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100+ Free SCLE Module 17 Practice Questions

Pass your SC Licensing Examination Module 17 - Securities and Derivatives Trading: Rules and Regulations (SIDC, Malaysia) exam on the first try — instant access, no signup required.

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2026 Statistics

Key Facts: SCLE Module 17 Exam

100

Exam Questions

SIDC

150 mins

Exam Time

SIDC

RM1,250

Exam Fee (FY2026)

SIDC Fees

70%

Passing Score

SIDC Rules

T+2

Securities Settlement Cycle

Bursa Securities Clearing

Level 2

Certification Level

SIDC SCLE Framework

SC Licensing Examination Module 17 (Securities and Derivatives Trading: Rules and Regulations) is a combined regulatory exam for individuals seeking to deal in securities and derivatives in Malaysia. It is a computer-based test of 100 multiple-choice questions in 150 minutes (2.5 hours), with a passing mark of 70% (at least 70 correct). The syllabus covers the CMSA 2007, Bursa Securities rules, Bursa Derivatives rules, order handling, client asset protection, clearing, settlement, and market abuse. The FY2026 fee is RM1,250 per module. This 100-question practice bank provides comprehensive practice across all six syllabus areas with detailed explanations.

Sample SCLE Module 17 Practice Questions

Try these sample questions to test your SCLE Module 17 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under which legislation is the Securities Commission Malaysia (SC) established as the primary regulatory body for the Malaysian capital market?
A.Companies Act 2016
B.Securities Commission Act 1993
C.Capital Markets and Services Act 2007
D.Central Bank of Malaysia Act 2009
Explanation: The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). The SC is a self-funded statutory body with investigative and regulatory powers over the capital market. The Capital Markets and Services Act 2007 consolidates licensing and market conduct rules but did not establish the SC itself.
2Under the Capital Markets and Services Act 2007 (CMSA), which of the following licenses must be held by an individual who is employed by a licensed corporation to carry out the regulated activity of dealing in securities?
A.Capital Markets Services Licence (CMSL)
B.Capital Markets Services Representative's Licence (CMSRL)
C.Bursa Malaysia Registered Representative Certificate
D.Financial Planner Representative Licence
Explanation: An individual who carries out any regulated activity on behalf of a licensed corporation must hold a Capital Markets Services Representative's Licence (CMSRL) under Section 59 of the CMSA. A Capital Markets Services Licence (CMSL) is issued to corporations, not individuals. Registered Representative certificates are exchange-level registrations rather than statutory licenses.
3Which of the following is NOT classified as a regulated activity under Schedule 2 of the Capital Markets and Services Act 2007 (CMSA)?
A.Dealing in securities
B.Dealing in derivatives
C.General audit of public listed companies
D.Advising on corporate finance
Explanation: Schedule 2 of the CMSA lists regulated activities, which include dealing in securities, dealing in derivatives, advising on corporate finance, investment advice, financial planning, and funds management. General auditing of public listed companies is regulated by the Audit Oversight Board (AOB) under the Securities Commission Act 1993 and the Malaysian Institute of Accountants, but it is not a "regulated activity" requiring a CMSL/CMSRL.
4When assessing an applicant's suitability for a CMSRL, which document published by the Securities Commission Malaysia outlines the criteria for "fit and proper" requirements?
A.The Rules of Bursa Malaysia Securities Berhad
B.The SC Licensing Handbook
C.The Guidelines on Market Conduct and Partner Relations
D.The Capital Markets Services Regulations 2007
Explanation: The SC Licensing Handbook contains the detailed criteria for licensing, including the "fit and proper" requirements under Chapter 4. These assessments check honesty, integrity, financial standing, reputation, and competency of representatives. Bursa Rules govern trading participation but statutory fit and proper standards are established by the SC.
5Under Section 58 of the Capital Markets and Services Act 2007 (CMSA), what is the maximum penalty for an individual convicted of carrying on a regulated activity without holding a valid license or being a registered person?
A.A fine not exceeding RM100,000 or imprisonment for a term not exceeding 1 year, or both
B.A fine not exceeding RM1,000,000 or imprisonment for a term not exceeding 5 years, or both
C.A fine not exceeding RM10,000,000 or imprisonment for a term not exceeding 10 years, or both
D.A fine not exceeding RM50,000,000, with no option of imprisonment
Explanation: Under Section 58 of the CMSA, any person who carries on a regulated activity without a license commits an offense and is liable on conviction to a fine not exceeding RM10 million or to imprisonment for a term not exceeding 10 years, or both. This severe penalty reflects the regulatory priority to protect investors and maintain market integrity by preventing unauthorized services.
6Which of the following bodies is responsible for administering the dispute resolution framework for retail investors in disputes involving licensed capital market intermediaries in Malaysia?
A.Securities Industry Dispute Resolution Center (SIDREC)
B.Financial Services Ombudsman (FSO)
C.Bursa Malaysia Corporate Governance Committee
D.Tribunal for Consumer Claims Malaysia
Explanation: The Securities Industry Dispute Resolution Center (SIDREC) is an independent body approved by the SC to resolve monetary disputes between retail investors and capital market intermediaries (such as stockbrokers and fund managers). Its decisions are binding on the member intermediary up to a specified limit. The Financial Services Ombudsman handles banking and insurance disputes.
7A representative licensed to deal in securities is declared bankrupt by the High Court of Malaysia. Under the SC Licensing Handbook, what is the consequence of this declaration on the representative's license?
A.The license remains valid but the representative must only execute sell orders.
B.The license is automatically suspended and the SC may revoke the license.
C.The license is transferred to the representative's employer.
D.The representative can continue trading if Bank Negara Malaysia provides a letter of clearance.
Explanation: Under Section 72 of the CMSA and the SC Licensing Handbook, the bankruptcy of a license holder is a ground for revocation or suspension of the license, as it directly violates the fit and proper financial integrity criteria. The representative is obligated to notify the SC immediately. Capital market licenses cannot be transferred or maintained under bankruptcy.
8A CMSRL holder intends to change their employment from one Participating Organisation of Bursa Malaysia to another. According to the SC Licensing Handbook, what regulatory action is required?
A.The representative must apply to transfer their license through the new employer and obtain SC approval before carrying out regulated activities.
B.The representative can start trading immediately at the new employer and notify the SC within 60 days.
C.The representative must retake all SIDC licensing examinations.
D.The representative only needs to notify Bursa Malaysia in writing within 30 days, without informing the SC.
Explanation: Under the SC Licensing Handbook, a CMSRL is tied to the employing principal. If a representative changes employers, they must apply for a transfer of license through the new employer and wait for the SC's formal approval before performing any regulated activities. Carrying out activities at the new firm prior to approval is a violation of licensing rules.
9Under the guidelines of the Securities Commission Malaysia, licensed representatives must complete a minimum number of Continuing Professional Education (CPE) points. What is the primary purpose of this requirement?
A.To generate registration fees for the Securities Commission
B.To ensure representatives maintain up-to-date knowledge of market developments, regulations, and ethical standards
C.To track the working hours of licensed representatives
D.To qualify representatives for promotion to director level
Explanation: Continuing Professional Education (CPE) points are mandated to ensure that licensed representatives maintain their professional competence, keep abreast of regulatory updates, market changes, and ethical standards. Representatives must accumulate a specified number of CPE points annually to renew their registration. It is not an hours-tracking system or a corporate promotion path.
10Under the Licensing Handbook, within what timeframe must a licensed representative notify the Securities Commission Malaysia of any changes in their personal details, such as a change in residential address or any disciplinary action taken against them by a professional body?
A.Within 7 days of the occurrence of the event
B.Within 14 days of the occurrence of the event
C.Within 30 days of the occurrence of the event
D.At the time of the annual license renewal only
Explanation: According to the SC Licensing Handbook and the CMSA, a licensed representative must notify the Securities Commission in writing within 14 days of any change in their registered information, or of any event that affects their fit and proper status (such as disciplinary actions or criminal charges). Failure to notify within the statutory period is a regulatory offense.

About the SCLE Module 17 Exam

SC Licensing Examination Module 17 (Securities and Derivatives Trading: Rules and Regulations) is a combined Level 2 module of the Securities Commission Malaysia licensing examinations, administered by the Securities Industry Development Corporation (SIDC). It is taken by individuals seeking to be licensed as a CMSRL representative to deal in both securities and derivatives in Malaysia. The module is comprehensive, covering the securities and derivatives regulatory framework, the main laws governing the capital markets (notably the Capital Markets and Services Act 2007 and the Securities Commission Act 1993), Bursa Malaysia Securities trading rules and operations, Bursa Malaysia Derivatives trading rules and operations, clearing and settlement procedures of both clearing houses, the stockbroker-client relationship, client asset protection, market abuse offences such as insider trading, wash sales, and market manipulation, and compliance/AMLA 2001 obligations. The examination is a computer-based test of 100 multiple-choice questions with a 70% passing mark.

Assessment

100 objective multiple-choice questions covering regulatory framework, securities trading, derivatives trading, client relations, clearing/settlement, and market compliance.

Time Limit

150 minutes (2.5 hours).

Passing Score

70% — a candidate must answer at least 70 of the 100 questions correctly to pass.

Exam Fee

RM1,250 per module for FY2026 under SIDC's revised fee structure; confirm the current fee and any resit charge on the official SIDC examination fees page. (Securities Industry Development Corporation (SIDC) on behalf of Securities Commission Malaysia)

SCLE Module 17 Exam Content Outline

15%

Regulatory Framework and Licensing

The Capital Markets and Services Act 2007 and Securities Commission Act 1993, licensing requirements for capital market intermediaries (CMSL/CMSRL), fit and proper criteria, and representative conduct obligations.

20%

Securities Trading Rules and Market Operations

Rules of Bursa Malaysia Securities Berhad, Participating Organisation duties, trading phases, order types, short selling regulations (RSS and IDSS), price limits, and Direct Market Access (DMA) rules.

20%

Derivatives Trading Rules and Operations

Rules of Bursa Malaysia Derivatives Berhad, Trading Participant obligations, types of derivatives contracts (FKLI and FCPO), night trading sessions (T+1), option exercise styles, and position limits.

15%

Order Handling and Client Relations

Client onboarding, Know Your Client (KYC) / customer due diligence, suitability assessments, Risk Disclosure Documents, order execution priority, trust account rules, and client asset protection.

15%

Clearing, Settlement and Risk Management

Clearing house rules, central counterparty role, T+2 settlement cycle, buying-in/selling-out processes, margin requirements (initial, maintenance, variation margin), daily marking-to-market, and default management.

15%

Market Abuse, Misconduct and Compliance

Prohibited market conduct (wash sales, market manipulation, insider trading, front-running), compliance functions, and anti-money laundering obligations (AMLA 2001, suspicious transaction reporting).

How to Pass the SCLE Module 17 Exam

What You Need to Know

  • Passing score: 70% — a candidate must answer at least 70 of the 100 questions correctly to pass.
  • Assessment: 100 objective multiple-choice questions covering regulatory framework, securities trading, derivatives trading, client relations, clearing/settlement, and market compliance.
  • Time limit: 150 minutes (2.5 hours).
  • Exam fee: RM1,250 per module for FY2026 under SIDC's revised fee structure; confirm the current fee and any resit charge on the official SIDC examination fees page.

Keys to Passing

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

SCLE Module 17 Study Tips from Top Performers

1Familiarize yourself with the key provisions of the Capital Markets and Services Act 2007 (CMSA), specifically Part V regarding market abuse and licensing.
2Understand the difference between Regulated Short Selling (RSS) and Intraday Short Selling (IDSS) trading rules and borrowing requirements.
3Memorize the FKLI and FCPO contract specifications (multipliers, trading hours, and delivery terms).
4Learn the SPAN margin calculation methodology and the differences between initial margin, maintenance margin, and variation margin calls.
5Study client asset protection rules, including the 1-business-day requirement to deposit client monies into trust accounts.
6Review market offenses under the CMSA: wash sales, pre-arranged trades, market manipulation, insider trading, and front-running, along with their respective statutory definitions.
7Understand AML/CFT obligations under AMLA 2001, including customer due diligence (CDD) risk tiers and the tipping-off offense.

Frequently Asked Questions

What is the SIDC Module 17 examination?

The SC Licensing Examination Module 17 (Securities and Derivatives Trading: Rules and Regulations) is a combined regulatory exam offered by SIDC for individuals seeking a license (CMSRL) to deal in both securities and derivatives in Malaysia. It covers the legal and regulatory frameworks governing both markets, including bursa trading rules, clearing, settlement, client asset protection, and compliance obligations.

What is the passing score and format for Module 17?

The exam consists of 100 multiple-choice questions to be completed in 150 minutes (2.5 hours). The passing score is 70% (70 correct answers). The exam is delivered as a computer-based test (CBT) at SIDC-approved examination centers.

How much does the SIDC Module 17 exam cost?

Effective from March 2026, the SIDC SC Licensing Examination fee is RM1,250 per module. Resit charges are also the same per attempt. Candidates should verify current prices on the official SIDC examination website before booking.

What is the difference between Module 6 and Module 17?

Module 6 is a Level 1 module covering only stock market and securities laws, with 60 questions and a 60% passing mark. Module 17 is a Level 2/combined module that covers both securities and derivatives rules, clearing, and operations, with 100 questions and a 70% passing mark.

How long is the exam result valid for licensing?

A passed examination result for any SIDC licensing module is valid for two years from the date of the exam for licensing application purposes with the Securities Commission Malaysia.