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CMFAS Exam Set One Topics Covers:
The Capital Markets Industry in Singapore and Participants in the Capital Markets
Licensing and Business Operations
The Trading System and Infrastructure
Market Conduct
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Question 1 of 30
1. Question
Mr. Tan, a securities dealer, wishes to start his own brokerage firm in Singapore. What regulatory requirements must Mr. Tan fulfill before commencing his business operations?
Correct
Before commencing business operations, Mr. Tan must obtain a license from the Monetary Authority of Singapore (MAS) as per the Securities and Futures Act. He must fulfill the fit and proper criteria set by MAS, ensuring that he and his key officers are of good repute and possess the necessary qualifications and experience. Additionally, he must comply with capital adequacy requirements to ensure the financial soundness of his brokerage firm.
Incorrect
Before commencing business operations, Mr. Tan must obtain a license from the Monetary Authority of Singapore (MAS) as per the Securities and Futures Act. He must fulfill the fit and proper criteria set by MAS, ensuring that he and his key officers are of good repute and possess the necessary qualifications and experience. Additionally, he must comply with capital adequacy requirements to ensure the financial soundness of his brokerage firm.
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Question 2 of 30
2. Question
Which of the following accurately describes the role of a market maker in the Singapore capital markets?
Correct
Market makers play a crucial role in ensuring liquidity in the market. They continuously quote bid and ask prices for securities, thereby providing a ready market for investors to buy or sell. This helps in maintaining an orderly market and reduces the risk of price volatility. Market makers do not regulate the conduct of brokers and dealers, nor do they manage the issuance of new securities. Their primary function is to facilitate trading by providing liquidity.
Incorrect
Market makers play a crucial role in ensuring liquidity in the market. They continuously quote bid and ask prices for securities, thereby providing a ready market for investors to buy or sell. This helps in maintaining an orderly market and reduces the risk of price volatility. Market makers do not regulate the conduct of brokers and dealers, nor do they manage the issuance of new securities. Their primary function is to facilitate trading by providing liquidity.
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Question 3 of 30
3. Question
Ms. Lee, a securities dealer, receives an order from a client to buy 10,000 shares of a listed company. She enters the order into the trading system but realizes afterward that she made a mistake in the quantity and needs to amend the order. What action should Ms. Lee take?
Correct
In the event of an error in an order entered into the trading system, the appropriate action is to cancel the original order and re-enter the correct details. This ensures accuracy and transparency in trading activities. It’s crucial to maintain proper records of canceled and amended orders for compliance purposes. Seeking approval from the compliance department may be necessary depending on the firm’s internal policies, but the immediate action should be to rectify the error by canceling and re-entering the correct order.
Incorrect
In the event of an error in an order entered into the trading system, the appropriate action is to cancel the original order and re-enter the correct details. This ensures accuracy and transparency in trading activities. It’s crucial to maintain proper records of canceled and amended orders for compliance purposes. Seeking approval from the compliance department may be necessary depending on the firm’s internal policies, but the immediate action should be to rectify the error by canceling and re-entering the correct order.
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Question 4 of 30
4. Question
Which of the following statements accurately describes the role of the Securities Industry Council (SIC) in Singapore?
Correct
The Securities Industry Council (SIC) plays a crucial role in regulating the securities market in Singapore. It sets regulations and standards to ensure fair and orderly trading of securities and oversees takeover activities. The SIC aims to protect the interests of investors and maintain the integrity of the securities market. It does not supervise individual trading activities or manage the issuance of securities.
Incorrect
The Securities Industry Council (SIC) plays a crucial role in regulating the securities market in Singapore. It sets regulations and standards to ensure fair and orderly trading of securities and oversees takeover activities. The SIC aims to protect the interests of investors and maintain the integrity of the securities market. It does not supervise individual trading activities or manage the issuance of securities.
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Question 5 of 30
5. Question
Ms. Lim, a financial advisor, intends to provide investment advice to clients in Singapore. What regulatory requirements must Ms. Lim fulfill to operate legally as a financial advisor?
Correct
To operate legally as a financial advisor in Singapore, Ms. Lim must apply for a license from the Monetary Authority of Singapore (MAS) under the Financial Advisers Act. She needs to fulfill competency and integrity requirements, demonstrating her knowledge, skills, and ethical conduct in providing financial advice to clients. This ensures that only qualified and trustworthy individuals can offer financial advisory services to investors.
Incorrect
To operate legally as a financial advisor in Singapore, Ms. Lim must apply for a license from the Monetary Authority of Singapore (MAS) under the Financial Advisers Act. She needs to fulfill competency and integrity requirements, demonstrating her knowledge, skills, and ethical conduct in providing financial advice to clients. This ensures that only qualified and trustworthy individuals can offer financial advisory services to investors.
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Question 6 of 30
6. Question
Mr. Koh, a securities dealer, receives an order from a client to sell a significant amount of shares of a listed company. Before executing the order, Mr. Koh learns of unfavorable news about the company that could affect its share price. What should Mr. Koh do in this situation?
Correct
As a securities dealer, Mr. Koh has a duty to act in the best interests of his client. Upon learning of unfavorable news that could impact the share price, he should promptly inform the client and provide full disclosure of the information. Mr. Koh must then seek further instructions from the client regarding the execution of the order, allowing the client to make an informed decision. This demonstrates ethical conduct and ensures transparency in client dealings, aligning with regulatory requirements under the Securities and Futures Act.
Incorrect
As a securities dealer, Mr. Koh has a duty to act in the best interests of his client. Upon learning of unfavorable news that could impact the share price, he should promptly inform the client and provide full disclosure of the information. Mr. Koh must then seek further instructions from the client regarding the execution of the order, allowing the client to make an informed decision. This demonstrates ethical conduct and ensures transparency in client dealings, aligning with regulatory requirements under the Securities and Futures Act.
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Question 7 of 30
7. Question
Which of the following accurately describes the role of the Central Depository (CDP) in Singapore’s capital markets?
Correct
The Central Depository (CDP) in Singapore plays a crucial role in the post-trade process of securities transactions. It acts as a central counterparty, ensuring the efficient settlement and clearing of trades conducted on the Singapore Exchange (SGX) and other trading platforms. The CDP reduces counterparty risk by interposing itself between buyers and sellers, guaranteeing the fulfillment of trades. It does not oversee trading activities, manage the issuance of securities, or provide investment advisory services.
Incorrect
The Central Depository (CDP) in Singapore plays a crucial role in the post-trade process of securities transactions. It acts as a central counterparty, ensuring the efficient settlement and clearing of trades conducted on the Singapore Exchange (SGX) and other trading platforms. The CDP reduces counterparty risk by interposing itself between buyers and sellers, guaranteeing the fulfillment of trades. It does not oversee trading activities, manage the issuance of securities, or provide investment advisory services.
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Question 8 of 30
8. Question
Ms. Wong, a financial adviser representative, has recently joined a new brokerage firm in Singapore. What regulatory requirements must Ms. Wong fulfill to operate legally as a financial adviser representative?
Correct
As a financial adviser representative, Ms. Wong must apply for a representative license from the Monetary Authority of Singapore (MAS) under the Financial Advisers Act. She needs to fulfill fit and proper criteria, demonstrating her competence, integrity, and good repute to provide financial advisory services to clients. This licensing process ensures that individuals offering financial advice meet regulatory standards and safeguard the interests of investors.
Incorrect
As a financial adviser representative, Ms. Wong must apply for a representative license from the Monetary Authority of Singapore (MAS) under the Financial Advisers Act. She needs to fulfill fit and proper criteria, demonstrating her competence, integrity, and good repute to provide financial advisory services to clients. This licensing process ensures that individuals offering financial advice meet regulatory standards and safeguard the interests of investors.
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Question 9 of 30
9. Question
Mr. Chan, a securities dealer, notices unusual trading activity in a particular stock listed on the Singapore Exchange (SGX). He suspects that there might be market manipulation or insider trading involved. What should Mr. Chan do in this situation?
Correct
Securities dealers have a duty to maintain the integrity and fairness of the market. When they observe suspicious trading activity that may involve market manipulation or insider trading, they should report such activity to the Compliance Department of their firm or directly to the regulatory authority, the Monetary Authority of Singapore (MAS). This helps in maintaining market confidence and ensuring a level playing field for all investors. Ignoring or taking advantage of such situations would be unethical and potentially illegal.
Incorrect
Securities dealers have a duty to maintain the integrity and fairness of the market. When they observe suspicious trading activity that may involve market manipulation or insider trading, they should report such activity to the Compliance Department of their firm or directly to the regulatory authority, the Monetary Authority of Singapore (MAS). This helps in maintaining market confidence and ensuring a level playing field for all investors. Ignoring or taking advantage of such situations would be unethical and potentially illegal.
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Question 10 of 30
10. Question
Which of the following accurately describes the function of the Securities Investors Association (Singapore) or SIAS?
Correct
The Securities Investors Association (Singapore), or SIAS, serves as an advocate for retail investors in Singapore’s capital markets. It represents their interests and works towards ensuring fair treatment, transparency, and good corporate governance practices. SIAS engages with companies, regulators, and other stakeholders to promote investor education and protection. However, it does not oversee trading activities, provide investment advisory services, or manage securities issuance.
Incorrect
The Securities Investors Association (Singapore), or SIAS, serves as an advocate for retail investors in Singapore’s capital markets. It represents their interests and works towards ensuring fair treatment, transparency, and good corporate governance practices. SIAS engages with companies, regulators, and other stakeholders to promote investor education and protection. However, it does not oversee trading activities, provide investment advisory services, or manage securities issuance.
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Question 11 of 30
11. Question
Mr. Lee, a securities dealer, is considering expanding his brokerage firm’s operations to offer custodial services for clients’ securities. What regulatory requirements must Mr. Lee fulfill to provide custodial services?
Correct
Providing custodial services involves holding clients’ securities on their behalf, which falls under the regulatory purview of the Monetary Authority of Singapore (MAS). Therefore, Mr. Lee must apply for a license from MAS under the Securities and Futures Act to legally offer custodial services. He must also ensure compliance with regulatory requirements, including safeguarding clients’ assets and maintaining proper record-keeping.
Incorrect
Providing custodial services involves holding clients’ securities on their behalf, which falls under the regulatory purview of the Monetary Authority of Singapore (MAS). Therefore, Mr. Lee must apply for a license from MAS under the Securities and Futures Act to legally offer custodial services. He must also ensure compliance with regulatory requirements, including safeguarding clients’ assets and maintaining proper record-keeping.
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Question 12 of 30
12. Question
Ms. Tan, a securities dealer, receives an order from a client to execute a trade outside of the regular trading hours. What action should Ms. Tan take regarding the client’s order?
Correct
In Singapore, there may be pre-market or after-market trading sessions available for certain securities. Ms. Tan should inform the client about these options and provide guidance on executing the trade during these extended trading hours if the client wishes to proceed. It’s essential to communicate with the client effectively and offer suitable alternatives while adhering to regulatory requirements and market practices.
Incorrect
In Singapore, there may be pre-market or after-market trading sessions available for certain securities. Ms. Tan should inform the client about these options and provide guidance on executing the trade during these extended trading hours if the client wishes to proceed. It’s essential to communicate with the client effectively and offer suitable alternatives while adhering to regulatory requirements and market practices.
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Question 13 of 30
13. Question
What role does the Singapore Exchange (SGX) play in the capital markets of Singapore?
Correct
The Singapore Exchange (SGX) serves as the primary exchange platform for securities, derivatives, and other financial instruments in Singapore’s capital markets. It provides a regulated marketplace where issuers can list their securities for trading, investors can buy and sell securities, and clearing and settlement of transactions take place. SGX plays a crucial role in promoting liquidity, price discovery, and transparency in the capital markets.
Incorrect
The Singapore Exchange (SGX) serves as the primary exchange platform for securities, derivatives, and other financial instruments in Singapore’s capital markets. It provides a regulated marketplace where issuers can list their securities for trading, investors can buy and sell securities, and clearing and settlement of transactions take place. SGX plays a crucial role in promoting liquidity, price discovery, and transparency in the capital markets.
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Question 14 of 30
14. Question
Mr. Lim is planning to establish a fund management company in Singapore to manage collective investment schemes (CIS). What regulatory requirements must Mr. Lim fulfill to operate the fund management company legally?
Correct
To operate a fund management company in Singapore, Mr. Lim must register the company with the Monetary Authority of Singapore (MAS) under the Securities and Futures Act. This registration process involves fulfilling regulatory requirements related to governance, compliance, and risk management. MAS regulates and supervises fund management activities to ensure investor protection and market integrity.
Incorrect
To operate a fund management company in Singapore, Mr. Lim must register the company with the Monetary Authority of Singapore (MAS) under the Securities and Futures Act. This registration process involves fulfilling regulatory requirements related to governance, compliance, and risk management. MAS regulates and supervises fund management activities to ensure investor protection and market integrity.
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Question 15 of 30
15. Question
Ms. Koh, a securities dealer, receives an order from a client to execute a large block trade. What steps should Ms. Koh take to execute the block trade efficiently?
Correct
Large block trades can have a significant impact on market prices if executed all at once. To minimize market impact and achieve better execution prices, Ms. Koh should break down the block trade into smaller orders and execute them gradually over time. This strategy helps to spread out the impact of the trade and allows for better price discovery while minimizing adverse effects on market liquidity.
Incorrect
Large block trades can have a significant impact on market prices if executed all at once. To minimize market impact and achieve better execution prices, Ms. Koh should break down the block trade into smaller orders and execute them gradually over time. This strategy helps to spread out the impact of the trade and allows for better price discovery while minimizing adverse effects on market liquidity.
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Question 16 of 30
16. Question
What is the role of the Singapore Clearing House (SCH) in the capital markets?
Correct
The Singapore Clearing House (SCH) serves as a central counterparty for derivatives traded on the Singapore Exchange (SGX). It ensures the performance of futures and options contracts by guaranteeing the settlement of trades, reducing counterparty risk, and maintaining market stability. SCH plays a crucial role in facilitating efficient and transparent derivatives trading in Singapore’s capital markets.
Incorrect
The Singapore Clearing House (SCH) serves as a central counterparty for derivatives traded on the Singapore Exchange (SGX). It ensures the performance of futures and options contracts by guaranteeing the settlement of trades, reducing counterparty risk, and maintaining market stability. SCH plays a crucial role in facilitating efficient and transparent derivatives trading in Singapore’s capital markets.
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Question 17 of 30
17. Question
Mr. Tan is considering offering corporate finance advisory services to clients in Singapore. What regulatory requirements must Mr. Tan fulfill to provide corporate finance advisory services?
Correct
Providing corporate finance advisory services involves giving advice on mergers and acquisitions, capital raising, and other corporate transactions, which falls under the regulatory oversight of the Monetary Authority of Singapore (MAS). Therefore, Mr. Tan must apply for a license from MAS and fulfill fit and proper criteria to legally offer corporate finance advisory services. This ensures that individuals providing such services meet regulatory standards and uphold market integrity.
Incorrect
Providing corporate finance advisory services involves giving advice on mergers and acquisitions, capital raising, and other corporate transactions, which falls under the regulatory oversight of the Monetary Authority of Singapore (MAS). Therefore, Mr. Tan must apply for a license from MAS and fulfill fit and proper criteria to legally offer corporate finance advisory services. This ensures that individuals providing such services meet regulatory standards and uphold market integrity.
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Question 18 of 30
18. Question
Ms. Lim, a securities dealer, receives an order from a client to execute a trade in a thinly traded security. What precautions should Ms. Lim take when executing trades in thinly traded securities?
Correct
Thinly traded securities have low trading volumes and may be subject to wide price fluctuations. Ms. Lim should inform the client about the illiquidity of the security and advise caution when trading to mitigate the risk of unfavorable execution prices. It’s essential to communicate effectively with the client and provide appropriate guidance based on market conditions to ensure informed decision-making.
Incorrect
Thinly traded securities have low trading volumes and may be subject to wide price fluctuations. Ms. Lim should inform the client about the illiquidity of the security and advise caution when trading to mitigate the risk of unfavorable execution prices. It’s essential to communicate effectively with the client and provide appropriate guidance based on market conditions to ensure informed decision-making.
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Question 19 of 30
19. Question
What is the role of the Securities Industry Dispute Resolution Centre (SIDREC) in Singapore’s capital markets?
Correct
The Securities Industry Dispute Resolution Centre (SIDREC) provides an independent and impartial platform for the resolution of disputes between investors and securities dealers or financial advisers in Singapore’s capital markets. It offers mediation and arbitration services to help parties resolve conflicts efficiently and effectively, promoting investor confidence and market integrity.
Incorrect
The Securities Industry Dispute Resolution Centre (SIDREC) provides an independent and impartial platform for the resolution of disputes between investors and securities dealers or financial advisers in Singapore’s capital markets. It offers mediation and arbitration services to help parties resolve conflicts efficiently and effectively, promoting investor confidence and market integrity.
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Question 20 of 30
20. Question
Mr. Wong, a securities dealer, plans to expand his brokerage firm’s operations to offer margin trading services to clients. What regulatory requirements must Mr. Wong fulfill to provide margin trading services?
Correct
Providing margin trading services involves extending credit to clients to leverage their investments, which requires regulatory approval and compliance with margin financing regulations. Therefore, Mr. Wong must obtain approval from the Monetary Authority of Singapore (MAS) and adhere to regulatory requirements governing margin trading, including capital adequacy, risk management, and client suitability.
Incorrect
Providing margin trading services involves extending credit to clients to leverage their investments, which requires regulatory approval and compliance with margin financing regulations. Therefore, Mr. Wong must obtain approval from the Monetary Authority of Singapore (MAS) and adhere to regulatory requirements governing margin trading, including capital adequacy, risk management, and client suitability.
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Question 21 of 30
21. Question
What is the function of the Monetary Authority of Singapore (MAS) in regulating the capital markets?
Correct
The Monetary Authority of Singapore (MAS) is Singapore’s central bank and financial regulatory authority. Its primary function in regulating the capital markets is to set regulatory policies, develop regulatory frameworks, and supervise financial institutions to maintain financial stability, market integrity, and investor confidence. MAS plays a crucial role in overseeing the soundness and resilience of Singapore’s financial system.
Incorrect
The Monetary Authority of Singapore (MAS) is Singapore’s central bank and financial regulatory authority. Its primary function in regulating the capital markets is to set regulatory policies, develop regulatory frameworks, and supervise financial institutions to maintain financial stability, market integrity, and investor confidence. MAS plays a crucial role in overseeing the soundness and resilience of Singapore’s financial system.
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Question 22 of 30
22. Question
Ms. Yeo, a financial advisor, intends to provide financial planning services to clients in Singapore. What regulatory requirements must Ms. Yeo fulfill to operate legally as a financial planner?
Correct
Providing financial planning services falls under the regulatory oversight of the Monetary Authority of Singapore (MAS) and is governed by the Financial Advisers Act. Therefore, Ms. Yeo must register her firm with MAS and comply with the requirements specified in the Financial Advisers Act to legally offer financial planning services in Singapore. This includes fulfilling fit and proper criteria, ensuring competency, and upholding ethical standards.
Incorrect
Providing financial planning services falls under the regulatory oversight of the Monetary Authority of Singapore (MAS) and is governed by the Financial Advisers Act. Therefore, Ms. Yeo must register her firm with MAS and comply with the requirements specified in the Financial Advisers Act to legally offer financial planning services in Singapore. This includes fulfilling fit and proper criteria, ensuring competency, and upholding ethical standards.
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Question 23 of 30
23. Question
Mr. Lim, a securities dealer, receives an order from a client to execute a trade in a highly volatile market environment. What precautions should Mr. Lim take when executing trades in volatile market conditions?
Correct
In volatile market conditions, there is an increased risk of price fluctuations and potential losses. Mr. Lim should inform the client about the market volatility and advise caution when trading to ensure that the client is aware of the risks involved. It’s essential to communicate effectively with the client and provide suitable guidance to protect their interests in such market environments.
Incorrect
In volatile market conditions, there is an increased risk of price fluctuations and potential losses. Mr. Lim should inform the client about the market volatility and advise caution when trading to ensure that the client is aware of the risks involved. It’s essential to communicate effectively with the client and provide suitable guidance to protect their interests in such market environments.
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Question 24 of 30
24. Question
What role does the Singapore Deposit Insurance Corporation (SDIC) play in Singapore’s capital markets?
Correct
The Singapore Deposit Insurance Corporation (SDIC) is responsible for providing deposit insurance coverage to depositors in Singapore’s financial institutions. It protects depositors against losses of up to a certain limit in the event of bank failures or closures. SDIC’s role is to enhance confidence in the banking system and promote financial stability by safeguarding depositors’ interests.
Incorrect
The Singapore Deposit Insurance Corporation (SDIC) is responsible for providing deposit insurance coverage to depositors in Singapore’s financial institutions. It protects depositors against losses of up to a certain limit in the event of bank failures or closures. SDIC’s role is to enhance confidence in the banking system and promote financial stability by safeguarding depositors’ interests.
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Question 25 of 30
25. Question
What role does the Singapore Accountancy Commission (SAC) play in Singapore’s capital markets?
Correct
The Singapore Accountancy Commission (SAC) is responsible for setting accounting standards and promoting the development of the accountancy profession in Singapore. Accounting standards play a crucial role in ensuring transparency and integrity in financial reporting, which is essential for maintaining investor confidence and facilitating capital markets activities. SAC’s efforts contribute to the overall credibility and reliability of financial information in Singapore’s capital markets.
Incorrect
The Singapore Accountancy Commission (SAC) is responsible for setting accounting standards and promoting the development of the accountancy profession in Singapore. Accounting standards play a crucial role in ensuring transparency and integrity in financial reporting, which is essential for maintaining investor confidence and facilitating capital markets activities. SAC’s efforts contribute to the overall credibility and reliability of financial information in Singapore’s capital markets.
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Question 26 of 30
26. Question
What is the role of the Association of Banks in Singapore (ABS) in the capital markets?
Correct
The Association of Banks in Singapore (ABS) serves as the collective voice of the banking industry in Singapore. It represents and promotes the interests of its member banks, including those involved in various capital markets activities such as securities trading, corporate finance, and investment banking. ABS plays a crucial role in advocating for a conducive regulatory environment and facilitating collaboration among banks to promote the stability and development of Singapore’s financial sector.
Incorrect
The Association of Banks in Singapore (ABS) serves as the collective voice of the banking industry in Singapore. It represents and promotes the interests of its member banks, including those involved in various capital markets activities such as securities trading, corporate finance, and investment banking. ABS plays a crucial role in advocating for a conducive regulatory environment and facilitating collaboration among banks to promote the stability and development of Singapore’s financial sector.
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Question 27 of 30
27. Question
Ms. Tan, a financial advisor, is planning to offer discretionary portfolio management services to clients in Singapore. What regulatory requirements must Ms. Tan fulfill to provide discretionary portfolio management services?
Correct
Providing discretionary portfolio management services involves managing investment portfolios on behalf of clients, which falls under the regulatory oversight of the Monetary Authority of Singapore (MAS) and is governed by the Financial Advisers Act. Therefore, Ms. Tan must apply for a license from MAS and comply with regulatory requirements related to discretionary portfolio management, including client suitability, risk management, and reporting obligations.
Incorrect
Providing discretionary portfolio management services involves managing investment portfolios on behalf of clients, which falls under the regulatory oversight of the Monetary Authority of Singapore (MAS) and is governed by the Financial Advisers Act. Therefore, Ms. Tan must apply for a license from MAS and comply with regulatory requirements related to discretionary portfolio management, including client suitability, risk management, and reporting obligations.
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Question 28 of 30
28. Question
Mr. Lim, a securities dealer, receives an order from a client to execute a trade using a direct market access (DMA) platform. What precautions should Mr. Lim take when using DMA for client orders?
Correct
Direct market access (DMA) allows clients to submit orders directly to the exchange’s trading system without manual intervention from brokers. Mr. Lim should inform the client about the risks associated with DMA, including potential execution risks and market impact, and obtain their consent before executing trades using DMA. It’s essential to communicate effectively with the client and ensure that they understand the implications of using DMA for their orders.
Incorrect
Direct market access (DMA) allows clients to submit orders directly to the exchange’s trading system without manual intervention from brokers. Mr. Lim should inform the client about the risks associated with DMA, including potential execution risks and market impact, and obtain their consent before executing trades using DMA. It’s essential to communicate effectively with the client and ensure that they understand the implications of using DMA for their orders.
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Question 29 of 30
29. Question
What is the function of the Securities Industry Council (SIC) in Singapore’s capital markets?
Correct
The Securities Industry Council (SIC) in Singapore is responsible for regulating the conduct of takeovers and mergers involving listed companies. It ensures fairness and transparency in such corporate transactions, safeguarding the interests of shareholders and maintaining market integrity. SIC oversees compliance with the Singapore Code on Take-overs and Mergers, which sets out rules and guidelines for the conduct of takeovers and mergers in Singapore.
Incorrect
The Securities Industry Council (SIC) in Singapore is responsible for regulating the conduct of takeovers and mergers involving listed companies. It ensures fairness and transparency in such corporate transactions, safeguarding the interests of shareholders and maintaining market integrity. SIC oversees compliance with the Singapore Code on Take-overs and Mergers, which sets out rules and guidelines for the conduct of takeovers and mergers in Singapore.
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Question 30 of 30
30. Question
What role does the Singapore Institute of Directors (SID) play in Singapore’s capital markets?
Correct
The Singapore Institute of Directors (SID) is committed to advancing the professional competence and integrity of directors serving on boards of companies in Singapore. It provides training, resources, and guidance to directors to enhance their skills and knowledge in areas such as corporate governance, risk management, and board effectiveness. SID’s initiatives contribute to strengthening corporate governance practices in Singapore’s capital markets, promoting investor confidence and trust.
Incorrect
The Singapore Institute of Directors (SID) is committed to advancing the professional competence and integrity of directors serving on boards of companies in Singapore. It provides training, resources, and guidance to directors to enhance their skills and knowledge in areas such as corporate governance, risk management, and board effectiveness. SID’s initiatives contribute to strengthening corporate governance practices in Singapore’s capital markets, promoting investor confidence and trust.