CACS 1- WK Sample Questions Flashcards
Before effecting a cross border TT involving an amount more that SGD 2000, a covered entity that is an ordering institution must :
- Identify and verify the wire transfer originator
- Record Date of wire transfer
- Record the type and amount of currency involved in wire transfer.
Key Feature of a trust, is that trust assets are:
No longer owned by the settlor.
Under the code what are the requirements of a covered person expected to observe when communicating with client?
Maintaining detailed records of all communications whether transaction related or not.
what are the key terms a covered person should provide client with every transaction:
- Applicable Fees and charges]
- Conflict of interests
- Key Risks associated with the transaction
- Termination clauses.
Covered person receives order from mark to buy 20k lots of shares of company Z. Next covered person receives an order from client Y to sell 150k lots, how should the covered person act;
Covered person should place orders based on a first come first serve basis.
When a client terminates his relationship, the documents relating to client’s financial transactions:
Must be kept for 5 years after the date of transaction or the date of account closure.
What happens when a prospective clients approach a wholesale bank to open a Singapore dollar account savings account?
Wholesale banks are not allowed to operate SGD savings accounts, without prior approval from MAS.
Why is it important to obtain comprehensive information about client’s knowledge and experience of investment and finance:
Determine SUTABILITY and also the level of details to explain investment products and solutions.
What is an accredited/sophisticated investor in Singapore?
A person with net personal assets exceeding 2 mio.
Or income in preceding 12 months of not less than 300k or its equivalent.
When a covered person makes recommendations relating to some securities to an accredited investor in written investment proposal prepared for the investor, the covered person is not required to disclose the interests that he and his covered entity have in the securities recommended by him when:
He confirms that the investor has been notified that the coverage person is exempted from disclosing the interests.
When a covered individual becomes bankrupt:
- his covered entity has the duty to report to MAS
- He may not be considered to be fit and proper per MAS criteria
- The status of the covered person as an appointed representative may be revoked.
When a covered person is advising an institutional investor, he is exempt from certain business conduct requirements in the FAA.
An institutional investor is?
E.g. A merchant bank approved under the MAS act.
What is an accredited investor?
- individual whose net assets exceed SGD 2 mio or income in the preceding 12 months is not less than SGD 300k
- Corp with net assists exceeding 10 mio.
- trustee of a trust rights to monies, property exceeds SGD 10 mio.
- entity other than corp >10 Mio
- Partnership where each partner is an accredited investor.
- Corp where its sole business is to hold investments and entire share capital is owned by 1 or more persons, each of whom an accredited investor.
When communicating information about financial products to clients. The code requires covered persons to:
Present information clearly and in plain, unambiguous language.
Before a covered person establishes business with a limited liability partnership. It is required by the MAS 626 that
- Bank Identify partners of LLP
- Identify all creditors of LLP
- Obtain information as the purpose and intended nature of the business relations.
