(1) Effective Customer Service

Good Customer Service

1. Customer Service = The process of ensuring customer satisfaction with a product or service. Often, this takes place while performing a transaction for the customer. This could be through in-person interactions, phone calls, self-service systems, among other things.

2. 5 Principles of Good Customer Service

3. Recommended Video

Customer Service Programme

1. Creating a Customer Service Programme

2. Recommended Video

Building Customer Relationship

1. Customer Retention

1. Customer Retention Strategies

1. Underpromise and Overdeliver

2. Build relationships with customers to let them know they can trust you

3. Proactive service to eliminate problems before they happen

4. Set yourself up as the expert in your field to gain customers' brand loyalty

5. Make it easy for customers to reach you. Offer space to share feedback + offer support

6. Go above and beyond to meet customers' needs

2. Customer Emotions

1. Most customer behaviour is emotionally based, appeal to their emotions to make them feel like they truly matter

3. Rapport

1. A crucial element in marketing

2. Communicate effectively with customers to strengthen your connection & ensure you are understood

4. Ways to Develop a Good Rapport

1. Don't criticise, condemn or complain

2. Give honest and sincere appreciation

3. Become genuinely interested in the prospect's needs

4. Smile

5. Remember the prospect's name

6. Be a good listener - encourage the prospect to talk

7. Make the prospect feel important. And do it sincerely.

8. Respect prospect's opinions. Never say, "You're wrong"

9. If you are wrong, admit quickly and empathetically

10. Let the prospect save face

Ways to Build Relationship with Customers

Presentation

1. Presenting to Prospects

2. Recommended Video

Customer Experience

1. Customer Perception = Customer perception is one of the most valuable aspects of a company. Managing that perception in all its forms should be a top priority and is the responsibility of every single person in the organisation. A negative experience often means the customer goes elsewhere with their business, each lost customer means more than just their lost business, but it results in lost business from their friends as well.

2. Turning a Negative into a Positive Customer Experience

3. Recommended Video

Customer experience can include a lot of elements, but it really boils down to the perception the customer has of your brand/service. Even if you think your brand/service and customer experience is one thing, if the customer perceives it as something different, that is what the actual customer experience is.

(2) Regulated Capital Market Activities

Dealing in Securities

1. Terminology and Definition

2. Participating Organisations

Under Chapter 1 of the Rules of Bursa Malaysia Securities, a Participating Organisation (PO) is defined as a company that carries on the business of trading in securities on Bursa Malaysia Securities.

Categories of Participating Organisations

Under Chapter 3 of the Rules of Bursa Malaysia Securities, POS are categorised as follows:

(a) Investment Bank

(b) Universal Broker

(c) Special Scheme Broker

(d) 1+1 Broker

(e) Standalone Broker

Registered Persons of Participating Organisation

A PO must register the following persons with BMSB:

• Chief Executive Officer

• Director

• Head of Dealing

• Head of Operations

• Head of Compliance

• Dealer's Representative

Roles and Obligations of a Registered Person

• Continuously satisfy the qualification criteria

• Comply with and give effect to the Securities Laws and the Securities Commission's requirements

• Comply with and give effect to Bursa Malaysia Securities and other relevant authorities' Rules and Directives

• Observe professional conduct, standards of integrity and fair dealing:

• Exercise proper skill, care and diligence

3. Dealer's Representatives

Chapter 3 of the Rules of Bursa Malaysia Securities provides the categories of Dealer's Representatives

Dealing in Derivatives

Terminology and Definition

a. Under Part 2. Schedule 2 of the CMSA 2007. Dealing in Derivatives' means, whether as principal or agent, making or offering to make with any person, or inducing or attempting to induce any person, or soliciting or accepting any order for, or otherwise:

         (a) entering into or taking an assignment of the derivative, whether or not on another person's ehalf

         (b) taking or causes to be taken action that closes out the derivative, whether or not on another

         (c) in relation to an option:  

                    i. exercising any right under the option;

                    ii. allowing any right under the option to lapse, whether or not on another person's behalf

         (d) initiating, originating, or issuing over-the-counter derivatives

b. Under Section 2 of the CMSA 2007, Derivatives' means any contract, either for the purposes of creating an obligation or a right or any combination of both, of which its market value, delivery or payment obligations are derived from. referenced to or based on, but not limited to, underlying securities or commodities, assets, rates, indices or any of its combination, whether or not a standardised derivative or an over-the-counter derivative, but does not include:

         (a) securities;

         (b) any derivative to which Bank Negara    

         (c) any over-the-counter derivatives whose market price. value. delivery or payment obligations are  solely derived from, referenced to or based on, exchange rates;

         (d) any agreement, when entered into. is in a class of agreements prescribed not to be derivatives

Fund Management

1. Terminology and Definition:

1. Under Part 2, Schedule 2 of the CMSA 2007, "Fund Management" means undertaking on behalf of any other person the management of:

          (a) a portfolio of securities or derivatives or a combination of both, by a portfolio fund manager, whether on a discretionary authority or otherwise;

          (b) an asset or a class of asset in a unit trust scheme by an asset fund manager

Dealing in Private Retirement Schemes

1. Key Components

2. PRS Distributors and Consultants

• PRS Distributors are licensed for dealing in PRS or registered persons under the CMSA 2007

• PRS Consultants are representatives of PRS Distributors and need to be registered with FIMM

• Institutional PRS advisers are licensed bankers to distribute PRS schemes from more than one PRS providers

• Corporate PRS advisers are financial planning firms that represent and distribute products from more than one PRS Provider and can act on behalf of the contributors

• PRS Consultants must obtain minimum knowledge of the PRS industry and act with integrity and a high level of professionalism

3. Private Pension Administrator

• The Private Pension Administrator (PPA) is a body approved by the SC to perform the function of record keeping, administration and customer service for the members and contributors in relation to contributions made in respect to the PRS

• The duties of the PPA include:

             receiving and transmitting instructions from members

             keeping records of all transactions or monies paid or received by members

             provide information to PRS Providers, Scheme Trustees or members

4. PRS Providers

• An institution licensed by the SC to establish and provide a PRS and offering schemes for investment by the general public

• The provider is required to manage and administer the funds under the PRS in the best interest of the members

• The main thrust of the duties of a PRS Provider is the proper and efficacious operation of the PRS. They perform a central function in terms of receiving contributions, processing transactions by members and managing fund within the scheme

5. Scheme Trustee

• The Scheme Trustees are ultimately responsible for protecting the interests of the members of PRS schemes

• The main roles and functions of Scheme Trustees are:

               holds assets in trust for the members of PRS

               facilitate the dealings in units of a fund under the PRS by members

               appoint (and remove) independent auditors and ensure that the financial statements of the funds under the PRS are audited report to members on the operations of the PRS

               ensure that the funds under the PRS are operated and managed in accordance with the trust deed, relevant rules and guidelines, and acceptable and efficacious business practices

6. Recommended Podcast:

Financial Planning

1. Terminology and Definition

1. Under Part 2, Schedule 2 of the CMSA 2007. "Financial planning" means analysing the financial circumstances of another person and providing a plan to meet that other person's financial needs and objectives, including any investment plan in securities, whether or not a fee is charged in relation thereto.

• Only person who possesses the Capital Markets and Services Licence (CMSL) or Capital Markets and Services Representative Licence (CMSRL) issued by the SC is allowed to hold themselves out as Financial Planner.

2. Nature of Financial Planning

According to Financial Planning Association of Malaysia (FPAM), financial planning is a process and consist of six steps.

STEP 1: Establishing and defining Client-Planner Relationship

STEP 2: GatheringClient Data

STEP 3: Analysing and evaluating client's financial status

STEP 4: Developing and presenting financial planning recommendations

STEP 5: Implementing the financial planning recommendations

STEP 6: Monitoring the financial recommendations

3. Scope of Financial Planning

1. Financial Planner (FP) may provide advice to clients pursuant to the assessment and analysis undertaken on his client's needs including on matters related to the plan which has been drawn up, which include analysing client needs over areas such as investments, savings, tax planning, estate and retirement planning.

2. FP may identify and shortlist capital market products such as unit trust funds, ETFs, PRS, REITs, wholesale funds and fixed income which are capable of meeting the investment objectives of a client.

3. FP cannot make a specific recommendation on shares of a specific public listed company.

4. FP may provide broad advice on foreign securities (excluding collective investment scheme) but must not involve specific recommendation on those securities.

5. An FP who is also a CMSL holder for dealing in securities restricted to unit trusts or dealing in Private Retirement Schemes may sell UTFs or PRS funds.

6. When providing advice to clients, FPs must have a reasonable basis for all recommendations made (section 92 of the CMSA 2007), for example, recommendations made must be supported by disclosure documents and/or research reports.

4. Regulatory Framework for Financial Planning

Advising on Corporate Finance

1. Terminology and Definition

Under Part 2, Schedule 2 of the CMSA 2007. Advising on Corporate Finance (CF) means giving advice concerning:

    (a) compliance with or in respect of Part VI. any regulation made under section 378 and any guidelines issued under section 377 relating to any matter provided under Part VI. or relating to the raising of funds by any corporation;

    (b) compliance with the listing requirements of the stock exchange in relation to the raising of funds or related party transactions;

    (c) arrangement or restructuring of a listed corporation or a subsidiary of the listed corporation of its assets or liabilities.

2. Approval of Securities Commission for Capital Raising

1. Section 212 of the CMSA 2007 states that certain activities require the approval of the SC.

1. The listing and quotation of equity-related securities, debt securities, exchange-traded funds (ETFs) and business trusts on the Main Market of Bursa Malaysia Securities (Bursa Securities)

2. The transfer of listing from an alternative market (for example ACE Market or foreign stock exchange) to the Main Market of Bursa Securities

3. A reverse take-over (RTO) of a company, ETF or business trust listed on the Main Market of Bursa Securities

3. Bursa Securities Listing Rules

1. Companies listed on the Bursa Securities are subjected to one of the following listing rules:

1. For companies listed on the Main Market

2. For companies listed on the ACE Market

3. For companies listed on the LEAP Market

4. Securities Issues in the Secondary Market

5. Types of Corporate Actions

1. Terminology and Definition

1. Under Part 2, Schedule 2 of the CMSA 2007, "Investment advice" means carrying on a business of advising others concerning securities or derivatives or as part of a business, issues or promulgates analyses or reports concerning securities or derivatives.

1. An investment adviser is a person that engaged in the business of providing advice to others or issuing reports or analyses regarding securities.

2. Securities research is provided by three main categories of CMSL:

1. Investment banks

2. Stockbroking companies

3. Boutique research companies

2. Regulations for Investment Advisers (IA)

1. The CMSA 2007 imposes on them a broad fiduciary duty to act in the best interest of their clients. Several obligations flow from an IA's fiduciary duties:

1. Full disclosure of material facts: An adviser has an affirmative obligation of utmost good faith and full and fair disclosure of all facts material to the client's engagement of the adviser to its clients, as well as a duty to avoid misleading them.

2. Suitable Advice: IAs owe their clients a duty to provide only suitable investment advice.

3. Reasonable Basis for Recommendations: An adviser must have a reasonable, independent basis for its recommendations.

4. Best Execution: Where an adviser has responsibility to direct client brokerage, it has an obligation to seek best execution of clients' securities transactions

Clearing for Securities or Derivatives

1. Terminology and Definition

1. The Clearing for Securities or Derivatives was introduced as a new regulatory framework to include clearing for securities and derivatives as a new regulated activity.

1. This framework will decouple clearing and trading functions into two distinct regulated activities, allowing intermediaries to specialise in their niche services. The entrance of new stand-alone execution and clearing intermediaries, including foreign-owned entities, will transform the competitive dynamics of the capital market, and enhance cost efficiency for trading and clearing activities.

2. Definition of Clearing for Securities or Derivatives = Whether as principal or agent, carrying on the business of assuming obligations for the delivery and payment of a person's transaction relating to listed securities or standardised derivatives as set out in the rules of the approved clearing house.

(3) The Relationship: Principal - MR - Client

The basic legal relationship that exists between a capital market intermediary (eg. a stockbroking company, an investment bank or fund management company) and a client is that of principal and agent.

Illustration:

A stockbroking company that is instructed by a client to buy or to sell securities on a stock market, the normal rules of the law of agency apply to the relationship between them. The client is the principal and the stockbroking company is the agent. The client authorises the stockbroking company to buy or sell shares. The stockbroking company is paid a commission or brokerage by the principal.

Relationship Between Principal, MR and Client

01 Principal and Agent (Contract of Agency)

• The contract of agency is formed by the agreement of the principal and the agent

• The agreement can be express (stated orally or in writing, e.g. in the account opening form) or implied (unsaid or unwritten, but taken for granted). No formality is necessary is necessary as words or conduct show that the two consent to be principal and agent

02 Principle and Agent (Duty)

• The rights and duties of each party to the contract of agency depend upon the agreement reached between them

• In most cases, the relationship of principal and agent is a fiduciary one. This is because the principal relies on the agent, putting faith and trust in the agent

• Consequently, the agent has a duty to act with the utmost good faith towards the principal and, when acting on its behalf, to disclose every material fact that will likely affect the principal's judgment

03 MR and Client

• The MR is an agent acting on behalf of the Principal

• An MR must make appropriate disclosures to the client which includes:

• that he is carrying out referral activities on behalf of his principal; and

• informing the client that he is not allowed to give advice or provide recommendation in relation to the regulated activity

• Guidelines, para 4.04

• An MR has to refer the client to a licensed person if the clients asks for specific recommendation or advice on a capital market product Guidelines, para 4.06

• If requested by a client, an MR is required to inform the client of any remuneration scheme and its amount in relation to such marketing activity Guidelines, para 4.06

04 Principal and MR

• The relationship between Principal and MR is generally contractual in nature ie. the status of whether an MR is considered a full-time employee or an agent of the Principal is determined by the Principal by way of an agreement FAQ on TR and MR (23 June 2017) Part 3 Q10

• Therefore the remuneration structure for an MR will be determined by the Principal FAQ on TR and MR (23 June 2017), Part 3 Q9

• The Principal will be responsible to supervise the conduct, ongoing training and development of the MR as well as to ensure payment of the annual fee for the continued registration of the MR FAQ on TR and MR (23 June 2017) Part 3 Q13

Client's Right

1. The CMSA 2007 on Client's Rights

1. Being treated fairly and objectively with no conflict of interest on the part of the Principal (or the MR, if applicable).

1. Dispute Resolution

1. Clients must be informed of their right to make a complaint as well as where to channel their complaint.

2. Capital market investors are eligible to seek the assistance of the Securities Industry Dispute Resolution Center (SIDREC) if they have a complaint regarding a monetary dispute with a licensed intermediary.

3. SIDREC is a body approved by the SC to handle monetary claims by investors up to RM250,000. If the claim is above RM250,000, SIDREC will attend to the claim at a reasonable fee if both parties to the dispute agree to use SIDREC's services.

The Establishment

SIDREC was established for the settlement of monetary disputes between investors and SIDREC Members for the following regulated activities:

• Dealing in Securities

• Dealing in Derivatives

• Dealing in Unit Trusts

• Dealing in Private Retirement Schemes (PRS)

• Fund Management

The Members

Members of SIDREC include

• Banks

• Brokers

• Fund Management Companies

• Unit Trust Management Companies

• PRS Providers and Distributors.

Guidelines on Sales Practices of Unlisted Capital Market Products

These Guidelines on Sales Practices of Unlisted Capital Market Products are issued pursuant to section 377 of the Capital Markets and Services Act 2007 (CMSA). These Guidelines shall be referred to as the Guidelines on Sales Practices.

1. Reasonable Basis

01: Information on the investment objectives, financial situation and particular needs of the person is accurate and complete

02: Has given consideration to, and conducted investigation of, the subject matter of the recommendation

03: The recommendation is Jm based on such consideration and investigation

Marketing Ethical Conduct

1. Terminology and Definition

1. Ethical marketing = A process through which companies generate customer interest in products/services, build strong customer interest/relationships, and create value for all stakeholders by incorporating social and environmental considerations in products and promotions. All aspects of marketing are considered, from sales techniques to business communication and business development.

2. Marketing Ethical Conducts

Recommended Reference

Code of Ethics for the Financial Service Industry issued by the Financial Services Professional Board (FSPB)

(4) Market Misconducts, Offences and Unethical Business Conduct

Application of this Part 174. This Part shall apply to:

In respect of securities

(i) acts and omissions occurring within Malaysia in relation to securities of any body corporate which is formed or is carrying on business or is listed within or outside Malaysia; and

(ii) acts and omissions occurring outside Malaysia in relation to securities of any body corporate which is formed or is carrying on business or is listed within Malaysia.

In respect of derivatives

(i) acts occurring within Malaysia in relation to derivatives, whether traded within or outside Malaysia; and

(ii) acts occurring outside Malaysia in relation to derivatives traded within Malaysia.

Prohibited Conducts Under CMSA 2007

1. Trading in Securities, Derivatives and Fund Management

2. Trading in Securities

3. Trading in Derivatives

Prohibited Conducts Under Guidelines on Compliance Function for Fund Management Companies

Prohibited Conduct Under Code of Ethics and Rules of Professional Conducts (FIMM)

(5) Effective Marketing Skills

Prospecting

1. Client prospecting is one of the most effective marketing tools to ensure sales continue to flow, grow your marketing pipeline and increase your company's revenue.

Questioning

1. 5 Basic Questions of Marketing

2.Recommended Video:

Positioning

1. Recommended Video:

Active Listening

1. Recommended Videos:

https://youtu.be/z_-rNd7h6z8?si=hJGq-cspWu8VJSsq

https://youtu.be/bFQ8L0q8Np0?si=dcBl0R1UyggBbtET

Speaking - Elevator Pitch

1. Recommended Videos:

1. https://youtu.be/P2LwuF7zn9c?si=mrbPtZ1WlhYBXXsJ

2. https://youtu.be/fnrvfdjHD5E?si=eegn-eakNwfjTEvS

Neurolinguistics Programming (NLP)

1. Recommended Video: