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CMFAS Module 10 – REIT
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Question 1 of 30
1. Question
In relation to the Act pertaining to the regulation of activities and institutions in the securities and derivatives industry, what is defined as controlling the development of the definition of a financial benchmark for the purpose of determining a financial benchmark?
Correct
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.
Incorrect
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.
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Question 2 of 30
2. Question
What term, in relation to an approved holding company, refers to the rules, regulations, by-laws or such similar body of statements, by whatever name called, that govern the activities and conduct of the approved holding company?
Correct
Keep in mind “business rules” are also the rules, regulations, by-laws or such similar body of statements, that govern the activities and conduct applicable to an approved exchange, a recognized market operator, a licensed trade repository, a licensed foreign trade repository, an approved clearinghouse or a recognized clearinghouse and its members, or the licensed trade repository or licensed foreign trade repository and its participants; and other persons in relation to it.
Incorrect
Keep in mind “business rules” are also the rules, regulations, by-laws or such similar body of statements, that govern the activities and conduct applicable to an approved exchange, a recognized market operator, a licensed trade repository, a licensed foreign trade repository, an approved clearinghouse or a recognized clearinghouse and its members, or the licensed trade repository or licensed foreign trade repository and its participants; and other persons in relation to it.
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Question 3 of 30
3. Question
The following definitions below points out to “administering a designated benchmark” under the Act relating to the regulation of activities and institutions in the securities and derivatives industry, except for?
I. Controlling the regression of the methodology of determining a designated benchmark
II. Collecting, analyzing or processing any information or expression of opinion for the purpose of determining a designated benchmark
III. Controlling the review of the definition of a designated benchmark not for the purpose of determining a designated benchmark
IV. Managing any arrangements, processes or mechanisms for the purpose of determining a designated benchmarkCorrect
Bear in mind that “administering a designated benchmark” also means monitoring and conducting surveillance of any information or expressions of opinion provided for the purpose of determining a designated benchmark, but does not include providing information in relation to a designated benchmark or any act that is necessary or incidental to providing such information.
Incorrect
Bear in mind that “administering a designated benchmark” also means monitoring and conducting surveillance of any information or expressions of opinion provided for the purpose of determining a designated benchmark, but does not include providing information in relation to a designated benchmark or any act that is necessary or incidental to providing such information.
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Question 4 of 30
4. Question
Regarding the matter of disclosure obligations among REITs, if the reporting person is the director/CEO of the responsible person for listed REITs, what types of interests must he disclose?
I. Interests or changes in interests in the securities
II. Interests or changes in interests in relevant securities-based derivatives contracts
III. Interests or changes interests in a related corporation of the company
IV. Interests or changes in interests in relevant units of the listed issuerCorrect
Instill the knowledge that the time period for such disclosures to be made under the case from the question above should be within two business days of his appointment as a director/CEO, or an acquisition or disposal of, or a change in, his interest. Furthermore, such notification is made to the responsible person of the listed REIT.
Incorrect
Instill the knowledge that the time period for such disclosures to be made under the case from the question above should be within two business days of his appointment as a director/CEO, or an acquisition or disposal of, or a change in, his interest. Furthermore, such notification is made to the responsible person of the listed REIT.
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Question 5 of 30
5. Question
What phrase points to any securities, units in a collective investment scheme, derivatives contracts, spot foreign exchange contracts for the purposes of leveraged foreign exchange trading, and such other products?
Correct
It is should be emphasized that a “capital markets services license” on the other hand means a license that is granted by the Authority to a person to carry on a business in any regulated activity. Additionally, the “chief executive officer”, in relation to the holder of a capital markets services license means any person, by whatever name called, who is in the direct employment of, or acting for or by arrangement with, the relevant person.
Incorrect
It is should be emphasized that a “capital markets services license” on the other hand means a license that is granted by the Authority to a person to carry on a business in any regulated activity. Additionally, the “chief executive officer”, in relation to the holder of a capital markets services license means any person, by whatever name called, who is in the direct employment of, or acting for or by arrangement with, the relevant person.
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Question 6 of 30
6. Question
A collective investment scheme like REITs is simply defined as an arrangement in respect of any property under which the participants do not have day-to-day control over the management of the property, whether or not the participants have the right to be consulted or to give directions in respect of such management. However, it does not include which cases?
I. An arrangement not arising out of a life policy within the meaning of the Insurance Act
II. An arrangement operated by a person otherwise than by way of business
III. An arrangement under which each of the participants is a related corporation of the manager
IV. A closed-end fund constituted either as an entity, a sub-fund or a trustCorrect
Please highlight the insight that under a collective investment scheme, a “closed-end fund” means an arrangement under which units that are issued are exclusively or primarily non-redeemable at the election of the holders of units, but does not include an arrangement referred to as its authorized definition which is a trust, which invests primarily in real estate and real estate-related assets specified by the Authority in the Code on Collective Investment Schemes, and all or any units of which are listed for quotation on an approved exchange.
Incorrect
Please highlight the insight that under a collective investment scheme, a “closed-end fund” means an arrangement under which units that are issued are exclusively or primarily non-redeemable at the election of the holders of units, but does not include an arrangement referred to as its authorized definition which is a trust, which invests primarily in real estate and real estate-related assets specified by the Authority in the Code on Collective Investment Schemes, and all or any units of which are listed for quotation on an approved exchange.
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Question 7 of 30
7. Question
What do you call the term among REITs which includes any currency, currency index, interest rate, interest rate instrument, interest rate index, securities, securities index, a group or groups of such financial instruments, and any other thing that is prescribed by the Authority by standard regulations?
Correct
Please be aware that financial benchmarks (which utilize financial instruments), refers to any price, rate, index or value that is determined periodically by the application (whether direct or indirect) of formula or any other method of calculation to information or expressions of opinion concerning transactions in, or the state of, the market in respect of one or more underlying things. But, it does not include the price of a capital markets product or such other price, rate, index or value as may be prescribed by standard regulations as not being a financial benchmark.
Incorrect
Please be aware that financial benchmarks (which utilize financial instruments), refers to any price, rate, index or value that is determined periodically by the application (whether direct or indirect) of formula or any other method of calculation to information or expressions of opinion concerning transactions in, or the state of, the market in respect of one or more underlying things. But, it does not include the price of a capital markets product or such other price, rate, index or value as may be prescribed by standard regulations as not being a financial benchmark.
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Question 8 of 30
8. Question
Who is referenced as an individual among REITs whose net personal assets exceed in value $2 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount?
Correct
It is important to remember that an accredited investor may also refer to a corporation with net assets exceeding $10 million in value (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe, in place of the first amount, as determined by the most recent audited balance-sheet of the corporation or a balance-sheet of the corporation certified by the corporation as giving a true and fair view of the state of affairs of the corporation as of the date of the balance-sheet, which date shall be within the preceding 12 months.
Incorrect
It is important to remember that an accredited investor may also refer to a corporation with net assets exceeding $10 million in value (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe, in place of the first amount, as determined by the most recent audited balance-sheet of the corporation or a balance-sheet of the corporation certified by the corporation as giving a true and fair view of the state of affairs of the corporation as of the date of the balance-sheet, which date shall be within the preceding 12 months.
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Question 9 of 30
9. Question
When talking about the notification process under the disclosure obligations among REITs, what steps are included in it?
I. Organized markets are obliged to comply with the notifications as stated by the reporting persons through which the rate is stated
II. Reporting persons are required to give notice using only notification forms which are prescribed by the financial regulatory authority
III. Listed issuers are required to disseminate the notification forms received through the standard announcement template
IV. Financial regulatory committees are tasked to perform methodology analysis based on the disclosures made by the officers-in-chargeCorrect
Draw attention to the fact that the reporting persons to disclose the obligations of the REITs that they are representing may use a single form (except Form 5) to give notice of multiple transactions provided that they occur within the same notifiable period (i.e. within the prescribed period for reporting of the earliest transaction). Meanwhile, the netting-off of multiple transactions is not allowed even if they occur within the same day.
Incorrect
Draw attention to the fact that the reporting persons to disclose the obligations of the REITs that they are representing may use a single form (except Form 5) to give notice of multiple transactions provided that they occur within the same notifiable period (i.e. within the prescribed period for reporting of the earliest transaction). Meanwhile, the netting-off of multiple transactions is not allowed even if they occur within the same day.
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Question 10 of 30
10. Question
In the case where the reporting person needs to know the issued share/unit capital of the listed corporation/BT/REIT in order to calculate the percentage level of interest in the listed entity and to determine if he has incurred an obligation to give notice, how can he find such information?
Correct
This is to also inform you that such contact information should be available on the listed entity’s internet website. In this regard, all listed entities are strongly encouraged to make information such as the total number of issued shares/units (both current and changes over the last 7 days), etc readily accessible to the public (e.g. on the listed entity’s internet website).
Incorrect
This is to also inform you that such contact information should be available on the listed entity’s internet website. In this regard, all listed entities are strongly encouraged to make information such as the total number of issued shares/units (both current and changes over the last 7 days), etc readily accessible to the public (e.g. on the listed entity’s internet website).
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Question 11 of 30
11. Question
What specific classification of an investor includes descriptions such as being the Government or an entity that is wholly and beneficially owned, whether directly or indirectly, by a central government of a country and whose principal activity is to manage its own funds?
Correct
Be advised that an “institutional investor” is also defined as any entity owned directly or indirectly by the government whose principal purpose is to manage the funds (which may include the reserves of that central government and any pension or provident fund of that country) of another entity that is wholly and beneficially owned, whether directly or indirectly, by the central government of that country.
Incorrect
Be advised that an “institutional investor” is also defined as any entity owned directly or indirectly by the government whose principal purpose is to manage the funds (which may include the reserves of that central government and any pension or provident fund of that country) of another entity that is wholly and beneficially owned, whether directly or indirectly, by the central government of that country.
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Question 12 of 30
12. Question
In the case of disclosure obligations where the reporting person is the trustee-manager of a listed BT/responsible person for a listed REIT, who is notifying in respect of acquisition or disposal of interests in securities, relevant securities-based derivatives contracts or relevant units of the listed BT/REIT, which forms according to MAS must be submitted?
I. Form 5 and Form 6
II. Form C
III. Form 6 and Form 7
IV. Form 1Correct
Focus on the additional information that the notification form to be used on disclosure obligations depends on which category of reporting person you fall into. Apart from that, when the reporting person is the director/CEO (including one who is also a substantial shareholder/unitholder) who is notifying with respect to interest or changes in interests in the securities, relevant securities-based derivatives contracts or relevant units of the listed issuer, Form 1 and Form C must be used.
Incorrect
Focus on the additional information that the notification form to be used on disclosure obligations depends on which category of reporting person you fall into. Apart from that, when the reporting person is the director/CEO (including one who is also a substantial shareholder/unitholder) who is notifying with respect to interest or changes in interests in the securities, relevant securities-based derivatives contracts or relevant units of the listed issuer, Form 1 and Form C must be used.
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Question 13 of 30
13. Question
What is the term used collectively to refer to a corporation (not being a company incorporated in Singapore, or a collective investment scheme constituted as a corporation) any or all of the shares in which are listed for quotation on the official list of an approved exchange, such listing being a primary listing BT or REIT?
Correct
This is to inform you that a “listed issuer” can also be generally used to refer to a company incorporated in Singapore any or all of the shares in which are listed for quotation on the official list of an approved exchange. Still, further, the term “BT” is collectively used to pertain to a recognized business trust any or all of the units in which are listed for quotation on the official list of an approved exchange, such listing being a primary listing.
Incorrect
This is to inform you that a “listed issuer” can also be generally used to refer to a company incorporated in Singapore any or all of the shares in which are listed for quotation on the official list of an approved exchange. Still, further, the term “BT” is collectively used to pertain to a recognized business trust any or all of the units in which are listed for quotation on the official list of an approved exchange, such listing being a primary listing.
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Question 14 of 30
14. Question
In assessing the adequacy of the internal controls of the REIT manager, the board of directors of the REIT manager should take into account the nature, scale, and complexity of the REIT manager’s operations, such as which of the following options below.
I. Take into account the regulations of the REIT’s party transactions
II. Consider the type of properties that the REIT invests in
III. Take into account the size of the REIT’s property portfolio
IV. Consider the explanation of the shareholders for outsourcingCorrect
It is relevant to mention that considering the types of properties that the REIT invests in is applicable when assessing the nature of the REIT manager’s operations. On the other hand, taking into account the size of the REITs property portfolio is appropriate when assessing the scale of the REIT manager’s operations. However, the assessment of the adequacy of the internal controls of the REIT manager is not only limited to the correct options from the question above.
Incorrect
It is relevant to mention that considering the types of properties that the REIT invests in is applicable when assessing the nature of the REIT manager’s operations. On the other hand, taking into account the size of the REITs property portfolio is appropriate when assessing the scale of the REIT manager’s operations. However, the assessment of the adequacy of the internal controls of the REIT manager is not only limited to the correct options from the question above.
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Question 15 of 30
15. Question
Where any director or executive officers are paid in the form of shares or interests in the controlling shareholder or its related entities or linked (directly or indirectly) to the performance of any entity other than the REIT, the disclosures should have what qualities?
I. State why this will not result in the directors or the executive officers prioritizing the interests of such controlling shareholder over the REIT
II. Explain how such a form of compensation is in the long-term interests of the REIT and its unitholders
III. Disclose the factors not taken into consideration in assessing the mix of remunerations for the unitholders over the interest of the REIT
IV. Set out clearly the mitigating measures put in place to address potential conflicts of interest arising from such form of compensationCorrect
Make note that another disclosure that must be made under the situation above is to disclose the factors taken into consideration in determining the mix of different forms of remuneration for directors and for executive officers respectively and the relative importance of such factors, as well as why this will not result in the directors or the executive officers prioritizing the interests of such controlling shareholder or such related or other entities over that of the REIT and its unitholders.
Incorrect
Make note that another disclosure that must be made under the situation above is to disclose the factors taken into consideration in determining the mix of different forms of remuneration for directors and for executive officers respectively and the relative importance of such factors, as well as why this will not result in the directors or the executive officers prioritizing the interests of such controlling shareholder or such related or other entities over that of the REIT and its unitholders.
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Question 16 of 30
16. Question
A REIT manager shall have an Audit Committee which satisfies the requirement that at least a majority of the members of the Audit Committee (for which purpose the chairman of the Audit Committee shall be reckoned as a member of the Audit Committee) shall possess what quality?
Correct
For additional information, note that the REIT manager shall ensure that its internal controls to address and mitigate potential conflicts of interests are subject to regular reviews by the Audit Committee with respect to their adequacy and effectiveness. Moreover, the REIT manager shall ensure that all related party transactions are subject to review by the Audit Committee.
Incorrect
For additional information, note that the REIT manager shall ensure that its internal controls to address and mitigate potential conflicts of interests are subject to regular reviews by the Audit Committee with respect to their adequacy and effectiveness. Moreover, the REIT manager shall ensure that all related party transactions are subject to review by the Audit Committee.
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Question 17 of 30
17. Question
In the case where an offer of REIT Bonds is made using an offer information statement, the offer information statement shall comply with what conditions?
I. The offer information statement shall not omit to state a new circumstance that has arisen since it was not lodged with the Authority
II. The offer information statement shall not contain reasonable grounds for future matters
III. The offer information statement shall not contain a false or misleading statement
IV. The offer information statement shall not omit to state any information required to be includedCorrect
Emphasize the additional knowledge that a false or misleading statement about a future matter (including the doing of, or the refusal to do, an act) is taken to have been made if the responsible REIT made the statement without having reasonable grounds for making the statement. At the same time, if the false or misleading statement or the omission to state any information or new circumstance, is not materially adverse from the point of view of the investor, the responsible REIT is not be taken not to have complied with the condition from the question above.
Incorrect
Emphasize the additional knowledge that a false or misleading statement about a future matter (including the doing of, or the refusal to do, an act) is taken to have been made if the responsible REIT made the statement without having reasonable grounds for making the statement. At the same time, if the false or misleading statement or the omission to state any information or new circumstance, is not materially adverse from the point of view of the investor, the responsible REIT is not be taken not to have complied with the condition from the question above.
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Question 18 of 30
18. Question
In relation to a debenture among REITs, what term means any right or interest, whether legal or equitable, in the debenture, by whatever name called, and includes any options to acquire any such right or interest in the debenture?
Correct
Kindly reflect on the knowledge that every director and chief executive officer of the responsible person for a REIT shall give notice in writing to the responsible person of particulars of debentures or units of debentures of the trust which are held by him, or in which he has an interest and the nature and extent of that interest. This also includes units in the trust, being units held by him, or in which he has an interest and the nature and extent of that interest.
Incorrect
Kindly reflect on the knowledge that every director and chief executive officer of the responsible person for a REIT shall give notice in writing to the responsible person of particulars of debentures or units of debentures of the trust which are held by him, or in which he has an interest and the nature and extent of that interest. This also includes units in the trust, being units held by him, or in which he has an interest and the nature and extent of that interest.
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Question 19 of 30
19. Question
What do you call an arrangement which refers to an arrangement in writing where a person (called a lender) who has an interest in specified capital markets products is to transfer title to some or all of the specified capital markets products to another person (called the borrower) for an agreed period of time?
Correct
Retain the auxiliary learning that when referring to securities lending arrangement, “short position” means the amount by which the quantity, volume or value of any specified capital markets products in which a person has an interest in is less than the quantity, volume or value of the specified capital markets products which the person is under an obligation to deliver, where the quantity, volume or value of any specified capital markets products is determined in accordance with the criteria, methods or formulae prescribed by standard regulations.
Incorrect
Retain the auxiliary learning that when referring to securities lending arrangement, “short position” means the amount by which the quantity, volume or value of any specified capital markets products in which a person has an interest in is less than the quantity, volume or value of the specified capital markets products which the person is under an obligation to deliver, where the quantity, volume or value of any specified capital markets products is determined in accordance with the criteria, methods or formulae prescribed by standard regulations.
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Question 20 of 30
20. Question
A person who is named in an offer information statement as which of the following options below shall not be taken not to have complied with the requirements upon the offer of REIT bonds only because of a false or misleading statement in, or omission from, the offer information statement if the person proves that he publicly withdrew his consent to being named in the offer information statement in that way?
I. A person named as having made a statement not based on of which a statement
II. A proposed director or an equivalent person of the Manager
III. A person named as having made a statement included in the offer information statement
IV. An issue manager or underwriterCorrect
It is worth remembering that on the front cover of the offer information statement, the authorized person making the offer information statement must include the date of lodgment of the offer information statement, the name of the REIT in which the REIT Bonds are being offered, and its place and date of constitution, and a statement that an application has been or will be made to an approved exchange to list for a quotation or quote the REIT Bonds being offered on that approved exchange, and the name of that approved exchange.
Incorrect
It is worth remembering that on the front cover of the offer information statement, the authorized person making the offer information statement must include the date of lodgment of the offer information statement, the name of the REIT in which the REIT Bonds are being offered, and its place and date of constitution, and a statement that an application has been or will be made to an approved exchange to list for a quotation or quote the REIT Bonds being offered on that approved exchange, and the name of that approved exchange.
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Question 21 of 30
21. Question
When tackling the particulars to be included in an offer information statement for an offer of REIT bonds, the offer statics shall state, where the number of subscriptions sought is not fixed at the date of lodgment of the offer information statement, what particulars?
I. Where applicable, that that amount may be reduced, and how and when the Manager will inform investors
II. The range of that amount
III. How and when the Manager will inform investors of the final amount of subscriptions sought
IV. That amount itselfCorrect
Kindly retain in your mind that if the case from the question above pertains to a situation where the number of REIT Bonds being offered is not fixed at the date of lodgment of the offer information statement, the offer statics shall instead state the range of that number and how and when the Manager will inform investors of the final number of REIT Bonds offered.
Incorrect
Kindly retain in your mind that if the case from the question above pertains to a situation where the number of REIT Bonds being offered is not fixed at the date of lodgment of the offer information statement, the offer statics shall instead state the range of that number and how and when the Manager will inform investors of the final number of REIT Bonds offered.
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Question 22 of 30
22. Question
If the amount of the REIT Bonds being offered can be increased, such as by the exercise of an underwriter’s over-allotment option, the exercise period of and the amount under that option must be stated. From this, and underwriter’s over-allotment option is also referred to as what term?
Correct
You must take into account that to avoid doubt, the number of subscriptions to be stated and the number of REIT Bonds being offered to be stated under the particulars to be included in an offer information statement for an offer of REIT bonds must not include any amount of REIT Bonds being offered that can be increased under such an option.
Incorrect
You must take into account that to avoid doubt, the number of subscriptions to be stated and the number of REIT Bonds being offered to be stated under the particulars to be included in an offer information statement for an offer of REIT bonds must not include any amount of REIT Bonds being offered that can be increased under such an option.
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Question 23 of 30
23. Question
The CEO and directors of a REIT manager should have at least 10 years of relevant experience, including how many years of experience at a management level?
Correct
It is crucial to keep track of the additional fact that individuals who are engaged in the following functions on behalf of the REIT manager should be appointed as the REIT manager’s representatives: investment management, asset management, financing, marketing, and investor relations. Furthermore, a REIT manager should notify the financial regulatory authority of the resignation of a director or the CEO as soon as practicable, and in any case no later than 14 days from the date of the resignation.
Incorrect
It is crucial to keep track of the additional fact that individuals who are engaged in the following functions on behalf of the REIT manager should be appointed as the REIT manager’s representatives: investment management, asset management, financing, marketing, and investor relations. Furthermore, a REIT manager should notify the financial regulatory authority of the resignation of a director or the CEO as soon as practicable, and in any case no later than 14 days from the date of the resignation.
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Question 24 of 30
24. Question
What do you call the term that refers to the use of combinations of trades on transferable securities, money market instruments, units in other schemes or financial derivatives?
Correct
Please do not overlook the importance of the insightful detail that hedging refers to the use of combinations of trades on transferable securities, money market instruments, units in other schemes or financial derivatives which are concluded with the sole purpose of offsetting risks linked to positions taken through other transferable securities, money market instruments, units in other schemes or financial derivatives.
Incorrect
Please do not overlook the importance of the insightful detail that hedging refers to the use of combinations of trades on transferable securities, money market instruments, units in other schemes or financial derivatives which are concluded with the sole purpose of offsetting risks linked to positions taken through other transferable securities, money market instruments, units in other schemes or financial derivatives.
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Question 25 of 30
25. Question
In the case where the nominal interest rate is set at the date of lodgment of the offer information statement of the REIT bonds being offered, which of the following must be stated?
I. How and when the Manager will inform the investors of the final nominal interest rate
II. A statement that subscriptions from investors will be accepted only after the final yield is made
III. The conditions for changes in the rate if several or variable interest rates are provided for
IV. How the rate is calculated if the nominal interest rate is a floating rateCorrect
You should take into consideration that some of information that must be included when making an offer of REIT bonds (without exemption or specific case to be considered) are the issue and redemption prices, the date from which interest accrues, and the interest payment dates, and the procedures for and validity period of claims for payment of interest and repayment of the principal sum.
Incorrect
You should take into consideration that some of information that must be included when making an offer of REIT bonds (without exemption or specific case to be considered) are the issue and redemption prices, the date from which interest accrues, and the interest payment dates, and the procedures for and validity period of claims for payment of interest and repayment of the principal sum.
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Question 26 of 30
26. Question
Under what type of transaction does the manager of a REIT should not invest the monies of the scheme in the manager’s own securities or securities-based derivative contracts, or those of any of its related corporations unless the securities are constituents of the scheme’s reference benchmark, which is constructed by an independent party?
Correct
Please pay heed to the additional information that under transactions with related corporations, the managers should also not lend monies of the scheme to its related corporations and not purchase real estate assets owned by the manager or its related corporations for the scheme unless such purchases are allowed for property funds by the authorized criteria. Meanwhile, under transactions at arm’s length, the manager should only conduct all transactions with or for a scheme at arm’s length.
Incorrect
Please pay heed to the additional information that under transactions with related corporations, the managers should also not lend monies of the scheme to its related corporations and not purchase real estate assets owned by the manager or its related corporations for the scheme unless such purchases are allowed for property funds by the authorized criteria. Meanwhile, under transactions at arm’s length, the manager should only conduct all transactions with or for a scheme at arm’s length.
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Question 27 of 30
27. Question
In the case where the REIT Bonds are offered at a discount or premium, aside from the discount or premium, which specification must be indicated that is specifically charged to the subscriber or purchaser of the REIT Bonds being offered?
Correct
Remember that other than the situation from the question above, another element to be indicated under offer and listing details for REIT bonds being offered is the statement on whether the REIT Bonds being offered are in registered or bearer form. Aside from this, if any of the REIT’s participants have pre-emptive rights to subscribe for or purchase the REIT Bonds being offered, the reasons for such restriction, withdrawal or waiver, the beneficiary of such restriction, withdrawal or waiver, if any, and the basis for the offer price must be indicated.
Incorrect
Remember that other than the situation from the question above, another element to be indicated under offer and listing details for REIT bonds being offered is the statement on whether the REIT Bonds being offered are in registered or bearer form. Aside from this, if any of the REIT’s participants have pre-emptive rights to subscribe for or purchase the REIT Bonds being offered, the reasons for such restriction, withdrawal or waiver, the beneficiary of such restriction, withdrawal or waiver, if any, and the basis for the offer price must be indicated.
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Question 28 of 30
28. Question
When talking about performance fees payable for collective investment schemes like REITs, which of the following requirements must it attain?
I. The calculation of performance fees payable should be equitable to all participants
II. The crystallization of performance fee should be no more frequent than thrice a year
III. The performance fee should be calculated and paid after consideration of all other payments
IV. The performance fee should only increase or decrease based on its proportion with all unitsCorrect
Please do not forget that the period over which the performance fee accrues and the frequency with which it crystallizes should be appropriate. Crystallization of performance fee should be no more frequent than once a year. Moreover, the performance fee should be calculated based on a fulcrum fee or a high watermark arrangement.
Incorrect
Please do not forget that the period over which the performance fee accrues and the frequency with which it crystallizes should be appropriate. Crystallization of performance fee should be no more frequent than once a year. Moreover, the performance fee should be calculated based on a fulcrum fee or a high watermark arrangement.
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Question 29 of 30
29. Question
Pertinent to information on convertible REIT bonds, it is significant to provide information on the terms, conditions, and procedures for conversion, exchange, subscription or purchase and details of the circumstances under which they are amended, including which the following information, except for?
I. The rights of the holders of the REIT Bonds not related to the conversion, exchange, or purchase right on the liquidation of the entity
II. The total value of securities, securities-based derivatives contracts, equity interests or property which is the subject of the conversion
III. The amount payable on the exercise of the conversion, exchange, subscription or purchase right
IV. The arrangement for the continuous static or transition of the conversion, exchange, subscription or re-purchasing rights of for the trusteeCorrect
Please keep in one’s mind that the information on the rights of the holders of the REIT Bonds in respect of the conversion, exchange, subscription or purchase right on the liquidation of the entity, the securities, securities-based derivatives contracts, equity interests or property of which is the subject of the conversion, exchange, subscription or purchase, must also be stated in the situation from the question above.
Incorrect
Please keep in one’s mind that the information on the rights of the holders of the REIT Bonds in respect of the conversion, exchange, subscription or purchase right on the liquidation of the entity, the securities, securities-based derivatives contracts, equity interests or property of which is the subject of the conversion, exchange, subscription or purchase, must also be stated in the situation from the question above.
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Question 30 of 30
30. Question
The semi-annual report or annual report prepared by the REIT under its accounts and reports need not be prepared, audited (where applicable), and sent when they cover what range of business period?
Correct
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.
Incorrect
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.