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100+ Free SIDC Module 11 Practice Questions

Pass your SC Licensing Examination Module 11 — Fundamentals of Compliance exam on the first try — instant access, no signup required.

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2026 Statistics

Key Facts: SIDC Module 11 Exam

40 questions

SIDC Module 11 is a 40-question multiple-choice examination

SIDC - SC Licensing Examinations

60 minutes

Time allowed to complete the Module 11 examination

SIDC - SC Licensing Examinations

70%

Passing mark for Module 11 — 28 of 40 questions correct

SIDC - SC Licensing Examinations

RM1,250

FY2026 SCLE examination fee per module under the revised structure

SIDC - Revised Fee Structure announcement

CMSA 2007

The Capital Markets and Services Act 2007 is the principal statute tested

Securities Commission Malaysia

Compliance officers

Module 11 is a prescribed module for prospective compliance officer registration

Securities Commission Malaysia - Licensing application kit

Online

Module 11 is delivered as an online computer-based examination

SIDC - SC Licensing Examinations

100

Free original practice questions available here

OpenExamPrep

SC Licensing Examination Module 11 — Fundamentals of Compliance is a Securities Commission Malaysia module administered by SIDC for prospective compliance officers in the Malaysian capital market. It is delivered online as 40 multiple-choice questions in 60 minutes, with a 70% pass mark (28 of 40 correct). The syllabus covers compliance governance and the three lines of defence, the CMSA licensing and regulatory framework, market misconduct, internal controls and monitoring, AML/CFT/CPF obligations, and regulatory reporting and enforcement. The FY2026 examination fee is RM1,250 per module. This 100-question bank provides original multiple-choice practice modelled on the official Module 11 syllabus.

Sample SIDC Module 11 Practice Questions

Try these sample questions to test your SIDC Module 11 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the 'three lines of defence' model used in compliance governance, which function forms the SECOND line of defence?
A.Internal audit
B.The compliance and risk management functions
C.The front-office business units
D.The external auditor
Explanation: In the three lines of defence model, the business units that own and manage risk are the first line, the compliance and risk management functions that provide oversight and challenge are the second line, and internal audit providing independent assurance is the third line.
2Why is independence of the compliance function considered a fundamental principle of good compliance governance?
A.So compliance can approve all trades faster
B.So compliance can report breaches objectively without being overruled by the business it monitors
C.So compliance can replace the internal audit function
D.So compliance staff can avoid reporting to the board
Explanation: Independence ensures the compliance function can identify, escalate and report breaches objectively and is not pressured or overruled by the revenue-generating business units it oversees. This is why compliance typically reports to the board or a board committee rather than only to business heads.
3Who holds ultimate responsibility for establishing and overseeing a sound compliance culture within a capital markets intermediary?
A.The remisiers
B.The board of directors and senior management
C.The Securities Commission Malaysia
D.The external lawyers
Explanation: Ultimate responsibility for a sound compliance culture, the 'tone from the top', rests with the board of directors and senior management. They set policies, allocate resources to compliance and hold the business accountable.
4A compliance officer discovers a serious regulatory breach but the head of the trading desk asks her to delay reporting it to the board until after a major client deal closes. What is the correct course of action under good compliance governance?
A.Delay reporting because the desk head is more senior
B.Report the breach through the proper escalation channels without undue delay
C.Report only if the deal does not close
D.Resolve it quietly with the desk head and not record it
Explanation: The independence of the compliance function requires breaches to be escalated and reported through proper channels without undue delay, regardless of commercial pressure. Allowing the business to suppress or delay reporting undermines the entire compliance framework.
5What is the primary purpose of a compliance manual within a capital markets intermediary?
A.To list the firm's clients
B.To document the policies, procedures and controls staff must follow to meet regulatory obligations
C.To record daily profit and loss
D.To advertise the firm's services
Explanation: A compliance manual sets out the firm's compliance policies, procedures and controls so that staff understand and consistently follow the requirements needed to meet regulatory obligations. It is a core governance document.
6In the three lines of defence model, which statement best describes the role of the FIRST line?
A.It provides independent assurance to the board
B.It owns and manages the risks arising from its day-to-day business activities
C.It sets the firm's external audit fees
D.It is responsible only for marketing
Explanation: The first line of defence is the business itself, which owns and manages the risks arising from its day-to-day activities and operates the controls embedded in its processes. Oversight (second line) and assurance (third line) sit above it.
7Which of the following is the MOST appropriate reporting line for the Head of Compliance to preserve independence?
A.Reporting solely to the head of sales
B.Reporting to the board or a board-level committee such as the audit or risk committee
C.Reporting only to the firm's largest client
D.Reporting to the dealing room supervisor
Explanation: To preserve independence, the Head of Compliance should have a direct reporting line to the board or a board-level committee (such as the audit or risk committee), not solely to revenue-generating business heads who could create conflicts.
8What does the phrase 'tone from the top' mean in the context of compliance governance?
A.The volume used in board meetings
B.The example and clear expectations set by the board and senior management that compliance is a priority
C.The order in which agenda items are discussed
D.The seniority ranking of the compliance officer
Explanation: 'Tone from the top' refers to the example, messaging and clear expectations set by the board and senior management showing that ethical behaviour and compliance are genuine priorities. A strong tone from the top drives the firm-wide compliance culture.
9A firm gives the compliance function authority to access all records, attend management meetings and require corrective action. This authority is BEST described as:
A.A conflict of interest
B.Appropriate empowerment that supports the compliance function's effectiveness
C.An overreach that should be removed
D.A breach of confidentiality
Explanation: Granting compliance unrestricted access to records and meetings and the authority to require corrective action is appropriate empowerment. Without such standing and access, the compliance function cannot effectively monitor and enforce obligations.
10Which committee at board level most commonly receives compliance reports and oversees the compliance and risk frameworks of a capital markets intermediary?
A.The remuneration committee
B.The audit and/or risk management committee
C.The marketing committee
D.The social events committee
Explanation: Compliance reporting and oversight of the compliance and risk frameworks is most commonly handled by the audit committee and/or a risk management committee at board level, which gives compliance an independent reporting channel.

About the SIDC Module 11 Exam

SC Licensing Examination Module 11 — Fundamentals of Compliance is a Securities Commission Malaysia licensing module administered by the Securities Industry Development Corporation (SIDC). It was introduced as an additional prescribed module to strengthen the compliance function in the Malaysian capital market, and new compliance officer applicants must pass it before their registration can be considered. The examination tests applied knowledge of the Capital Markets and Services Act 2007 (CMSA), the roles of the Securities Commission and Bursa Malaysia, the compliance function and the three lines of defence, AML/CFT obligations under the AMLATFPUAA 2001, market misconduct, conflicts of interest, supervision and regulatory reporting. It is delivered online as 40 multiple-choice questions in 60 minutes, with a pass mark of 70%. The SIDC SCLE eGuide Module 11 (Compliance) is the official study guide.

Assessment

40 multiple-choice questions covering compliance governance, the CMSA licensing and regulatory framework, market conduct, internal controls and monitoring, AML/CFT/CPF, and regulatory reporting and enforcement.

Time Limit

60 minutes for the 40 multiple-choice questions.

Passing Score

70% — candidates must answer at least 28 of the 40 questions correctly.

Exam Fee

RM1,250 per module in FY2026 under the revised SCLE fee structure (RM1,000 in FY2025, RM1,500 in FY2027); eligible for HRD Corp reimbursement. (Securities Industry Development Corporation (SIDC), on behalf of the Securities Commission Malaysia)

SIDC Module 11 Exam Content Outline

17%

Compliance Governance

Board and senior management oversight of compliance, the three lines of defence model, independence and reporting lines of the compliance function, and the roles, responsibilities and authority of the compliance officer and Head of Compliance. Practice here covers governance structures, compliance policies and the tone from the top.

17%

Licensing and Regulatory Framework

The Capital Markets and Services Act 2007 (CMSA) as the principal statute, the role and powers of the Securities Commission Malaysia, the role of Bursa Malaysia as the front-line regulator, Capital Markets Services Licences (CMSL) and Capital Markets Services Representative's Licences (CMSRL), and the regulated activities. Practice covers licensing obligations and the regulatory architecture.

17%

Market Conduct Surveillance

Market misconduct prohibited under Part VI of the CMSA: insider trading (Section 188), false trading and market rigging (Section 175), stock market manipulation (Section 176), and false or misleading statements (Section 177-178). Practice covers how compliance identifies, escalates and prevents these offences.

16%

Internal Controls and Monitoring

Internal control frameworks, compliance monitoring programmes and testing, branch and remisier/dealer's representative supervision, client onboarding controls, trade and order review, and management of complaints. Practice covers the design and operation of controls and ongoing monitoring.

17%

AML/CFT/CPF Compliance

Obligations under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA) and the SC/BNM AML/CFT guidelines: institutional risk assessment, customer due diligence and enhanced due diligence, ongoing monitoring, record keeping and suspicious transaction reporting to the Financial Intelligence and Enforcement Department (FIED) of Bank Negara Malaysia.

16%

Regulatory Reporting and Enforcement

Notifications, breach and incident reporting to the Securities Commission and Bursa Malaysia, management of conflicts of interest, conduct of business standards, record retention requirements, and the enforcement and disciplinary regime including administrative actions, civil and criminal sanctions. Practice covers reporting triggers and consequences of non-compliance.

How to Pass the SIDC Module 11 Exam

What You Need to Know

  • Passing score: 70% — candidates must answer at least 28 of the 40 questions correctly.
  • Assessment: 40 multiple-choice questions covering compliance governance, the CMSA licensing and regulatory framework, market conduct, internal controls and monitoring, AML/CFT/CPF, and regulatory reporting and enforcement.
  • Time limit: 60 minutes for the 40 multiple-choice questions.
  • Exam fee: RM1,250 per module in FY2026 under the revised SCLE fee structure (RM1,000 in FY2025, RM1,500 in FY2027); eligible for HRD Corp reimbursement.

Keys to Passing

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

SIDC Module 11 Study Tips from Top Performers

1Anchor your study in the Capital Markets and Services Act 2007 (CMSA) — know which conduct each market misconduct section prohibits, because many questions test whether a scenario is insider trading, false trading, manipulation or a misleading statement.
2Learn the three lines of defence clearly: business units own and manage risk (first line), compliance and risk provide oversight (second line), and internal audit provides independent assurance (third line).
3Memorise the core AML/CFT steps in order — risk assessment, customer due diligence, ongoing monitoring, record keeping and suspicious transaction reporting — and when enhanced due diligence is triggered.
4Distinguish the regulators: the Securities Commission Malaysia is the statutory regulator and Bursa Malaysia is the front-line market operator and self-regulatory organisation; questions often hinge on who you report to.
5Practise applying conflict-of-interest and conduct-of-business rules to scenarios involving personal account dealing, gifts, and the handling of client orders.
6Time yourself at roughly 90 seconds per question so you can finish 40 questions within the 60-minute limit and still review flagged items.

Frequently Asked Questions

How many questions are on SIDC Module 11 and how long is the exam?

Module 11 (Fundamentals of Compliance) has 40 multiple-choice questions and a time limit of 60 minutes. It is delivered online as a computer-based examination.

What is the passing mark for SIDC Module 11?

The pass mark is 70%, meaning candidates must answer at least 28 of the 40 questions correctly to pass the Fundamentals of Compliance examination.

Who needs to take Module 11?

Module 11 is a prescribed additional module for applicants seeking registration as a compliance officer for a capital markets intermediary in Malaysia. It must be passed before a compliance officer application can be considered.

Who administers Module 11 and under what law?

It is a Securities Commission Malaysia licensing examination administered by the Securities Industry Development Corporation (SIDC). The syllabus is built around the Capital Markets and Services Act 2007 (CMSA) and related SC and Bursa Malaysia rules.

How much does Module 11 cost?

Under the revised SCLE fee structure, the fee is RM1,250 per module in FY2026 (RM1,000 in FY2025 and RM1,500 in FY2027). The fee is eligible for HRD Corp reimbursement for employers.

Are these official SIDC practice questions?

No. These are original OpenExamPrep questions modelled on the Module 11 syllabus. The official SIDC SCLE eGuide Module 11 (Compliance) study guide is available separately through the SIDC learning portal.