CMFAS M10 REIT Exam Free Trial Set Two

Take into account the actuality that Constitutional tort theories have not changed significantly during the past 15 years, and most of the related litigation revolves around the immunity of the government and government employees, special tort statutes, and limitation of damages. Furthermore, the existing literature on risk regulation for mortgages and foreclosures, REITs, title systems, and securitization is well developed but does not address the economic effects of constitutions or public health issues.

Please remember that modern banking is now almost inseparable from insurance, and many non-insurance entities now provide direct or indirect insurance products. Banks and nonbank entities that trade derivatives provide insurance (entities that provide third-party guarantees are essentially providing insurance). Also, banks differ from insurance companies in various ways.

You must consider the authenticity that the borrower and the lender have constitutionally guaranteed property interests in entering into contracts as they see fit, so long as such contracts do not have a negative effect on third parties—such property interests arise from state constitutional law, state contract laws, state/municipal property laws, expectations, and norms. Furthermore, the lender and borrower have constitutionally guaranteed rights to state contractual procedures for managing default of the mortgage (which may include foreclosure).

Please remember that another description for the act of “administering a financial benchmark” is controlling the development of the methodology of determining a financial benchmark, and applying a formula or other methods of calculation to information or expressions of opinion in order to determine a financial benchmark, or monitoring and conducting surveillance of any information or expressions of opinion provided for the purpose of determining a financial benchmark.

Kindly retain the further learning that the manager (or the VCC, in the case of a scheme like REITs, constituted as a VCC or is a sub-fund thereof) should prepare the half-yearly financial statements and the audited financial statements, for the semi-annual report and annual report respectively. Beyond that, the semi-annual report and annual report, based on a scheme’s financial year, should contain exposure to financial derivatives, amount of redemptions and subscriptions for the period under review, and amount of related-party transactions for the period under review.

Don’t lose sight of the fact that individuals who are based overseas and engaged in these functions on behalf of the REIT manager (as mentioned in options I, III, and IV) should be appointed as representatives of the REIT manager, but they will not count towards satisfying the minimum of three full-time Singapore-resident representatives among REITs in Singapore.

Keep in your perception that in the case where a recognized scheme or the underlying scheme which an authorized scheme feeds into intends to use or invest in financial derivatives, a prominent statement drawing attention to this intention should be included in the marketing material of the recognized scheme or authorized scheme which feeds into an underlying scheme. Also, financial derivatives may only be used for the purpose of hedging existing positions in a portfolio, or EPM provided that the financial derivatives are not used to gear the overall portfolio.

Make sure to remember that the expense ratio should be calculated in accordance with the guidelines for the disclosure of expense ratios issued by the Authority in-charge of the REITs. Moreover, another term to remember under the scheme requirements for REITs is the “Turnover ratio”, which means a ratio of the number of times per year that a dollar of assets is reinvested. It should be calculated based on the lesser of purchases or sales of underlying investments of a scheme expressed as a percentage of daily average net asset value.

It should be noted that the SGX-ST listing manual also dictates among its constituent companies the prerequisite to relative documents which specify that the salaries of the executive directors of the said company strictly do not include a percentage or a commission from the turnover. In addition to this fact, it is also stated by the SGX-ST listing manual that all fees to be paid to the executive directors of the company must be represented by a fixed total.

According to guidelines of Monetary Authority of Singapore under section 1, article B (Board Independence Requirements), there are 2 ways to ameliorate the self-dependence of the Board; 1) at least 50% of the Board must appoint independent directors. If the unitholders has the right to appoint the directors of the REIT manager, 1/3 of the Board is sufficient enough to appoint independent directors. 2) All Boards can be the overall independent.

Acknowledge the fact that a deposited property, on the other hand, means the value of the property fund’s total assets based on the latest valuation, or in the case of a stapled securities structure, the value of the stapled group’s total assets based on the latest valuation. Further comprising, the Controlling unitholder means a person who in fact exercises control over the property fund.

Be mindful of the fact that on the matter of giving priority to the interests of all the participants of the authorized REIT as a whole by the director of the manager, this shall be further applied over the interests of the manager and the shareholders of the manager in the event of a conflict between the interests of all the participants as a whole and the interests of the manager or the shareholders of the manager.

Also, bear in mind that a director of a holder of a capital markets services license for REIT management shall be considered to be independent of management and business relationships with the holder (whether or not the holder is acting for or on behalf of the REIT) and the REIT if the director has no management relationships with the holder or with any of its related corporations; and the real estate investment trust.

Keep in mind that the leverage limit also helps to mitigate the risk of a REIT having to liquidate a major asset in its portfolio, at the bottom of a property market cycle, in order to service or repay debts. Also, note that having a higher leverage limit can make the REIT more flexible in optimizing its capital structure. In light of recalibrating the leverage limit, one option is to use a combination of leverage limit and minimum interest coverage ratio or “ICR.”

Remember that interest coverage ratio (or “ICR”) is a measure of a REIT’s ability to service its debt obligations from regular sources of income. Additionally, if the use of a combination of leverage limit and ICR is appropriate, one possible approach to recalibrate the leverage limit is to allow REITs to take on more debt only if they are able to meet a minimum ICR.

Draw attention to the fact that following the REIT’s listing, it is not uncommon for the REIT to enter into service agreements or property transactions with the Sponsor or its subsidiaries. Because of this structure, REITs have over the last decade become an investment option that delivers tax-efficient, stable, and regular returns for investors. Also, Singapore is now one of the largest REIT markets in Asia.

Underline the fact that the holder of a capital markets services license for REIT trust management shall have a Board which satisfies requirements such as the participants of a REIT must have the right to vote on the appointment of directors to the Board, and at least one-third of the Board shall comprise independent directors.

Please remember that modern banking is now almost inseparable from insurance, and many non-insurance entities now provide direct or indirect insurance products. Banks and nonbank entities that trade derivatives provide insurance (entities that provide third-party guarantees are essentially providing insurance). Also, banks differ from insurance companies in various ways.

Always recall that one more way that lack of fiscal federalism for matters as mentioned in the question exacerbates risk and increases transaction costs, monitoring costs, and enforcement costs, is through increasing taxes because it substantially increases the cost of government and also creates costly uncertainty (all of which are funded by higher taxes). Likewise, it also precludes “learning effects” because best practices in any state can be implemented in only that state/jurisdiction.

Be reminded that the “Nexus” can also be established between the two entities if both are in the same industry or one provides ancillary services to the other (not necessary for the non-REIT entity to be the sponsor or sponsor-related). Beyond that, the refinement to the “nexus” requirements will accommodate more business models, particularly nonsponsored REITs.