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100+ Free SIDC Module 19 Practice Questions

Pass your SC Licensing Examination Module 19 - Advisory Services: Rules and Regulations (SIDC, Malaysia) exam on the first try — instant access, no signup required.

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2026 Statistics

Key Facts: SIDC Module 19 Exam

60 questions

SIDC Module 19 has 60 multiple-choice questions

SIDC - SC Licensing Examinations

90 minutes

Time allowed to complete the 60 Module 19 questions

SIDC - Modules Description

70% pass mark

Candidates must score at least 70% (42 of 60) to pass Module 19

SIDC - SC Licensing Examinations

Online MCQ

Module 19 is a computer-based multiple-choice examination

SIDC - SC Licensing Examinations

RM1,250

Per-module SC Licensing Examination fee for Malaysian residents in 2026

SIDC - Revised fee structure effective 1 March 2026

200 hours

Minimum study time SIDC estimates for Module 19

SIDC - Module 19 Study Outline

Advisory Regulations

Covers licensing, legal principles, ethics, corporate proposals and M&A rules

SIDC - Modules Description

100

Free original practice questions in this bank

OpenExamPrep

SC Licensing Examination Module 19, Advisory Services: Rules and Regulations, is a Securities Commission Malaysia licensing exam administered by SIDC for corporate finance advisors and investment advisers. It is an online test of 60 multiple-choice questions answered in 90 minutes, with a 70% pass mark (42 correct answers). The syllabus covers securities law (CMSA 2007), licensing rules, contracts and torts, advisor liabilities, client duties, market misconduct, corporate proposals, listing rules, due diligence, and take-overs/mergers. SIDC recommends a minimum of about 200 study hours. The fee is RM1,250 for Malaysian residents in 2026. This 100-question bank provides original practice aligned to the official syllabus.

Sample SIDC Module 19 Practice Questions

Try these sample questions to test your SIDC Module 19 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Schedule 2 of the Capital Markets and Services Act 2007 (CMSA), which of the following is defined as a regulated activity?
A.Advising on corporate finance
B.Providing auditing and statutory tax services
C.Managing general corporate communications
D.Providing legal counsel for commercial disputes
Explanation: Advising on corporate finance is a regulated activity listed under Schedule 2 of the CMSA 2007. Any corporation or individual carrying out this activity must hold a Capital Markets Services Licence (CMSL) or a Capital Markets Services Representative's Licence (CMSRL) unless specifically exempted. Auditing, tax, general public relations, and general legal services are not regulated activities under the CMSA.
2Which of the following licenses must be held by an individual who acts as a representative of a corporate licensee to carry out the regulated activity of providing investment advice?
A.Capital Markets Services Licence (CMSL)
B.Capital Markets Services Representative's Licence (CMSRL)
C.Financial Adviser's Representative Licence (FARL)
D.Registered Corporate Representative (RCR)
Explanation: An individual acting as a representative to carry out any regulated activity must hold a Capital Markets Services Representative's Licence (CMSRL). A Capital Markets Services Licence (CMSL) is issued to corporations, not individuals. Financial Adviser's Representative licenses are issued under the Financial Services Act 2013 by Bank Negara Malaysia, not the CMSA.
3What is the statutory penalty under Section 58 of the Capital Markets and Services Act 2007 (CMSA) for an individual who carries out a regulated activity without holding a valid license or being registered?
A.A fine not exceeding RM100,000 or imprisonment for a term not exceeding 1 year, or both
B.A fine not exceeding RM500,000 or imprisonment for a term not exceeding 5 years, or both
C.A fine not exceeding RM10 million or imprisonment for a term not exceeding 10 years, or both
D.A fine not exceeding RM20 million and mandatory whipping
Explanation: Under Section 58 of the CMSA, a person who carries out a regulated activity without a licence commits an offence 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 heavy penalty reflects the regulator's objective to protect investors and maintain market integrity.
4According to the Licensing Handbook issued by the Securities Commission Malaysia, which of the following is NOT an element considered under the 'fit and proper' criteria for licensing?
A.Honesty, integrity, and reputation
B.Competence, capability, and financial soundness
C.Accumulation of personal assets and high net worth
D.Efficiency and fairness in carrying out business
Explanation: The Licensing Handbook sets out the 'fit and proper' criteria in Chapter 4, which includes honesty, integrity, reputation, competence, capability, financial soundness, and efficiency/fairness. Personal wealth or high net worth is not a criterion for determining if an applicant is fit and proper to hold a license.
5Under Schedule 4 of the Capital Markets and Services Act 2007 (CMSA), which of the following entities is exempt from the requirement to hold a Capital Markets Services Licence (CMSL) for advising on corporate finance?
A.A boutique financial planning corporation registered under the Financial Services Act 2013
B.A licensed bank, licensed investment bank, or licensed Islamic bank under the Financial Services Act 2013
C.A foreign-incorporated management consulting firm providing strategic advisory services in Malaysia
D.Any public listed corporation on the Main Market of Bursa Malaysia when issuing its own shares
Explanation: Schedule 4 of the CMSA lists exempt persons, including licensed banks, investment banks, and Islamic banks licensed under the Financial Services Act 2013 or Islamic Financial Services Act 2013. These institutions are permitted to advise on corporate finance without holding a separate CMSL, although their representatives must still register or comply with SC standards.
6How may a person who is aggrieved by a licensing decision of the Securities Commission Malaysia (such as a refusal to grant, or a revocation of, a licence) challenge that decision?
A.By applying to the Securities Commission for a review of the decision under section 146 of the Securities Commission Malaysia Act 1993
B.By appealing directly to the Bursa Malaysia Appeals Committee
C.By petitioning the Special Commissioners of Income Tax
D.By lodging an objection with the Companies Commission of Malaysia (SSM)
Explanation: A person aggrieved by a decision of the Securities Commission (such as a refusal, suspension, or revocation of a licence) may apply to the Commission itself for a review of the decision under section 146 of the Securities Commission Malaysia Act 1993 (and, for certain decisions, section 364 of the CMSA). There is no separate statutory tribunal such as a 'Capital Market Appeals Board'; further recourse beyond the Commission's review is by judicial review in the courts.
7Under the Licensing Handbook of the Securities Commission Malaysia, a CMSRL holder must notify the Securities Commission of any change in their employment or material information within what timeframe?
A.Within 7 days of the occurrence of the change
B.Within 14 days of the occurrence of the change
C.Within 30 days of the occurrence of the change
D.Only during the annual license renewal cycle
Explanation: According to the Licensing Handbook, a licensed representative (CMSRL holder) or the principal CMSL holder must notify the Securities Commission Malaysia of any changes in material information (such as employment status, home address, or regulatory infractions) within 14 days of the occurrence of the event.
8Which of the following is defined as 'investment advice' under Schedule 2 of the Capital Markets and Services Act 2007 (CMSA)?
A.Giving advice concerning the purchase or sale of securities or derivatives in exchange for consideration
B.Executing buy and sell orders for securities on the trading platform of Bursa Malaysia
C.Issuing a credit rating for a corporate bond or sukuk offering
D.Drafting legal contracts for the acquisition of a target company
Explanation: Providing investment advice consists of giving advice or issuing reports concerning the purchase, sale, subscription, or underwriting of securities or derivatives for consideration. Executing trade orders is dealing in securities, credit rating is a separate regulated activity, and drafting legal contracts is legal practice.
9A licensed representative whose CMSRL has been revoked by the Securities Commission may apply for a review of that decision. Within what period must the application for review generally be submitted?
A.Within 14 days of being notified of the decision
B.Within 30 days of being notified of the decision
C.Within 60 days of being notified of the decision
D.There is no time limit for applying for a review
Explanation: A person aggrieved by a decision of the Securities Commission (such as the revocation of a CMSRL) may apply to the Commission for a review of the decision under section 146 of the Securities Commission Malaysia Act 1993. The application must generally be made within 30 days of being notified of the decision.
10What is the primary role of the Securities Commission Malaysia (SC) under the Securities Commission Malaysia Act 1993?
A.To guarantee the profitability and financial returns of listed companies
B.To regulate all matters relating to securities and derivatives, and protect investors
C.To operate the trading floor and clearing houses of Bursa Malaysia
D.To issue commercial banking licenses and set national monetary policy
Explanation: The SC is the sole regulatory authority for the Malaysian capital market. Its primary functions include regulating securities and derivatives, promoting development of the capital market, and protecting investors. It does not guarantee returns, run exchange operations, or set monetary policy.

About the SIDC Module 19 Exam

SC Licensing Examination Module 19, Advisory Services: Rules and Regulations, is one of the Securities Commission Malaysia licensing examinations administered by SIDC. It is required for individuals seeking to be licensed as a Capital Markets Services Representative's Licence (CMSRL) holder in regulated activities such as advising on corporate finance and providing investment advice. The syllabus covers the licensing and regulatory framework under the Capital Markets and Services Act 2007 (CMSA), the Licensing Handbook, general legal principles including the Contracts Act 1950 and law of torts, professional adviser liabilities, code of conduct and ethics, market misconduct, guidelines on corporate proposals, equity listings on Bursa Malaysia, due diligence guidelines, prospectus guidelines, and the Malaysian Code on Take-Overs and Mergers.

Assessment

The official examination has 60 multiple-choice questions covering licensing framework, legal principles, conduct and compliance, corporate proposals, due diligence, listings, and take-overs.

Time Limit

90 minutes for 60 multiple-choice questions, an average of about 90 seconds per question.

Passing Score

70% (at least 42 of 60 questions correct).

Exam Fee

Per-module SC Licensing Examination fee for FY2026: RM1,250 for Malaysian residents and RM2,750 for non-residents. (Securities Industry Development Corporation (SIDC), on behalf of the Securities Commission Malaysia.)

SIDC Module 19 Exam Content Outline

20%

Licensing and Regulatory Framework

Licensing requirements under the CMSA, Licensing Handbook, regulated activities (corporate finance and investment advice), and the role of the Securities Commission.

15%

Legal Principles and Liabilities

Principles of contract law under the Contracts Act 1950, law of torts, negligence, professional duty of care, and adviser liabilities.

25%

Conduct, Ethics, and Compliance

Code of conduct for intermediaries, fair dealing, conflicts of interest, client suitability, market misconduct (insider trading, market manipulation), and AML/CFT/CPF guidelines.

25%

Corporate Finance and Securities Offerings

Regulations on corporate proposals, Equity Guidelines, Prospectus Guidelines, listing requirements on Bursa Malaysia, and Guidelines on Due Diligence Conduct.

15%

Take-overs and Mergers

Malaysian Code on Take-Overs and Mergers, Rules on Take-Overs, mergers, mandatory general offers (MGO), parties acting in concert (PAC), and compulsory acquisition.

How to Pass the SIDC Module 19 Exam

What You Need to Know

  • Passing score: 70% (at least 42 of 60 questions correct).
  • Assessment: The official examination has 60 multiple-choice questions covering licensing framework, legal principles, conduct and compliance, corporate proposals, due diligence, listings, and take-overs.
  • Time limit: 90 minutes for 60 multiple-choice questions, an average of about 90 seconds per question.
  • Exam fee: Per-module SC Licensing Examination fee for FY2026: RM1,250 for Malaysian residents and RM2,750 for non-residents.

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 19 Study Tips from Top Performers

1Familiarise yourself with the Capital Markets and Services Act 2007 (CMSA), specifically the sections regarding licensing and market misconduct such as insider trading.
2Understand the key requirements of the Licensing Handbook, especially the 'fit and proper' criteria for representatives (CMSRL) and corporate entities (CMSL).
3Study general contract law principles (Contracts Act 1950) and torts (negligence and professional duty of care) as they form a major part of the legal syllabus.
4Be clear on the code of conduct: prioritising client interests, avoiding and disclosing conflicts of interest, and ensuring client suitability.
5Memorise take-over thresholds: the 33% mandatory general offer (MGO) trigger, and the creeping threshold of acquiring more than 2% within 6 months when holding between 33% and 50% of voting shares.
6Master the Due Diligence Conduct guidelines and know the distinct roles and liabilities of principal advisers, sub-advisers, and experts.

Frequently Asked Questions

How many questions are on SIDC Module 19 and how long is the exam?

The Module 19 examination has 60 multiple-choice questions and you are given 90 minutes to complete them, which is about 90 seconds per question.

What is the passing mark for SIDC Module 19?

The passing mark is 70%. With 60 questions, you must answer at least 42 questions correctly to pass the examination.

What does Module 19 cover?

It covers rules and regulations for advisory services, including the licensing framework (CMSA & Licensing Handbook), contract law, law of torts, adviser liabilities, code of conduct, client suitability, AML/CFT, corporate proposal guidelines, equity guidelines, due diligence conduct, and the Malaysian Code on Take-Overs and Mergers.

Who administers the SC Licensing Examination Module 19?

The examination is administered by the Securities Industry Development Corporation (SIDC) on behalf of the Securities Commission Malaysia. It is delivered online as a computer-based multiple-choice test.

How much does SIDC Module 19 cost?

Following the fee revision effective 1 March 2026, the examination fee for Module 19 is RM1,250 for Malaysian residents and RM2,750 for non-residents.

How long should I study for Module 19?

SIDC recommends a minimum of about 200 hours of study, though the time needed depends on your background and work experience in finance and securities regulations.