IPPC Exam Format | Course Contents | Outline | Syllabus | Objectives

IPPC Exam Syllabus & Study Guide

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The information below reflects the 2026 syllabus defined by AICB.

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AICB Investor Protection Professional Certification (IPPC) 1. The Malaysian Financial System 1.1 Structure of the Malaysian Financial Markets Financial Market Fundamentals - Purpose and functions of financial markets - Role of financial markets in the economy - Mobilisation of savings - Allocation of capital - Facilitation of investment - Liquidity creation - Price discovery - Risk transfer Major Financial Markets - Money market - Capital market - Foreign exchange market - Commodity market - Derivatives market Understanding Market Functions - Functions of the money market - Functions of the capital market - Functions of the foreign exchange market - Functions of commodity markets - Functions of derivatives markets - Differences among the major financial markets Market Classifications - Primary markets - Secondary markets - Exchange-traded markets - Over-the-counter (OTC) markets - Onshore markets - Offshore markets Primary versus Secondary Markets - New issuance of securities - Trading of existing securities - Role of issuers - Role of investors - Capital raising - Liquidity in secondary markets Exchange-Traded versus OTC Markets - Exchange trading mechanisms - OTC trading mechanisms - Standardisation - Customisation - Counterparty considerations - Transparency - Liquidity considerations Onshore versus Offshore Markets - Domestic financial markets - International financial markets - Regulatory considerations - Foreign participation 1.2 Islamic Banking Fundamentals of Islamic Banking - Principles of Islamic finance - Shariah principles - Ethical foundations of Islamic finance Comparison with Conventional Banking - Islamic banking versus conventional banking - Interest-based financing versus Shariah-compliant financing - Risk-sharing principles - Asset-backed or asset-based transactions - Prohibited elements in Islamic finance Core Islamic Finance Principles - Prohibition of riba - Avoidance of gharar - Avoidance of maysir - Shariah compliance - Ethical investment principles Islamic Financial Practices - Islamic banking operations - Islamic financial products - Islamic financial institutions - Role of Shariah governance 1.3 Market Structure Structure of Financial Markets - Organisation of financial markets - Market segments - Market infrastructure - Trading arrangements - Financial system structure Market Relationships - Relationship between institutions and markets - Relationship between issuers and investors - Relationship between intermediaries and investors - Flow of funds through the financial system 1.4 Market Participants Financial Institutions - Roles of financial institutions - Functions within the financial system - Financial intermediation Financial Intermediaries - Role of intermediaries - Facilitating transactions - Connecting investors and issuers - Distribution of financial products Investors - Role of investors in financial markets - Investor participation - Investor decision-making - Investor protection considerations Interaction Among Market Participants - Financial institutions - Intermediaries - Regulators - Investors - Issuers 1.5 Regulatory Authorities, Acts and Guidelines Financial Regulators - Roles of financial regulators - Regulatory oversight - Financial market supervision - Investor protection Regulatory Functions - Maintaining market integrity - Promoting financial stability - Protecting investors - Supervising market participants - Establishing regulatory requirements - Enforcing laws and regulations Regulatory Framework - Regulatory Acts - Regulatory guidelines - Rules governing financial market activities - Investor protection framework Key Regulatory Bodies - Bank Negara Malaysia (BNM) - Securities Commission Malaysia (SC) - Other relevant Malaysian financial regulatory authorities Investor Protection - Regulatory protection of investors - Regulatory oversight of financial products - Market conduct requirements - Compliance responsibilities 2. Regulations and Guidelines for Market Participants 2.1 Roles and Responsibilities of Licensed Organisation Licensed Organisations - Role of licensed organisations - Regulatory responsibilities - Organisational accountability - Compliance obligations Introduction of New Products - Responsibilities when introducing new products - Product governance considerations - Product approval considerations - Regulatory requirements Sales Practices - Appropriate sales practices - Fair dealing - Responsible product distribution - Investor protection in product sales Transparency - Transparency requirements - Clear communication - Provision of relevant information - Avoidance of misleading practices Disclosure Requirements - Product disclosure - Risk disclosure - Information provided to investors - Disclosure obligations Capital Market Product Guidelines - Compliance with applicable product guidelines - Regulatory requirements for capital market products - Responsibilities of financial institutions 2.2 Roles and Responsibilities of Licensed Person Licensed Persons - Role of licensed persons - Individual regulatory responsibilities - Professional obligations Capital Markets and Services Act (CMSA) - Responsibilities under the CMSA - Regulatory obligations - Conduct requirements Qualifications - Required qualifications for selling capital market products - Professional competency - Licensing requirements Selling Capital Market Products - Responsibilities when marketing products - Responsibilities when recommending products - Compliance with applicable regulations Know-Your-Client (KYC) KYC Fundamentals - Purpose of KYC - Importance of client identification - Understanding client circumstances KYC Processes - Client information gathering - Customer profiling - Understanding investor needs - Investor protection through KYC Investor Suitability - Understanding the client - Product suitability considerations - Risk considerations - Client needs and objectives 2.3 Categories and Permitted Activities for Investors Investor Classifications - Categories of investors - Differences among investor classifications - Regulatory treatment of investor categories Permitted Activities - Activities permitted for different investor categories - Restrictions applicable to investors - Regulatory conditions Foreign Exchange Activities - Foreign exchange activities - Regulatory requirements for foreign exchange transactions - Permitted foreign exchange activities Bank Negara Malaysia Foreign Exchange Administration Rules - Foreign Exchange Administration Rules - Regulatory oversight of foreign exchange activities - Investor and market participant obligations 2.4 Deposit Insurance Deposit Insurance Fundamentals - Purpose of deposit insurance - Role in protecting depositors - Contribution to financial system stability Benefits of Deposit Insurance - Protection of depositors - Maintaining public confidence - Supporting financial stability Deposit Insurance Coverage - Coverage provided by deposit insurance - Scope of protection - Eligible deposits Deposit Insurance Limits - Coverage limits - Limitations of protection - Deposits and products that may not receive the same protection PIDM - Role of PIDM - Contribution to financial stability - Depositor protection - Maintaining confidence in the financial system 2.5 Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) AML/CFT Fundamentals - Purpose of AML/CFT requirements - Prevention of financial crime - Regulatory framework Money Laundering Process - Understanding the money laundering process - Stages and mechanisms of money laundering - Identifying suspicious activity Reporting Institutions - Responsibilities of reporting institutions - Compliance obligations - Prevention and detection responsibilities Customer Due Diligence - Customer identification - Customer verification - Understanding customer relationships - Ongoing customer due diligence Financial Crime Prevention - Preventing money laundering - Countering terrorist financing - Role of financial institutions - Role of employees and licensed persons AML/CFT Compliance - Regulatory requirements - Internal procedures - Customer due diligence requirements - Reporting responsibilities 3. Debt Securities and Structured Products 3.1 Introduction to Debt Securities Debt Security Fundamentals - Definition of debt securities - Purpose of debt financing - Debt securities as investment instruments Basic Concepts - Issuer - Investor - Principal - Par value - Face value - Coupon - Maturity 3.2 Overview of the Malaysian Bond Market Malaysian Bond Market - Structure of the Malaysian bond market - Participants in the bond market - Issuers - Investors - Intermediaries Bond Market Functions - Capital raising - Debt financing - Investment opportunities - Market liquidity 3.3 What Are Debt Securities? Nature of Debt Securities - Debt obligations - Issuer obligations - Investor rights - Repayment of principal - Interest or coupon payments Debt Security Characteristics - Maturity - Coupon structure - Principal repayment - Credit quality - Market value 3.4 Classification of Debt Securities by Issuer Classification Based on Issuer - Types of debt issuers - Government issuers - Corporate issuers - Other categories of issuers Issuer Considerations - Creditworthiness - Repayment ability - Default risk - Credit quality 3.5 Different Features of Bonds Bond Features - Issuer - Maturity date - Par value - Face value - Coupon rate Coupon Rate Structures - Fixed-rate bonds - Variable or floating-rate bonds - Other coupon structures Embedded Options - Bonds with embedded options - Impact of options on bond value - Investor considerations Maturity - Short-term debt - Medium-term debt - Long-term debt 3.6 Seniority of Claims – The Ranking of Bonds Bond Seniority - Ranking of debt claims - Priority of claims - Seniority structure Claims in Financial Distress - Order of repayment - Priority among creditors - Implications for investors Investment Considerations - Seniority and credit risk - Seniority and expected recovery - Risk differences among debt securities 3.7 Yield Measures for Bonds Bond Yield Fundamentals - Yield concepts - Return from bond investments Yield to Maturity - Yield-to-maturity (YTM) - Relationship between price and yield - Investment return considerations Yield Curves - Yield curve concepts - Relationship between maturity and yield - Interpretation of yield curves Coupon Rate, Market Yield and Bond Price - Coupon rates - Market yields - Bond prices - Inverse relationship between yields and bond prices Bond Valuation - Factors affecting bond prices - Interest rates - Yield - Maturity - Coupon payments 3.8 Bonds: Trustee, Ratings, Tax and Risk Bond Trustees - Role of trustees - Investor protection - Monitoring issuer obligations Credit Ratings - Purpose of credit ratings - Role of credit rating agencies - Evaluating creditworthiness - Credit quality assessment Tax - Tax considerations for bond investments - Impact of tax on investment returns Bond Risks - Interest rate risk - Credit risk - Other investment risks Duration - Duration concepts - Interest rate sensitivity - Impact of changing interest rates on bond values 3.9 Risks When Investing in Bonds Credit Risk - Default risk - Issuer creditworthiness - Credit deterioration Interest Rate Risk - Effect of interest rate movements - Relationship between yields and prices - Duration sensitivity Other Investment Risks - Market risk - Liquidity considerations - Reinvestment considerations - Product-specific risks Risk Assessment - Understanding investor risk - Matching investment risks with investor circumstances - Evaluating potential returns against risks 3.10 Introduction to Structured Products Structured Product Fundamentals - Definition of structured products - Purpose of structured products - Product structure Components of Structured Products - Investment component - Derivative component - Underlying assets Role of Structured Products - Risk and return characteristics - Investment objectives - Potential diversification 3.11 Different Types of Structured Products Structured Product Categories - Different forms of structured products - Product design - Payoff structures - Risk-return characteristics Product Features - Capital protection characteristics - Return mechanisms - Underlying asset exposure - Maturity - Embedded derivatives 3.12 Understanding Derivatives Derivative Fundamentals - Definition of derivatives - Role in financial markets - Relationship with underlying assets Types of Derivatives Forwards - Forward contracts - Contract characteristics - Risks Futures - Futures contracts - Standardised contracts - Market characteristics Options - Options - Rights and obligations - Option-related risks Swaps - Swap contracts - Exchange of financial obligations or cash flows - Risks Derivatives in Structured Products - Role of derivatives - Product payoff structures - Risk management - Return generation 3.13 Underlying Assets for Structured Products Underlying Assets - Concept of an underlying asset - Relationship between structured products and underlying assets Asset Exposure - Market exposure - Price movements - Performance dependence Investment Considerations - Risk of underlying assets - Market volatility - Product performance 3.14 Why Invest in Structured Products and Questions to Ask Before Investing Reasons for Investing - Risk-return objectives - Portfolio diversification - Exposure to underlying assets - Customised investment strategies Risk and Return - Balancing risk and return - Understanding potential gains - Understanding potential losses Questions Before Investing - What is the product? - How does the product work? - What are the underlying assets? - What are the risks? - What is the investment horizon? - What are the potential returns? - What are the potential losses? - What happens at maturity? - What is the liquidity of the product? - Are there applicable fees or charges? - Is the product suitable for the investor? Regulations Governing Structured Products - Regulatory requirements for issuance - Regulatory requirements for sale - Investor protection requirements - Disclosure considerations - Sales conduct requirements Structured Product Risks - Market risk - Credit risk - Liquidity risk - Derivative-related risk - Product complexity - Potential loss of investment