100+ Free PKMC Module I Practice Questions

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2026 Statistics

Key Facts: PKMC Module I Exam

75%

Passing Score Requirement

AICB & FMAM

2 Hours

Exam Time Limit

AICB

RM 350

Exam Entry Fee

AICB

2 Years

All Module Deadline

FMAM Membership Rules

40%

Code of Conduct Weight

FMAM Syllabus

RENTAS

Settlement System

PayNet / BNM

The PKMC Module I exam covers the regulatory framework for wholesale financial markets in Malaysia. It contains 80-100 questions, has a 2-hour limit, and requires a 75% passing score. Essential topics include the Code of Conduct and Market Practices (ACI Model Code and Local Addendum), Malaysian financial laws (FSA, IFSA, CMSA), BNM investor protection guidelines, monetary policy, and market infrastructure systems like RENTAS, FAST, and ETP.

Sample PKMC Module I Practice Questions

Try these sample questions to test your PKMC Module I exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Financial Markets Association of Malaysia (FMAM) Code of Conduct, what is the standard spot settlement date (Value Spot) for interbank foreign exchange transactions involving the Malaysian Ringgit (MYR)?

A.Same business day as the transaction date (T+0)

B.Next business day following the transaction date (T+1)

C.Two business days following the transaction date (T+2)

D.Three business days following the transaction date (T+3)

Explanation: The standard spot settlement date (Value Spot) for foreign exchange transactions in the Malaysian interbank market, including those involving the Ringgit (MYR), is two business days following the transaction date (T+2). This conforms with international conventions. Value Today represents same-day (T+0) settlement, and Value Tomorrow represents next-day (T+1) settlement.

2According to the ACI Model Code and FMAM Local Addendum, which of the following describes the obligation of a market participant providing a 'firm quote'?

A.The quote is indicative only and can be adjusted after the counterparty attempts to trade.

B.The quote-provider is obligated to trade at the quoted price up to the specified amount.

C.The quote is only valid if confirmed in writing via email within ten minutes.

D.The quote is binding only if the counterparty agrees to a reciprocal dealing arrangement.

Explanation: Under interbank trading rules, a 'firm quote' represents an unconditional obligation by the quote-provider to execute a trade at the stated bid or offer price up to the standard or specified amount. Market participants must not back away from firm quotes when a counterparty attempts to execute. Indicative quotes, by contrast, are for information purposes only and are subject to change.

3Under the FMAM Code of Conduct, how long must wholesale market participants retain voice recordings (trade tapes) of telephone conversations between dealers?

A.At least 6 months

B.At least 1 year

C.At least 3 years

D.At least 5 years

Explanation: The FMAM Code of Conduct and BNM guidelines mandate that all voice recordings (tapes) of telephone conversations between dealers and brokers in the wholesale financial markets must be retained for a minimum period of 5 years. This is to ensure a reliable audit trail for resolving transaction disputes or investigating market abuse. Shorter periods are insufficient under current compliance frameworks.

4When a dispute arises between two interbank dealers regarding a transaction's terms, what is the FIRST action the participants should take under FMAM guidelines?

A.Refer the matter immediately to Bank Negara Malaysia (BNM) for arbitration.

B.Cancel the trade unilaterally to prevent financial exposure.

C.Listen to the voice recordings of the conversation and compare transaction confirmations.

D.Initiate legal proceedings in the High Court of Malaysia.

Explanation: In the event of a trade dispute, dealers must first refer the matter to their respective operations or compliance departments to review the transaction confirmations and listen to the voice recordings (or review electronic logs). This objective review of the audit trail resolves the vast majority of discrepancies. If unresolved, it can be escalated internally or to the FMAM committee, rather than seeking immediate central bank arbitration or litigation.

5Under the FMAM Code of Conduct, which of the following practices is considered a form of market manipulation known as 'painting the tape'?

A.Providing a firm quote that is slightly wider than the current market spread.

B.Executing transactions that do not involve any change in beneficial ownership to create a false appearance of activity.

C.Submitting an order via the electronic system and cancelling it within 2 seconds.

D.Executing trades at the end of the day to rebalance a portfolio.

Explanation: 'Painting the tape' involves executing a series of transactions that give the false appearance of active trading or price movement in a security, often with no change in beneficial ownership (wash sales). This is a prohibited market manipulation tactic. Wide spreads, quick cancellations (within legitimate trading reasons), and end-of-day rebalancing are not market manipulation unless done with manipulative intent.

6What does the FMAM Local Addendum state regarding the sharing of confidential client information among dealers at different financial institutions?

A.It is permitted if the dealers are close professional colleagues.

B.It is permitted if the information is shared verbally rather than in writing.

C.It is strictly prohibited unless required by law, regulators, or authorized by the client.

D.It is permitted if the dealers sanitize the names of the clients involved.

Explanation: Confidentiality is a core pillar of the Model Code and the FMAM Local Addendum. Sharing any client-specific transaction details, orders, or identities with other institutions is strictly prohibited. Exceptions only apply if the disclosure is mandated by law, requested by regulators (e.g., BNM, SC), or explicitly authorized by the client in writing.

7Under the FMAM Local Addendum, when a dealer executes a transaction with an interbank broker, who is responsible for sending the trade confirmation?

A.Only the broker is required to send a confirmation to both counterparties.

B.Only the dealer who initiated the transaction is required to send a confirmation.

C.Both the broker and the counterparties must exchange confirmations independently.

D.Confirmations are not required for broker-brokered transactions since they are recorded on voice logs.

Explanation: For transactions executed through an interbank broker, both the broker (who must send a confirmation to both buying and selling banks) and the counterparties (who must confirm directly with each other) are responsible for exchanging trade confirmations. This double-verification process ensures that any discrepancies in trade details are immediately identified and corrected.

8What is the standard payment and settlement convention for Ringgit-denominated interbank money market loans under FMAM guidelines?

A.RENTAS real-time gross settlement on the transaction date (T+0) or next day (T+1)

B.Bilateral cheque clearing within 3 business days (T+3)

C.Deferred net settlement via giro transfer at the end of the week

D.Cash delivery at the Treasury department of the lending bank

Explanation: Interbank money market transactions in Malaysia are settled electronically in real-time through the RENTAS system operated by PayNet. Settlements occur on the transaction date (T+0, Value Today) or the next business day (T+1, Value Tomorrow). Bilateral cheques, net giro systems, and physical cash are obsolete and prohibited for wholesale interbank lending.

9Under the FMAM Code of Conduct, which of the following describes the ethical standard for 'Personal Account Dealing' (PAD) by wholesale market dealers?

A.Dealers may trade freely on their personal accounts without restrictions, provided they use their own funds.

B.Dealers are permitted to trade on personal accounts only using information obtained from their daily dealing activities.

C.Dealers must obtain prior internal compliance approval and ensure their personal trades do not conflict with client orders.

D.Personal account trading is completely prohibited under Malaysian law for all treasury employees.

Explanation: Personal Account Dealing (PAD) is permitted under FMAM and BNM guidelines but is subject to strict controls. Dealers must obtain prior approval from their compliance department, ensure no conflicts of interest exist with the bank's clients, and must never trade on inside or confidential client order information. Frontrunning client orders is a serious compliance violation.

10According to the FMAM Code of Conduct, if a dealer receives an entertainment invitation from an interbank broker, what rule must be observed?

A.The dealer can accept any level of entertainment, provided it is held outside office hours.

B.The entertainment must be of modest value, not influence the dealer's business allocation, and be disclosed/approved internally.

C.Brokers are strictly prohibited from offering any form of food or beverage to dealers.

D.The dealer must pay for their own share of the entertainment in all circumstances.

Explanation: The Code of Conduct allows modest and customary business entertainment, but it must never be excessive, must not create an obligation or conflict of interest in allocating brokerage business, and must be disclosed and approved in accordance with the institution's internal gift and entertainment policy.

About the PKMC Module I Exam

The PKMC Module I exam is the regulatory framework module for wholesale financial markets in Malaysia. It covers the Code of Conduct and Market Practices (incorporating the ACI Model Code and Local Addendum), investor protection regulations (FSA, IFSA, CMSA, AMLATFPUAA), and the structure of the Malaysian financial system alongside monetary policy operations (RENTAS, FAST, ETP, MYOR reference rate).

Assessment

100 multiple-choice questions

Time Limit

2 hours

Passing Score

75%

Exam Fee

RM 350 (Financial Markets Association of Malaysia (FMAM) & Asian Institute of Chartered Bankers (AICB))

PKMC Module I Exam Content Outline

40%

Part A: The Code of Conduct and Market Practices

ACI Model Code, Local Addendum by FMAM, standard spot/forward conventions, broker and dealer conduct, taped voice records, conflict of interest, and PAD policies.

20%

Part B: Investor Protection, Law, and Regulations

Financial Services Act (FSA) 2013, Islamic Financial Services Act (IFSA) 2013, Capital Markets and Services Act (CMSA) 2007, and AMLATFPUAA 2001 regulations.

40%

Part C: Malaysian Financial System and Monetary Policy

Monetary policy framework, OPR corridor, Statutory Reserve Requirement (SRR), Open Market Operations (OMO), and market settlement systems (RENTAS, FAST, ETP).

How to Pass the PKMC Module I Exam

What You Need to Know

Passing score: 75%
Assessment: 100 multiple-choice questions
Time limit: 2 hours
Exam fee: RM 350

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

PKMC Module I Study Tips from Top Performers

1Memorize the key timelines in the Local Addendum and RENTAS rules, such as cut-off times for payments and trade reporting.

2Understand the transition from KLIBOR to MYOR (Malaysia Overnight Rate) and MYOR-i for Islamic transactions.

3Carefully read the rules on personal account dealing, gift policies, and recording/taping of wholesale trades in the Code of Conduct.

4Know the differences between the Financial Services Act (FSA 2013) for conventional banking and the Islamic Financial Services Act (IFSA 2013) for Islamic institutions.

5Be prepared to identify standard settlement conventions (e.g. Spot, Value Today, Value Tomorrow) for ringgit transactions.

6Focus on the functions of Bank Negara Malaysia (BNM) in open market operations (OMO) and setting the Overnight Policy Rate (OPR).

7Review the compliance requirements for suspicious transaction reporting (STR) and cash threshold reporting (CTR) under AMLATFPUAA.

Frequently Asked Questions

What is the PKMC Module 1 exam?

The PKMC Module I (Pasaran Kewangan Malaysia Certificate Module I) is a professional examination covering the regulatory framework of wholesale financial markets in Malaysia. Jointly administered by FMAM and AICB, it is mandatory for individuals seeking to become licensed dealers or brokers in the Malaysian money and foreign exchange markets.

What is the passing mark for the PKMC Module 1 exam?

The passing mark is 75%. Candidates must correctly answer 75% of the questions in each module to pass.

How long is the validity of the PKMC certification?

Once passed, the certification is valid for life, provided you maintain active membership with the Financial Markets Association of Malaysia (FMAM). However, candidates must complete and pass all four PKMC modules within two years of joining FMAM.

What are the key regulations covered in PKMC Module 1?

Key regulations include the Financial Services Act 2013 (FSA), Islamic Financial Services Act 2013 (IFSA), Capital Markets and Services Act 2007 (CMSA), and the Anti-Money Laundering Act (AMLATFPUAA). It also covers Bank Negara Malaysia (BNM) guidelines and the FMAM Code of Conduct.

What market systems are tested in PKMC Module 1?

Candidates are tested on key Malaysian wholesale market systems: RENTAS (Real Time Electronic Transfer of Funds and Securities) for payment and settlement, FAST (Fully Automated System for Issuing/Tendering) for primary issuance, and Bursa Malaysia's ETP (Electronic Trading Platform) for bond trade reporting.

What is the role of the Local Addendum in the exam?

The Local Addendum, issued by FMAM, adapts the international ACI Model Code to Malaysian market specificities, detailing guidelines for local ringgit (MYR) trading, interbank borrowing, local holidays, and the KLIBOR/MYOR benchmark rate submission rules.

How much does it cost to sit for the PKMC Module 1 exam?

The exam registration fee is RM 350 for FMAM members. Additional fees may apply for non-members or training course registrations. Always consult the official AICB portal for current schedules and fee variations.