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Wealth Transfers and Succession Planning
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Question 1 of 30
1. Question
Which of these is not one of the ways the new TCA framework seeks to ensure high standards of probity, professionalism and business conduct by trust service providers?
I. Ensuring that only fit and proper persons are allowed to operate.
II. Ensuring service providers respect only administration requirements.
III. Ensuring service providers do not strengthen Singapore’s status as an international financial centre.
IV. Employing only proper persons without vast experience in the TCA framework.Correct
The strong growth in the Singapore trust services industry has prompted the need to ensure high standards of probity, professionalism and business conduct by trust service providers to strengthen Singapore’s status as an international financial centre. The new TCA framework seeks to achieve this by ensuring, among other things, that only fit and proper persons are allowed to operate in the trust services industry.
Incorrect
The strong growth in the Singapore trust services industry has prompted the need to ensure high standards of probity, professionalism and business conduct by trust service providers to strengthen Singapore’s status as an international financial centre. The new TCA framework seeks to achieve this by ensuring, among other things, that only fit and proper persons are allowed to operate in the trust services industry.
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Question 2 of 30
2. Question
Which of the following is one of the Trust business activities regulated under the Trust Companies Act?
I. Acting as trustee in relation to an express trust.
II. Arranging only administration services to regulate financial institutions.
III. Providing trust administration services in relation to an express trust.
IV. Providing services with respect to the creation of an express trust.Correct
Trust business activities regulated under the TCA include the following:
– Providing services with respect to the creation of an express trust.
– Acting as trustee in relation to an express trust.
– Arranging for any person to act as trustee in respect of an express trust.
– Providing trust administration services in relation to an express trust.Incorrect
Trust business activities regulated under the TCA include the following:
– Providing services with respect to the creation of an express trust.
– Acting as trustee in relation to an express trust.
– Arranging for any person to act as trustee in respect of an express trust.
– Providing trust administration services in relation to an express trust. -
Question 3 of 30
3. Question
What Act ensures that trustees adhere to certain minimum standards when they exercise their trustee powers, and defines a duty of care for trustees when carrying out specified duties or acts?
Correct
The Trustees Act provides, among others, safeguards to ensure that trustees adhere to certain minimum standards when they exercise their trustee powers, and defines a duty of care for trustees when carrying out specified duties or acts.
Incorrect
The Trustees Act provides, among others, safeguards to ensure that trustees adhere to certain minimum standards when they exercise their trustee powers, and defines a duty of care for trustees when carrying out specified duties or acts.
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Question 4 of 30
4. Question
Which of the following list of persons are exempted under the TCA and the scope of exemption from holding a trust business license?
I. Persons carrying out introducing activities.
II. Private trust companies.
III. Banks and merchant banks not regulated by MAS.
IV. Persons engaging in trust business in connection with the issuance of debentures.Correct
Persons exempt from holding a trust business license are:
– Banks and merchant banks regulated by MAS.
– Holders of a capital markets services license, or persons who are exempt from holding a capital markets services license for providing fund management or custodial services under the Securities and Futures Act (Cap. 289).
– Lawyers and accountants.
– Private trust companies.
– Overseas persons.
– Persons engaging in trust business in connection with the issuance of debentures.
– Trustees of collective investment schemes approved under the Securities and Futures Act (Cap. 289).
– Persons carrying out introducing activities.Incorrect
Persons exempt from holding a trust business license are:
– Banks and merchant banks regulated by MAS.
– Holders of a capital markets services license, or persons who are exempt from holding a capital markets services license for providing fund management or custodial services under the Securities and Futures Act (Cap. 289).
– Lawyers and accountants.
– Private trust companies.
– Overseas persons.
– Persons engaging in trust business in connection with the issuance of debentures.
– Trustees of collective investment schemes approved under the Securities and Futures Act (Cap. 289).
– Persons carrying out introducing activities. -
Question 5 of 30
5. Question
What is the sole purpose of a private trust company as defined in the Trust Companies (Exemption) Regulations?
Correct
A private trust company is defined in the Trust Companies (Exemption) Regulations as a corporation whose sole purpose is to provide trust business services in respect of a specific trust or of specific trusts.
Incorrect
A private trust company is defined in the Trust Companies (Exemption) Regulations as a corporation whose sole purpose is to provide trust business services in respect of a specific trust or of specific trusts.
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Question 6 of 30
6. Question
What does MAS refer to as any activity which is conducted with system, repetition, and continuity?
Correct
“Carrying on business” is not defined in the TCA. Typically, MAS would regard any activity which is conducted with system, repetition, and continuity as carrying on a business.
Incorrect
“Carrying on business” is not defined in the TCA. Typically, MAS would regard any activity which is conducted with system, repetition, and continuity as carrying on a business.
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Question 7 of 30
7. Question
What is MAS’ objective in its regulation and supervision of trust companies?
Correct
MAS’ objective in its regulation and supervision of trust companies is to ensure safe, sound, and fair dealing financial intermediaries.
Incorrect
MAS’ objective in its regulation and supervision of trust companies is to ensure safe, sound, and fair dealing financial intermediaries.
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Question 8 of 30
8. Question
Which of the following is one of the factors MAS considers when reviewing an application for a trust business license?
I. Adequacy of internal compliance systems and processes of the applicant.
II. Ability to meet the minimum financial requirements and professional indemnity insurance requirements prescribed under the TCR.
III. Financial soundness of the applicant and its parent company.
IV. Competence and integrity of the applicant’s license and TCA regime.Correct
In reviewing an application for a trust business license, MAS will consider, inter alia, the following factors:
– Physical presence and management expertise of the applicant in Singapore.
– Financial soundness of the applicant and its parent company.
– Ability to meet the minimum financial requirements and professional indemnity insurance requirements prescribed under the TCR.
– Adequacy of internal compliance systems and processes of the applicant.
– Competence and integrity of the applicant.Incorrect
In reviewing an application for a trust business license, MAS will consider, inter alia, the following factors:
– Physical presence and management expertise of the applicant in Singapore.
– Financial soundness of the applicant and its parent company.
– Ability to meet the minimum financial requirements and professional indemnity insurance requirements prescribed under the TCR.
– Adequacy of internal compliance systems and processes of the applicant.
– Competence and integrity of the applicant. -
Question 9 of 30
9. Question
In what circumstances does MAS reserve the right to terminate the processing of an application where the applicant is unable to meet the admission criteria?
Correct
MAS reserves the right to terminate the processing of an application where the applicant is unable to meet the admission criteria, when there are significant information gaps or inconsistencies, or when the applicant is unable to satisfactorily address MAS’ queries in a timely manner.
Incorrect
MAS reserves the right to terminate the processing of an application where the applicant is unable to meet the admission criteria, when there are significant information gaps or inconsistencies, or when the applicant is unable to satisfactorily address MAS’ queries in a timely manner.
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Question 10 of 30
10. Question
Which of the following is not one of the ways to expedite the review process taken by MAS to approve a licensing application?
Correct
MAS will take approximately 4 months to process and approve an application. To expedite the review process, an applicant should satisfy itself that it fully meets the admission criteria, and has ensured that the application is complete, free of errors or inconsistencies, and is accompanied by the requisite supporting documents as stated in the application form.
Incorrect
MAS will take approximately 4 months to process and approve an application. To expedite the review process, an applicant should satisfy itself that it fully meets the admission criteria, and has ensured that the application is complete, free of errors or inconsistencies, and is accompanied by the requisite supporting documents as stated in the application form.
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Question 11 of 30
11. Question
Which of the following is not one of the things a licensed trust company incorporated in Singapore should do at all times regarding continuing financial requirements?
I. A licensed trust company incorporated in Singapore must at all times maintain a net asset value of not less than one-quarter of its relevant annual expenditure of the financial year immediately preceding the current financial year.
II. A licensed trust company incorporated in Singapore must at all times maintain a gross asset value of not less than one-quarter of its relevant annual expenditure of the financial year immediately preceding the current financial year.
III. A licensed trust company incorporated in Singapore must at all times maintain a gross and net asset value of not less than three-quarters of the minimum paid-up capital of $250,000.
IV. A licensed trust company incorporated in Singapore must at all times maintain a net asset value of not less than the minimum qualifying assets of $250,000.Correct
A licensed trust company incorporated in Singapore must at all times maintain a net asset value of not less than one-quarter of its relevant annual expenditure of the financial year immediately preceding the current financial year or three-quarters of the minimum paid-up capital of $250,000, whichever is the higher amount.
Incorrect
A licensed trust company incorporated in Singapore must at all times maintain a net asset value of not less than one-quarter of its relevant annual expenditure of the financial year immediately preceding the current financial year or three-quarters of the minimum paid-up capital of $250,000, whichever is the higher amount.
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Question 12 of 30
12. Question
Which of the following is one not of the things a licensed trust company incorporated outside Singapore should do at all times regarding continuing financial requirements?
I. A licensed trust company incorporated outside Singapore must at all times maintain qualifying assets in the branch in Singapore, of not less than the minimum qualifying assets of $500,000.
II. A licensed trust company incorporated outside Singapore must at all times maintain qualifying assets in the branch in Singapore of $1,000,000 of its relevant annual expenditure of five financial years immediately preceding the current financial year.
III. A licensed trust company incorporated outside Singapore must at all times maintain qualifying assets in the branch in Singapore, of not less than one-quarter of its relevant annual expenditure of the financial year immediately preceding the current financial year or the minimum qualifying assets of $250,000, whichever is the higher amount.
IV. A licensed trust company incorporated outside Singapore must at all times maintain qualifying assets in the branch in Singapore, of half of its relevant annual expenditure of five financial years immediately preceding the current financial year.Correct
A licensed trust company incorporated outside Singapore must at all times maintain qualifying assets in the branch in Singapore, of not less than one-quarter of its relevant annual expenditure of the financial year immediately preceding the current financial year or the minimum qualifying assets of $250,000, whichever is the higher amount.
Incorrect
A licensed trust company incorporated outside Singapore must at all times maintain qualifying assets in the branch in Singapore, of not less than one-quarter of its relevant annual expenditure of the financial year immediately preceding the current financial year or the minimum qualifying assets of $250,000, whichever is the higher amount.
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Question 13 of 30
13. Question
Licensed trust companies are required to have in force policies such as; “PII”. What does “PII” represent?
Correct
“PII” represents Professional Indemnity Insurance. A licensed trust company must at all times maintain a professional indemnity insurance (“PII”) policy.
Incorrect
“PII” represents Professional Indemnity Insurance. A licensed trust company must at all times maintain a professional indemnity insurance (“PII”) policy.
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Question 14 of 30
14. Question
The licensed trust company’s license will not lapse under which of the following circumstances?
I. Where the licensed trust company has resumed any trust business for a continuous period of 15 days from the date of cessation of its trust business.
II. Where the licensed trust company has not ceased to carry on its trust business.
III. Where the licensed trust company has commenced trust business within 6 months from the date of the grant of the license.
IV. Where the licensed trust company has not notified MAS of such cessation of its trust business at any time during the period of 14 days from the date of the cessation.Correct
Where MAS has not revoked a license under section 10(2)(b) of the TCA, the license will lapse in the following circumstances:
– Where the licensed trust company has not commenced trust business within 6 months from the date of the grant of the license.
– Where the licensed trust company has done the following;
(i) Has ceased to carry on its trust business.
(ii) Has not resumed any trust business for a continuous period of 14 days from the date of cessation of its trust business.
(iii) Has not notified MAS of such cessation of its trust business at any time during the period of 14 days from the date of the cessation.Incorrect
Where MAS has not revoked a license under section 10(2)(b) of the TCA, the license will lapse in the following circumstances:
– Where the licensed trust company has not commenced trust business within 6 months from the date of the grant of the license.
– Where the licensed trust company has done the following;
(i) Has ceased to carry on its trust business.
(ii) Has not resumed any trust business for a continuous period of 14 days from the date of cessation of its trust business.
(iii) Has not notified MAS of such cessation of its trust business at any time during the period of 14 days from the date of the cessation. -
Question 15 of 30
15. Question
Which of the following is a document that licensed trust companies are required to lodge with MAS on an annual basis?
I. A statement in Form 4 showing all relevant information and regulations to be lodged with the Financial Centre Development Department (Asset Management Division) of MAS.
II. A true and fair profit and loss account and a balance sheet made up to the last day of its financial year, within 5 months after the end of the financial year; these documents must be lodged together with an auditor’s report in Form 7.
III. A statement in Form 5, showing the maintenance of the licensed trust company’s net asset value or qualifying assets, within 14 days from the grant of its license and thereafter, within 5 months from the end of each of its financial year.
IV. A statement in Form 6, regarding information on the licensed trust company’s headcount, sources of revenue and assets under trusteeship in respect of each calendar year, within 60 days from the end of each calendar year.Correct
Licensed trust companies are required to lodge the following documents with MAS on an annual basis:
– A true and fair profit and loss account and a balance sheet made up to the last day of its financial year, within 5 months after the end of the financial year; these documents must be lodged together with an auditor’s report in Form 7.
– A statement in Form 5, showing the maintenance of the licensed trust company’s net asset value or qualifying assets, within 14 days from the grant of its licence and thereafter, within 5 months from the end of each of its financial year.
– A statement in Form 6, regarding information on the licensed trust company’s headcount, sources of revenue and assets under trusteeship in respect of each calendar year, within 60 days from the end of each calendar year; this form is to be lodged with the Financial Centre Development Department (Asset Management Division) of MAS.Incorrect
Licensed trust companies are required to lodge the following documents with MAS on an annual basis:
– A true and fair profit and loss account and a balance sheet made up to the last day of its financial year, within 5 months after the end of the financial year; these documents must be lodged together with an auditor’s report in Form 7.
– A statement in Form 5, showing the maintenance of the licensed trust company’s net asset value or qualifying assets, within 14 days from the grant of its licence and thereafter, within 5 months from the end of each of its financial year.
– A statement in Form 6, regarding information on the licensed trust company’s headcount, sources of revenue and assets under trusteeship in respect of each calendar year, within 60 days from the end of each calendar year; this form is to be lodged with the Financial Centre Development Department (Asset Management Division) of MAS. -
Question 16 of 30
16. Question
Which of the following best describes corporate governance?
Correct
Corporate governance can be referred to as having the appropriate people, processes and structures to direct and manage the business and affairs of the company to enhance long-term shareholder value, whilst taking into account the interests of other stakeholders. Companies that embrace the tenets of good governance, including accountability, transparency, and sustainability, are more likely to engender investor confidence and achieve long-term sustainable business performance.
Incorrect
Corporate governance can be referred to as having the appropriate people, processes and structures to direct and manage the business and affairs of the company to enhance long-term shareholder value, whilst taking into account the interests of other stakeholders. Companies that embrace the tenets of good governance, including accountability, transparency, and sustainability, are more likely to engender investor confidence and achieve long-term sustainable business performance.
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Question 17 of 30
17. Question
Which of the following is one of the trainings a payment service provider should ensure that its employees and officers (whether in Singapore or elsewhere) are regularly and appropriately trained on?
Correct
A payment service provider shall ensure that its employees and officers (whether in Singapore or elsewhere) are regularly and appropriately trained on the following:
– AML/CFT laws and regulations, and in particular, CDD measures, detecting, and reporting of suspicious transactions.
– Prevailing techniques, methods, and trends in money laundering and terrorism financing.
– The payment service provider’s internal policies, procedures and controls on AML/CFT and the roles and responsibilities of employees and officers in combating money laundering and terrorism financing.Incorrect
A payment service provider shall ensure that its employees and officers (whether in Singapore or elsewhere) are regularly and appropriately trained on the following:
– AML/CFT laws and regulations, and in particular, CDD measures, detecting, and reporting of suspicious transactions.
– Prevailing techniques, methods, and trends in money laundering and terrorism financing.
– The payment service provider’s internal policies, procedures and controls on AML/CFT and the roles and responsibilities of employees and officers in combating money laundering and terrorism financing. -
Question 18 of 30
18. Question
Which of the following is one of the relevant matters the Nominating Committee (“NC”) established by the board can make recommendations about?
I. The process and criteria for evaluation of the performance of the Board, its board committees and directors.
II. The review of training and professional development programs for the Board and its directors.
III. The review of succession plans for directors, in particular, the appointment and/or replacement of the Chairman, the CEO and key management personnel.
IV. The review of all aspects of remuneration, including termination terms, to ensure they are fair.Correct
The Board establishes a Nominating Committee for recommendations regarding the following:
– The review of succession plans for directors, in particular, the appointment and/or replacement of the Chairman, the CEO and key management personnel.
– The process and criteria for evaluation of the performance of the Board, its board committees and directors.
– The review of training and professional development programs for the Board and its directors.
– The appointment and re-appointment 12 of directors.Incorrect
The Board establishes a Nominating Committee for recommendations regarding the following:
– The review of succession plans for directors, in particular, the appointment and/or replacement of the Chairman, the CEO and key management personnel.
– The process and criteria for evaluation of the performance of the Board, its board committees and directors.
– The review of training and professional development programs for the Board and its directors.
– The appointment and re-appointment 12 of directors. -
Question 19 of 30
19. Question
The Board establishes a Nominating Committee (NC) to make recommendations to the Board on relevant matters. What is the least number of directors the Nominating Committee comprises of?
Correct
The NC comprises of a minimum of three directors, the majority of whom, including the NC Chairman, are independent. The lead independent director, if any, is a member of the NC.
Incorrect
The NC comprises of a minimum of three directors, the majority of whom, including the NC Chairman, are independent. The lead independent director, if any, is a member of the NC.
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Question 20 of 30
20. Question
Which of the following committees recommends for the Board’s approval the objective performance criteria and process for the evaluation of the effectiveness of the Board as a whole, and of each board committee separately, as well as the contribution by the Chairman and each individual director to the Board?
Correct
The Nominating Committee recommends for the evaluation of the effectiveness of the Board as a whole, and of each board committee separately, as well as the contribution by the Chairman and each individual director to the Board.
Incorrect
The Nominating Committee recommends for the evaluation of the effectiveness of the Board as a whole, and of each board committee separately, as well as the contribution by the Chairman and each individual director to the Board.
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Question 21 of 30
21. Question
Regarding board remuneration matters, can an individual director be involved in deciding his or her own remuneration?
Correct
No director is involved in deciding his or her own remuneration. The Board has a formal and transparent procedure for developing policies on director and executive remuneration, and for fixing the remuneration packages of individual directors and key management personnel.
Incorrect
No director is involved in deciding his or her own remuneration. The Board has a formal and transparent procedure for developing policies on director and executive remuneration, and for fixing the remuneration packages of individual directors and key management personnel.
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Question 22 of 30
22. Question
The Board establishes a Remuneration Committee (“RC”) to review and make recommendations to the Board. Which of the following is true about the Remuneration Committee?
I. The company discloses the engagement of any remuneration consultants and their independence in the company’s annual report.
II. The Remuneration Committee considers all aspects of remuneration, including termination terms, to ensure they are fair.
III. The Remuneration Committee comprises at least three directors. All members of the RC are non-executive directors, the majority of whom, including the RC Chairman, are independent.
IV. The Remuneration Committee recommends for the Board’s approval the objective performance criteria and process for the evaluation of the effectiveness of the Board as a whole, and of each board committee separately, as well as the contribution by the Chairman and each individual director to the Board.Correct
The following is true about the Remuneration Committee:
– The RC comprises at least three directors. All members of the RC are non-executive directors, the majority of whom, including the RC Chairman, are independent.
– The RC considers all aspects of remuneration, including termination terms, to ensure they are fair.
– The company discloses the engagement of any remuneration consultants and their independence in the company’s annual report.Incorrect
The following is true about the Remuneration Committee:
– The RC comprises at least three directors. All members of the RC are non-executive directors, the majority of whom, including the RC Chairman, are independent.
– The RC considers all aspects of remuneration, including termination terms, to ensure they are fair.
– The company discloses the engagement of any remuneration consultants and their independence in the company’s annual report. -
Question 23 of 30
23. Question
Which of the following is disclosed by the company in its annual report regarding the policy and criteria for setting remuneration?
I. The company discloses in its annual report the policy and criteria for setting remuneration, as well as names, amounts and breakdown of remuneration.
II. The company discloses a formal annual assessment of its effectiveness as a whole, and that of each of its board committees and individual directors.
III. The company discloses in its annual report all forms of remuneration and other payments and benefits, paid by the company and its subsidiaries to directors and key management personnel of the company.
IV. The company discloses details of employee share schemes.Correct
The company discloses in its annual report the policy and criteria for setting remuneration, as well as names, amounts, and breakdown of remuneration as follows:
– Each individual director and the CEO.
– At least the top five key management personnel (who are not directors or the CEO) in bands no wider than S$250,000 and in aggregate the total remuneration paid to these key management personnel.
– The company discloses the names and remuneration of employees who are substantial shareholders of the company or are immediate family members of a director, the CEO or a substantial shareholder of the company, and whose remuneration exceeds S$100,000 during the year, in bands no wider than S$100,000, in its annual report. The disclosure states clearly the employee’s relationship with the relevant director or the CEO or substantial shareholder.
– The company discloses in its annual report all forms of remuneration and other payments and benefits, paid by the company and its subsidiaries to directors and key management personnel of the company. It also discloses details of employee share schemes.Incorrect
The company discloses in its annual report the policy and criteria for setting remuneration, as well as names, amounts, and breakdown of remuneration as follows:
– Each individual director and the CEO.
– At least the top five key management personnel (who are not directors or the CEO) in bands no wider than S$250,000 and in aggregate the total remuneration paid to these key management personnel.
– The company discloses the names and remuneration of employees who are substantial shareholders of the company or are immediate family members of a director, the CEO or a substantial shareholder of the company, and whose remuneration exceeds S$100,000 during the year, in bands no wider than S$100,000, in its annual report. The disclosure states clearly the employee’s relationship with the relevant director or the CEO or substantial shareholder.
– The company discloses in its annual report all forms of remuneration and other payments and benefits, paid by the company and its subsidiaries to directors and key management personnel of the company. It also discloses details of employee share schemes. -
Question 24 of 30
24. Question
The Audit Committee has a number of specialized duties. Which of the following is one of the duties of the Audit Committee?
I. Reviewing the assurance from the CEO and the CFO on the financial records and financial statements.
II. Reviewing at least annually the adequacy and effectiveness of the company’s internal controls and risk management systems.
III. Reviewing the process for the selection, appointment, and reappointment of directors to the Board, including the criteria used to identify and evaluate potential new directors and channels used in searching for appropriate candidates in the company’s annual report.
IV. Reviewing the significant financial reporting issues and judgments so as to ensure the integrity of the financial statements of the company and any announcements relating to the company’s financial performance.Correct
The Audit Committee has the following duties:
– Reviewing the significant financial reporting issues and judgments so as to ensure the integrity of the financial statements of the company and any announcements relating to the company’s financial performance.
– Reviewing at least annually the adequacy and effectiveness of the company’s internal controls and risk management systems.
– Reviewing the assurance from the CEO and the CFO on the financial records and financial statements.
– Making recommendations to the Board on:
(i) The proposals to the shareholders on the appointment and removal of external auditors.
(ii) The remuneration and terms of engagement of the external auditors.
– Reviewing the adequacy, effectiveness, independence, scope, and results of the external audit and the company’s internal audit function.
– Reviewing the policy and arrangements for concerns about possible improprieties in financial reporting or other matters to be safely raised, independently investigated and appropriately followed up on. The company publicly discloses, and clearly communicates to employees, the existence of a whistle-blowing policy and procedures for raising such concerns.Incorrect
The Audit Committee has the following duties:
– Reviewing the significant financial reporting issues and judgments so as to ensure the integrity of the financial statements of the company and any announcements relating to the company’s financial performance.
– Reviewing at least annually the adequacy and effectiveness of the company’s internal controls and risk management systems.
– Reviewing the assurance from the CEO and the CFO on the financial records and financial statements.
– Making recommendations to the Board on:
(i) The proposals to the shareholders on the appointment and removal of external auditors.
(ii) The remuneration and terms of engagement of the external auditors.
– Reviewing the adequacy, effectiveness, independence, scope, and results of the external audit and the company’s internal audit function.
– Reviewing the policy and arrangements for concerns about possible improprieties in financial reporting or other matters to be safely raised, independently investigated and appropriately followed up on. The company publicly discloses, and clearly communicates to employees, the existence of a whistle-blowing policy and procedures for raising such concerns. -
Question 25 of 30
25. Question
Which of the following is one of the provisions for managing stakeholder relationships and engaging stakeholders?
I. The company tables separate resolutions at general meetings of shareholders on each substantially separate issue unless the issues are interdependent and linked so as to form one significant proposal.
II. The company has arrangements in place to identify and engage with its material stakeholder groups and to manage its relationships with such groups.
III. The company discloses in its annual report its strategy and key areas of focus in relation to the management of stakeholder relationships during the reporting period.
IV. The company maintains a current corporate website to communicate and engage with stakeholders.Correct
The following are provisions for managing stakeholder relationship:
– The company has arrangements in place to identify and engage with its material stakeholder groups and to manage its relationships with such groups.
– The company discloses in its annual report its strategy and key areas of focus in relation to the management of stakeholder relationships during the reporting period.
– The company maintains a current corporate website to communicate and engage with stakeholders.Incorrect
The following are provisions for managing stakeholder relationship:
– The company has arrangements in place to identify and engage with its material stakeholder groups and to manage its relationships with such groups.
– The company discloses in its annual report its strategy and key areas of focus in relation to the management of stakeholder relationships during the reporting period.
– The company maintains a current corporate website to communicate and engage with stakeholders. -
Question 26 of 30
26. Question
Which of the following best describes “beneficiary institution”?
Correct
Beneficiary institution means the financial institution that receives the wire transfer from the ordering institution, directly or through an intermediary institution, and makes the funds available to the wire transfer beneficiary. A payment service provider that is a beneficiary institution shall take reasonable measures, including post-event monitoring or real-time monitoring where feasible, to identify cross-border wire transfers that lack the required wire transfer originator or required wire transfer beneficiary information.
Incorrect
Beneficiary institution means the financial institution that receives the wire transfer from the ordering institution, directly or through an intermediary institution, and makes the funds available to the wire transfer beneficiary. A payment service provider that is a beneficiary institution shall take reasonable measures, including post-event monitoring or real-time monitoring where feasible, to identify cross-border wire transfers that lack the required wire transfer originator or required wire transfer beneficiary information.
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Question 27 of 30
27. Question
Which of the following best describes cross-border wire transfer?
Correct
“Cross-border wire transfer” can be referred to as a wire transfer where the ordering institution and the beneficiary institution are located in different countries or jurisdictions and also refers to any chain of wire transfer in which at least one of the financial institutions involved is located in a different country or jurisdiction. For cross-border wire transfers where the beneficiary institution pays out funds in cash or cash equivalent to the wire transfer beneficiary in Singapore, a beneficiary institution shall identify and verify the identity of the wire transfer beneficiary if the identity has not been previously verified.
Incorrect
“Cross-border wire transfer” can be referred to as a wire transfer where the ordering institution and the beneficiary institution are located in different countries or jurisdictions and also refers to any chain of wire transfer in which at least one of the financial institutions involved is located in a different country or jurisdiction. For cross-border wire transfers where the beneficiary institution pays out funds in cash or cash equivalent to the wire transfer beneficiary in Singapore, a beneficiary institution shall identify and verify the identity of the wire transfer beneficiary if the identity has not been previously verified.
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Question 28 of 30
28. Question
Which of the following is not one of the aspects a payment service provider should take appropriate steps towards in order to identify, assess and understand, its money laundering and terrorism financing risks?
Correct
A payment service provider shall take the following appropriate steps to identify, assess and understand, its money laundering and terrorism financing risks in relation to the following:
– Its customers.
– The countries or jurisdictions its customers are from or in.
– The countries or jurisdictions the payment service provider has operations in.
– The products, services, transactions and delivery channels of the payment service provider.Incorrect
A payment service provider shall take the following appropriate steps to identify, assess and understand, its money laundering and terrorism financing risks in relation to the following:
– Its customers.
– The countries or jurisdictions its customers are from or in.
– The countries or jurisdictions the payment service provider has operations in.
– The products, services, transactions and delivery channels of the payment service provider. -
Question 29 of 30
29. Question
Which of the following principles serve as a guide for all payment service providers in the conduct of their operations and business activities?
I. A payment service provider shall exercise due diligence when dealing with customers, natural persons appointed to act on the customer’s behalf, connected parties of the customer and beneficial owners of the customer.
II. A payment service provider shall, to the fullest extent possible, assist and cooperate with the relevant law enforcement authorities in Singapore to prevent money laundering and terrorism financing.
III. A payment service provider shall not take appropriate steps to identify, assess and understand, its money laundering and terrorism financing risks.
IV. A payment service provider shall conduct its business in conformity with high ethical standards, and guard against establishing any business relations or undertaking any transaction, that is or may be connected with or may facilitate money laundering or terrorism financing.Correct
The following are principles that shall serve as a guide for all payment service providers in the conduct of their operations and business activities:
– A payment service provider shall exercise due diligence when dealing with customers, natural persons appointed to act on the customer’s behalf, connected parties of the customer and beneficial owners of the customer.
– A payment service provider shall conduct its business in conformity with high ethical standards, and guard against establishing any business relations or undertaking any transaction, that is or may be connected with or may facilitate money laundering or terrorism financing.
– A payment service provider shall, to the fullest extent possible, assist and cooperate with the relevant law enforcement authorities in Singapore to prevent money laundering and terrorism financing.Incorrect
The following are principles that shall serve as a guide for all payment service providers in the conduct of their operations and business activities:
– A payment service provider shall exercise due diligence when dealing with customers, natural persons appointed to act on the customer’s behalf, connected parties of the customer and beneficial owners of the customer.
– A payment service provider shall conduct its business in conformity with high ethical standards, and guard against establishing any business relations or undertaking any transaction, that is or may be connected with or may facilitate money laundering or terrorism financing.
– A payment service provider shall, to the fullest extent possible, assist and cooperate with the relevant law enforcement authorities in Singapore to prevent money laundering and terrorism financing. -
Question 30 of 30
30. Question
A payment service provider should take appropriate steps to identify, assess and understand, its money laundering and terrorism financing risks. Which of the following is one of the appropriate steps to take?
I. Documenting the payment service provider’s risk assessments.
II. Considering all the relevant risk factors before determining the level of overall risk and the appropriate type and extent of mitigation to be applied.
III. Develop new products and new business practices, including new delivery mechanisms.
IV. Keeping the payment service provider’s risk assessments up-to-date, and having appropriate mechanisms to provide its risk assessment information to the Authority.Correct
A payment service provider shall take the following appropriate steps to identify, assess and understand, its money laundering and terrorism financing risks:
– Documenting the payment service provider’s risk assessments.
– Considering all the relevant risk factors before determining the level of overall risk and the appropriate type and extent of mitigation to be applied.
– Keeping the payment service provider’s risk assessments up-to-date.
– Having appropriate mechanisms to provide its risk assessment information to the authority.Incorrect
A payment service provider shall take the following appropriate steps to identify, assess and understand, its money laundering and terrorism financing risks:
– Documenting the payment service provider’s risk assessments.
– Considering all the relevant risk factors before determining the level of overall risk and the appropriate type and extent of mitigation to be applied.
– Keeping the payment service provider’s risk assessments up-to-date.
– Having appropriate mechanisms to provide its risk assessment information to the authority.