process, and registrations of seminars/workshops and examinations for the IPPC qualification is illustrated below:

Important Notes:

(a) A valid FMAM (PPKM) membership is mandatory to apply for this regulatory qualification.

(b) A candidate is not required to be a member of AICB to apply for this regulatory qualification.

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.
Online 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 areas will be assessed

Section 1 – Market Structure
Section 2 – Guidelines on Investor Protection, Law and Regulations
Section 3 – Know-Your-Client and Financial Needs Analysis
Section 4 – Products

QUALIFICATION ENROLMENT & EXAMINATION SCHEDULE FOR 2020
INVESTOR PROTECTION PROFESSIONAL CERTIFICATION (IPPC)

 
ACTIVITY EXAM SITTING
SEPTEMBER 2020
(RESCHEDULED FROM JUNE 2020)
DECEMBER 2020
Application Submission Closing Date

(New Applicant)

18 May 2020
(Monday)
3 August 2020
(Monday)
Workshop Registration and Payment Closing Date / L & D Sponsorship Approval Closing Date for New Applicant 1 June 2020
(Monday)
17 August 2020
(Monday)
Exam Registration and Payment Closing Date / L & D Sponsorship Approval Closing Date for New Applicant 20 July 2020
(Monday)
1 September 2020
(Tuesday)
Virtual Workshop Dates Group 1
1, 2 , 3, 6 July 2020
9am – 12pm
(Wednesday, Thursday, Friday, Monday)
(FULL)

Group 2
7, 8, 9 10 July 2020
9am – 12pm
(Tuesday, Wednesday, Thursday, Friday)
(FULL)

Group 3
13, 14, 15, 16 July 2020
9am – 12pm
(Monday, Tuesday, Wednesday, Thursday)
(FULL)

Group 4
20, 21, 22, 23 July 2020
9am – 12pm
(Monday, Tuesday, Wednesday, Thursday)
(FULL)

Group 5
3, 4, 5, 6 Aug 2020
9am – 12pm
(Monday, Tuesday, Wednesday, Thursday)
(FULL)

Group 6
3, 4, 5, 6 Aug 2020
2:30pm – 5:30pm
(Monday, Tuesday, Wednesday, Thursday)
(OPEN)

Group 1
1, 2 , 5, 6 October 2020
9am – 12pm
(Thursday, Friday, Monday, Tuesday)

Group 2
12, 13, 14, 15 October 2020
9am – 12pm
(Monday, Tuesday, Wednesday, Thursday)

Group 3
19, 20, 21, 22 Oct 2020
9am – 12pm
(Monday, Tuesday, Wednesday, Thursday)

Group 4
26, 27, 28, 30 Oct 2020
9am – 12pm
(Monday, Tuesday, Wednesday, Thursday)

 

 

Online Exam Dates 1 to 30 September 2020 1 to 20 December 2020
Exam Result Release Date 16 October 2020
(Friday)
15 January 2021
(Friday)

 

Note : The examination date displayed in the Member Portal is for registration purposes only. The online examination will be carried out for a period of one month (24 hours a day, 7 days a week, subject to availability) in Pearson VUE. Candidate can book an exam session in Pearson VUE on a date and time within the examination period stated in the schedule above.

Important Notes:

  1. AICB reserves the right to cancel, suspend, interrupt or reschedule any examinations and will not be liable for any claims, actions, costs, charges, expenses, damages, losses and liabilities due to the cancellation/deferment of these examinations.
  2. Please adhere to the closing dates above to avoid any delays in the enrolment or registration process.
  3. In order to sit for an examination, workshop attendance is mandatory.

Save