CMFAS M1b Exam Free Trial

According to the Monetary Authority of Singapore (MAS) notice 626, a bank shall identify and assess the money laundering and terrorism financing risks that may arise in relation to the following areas:-

(a) A bank shall identify and assess in relation to the development of new products and new business practices, including new delivery mechanisms.
(b) A bank shall identify and assess in relation to the use of new or developing technologies for both new and pre-existing products.

Where a customer is a legal person or legal arrangement, the bank shall identify the connected parties of the customer by obtaining the following information:-

(a) Unique identification number (such as an identity card number, birth certificate number or passport number of the connected party) of each connected party.
(b) Full name, including any aliases of each connected party.

Where the bank performs simplified Customer due Diligence (CDD) measures in relation to a customer, any natural person appointed to act on behalf of the customer and any beneficial owner of the customer should document the following details:-

(a) It shall document the details of its risk assessment.
(b) It shall document the nature of the simplified CDD measures.

The following criteria should be catered by a person if he wishes to invest under the Central Provident Fund Investment Scheme (CPFIS):-

(a) The person should be at least 18 years old.
(b) A person should not an undischarged bankrupt.
(c) The person should have more than $20,000 in his Ordinary Account (OA).
(d) The person should have more than $40,000 in his Special Account (SA).

All types of investments are subject to risk. Risk refers to the possibility of losing part/all of your investments due to financial market changes. By understanding the risks associated with the various investment options, you can better decide on investments that best match your risk tolerance and personal circumstances. Here are some factors you should consider:-

(a) Risk Tolerance — Consider the amount of risk you are comfortable with and can afford to take. Are you able to handle temporary short-term losses in your investments? Do you have enough savings to absorb the investment risks? You can take the Risk Tolerance.
(b) Investment Time Horizon — Consider the duration of your investments. Do remember that your CPF savings are meant for your retirement. Hence, they are generally for long term purposes unless you are nearing retirement or have a short-term investment time horizon for other reasons.
(c) Overall Financial Situation — Consider your financial commitments and the amount of money required to sustain your lifestyle during retirement. Do you have other assets set aside for retirement besides your CPF savings? How are these assets invested?

After reaching 55 years of age a person will be eligible to withdraw his CPFIS- Ordinary Account (OA) and CPFIS- Special Account (SA) investments, as well as the cash balance in his Investment Account, after setting aside the Full Retirement Sum (FRS) in his Retirement Account (RA). The FRS can be set aside fully with cash, or with cash (i.e. at least the Basic Retirement Sum) and property.

A person can sell or apply for withdrawal of his discounted SingTel (ST) shares on the following methods:

(a) A person can choose to withdraw his discounted ST shares upon meeting CPF withdrawal conditions.
(b) A person can choose to sell his discounted ST shares.

Form 11 is used for the appointment of a director or chief executive officer (CEO) of a Fund Management Company (FMC).

A Retail Licensed Fund Management Company (Retail LFMC) or A/I Licensed Fund Management Company (A/I LFMC) uses MASNET for the submission of following returns on quarterly (unaudited) basis on SF(FMR)R Forms within 14 days of quarter-end:-

(a) Statement of Assets and Liabilities.
(b) Statement of Financial Resources, Total Risk Requirement and Aggregate Indebtedness.

Capital Markets Services (CMS) License should be held by a Venture Capital Fund Manager (VCFM) for fund management in a Fund Management Company (FMC).

Form 25A should be used by a Venture Capital Fund Manager (VCFM) for the submission of return related to annual declaration for VCFMs via Corporate Electronic Lodgment (CeL) system on annual basis (within 1 month of financial year-end).

An appointed representative will cease to be one in respect of any type of regulated activity where:-

(a) The principal notifies MAS of such cessation. Such notification should be made in Form 8 via the CoRe system to MAS no later than the next business day.
(b) The appointed representative has ceased to act as such representative for a continuous period of one month and his principal has not notified MAS of his cessation as such representative.
(c) MAS has revoked the status of the appointed representative.
(d) The principal ceases to carry on business in that type of regulated activity. The principal needs to notify MAS of its cessation via Form 7.
(e) The license of his principal lapses, the license is revoked by MAS or prohibition order is issued by MAS against his principal prohibiting it from carrying out that type of regulated activity.

At least 2 Executive Directors are required to be appointed under a Registered Fund Management Company (RFMC), A/I Licensed Fund Management Company (A/I LFMC) and Retail Licensed Fund Management Company (Retail LFMC). Executive Directors are employed full-time in the day-to-day operations of the company and should be resident in Singapore. There should be at least one Executive Director who has 5 years of experience in portfolio management in areas similar to what the FMC intends to do.

An appointed representative, provisional representative or temporary representative is required to inform his principal company of any change in his particulars specified in Form 16 within 7 days after the date of the change of the particulars. The principal company is required to notify the Monetary Authority of Singapore (MAS) of its representative’s change of particulars by lodging Form 16 through the CoRe system not later than 14 days after the date of the change of the particulars.

A capital markets services (CMS) license holder is required to deposit the customer’s money and assets into a trust account maintained with a bank, merchant bank or finance company in Singapore.

Retail Licensed Fund Management Companies (LFMC’s) are carrying on business in fund management with all types of investors (without restriction on the number of investors).

The Registered Fund Management Company (RFMC) is carrying on business in fund management with no more than 30 qualified investors (of which no more than 15 may be funds or limited partnership fund structures) and the total value of the assets managed does not exceed S$250 million.

The Chief Executive Officer, directors and relevant professionals of the Fund Management Company (FMC) must have adequate experience that is relevant to the fund management activities of the FMC. The board of directors of the FMC should collectively have experience in portfolio management as well as in support functions such as risk management, operations and compliance. At least one of the Executive Directors should have portfolio management experience in asset classes or markets that the FMC intends to invest.

Corporate Electronic Lodgment (CeL) is used for submission of an application by a prospective Fund Management Company (FMC) to applying for Capital Markets Services (CMS) License in fund management, in respect of venture capital funds only.

An application for a trust business license shall be made to the Monetary Authority of Singapore (MAS) in such form and manner as the MAS may require. The manner for the payment of a non-refundable application fee for a trust business license specify by the MAS.

The applicable base capital requirement of $1 million should be paid by the applicant who is carrying out fund management of any collective investment scheme offered to any investor other than an accredited investor or institutional investor.

The applicable base capital requirement of $250,000 should be paid by the applicant who is providing credit rating services.

The following financial requirements are applicable for an applicant who wishes to act as approved collective investment schemes (CIS) trustee under the Monetary Authority of Singapore (MAS):-

(a) The applicant should have a minimum shareholders’ funds of S$1 million.
(b) The applicant should have a minimum paid-up capital of S$1 million.

The list of Registered Fund Management Company (RFMC) is listed in the Financial Institutions Directory.

The applicable financial requirement of base capital for retail licensed fund management company (LFMC) under the Capital Markets Services (CMS) License should be minimum S$500,000 or higher and it should be required to maintain financial resources which are in excess of its total risk requirements.

The following criteria should be adopted for the staffing requirement of a retail licensed fund management company (LFMC) under the Capital Markets Services (CMS) License:-

(a) Minimum of 3 full-time Singapore-based employees each with at least 5 years of relevant experience.
(b) The proposed CEO must have at least 10 years of relevant experience.
(c) Independent and dedicated compliance function in Singapore required.

Minimum of 2 fulltime Singapore based employees each with at least 5 years of relevant experience required to fulfill the criteria of staff requirement for a registered fund management company (RFMC) under the Capital Markets Services (CMS) License.

The applicable base capital requirement of $50,000 should be paid by the applicant who does not carry any type of customer’s positions in capital markets products, margins or accounts in its own books and deals in capital markets products that are securities, units in collective scheme or exchange traded derivatives contracts.

The Suspicious Transaction Report (STR) reporting templates are available on the Commercial Affairs Department’s website.

The following criteria should be considered by the Monetary Authority of Singapore (MAS) while assessing an application of a company that wishes to be an approved collective investment schemes (CIS) trustee:-

(a) Fitness and propriety of the applicant, its shareholders and directors.
(b) Track record and management expertise of the applicant and its parent company or major shareholders.
(c) Ability to meet the minimum financial requirements prescribed under the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005.
(d) Strength of internal compliance systems and processes of the applicant.
(e) Business model/plans and projections and associated risks.