SIDC SCLE Module 6 Scenario Practice Guide
Apply a repeatable method to SCLE Module 6 market, listing, trading, settlement, client-law, licensing, offence, and take-over scenarios.
Six-step decision method
flowchart LR
A[Identify actor and capacity] --> B[Classify market and transaction]
B --> C[Locate source and process stage]
C --> D[Extract controlling facts]
D --> E[Apply the narrow rule or duty]
E --> F[Choose the supported action or consequence]
1. Identify actor and capacity
The SC, Bursa entity, Participating Organisation, CMSL holder, CMSRL holder, dealer’s representative, issuer, adviser, clearing participant, nominee, and client have different powers and duties.
2. Classify market and transaction
Decide whether the facts concern primary issuance, post-listing issue, on-market order, Direct Business Transaction, short sale, clearing, settlement, corporate action, client service, communication, or take-over.
3. Locate source and process stage
Identify the statute, guideline, practice note, listing requirements, Bursa rule, contract, agency rule, or tort principle. Then locate the stage: application, approval, order, execution, disclosure, settlement, investigation, discipline, or remedy.
4. Extract controlling facts
Keep the actor, licence, market, instrument, investor or client status, authority, document, timing, knowledge, intent, transaction, control, and record facts. Set aside details that do not change the result.
5. Apply the narrow rule or duty
Use the requirement assigned to this actor and stage. A disclosure obligation does not cure missing authority, and a firm policy does not override a statute, SC requirement, Bursa rule, or client right.
6. Choose the supported action or consequence
Prefer the response that addresses the specific failure, preserves required evidence, and follows the proper approval or escalation path. Do not assume a criminal offence, licence revocation, forced transaction, or automatic liability unless the facts establish the required elements.
Common scenario families
| Scenario | First classification | Decisive evidence |
|---|---|---|
| Company raises capital | Market, instrument, offer route, and issuer stage | Approval, mandate, adviser, disclosure, eligible recipients, pricing, allotment, and admission |
| Client order enters the market | Authority, account, order path, and transaction type | Instruction, authentication, dealer intervention, validation, priority, execution, confirmation, and audit trail |
| Trade does not settle | Clearing and settlement stage | Trade date, T+2 obligation, cash, securities, mismatch, depository movement, failed-delivery response, and reconciliation |
| Representative communicates about a product | Information, general communication, personal advice, or dealing | Audience, personalization, opinion, inducement, commercial context, authority, warning, and record |
| Client disputes broker conduct | Broker capacity and source of duty | Agreement, instruction, disclosure, contract note, asset record, communication, complaint, and loss |
| Suspicious trading appears | Conduct classification and legal elements | Orders, trades, accounts, relationships, timing, information, intent, and market appearance or effect |
| Acquisition changes control | Take-over perimeter and offer type | Voting control, concert parties, acquisition sequence, offer terms, announcement, advice, and approvals |
| Digital-asset broking is proposed | Prescribed-security and Practice Note perimeter | Broker eligibility, prior notification, permitted asset, counterparty, cash-upfront dealing, custody, segregation, and disclosure |
Handling close answer choices
- Prefer the option assigned to the correct actor and legal source.
- Prefer the action appropriate to the current transaction or procedural stage.
- Prefer a conclusion supported by the evidence already stated.
- Reject an option that assumes an unstated licence, exemption, threshold, approval, intent, or client authority.
- Keep statutory enforcement, exchange discipline, licensing action, contractual remedy, tort liability, and internal remediation distinct.
Use the cheat sheet while learning the method, then remove it and repeat with unseen questions.