CMFAS M3 Exam Free Trial Set Two

Just as short selling is allowed subject to conditions such as pre-arrangements for ͚covered͛ short selling, securities borrowing and lending is also allowed subject to certain condition.

Examples of securities that were suspended for trading by SGX-ST are: – Links Island Holdings Limited in 2000 – Blumont Group Limited 2013 – Asiasons Capital Ltd in 2013 – LionGold Corp Ltd in 2013

The redemption by trustees or managers for a CIS, subject to certain conditions; ii. Persons acting as underwriters pursuant to the performance of their roles; Knowledge by virtue of a natural person͛s own transactions; and viii. Knowledge of a corporation͛s own transaction.

As short selling information may be used by other market participants to make trading decisions, all market participants must accurately disclose their sell orders for SGX-ST Trading Members͛ compliance with the disclosure requirements on short selling. SGX-ST will provide its Trading Members with a facility to correct erroneously marked sell orders.

Another common form of market misconduct is the circulation of false information that is likely to: (i) Induce other persons to subscribe for the securities; (ii) Induce other persons to buy or sell the securities; or (iii) Raise, lower, maintain or stabilise the market price of securities

Another common form of market misconduct is the circulation of false information that is likely to: (i) Induce other persons to subscribe for the securities; (ii) Induce other persons to buy or sell the securities; or (iii) Raise, lower, maintain or stabilise the market price of securities

However, ad hoc or inconsistent Chinese walls may not be sufficient for a corporation to rely on this defence

The aim of MAS, as the regulator of financial institutions in Singapore, is to have a sound and progressive financial services sector. These objectives are sought through the financial supervision and development of the banking and insurance industries as well as the capital markets.

Public confidence in a fair and orderly capital market, one that reflects the forces of genuine supply and demand, enhances the liquidity and efficiency of the market.

Offence is not compoundable and is subject to a mandatory minimum imposable penalty.

To ensure that the securities market performs efficiently and transparently, it is important that market players can make informed decisions about companies listed on the exchanges. Exchanges therefore require the listed companies to provide information on their operations on a continuing basis, especially if the information is material to the company’s business performance.

The announcement should avoid:
– Omission of important unfavorable facts,
– Presentation of favorable possibilities as certain,
– Presentation of projections without sufficient qualification or without sufficient factual basis
– Negative statements phrased to create a positive implication

Directly or indirectly claim that any graph, chart, formula or other device in the advertisement can be used to determine which instruments to buy or sell, or when to buy or sell them, without prominently disclosing in the advertisement its limitations and difficulties in usage.

The LFMC also does not need to provide monthly and quarterly statements if the customer is an accredited investor or a related corporation of LFMC

An appointed, provisional or temporary representative is required to inform his principal company of any change in his residential address or other personal particulars within 7 days after the date of change of the particulars.

In the case of an RFMC, to establish that it is fit and proper, it should also satisfy MAS that22 all of its key officers, substantial shareholders, equivalent persons and persons who have control or decision-making authority must meet the fit and proper criteria.

It does not include:
i. Futures contracts which are traded on a futures market;
ii. Bills of exchange;
iii. Promissory notes;
iv. Certificates of deposit issued by a bank or finance company whether situated in
Singapore or elsewhere; or
v. Any other products which are not prescribed as Securities by MAS.

Codes set out a system of rules governing the conduct of certain specified activities. They are non-statutory in nature, which means that they do not have force of law and are not intended to replace any applicable legislation. However, a breach of a code may attract certain non-statutory sanctions like private reprimand.

The SFA contains both generic and specific provisions which extend the jurisdiction of the SFA to cross-border activities.

Bucketing occurs when a representative directly or indirectly takes the opposite side of a customer’s order into his own account or any account in which he has an interest.