CMFAS M1b Exam Free Trial Set Two

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).

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.

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

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.

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).

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).

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.

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.

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.

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.

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.

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.

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.

The Monetary Authority of Singapore (MAS) has the power to revoke/cancel the Capital Markets Services (CMS) License.

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.

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.

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.

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.

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.

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