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Futures Dictionary Series: Capital Market Services Representatives (CMSR)

As promised in our blog last week, today’s term is “Capital Market Services Representatives (CMSR)”.

Associated Person

Capital Market Services Representatives (CMSR)

Capital Market Services Representatives (CMSR) is a reference to licensed dealers within the industry who are involved in the solicitation and facilitation of trading. It is the proper name for dealers, dealing desk personnel or futures broker representative (FBR). In the US, a CMSR is known as Associated Person (AP).

To become a licensed CMSR, the interested party must first enroll for an examination run by the Securities Commission Malaysia (SC). Upon passing this exam, the individual is not certified to execute any trading transaction until his/her application for the Capital Markets Services Representative’s License (CMSRL) is approved by the SC. Take note that the CMSRL only entitles an individual to carry on any one or more regulated activities on behalf of his principal.

Typically, the best way to proceed to become a CMSR is to receive an official employment or appointment offer by any trading participant of Bursa Malaysia Derivatives Berhad (BMD).

The minimum qualification and experience requirement for dealing in derivatives includes:
(a) a degree or professional qualification from an institution recognized by the government of Malaysia; or

(b) a diploma in the relevant field of study, including finance, economics, accounting, or commerce from an institution recognized by the government of Malaysia; or

(c) a diploma in other field of study recognized by the government of Malaysia with at least two years of relevant experience in the capital market.

In exceptional circumstances, the SC may consider an applicant with Sijil Pelajaran Malaysia/Malaysia Certificate of Education or its equivalent with at least four years of relevant experience in the capital market; or without any of the above qualifications but has been licensed for at least three years in a recognized jurisdiction to undertake dealing in securities or dealing in derivatives. The applicant must have at least five years direct and relevant experience in the capital market.

It is an offense for an individual who does not have license from the SC and BMD to collect money for investment or trading on behalf of someone else.

Be wary and be aware of individuals who offer to invest your money for an investment scheme that promises high monthly returns. If an individual approach you on behalf of a trading participant, and although everything may seem legit, please do your due diligence by contacting the trading participant directly to verify if such person is officially employed or appointed by the said company/brokerage.

Before parting with your hard earned cash, always be wary of such individuals and their too-good-to-be-true schemes. For previously reported cases, head on to the list of unauthorized websites, investment products, companies and individuals on the official SC website.

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