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  • TC-2 General Requirements TC-2 General Requirements

    • TC-2.1 TC-2.1 Recruitment and Assessing Competency

      • Recruitment and Appointment

        • TC-2.1.1

          If a capital market licensee recruits or promotes an individual to undertake a controlled function, it must satisfy itself, where appropriate, of such individual’s relevant qualifications and experience.

          Added: January 2022

        • TC-2.1.2

          For purposes of Paragraph TC-2.1.1, capital market licensees must file Form 3 (Approved Persons) with the CBB and obtain the express written approval of the CBB for that person to occupy the desired position. In its application, the capital market licensee must demonstrate to the CBB that full consideration has been given to the qualifications and core competencies for controlled functions as per Appendix TC-1 (See Article 65(b) of the CBB Law).

          Added: January 2022

        • TC-2.1.3

          While assessing the competency for the position of Board of Director, a capital market licensee should give due weightage to relevant experience and expertise of the applicant. The applicant should demonstrate clear understanding of the licensee’s business and his/her ability to exercise strategic oversight over the business operations. In case where an applicant does not fulfil the educational qualification and minimum experience requirement stipulated in Appendix TC-1 (Board member/Director), the capital market licensee may still consider the applicant for appointment provided the applicant demonstrates:

          (a) clear understanding of the licensee’s business operations;
          (b) ability to provide objective views to the Board on issues of strategy, business performance, risk management, financial control and other matters which has a bearing on the licensee’s performance;
          (c) leadership ability or has previously operated in a leadership position.
          Added: January 2022

        • TC-2.1.4

          For the purposes of Paragraph TC-2.1.3 above, where an applicant does not fulfil the educational and minimum experience requirements, the CBB may, at its sole discretion, waive some or all the educational and minimum experience requirements, should it determine that the applicant (board member) demonstrates qualitative attributes which fulfils the core competency requirements as stipulated in Appendix TC-1 and his/her appointment shall contribute effectively to the decision making and governance process of the licensee.

          Added: January 2022

        • TC-2.1.5

          Capital market licensees should refer to their respective Module (MAE, CSD, MIR and CRA) providing detailed requirements on the appointment of individuals occupying controlled functions (approved persons).

          Added: January 2022

        • TC-2.1.6

          A capital market licensee proposing to recruit an individual has to satisfy itself of his/her relevant qualifications and experience. The capital market licensee should:

          (a) Take into account the knowledge and skills required for the role, in addition to the nature and the level of complexity of the controlled function; and
          (b) Take reasonable steps to obtain sufficient information about the individual’s background, experience, training and qualifications.
          Added: January 2022

      • Assessing Competency

        • TC-2.1.7

          Capital market licensees must not allow an individual to undertake or supervise a controlled function unless that individual has been assessed by the capital market licensee as competent in accordance with this Section.

          Added: January 2022

        • TC-2.1.8

          In determining an individual’s competency, capital market licensees may assess if the person is fit and proper in accordance with the requirements stipulated for authorisation of approved persons in MAE, CSD, MIR and CRA Modules.

          Added: January 2022

        • TC-2.1.9

          Capital market licensees must assess individuals as competent when they have demonstrated the ability to apply the knowledge and skills required to perform a specific controlled function.

          Added: January 2022

        • TC-2.1.10

          The assessment of competence shall depend on the nature and the level of complexity of the controlled function. Such assessment of competence of new personnel may take into account the fact that an individual has been previously assessed as competent in a similar controlled function.

          Added: January 2022

        • TC-2.1.11

          If a capital market licensee assesses an individual as competent in accordance with TC-2.1.9 to perform a specific controlled function, it does not necessarily mean that the individual is competent to undertake other controlled functions.

          Added: January 2022

        • TC-2.1.12

          A capital market licensee should use methods of assessment that are appropriate to the controlled function and to the individual’s role.

          Added: January 2022

    • TC-2.2 TC-2.2 Training and Maintaining Competence

      • TC-2.2.1

        A capital market licensee must annually determine the training needs of individuals undertaking controlled functions. It must develop a training plan to address these needs and ensure that training is planned, appropriately structured and evaluated.

        Added: January 2022

      • TC-2.2.2

        The assessment and training plan described in Paragraph TC-2.2.1 should be aimed at ensuring that the relevant approved person maintains competence in the controlled function. An individual can develop skills and gain experience in a variety of ways. These could include on-the-job learning, individual study, and other methods. In almost every situation, and for most individuals, it is likely that competence will be developed most effectively by a mixture of training methods.

        Added: January 2022

      • TC-2.2.3

        The training plan of capital market licensees must include a programme for continuous professional development training (“CPD”) for their controlled function.

        Added: January 2022

      • TC-2.2.4

        Approved persons may choose to fulfil their CPD requirements by attending courses, workshops, conferences and seminars at local or foreign training institutions.

        Added: January 2022

      • TC-2.2.5

        The annual training required under Paragraph TC-2.2.1 must also include the quarterly updates, if any, to the CBB Volume 6 (Capital Markets) Rulebook, in areas relevant to each controlled function.

        Added: January 2022

      • TC-2.2.6

        Capital market licensees should maintain appropriate training records for each individual. Licensees should note how the relevant training relates to and supports the individual’s role. Training records may be reviewed during supervisory visits to assess the capital market licensee’s systems and to review how the licensee ensures that its staff are competent and remain competent for their roles.

        Added: January 2022

      • Maintaining Competence

        • TC-2.2.7

          A capital market licensee must make appropriate arrangements to ensure that approved persons maintain competence.

          Added: January 2022

        • TC-2.2.8

          A capital market licensee should ensure that maintaining competence for an approved person takes into account:

          (a) Application of technical knowledge;
          (b) Application and development of skills; and
          (c) Appropriate knowledge of relevant market changes and changes to products, legislation and regulation.
          Added: January 2022

        • TC-2.2.9

          A capital market licensee may utilise the CPD schemes of relevant professional bodies to demonstrate compliance with TC-2.2.1. See Appendix TC-2 for a list of CBB-recognised professional bodies. The list of professional bodies set out in Appendix TC-2 is not exhaustive. Capital market licensees may conduct CPD training through other professional bodies provided such other professional bodies are of good repute, have an established track record in training related to regulated activities, the trainers are professionally qualified, and the training program is interactive (self-study without assessment or evaluation is not acceptable). In-house training, seminars, conferences, further qualifications, product presentations, computer-based training and one-to-one tuition may also be considered to demonstrate compliance with TC-2.2.1.

          Added: January 2022

    • TC-2.3 TC-2.3 Transitional Period

      • TC-2.3.1

        The requirements of Module TC for capital market licensees are effective from the date of issuance of this Module.

        Added: January 2022

      • TC-2.3.2

        New applications for approved persons are subject to the requirements of this Module (See Paragraph TC-B.1.3).

        Added: January 2022

      • TC-2.3.3

        Approved persons occupying controlled functions at the time this Module is issued will be grandfathered and not subject to the requirements of this Module, with the exception of CPD requirements in Paragraph TC-1.2.1. However, should the approved person move to another controlled function, Paragraph TC-2.3.4 will apply.

        Added: January 2022

      • TC-2.3.4

        In instances, where an approved person in one capital market licensee moves to another capital market licensee and occupies the same position, the CBB will exercise its discretion on whether to grandfather such approved person from the required qualifications and competencies outlined in Appendix TC-1 into the new capital market licensee. The grandfathering criteria used by the CBB will include a comparison of the scope and size of both positions. This will also apply in instances where an approved person in one capital market licensee moves from one department to another within the same capital market licensee.

        Added: January 2022

    • TC-2.4 TC-2.4 Record Keeping

      • TC-2.4.1

        A capital market licensee must make and retain updated digital and/or manual records of:

        (a) The annual training plan for each controlled function;
        (b) Materials used to conduct in-house training courses;
        (c) List of participants attending such in-house training courses;
        (d) Results of evaluations conducted at the end of such training courses.
        (e) The criteria applied in assessing competence;
        (f) How and when the competence decision was arrived at; and
        (g) Record of CPD hours undertaken by each approved person.
        Added: January 2022

      • TC-2.4.2

        For purposes of Paragraph TC-2.4.1, the record keeping requirements apply to both current employees as well as to employees following termination of their services or employment with the capital market licensee, for a minimum period of five years.

        Added: January 2022

      • TC-2.4.3

        A capital market licensee must maintain records of its recruitment and appointment procedures for approved persons for a minimum period of five years following termination of their services or employment with the capital market licensee. Such procedures should be designed to adequately take into account proof of the candidates’ knowledge and skills and their previous activities and training.

        Added: January 2022

      • TC-2.4.4

        For purposes of Paragraph TC-2.4.3, the recruitment record keeping procedure should include, but is not limited to, the following:

        (a) Results of the initial screening;
        (b) Results of any employment tests;
        (c) Results and details of any interviews conducted;
        (d) Background and references checks; and
        (e) Details of any professional qualifications.
        Added: January 2022