What is SCLE Module 9?
Module 9, Funds Management Regulation, is one of the Securities Commission Licensing Examinations run by the Securities Industry Development Corporation (SIDC). It covers the laws and guidelines that apply to fund management companies and their licensed representatives: licensing, the compliance function, the relationship with clients, the protection of client assets, collective investment schemes, conflicts of interest and anti-money laundering duties.
The exam format
| Run by | Securities Industry Development Corporation (SIDC) |
|---|---|
| Questions | 30 multiple-choice questions |
| Time | 60 minutes |
| Pass mark | 60% |
| Book | Regulation module: prescribed printed reference materials are allowed (check SIDC's current list) |
| Validity | A pass is valid for two years from the exam date |
| Licence | Check the SC Licensing Handbook for the module combinations accepted for fund management |
Fees and exam modes change from time to time, so check SIDC's current examination terms when you book.
What the exam covers
- Regulatory framework: the SC, the CMSA and SCMA, FIMM's role and asset versus portfolio management.
- Licensing: the CMSL and CMSRL, fit and proper requirements, CPE and notifying the SC of changes.
- Compliance and governance: the independent compliance officer, board responsibility, segregation of duties and the 2026 private debt notes revision.
- Client relationship: investment management agreements, mandates, fees, performance reporting and confidentiality.
- Client assets: custody, trust accounts, reconciliation and the Capital Market Compensation Fund.
- Collective investment schemes: unit trust deeds, trustees, pricing, repurchase and cooling-off rules, wholesale and Islamic funds, ETFs.
- Conflicts and dealing: best execution, soft commissions, trade allocation, cross trades and personal dealing.
- AML and misconduct: AMLA reporting, CDD, sanctions, insider trading and market manipulation.
Free official resources, and what we add
SIDC publishes the exam terms and study outlines, and the SC publishes the CMSA, the Licensing Handbook and its guidelines free on its website. There is no free official question bank. Our questions are original and each explanation names the law or guideline it comes from.
How to prepare
- Read the SIDC study outline and tab the prescribed reference materials for quick look-up.
- Know who does what: the fund manager decides, the custodian or trustee holds the assets, the compliance officer reports to the board.
- Learn the key unit trust numbers: repurchase proceeds within 7 business days and a 6-business-day cooling-off period.
- Practise conflict scenarios such as soft commissions, cross trades and trade allocation.
- Practise one topic at a time here, then sit full 30-question mocks in 60 minutes.
Practice questions with answers
Tap a question to see the correct answer and explanation.
Which body is the main regulator of fund management companies in Malaysia?
- The Companies Commission of Malaysia
- Bank Negara Malaysia
- The Securities Commission Malaysia
- Bursa Malaysia Securities Berhad
Answer: C, The Securities Commission Malaysia. The SC licenses and supervises fund managers under the CMSA and the SCMA. Source: Securities Commission Malaysia Act 1993.
A company wants to manage portfolios for clients for a fee. What does it need?
- A Type A licence under the Poisons Act
- A CMSL for fund management
- A moneylending licence
- Only a business registration with SSM
Answer: B, A CMSL for fund management. Carrying on a business in fund management needs a CMSL for that regulated activity unless an exemption or registration applies. Source: Capital Markets and Services Act 2007 (CMSA).
What is the main purpose of the compliance function in a fund management company?
- To set the fund's investment strategy
- To generate new business for the company
- To ensure compliance with laws, guidelines and policies
- To approve staff salary increases
Answer: C, To ensure compliance with laws, guidelines and policies. The compliance function monitors and reports on compliance with the law, SC guidelines and internal policies. Source: SC Guidelines on Compliance Function for Fund Management Companies.