CMSA Verified Multiple Choice and Conceptual
Actual Emended Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. “Recognized market operator” must be registered under which section of the
CMSA?
Answer: Section 34
2. A person must not hold himself out as a registered person unless—
A. They have been licensed by Bank Negara
B. They have been issued a Capital Markets Services Licence under the CMSA
C. They have registered with the Registrar of Companies
Answer: B
3. Who has the power to register persons providing capital market services?
Answer: The Securities Commission Malaysia (SC)
4. Under the CMSA, which of the following is NOT considered a regulated activity?
A. Dealing in securities
B. Fund management
C. Corporate secretarial services
Answer: C
5. "Market misconduct" under the CMSA includes all of the following EXCEPT:
A. False trading
,B. Insider trading
C. Non-disclosure of conflicts in employment contracts
Answer: C
6. What is the maximum penalty for providing a regulated activity without a
license under CMSA?
A. RM50,000
B. RM500,000
C. RM10 million or imprisonment
Answer: C (Under Section 58 of CMSA)
7. What is the definition of a “derivatives exchange” under CMSA?
Answer: A body corporate approved under Section 8 to operate a market for
derivatives trading.
8. Who must approve the rules of a recognized stock exchange?
Answer: The Securities Commission (SC)
9. Under CMSA, the term “controller” refers to a person who—
Answer: Has the power to appoint or remove the majority of directors of a
licensee.
10. The CMSA requires that every exchange holding company must be approved
under which section?
Answer: Section 15
,11. What is the function of a “clearing house” as defined in CMSA?
Answer: To provide clearing and settlement services for trades executed on an
exchange.
12. Which CMSA section governs enforcement and inspection powers of the SC?
Answer: Section 128
13. The term “close out” in derivatives refers to:
Answer: The action taken to discharge obligations by offsetting with a
matching position.
14. The Minister may approve a stock exchange only upon recommendation from:
Answer: The Securities Commission Malaysia (SC)
15. True or False: A person providing advisory services on corporate finance must
be licensed under the CMSA.
Answer: True
16. "relevant body corporate" means a body
corporate of which an exchange holding company is a shareholder who, either
alone or
with any associated person, is entitled to exercise or control the exercise of more
than
?% of the aggregate of the nominal amount of all voting shares in the
body corporate. - ANSWER 33
, 17. "capital market services" means any service as specified by the Commission
under section 76A, but does not include a regulated activity. Is this correct? -
ANSWER yes
"capital market services" means any service as specified by the Commission
under section 76A, including any regulated activities. Is this correct? - ANSWER
no
The SC has the power to specify any service to be a capital market service. Is this
correct? - ANSWER yes
A person providing any capital market service shall apply to be registered under
section 76A of CMSA. Is this correct? - ANSWER yes
A person needs not to register to provide any capital market service under section
76A of CMSA. Is this correct? - ANSWER no
Which is correct? a) "clearing house" means a person whose activities or objects
include the provision
of clearing facilities b) "clearing facilities" means a facility whose activities or
objects include the provision
of a clearing house - ANSWER a)
? in relation to a derivative, means to discharge the obligations of a
person in the long position or short position under a derivative and shall include
the
Actual Emended Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. “Recognized market operator” must be registered under which section of the
CMSA?
Answer: Section 34
2. A person must not hold himself out as a registered person unless—
A. They have been licensed by Bank Negara
B. They have been issued a Capital Markets Services Licence under the CMSA
C. They have registered with the Registrar of Companies
Answer: B
3. Who has the power to register persons providing capital market services?
Answer: The Securities Commission Malaysia (SC)
4. Under the CMSA, which of the following is NOT considered a regulated activity?
A. Dealing in securities
B. Fund management
C. Corporate secretarial services
Answer: C
5. "Market misconduct" under the CMSA includes all of the following EXCEPT:
A. False trading
,B. Insider trading
C. Non-disclosure of conflicts in employment contracts
Answer: C
6. What is the maximum penalty for providing a regulated activity without a
license under CMSA?
A. RM50,000
B. RM500,000
C. RM10 million or imprisonment
Answer: C (Under Section 58 of CMSA)
7. What is the definition of a “derivatives exchange” under CMSA?
Answer: A body corporate approved under Section 8 to operate a market for
derivatives trading.
8. Who must approve the rules of a recognized stock exchange?
Answer: The Securities Commission (SC)
9. Under CMSA, the term “controller” refers to a person who—
Answer: Has the power to appoint or remove the majority of directors of a
licensee.
10. The CMSA requires that every exchange holding company must be approved
under which section?
Answer: Section 15
,11. What is the function of a “clearing house” as defined in CMSA?
Answer: To provide clearing and settlement services for trades executed on an
exchange.
12. Which CMSA section governs enforcement and inspection powers of the SC?
Answer: Section 128
13. The term “close out” in derivatives refers to:
Answer: The action taken to discharge obligations by offsetting with a
matching position.
14. The Minister may approve a stock exchange only upon recommendation from:
Answer: The Securities Commission Malaysia (SC)
15. True or False: A person providing advisory services on corporate finance must
be licensed under the CMSA.
Answer: True
16. "relevant body corporate" means a body
corporate of which an exchange holding company is a shareholder who, either
alone or
with any associated person, is entitled to exercise or control the exercise of more
than
?% of the aggregate of the nominal amount of all voting shares in the
body corporate. - ANSWER 33
, 17. "capital market services" means any service as specified by the Commission
under section 76A, but does not include a regulated activity. Is this correct? -
ANSWER yes
"capital market services" means any service as specified by the Commission
under section 76A, including any regulated activities. Is this correct? - ANSWER
no
The SC has the power to specify any service to be a capital market service. Is this
correct? - ANSWER yes
A person providing any capital market service shall apply to be registered under
section 76A of CMSA. Is this correct? - ANSWER yes
A person needs not to register to provide any capital market service under section
76A of CMSA. Is this correct? - ANSWER no
Which is correct? a) "clearing house" means a person whose activities or objects
include the provision
of clearing facilities b) "clearing facilities" means a facility whose activities or
objects include the provision
of a clearing house - ANSWER a)
? in relation to a derivative, means to discharge the obligations of a
person in the long position or short position under a derivative and shall include
the
