CMFAS M1b Exam Free Trial Set Two
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Question 1 of 20
1. Question
In the Monetary Authority of Singapore (MAS) notice 626, which of the following statement describes the meaning of “business relations”?
I. The opening or maintenance of an account by the bank in the name of a person (whether a natural person, legal person or legal arrangement).
II. The provision of financial advice by the bank to a person (whether a natural person, legal person or legal arrangement).
III. The relations between management staff personnel of one bank with another bank (whether a natural person, legal person or legal arrangement).
IV. The relations between staff personnel of the Monetary Authority of Singapore (MAS) (whether a natural person, legal person or legal arrangement).Correct
In the Monetary Authority of Singapore (MAS) notice 626, the following statement describes the meaning of “business relations”:-
(a) The opening or maintenance of an account by the bank in the name of a person (whether a natural person, legal person or legal arrangement).
(b) The provision of financial advice by the bank to a person (whether a natural person, legal person or legal arrangement).Incorrect
In the Monetary Authority of Singapore (MAS) notice 626, the following statement describes the meaning of “business relations”:-
(a) The opening or maintenance of an account by the bank in the name of a person (whether a natural person, legal person or legal arrangement).
(b) The provision of financial advice by the bank to a person (whether a natural person, legal person or legal arrangement). -
Question 2 of 20
2. Question
In the Monetary Authority of Singapore (MAS) notice 626, which of the following statement describes the meaning of “connected party”?
I. In relation to a legal person (other than a partnership), means any director or any natural person having executive authority in the legal person.
II. In relation to a legal arrangement, means any natural person having executive authority in the illegal arrangement.
III. In relation to a legal person that is a partnership, means any partner or manager.
IV. In relation to a legal arrangement, means any natural person having executive authority in the legal arrangement.Correct
In the Monetary Authority of Singapore (MAS) notice 626, the following statement describes the meaning of “connected party”:-
(a) In relation to a legal person (other than a partnership), means any director or any natural person having executive authority in the legal person.
(b) In relation to a legal person that is a partnership, means any partner or manager.
(c) In relation to a legal arrangement, means any natural person having executive authority in the legal arrangement.Incorrect
In the Monetary Authority of Singapore (MAS) notice 626, the following statement describes the meaning of “connected party”:-
(a) In relation to a legal person (other than a partnership), means any director or any natural person having executive authority in the legal person.
(b) In relation to a legal person that is a partnership, means any partner or manager.
(c) In relation to a legal arrangement, means any natural person having executive authority in the legal arrangement. -
Question 3 of 20
3. Question
The Suspicious Transaction Report (STR) templates are available on which of the following medium?
Correct
The Suspicious Transaction Report (STR) reporting templates are available on the Commercial Affairs Department’s website.
Incorrect
The Suspicious Transaction Report (STR) reporting templates are available on the Commercial Affairs Department’s website.
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Question 4 of 20
4. Question
Central Provident Fund savings can be used in how many investment schemes?
Correct
The Central Provident Fund Savings can be used in the following two investment schemes:-
(a) CPF Investment Scheme (CPFIS).
(b) Special Discounted Shares (SDS) Scheme.Incorrect
The Central Provident Fund Savings can be used in the following two investment schemes:-
(a) CPF Investment Scheme (CPFIS).
(b) Special Discounted Shares (SDS) Scheme. -
Question 5 of 20
5. Question
Which of the following criteria should be adopted by Fund Management Companies (FMCs) for the inclusion under the Central Provident Fund Investment Scheme (CPFIS)?
Correct
The Fund Management Companies (FMCs) and its related group of companies manage at least S$500 million worth of funds in Singapore to cater the criteria for the inclusion under the Central Provident Fund Investment Scheme (CPFIS).
Incorrect
The Fund Management Companies (FMCs) and its related group of companies manage at least S$500 million worth of funds in Singapore to cater the criteria for the inclusion under the Central Provident Fund Investment Scheme (CPFIS).
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Question 6 of 20
6. Question
Which of the following document is used as an application for a Capital Markets Services (CMS) License in fund management?
Correct
Form 1A is used as an application for a Capital Markets Services (CMS) License in fund management. Details of relevant professionals should be submitted in Annex A, unless they are representatives or directors of the Fund Management Company (FMC) in which case details should be provided in Form 3A or Form 11 instead).
Incorrect
Form 1A is used as an application for a Capital Markets Services (CMS) License in fund management. Details of relevant professionals should be submitted in Annex A, unless they are representatives or directors of the Fund Management Company (FMC) in which case details should be provided in Form 3A or Form 11 instead).
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Question 7 of 20
7. Question
A relevant person may request payment or accept remuneration if the financial advisory service is provided to which of the following investors?
I. The financial advisory service is provided to an exempt investor.
II. The financial advisory service is provided to an expert investor.
III. The financial advisory service is provided to an accredited investor.
IV. The financial advisory service is provided to an institutional investor.Correct
A relevant person may request /demand payment or accept remuneration if the financial advisory service is provided or the sale of investment product is made to the following investors:-
(a) The financial advisory service is provided to an expert investor.
(b) The financial advisory service is provided to an accredited investor.
(c) The financial advisory service is provided to an institutional investor.Incorrect
A relevant person may request /demand payment or accept remuneration if the financial advisory service is provided or the sale of investment product is made to the following investors:-
(a) The financial advisory service is provided to an expert investor.
(b) The financial advisory service is provided to an accredited investor.
(c) The financial advisory service is provided to an institutional investor. -
Question 8 of 20
8. Question
A relevant person may request payment or accept remuneration if the payment or remuneration is not dependent whether directly or indirectly on which of the following conditions?
I. The number of contracts entered into for the sale of any type of investment product.
II. The value of contracts entered into for the sale of any type of investment product.
III. The financial advisory service is provided to an institutional investor.
IV. The financial advisory service is provided to an accredited investor.Correct
A relevant person may request/demand payment or accept remuneration if the payment or remuneration is not dependent whether directly or indirectly on the following conditions:-
(a) The number of contracts entered into for the sale of any type of investment product.
(c) The value of contracts entered into for the sale of any type of investment product.Incorrect
A relevant person may request/demand payment or accept remuneration if the payment or remuneration is not dependent whether directly or indirectly on the following conditions:-
(a) The number of contracts entered into for the sale of any type of investment product.
(c) The value of contracts entered into for the sale of any type of investment product. -
Question 9 of 20
9. Question
Which of the following schedule to the Securities and Futures Act (SFA) defines the activity of fund management?
Correct
The Second Schedule to the Securities and Futures Act (SFA) defines the activity of fund management. A corporation that carries on business in fund management in Singapore would need to either hold a CMS license in fund management or be registered with the Monetary Authority of Singapore (MAS) as an RFMC.
Incorrect
The Second Schedule to the Securities and Futures Act (SFA) defines the activity of fund management. A corporation that carries on business in fund management in Singapore would need to either hold a CMS license in fund management or be registered with the Monetary Authority of Singapore (MAS) as an RFMC.
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Question 10 of 20
10. Question
Which of the following criteria should be adopted by a corporation that carries on business in fund management in Singapore?
I. The corporation should hold a collective investment schemes (CIS) license in fund management.
II. The corporation should be registered with the Financial Action Task Force (FATF) as an RFMC.
III. The corporation should hold a CMS license in fund management.
IV. The corporation should be registered with the Monetary Authority of Singapore (MAS) as an RFMC.Correct
The Second Schedule to the Securities and Futures Act (SFA) defines the activity of fund management. A corporation that carries on business in fund management in Singapore would need to either hold a CMS license in fund management or be registered with the Monetary Authority of Singapore (MAS) as an RFMC.
Incorrect
The Second Schedule to the Securities and Futures Act (SFA) defines the activity of fund management. A corporation that carries on business in fund management in Singapore would need to either hold a CMS license in fund management or be registered with the Monetary Authority of Singapore (MAS) as an RFMC.
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Question 11 of 20
11. Question
How much relevant experience is required for the appointment of a Chief Executive Officer (CEO) of the Retail Licensed Fund Management Company (Retail LFMC)?
Correct
Minimum years of relevant experience required for the appointment of a Chief Executive Officer (CEO) of a Retail Licensed Fund Management Company (Retail LFMC) is 10 years. A CEO should have managerial experience or experience in a supervisory capacity as part of the individual’s relevant experience.
Incorrect
Minimum years of relevant experience required for the appointment of a Chief Executive Officer (CEO) of a Retail Licensed Fund Management Company (Retail LFMC) is 10 years. A CEO should have managerial experience or experience in a supervisory capacity as part of the individual’s relevant experience.
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Question 12 of 20
12. Question
How much fine shall be paid by a person on conviction of an offense of carrying on trust business in Singapore and he is not a licensed trust company?
Correct
If a person is not a licensed trust company and he is carrying on any trust business in Singapore than the person shall be liable on conviction to a fine not exceeding $75,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offense, to a further fine not exceeding $7,500 for every day or part thereof during which the offense continues after conviction.
Incorrect
If a person is not a licensed trust company and he is carrying on any trust business in Singapore than the person shall be liable on conviction to a fine not exceeding $75,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offense, to a further fine not exceeding $7,500 for every day or part thereof during which the offense continues after conviction.
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Question 13 of 20
13. Question
Which of the following amount of financial resources requirements should be maintained by a company that holds a financial adviser (FA) license?
I. Should maintain financial resources that are the higher of 1¼ of your relevant annual expenditure of the preceding financial year.
II. Should maintain financial resources that are the higher of S$150,000.
III. Should maintain financial resources that are the higher of S$250,000.
IV. Should maintain financial resources that are the higher of ¼ of your relevant annual expenditure of the preceding financial year.Correct
The following amount of financial resources requirements should be maintained by a company that holds a financial adviser (FA) license:-
(a) Should maintain financial resources that are the higher of S$150,000.
(b) Should maintain financial resources that are the higher of ¼ of your relevant annual expenditure of the preceding financial year.Incorrect
The following amount of financial resources requirements should be maintained by a company that holds a financial adviser (FA) license:-
(a) Should maintain financial resources that are the higher of S$150,000.
(b) Should maintain financial resources that are the higher of ¼ of your relevant annual expenditure of the preceding financial year. -
Question 14 of 20
14. Question
Which of the following authority has the power to revoke/cancel the Capital Markets Services (CMS) License?
Correct
The Monetary Authority of Singapore (MAS) has the power to revoke/cancel the Capital Markets Services (CMS) License.
Incorrect
The Monetary Authority of Singapore (MAS) has the power to revoke/cancel the Capital Markets Services (CMS) License.
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Question 15 of 20
15. Question
What is the amount of applicable base capital requirement that should be paid by the applicant who does not carry any customer’s positions in those capital markets products, margins, or accounts in its own books and either carry on the business only for accepting orders for the purchase or sale of any of those capital markets products from any customer?
Correct
The applicable base capital requirement of $500,000 should be paid by the applicant who does not carry any customer’s positions in those capital markets products, margins, or accounts in its own books and either carries on the business only of soliciting or accepting orders for the purchase or sale of any of those capital markets products from any customer.
Incorrect
The applicable base capital requirement of $500,000 should be paid by the applicant who does not carry any customer’s positions in those capital markets products, margins, or accounts in its own books and either carries on the business only of soliciting or accepting orders for the purchase or sale of any of those capital markets products from any customer.
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Question 16 of 20
16. Question
Which of the following types of regulated activities of Capital Markets Services (CMS) License are held by the broker-dealer that depends on its business model?
I. Dealing in capital markets products.
II. Product financing.
III. Providing media coverage.
IV. Providing custodial services.Correct
The following type of regulated activates of Capital Markets Services (CMS) License are held by the broker-dealer that depends on the business model:-
(a) Dealing in capital markets products.
(b) Product financing.
(c) Providing custodial services.Incorrect
The following type of regulated activates of Capital Markets Services (CMS) License are held by the broker-dealer that depends on the business model:-
(a) Dealing in capital markets products.
(b) Product financing.
(c) Providing custodial services. -
Question 17 of 20
17. Question
Which of the following options are included in the scope of a broker-dealer’s activities?
I. Acquiring, disposing, subscribing or underwriting capital markets products on behalf of any person.
II. Inducing any person to acquire, dispose, subscribe or underwrite capital markets products.
III. Providing facilitation to another person to sell the capital markets products.
IV. Providing custodial services for securities.Correct
The following options are included in the scope of a broker-dealer’s activities:-
(a) Acquiring, disposing, subscribing or underwriting capital markets products on behalf of any person.
(b) Inducing any person to acquire, dispose, subscribe or underwrite capital markets products.
(c) Providing financing to another person to buy or subscribe for capital markets products.
(d) Providing custodial services for securities.Incorrect
The following options are included in the scope of a broker-dealer’s activities:-
(a) Acquiring, disposing, subscribing or underwriting capital markets products on behalf of any person.
(b) Inducing any person to acquire, dispose, subscribe or underwrite capital markets products.
(c) Providing financing to another person to buy or subscribe for capital markets products.
(d) Providing custodial services for securities. -
Question 18 of 20
18. Question
The Chief Executive Officer and directors of a Real Estate Investment Trust (REIT) manager should have how much management level experience?
Correct
The Chief Executive Officer and directors of a Real Estate Investment Trust (REIT) manager should have at least 10 years of relevant experience including 5 years at a management level.
Incorrect
The Chief Executive Officer and directors of a Real Estate Investment Trust (REIT) manager should have at least 10 years of relevant experience including 5 years at a management level.
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Question 19 of 20
19. Question
How many full-time representatives (which may include the CEO) should have by the REIT managers who are resident in Singapore and have at least 5 years of relevant experience in REIT management?
Correct
The Real Estate Investment Trust (REIT) manager should have a minimum of 3 full-time representatives (which may include the CEO) and who are resident in Singapore and have at least 5 years of relevant experience of REIT management.
Incorrect
The Real Estate Investment Trust (REIT) manager should have a minimum of 3 full-time representatives (which may include the CEO) and who are resident in Singapore and have at least 5 years of relevant experience of REIT management.
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Question 20 of 20
20. Question
The Suspicious Transaction Report (STR) templates are available on which of the following medium?
Correct
The Suspicious Transaction Report (STR) reporting templates are available on the Commercial Affairs Department’s website.
Incorrect
The Suspicious Transaction Report (STR) reporting templates are available on the Commercial Affairs Department’s website.
Premium Course Review
Prevention of Financial Crimes
The Capital Markets Industry in Singapore and Participants in the Capital Markets
Licensing and Business Operations
Market Conduct
Central Provident Fund Investment Scheme (CPFIS)
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