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M3 > Concept > Flashcards

Concept Flashcards

1
Q

The SFA combines regulations governing securities and futures trading, and is supplemented by ____

A

SFR (Securities and Futures Regulations) has the force of law and provides details regarding the SFA provinces

Notices have legal effect and impose legally binding requirements on a specified class of financial institutions or persons.

Guidelines are not legally binding but they set out principles or standards for best practice regarding the conduct of specified institutions or persons.

Codes cover specific activities but don’t have the force of law.

Practice Notes are issued by MAS, and guided specific institutions or persons regarding administrative procedures.

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2
Q

The MAS specifies whether a violation of Notice is a ____ or not.

A

Criminal Offense

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3
Q

The extent to which guidelines are followed impacts ____ of MAS regarding an institution or person.

A

Overall risk assessment

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4
Q

Breach of Code may lead to ___

A

Non-statutory sanctions

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5
Q

What’s CPF? What’s the purpose of CPF?

A

The Central Provident Fund (CPF) is a comprehensive social security system that helps working Singaporean Citizens and PR to save funds for retirement.

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6
Q

Who make depositment to CPF on what frequency?

A

Monthly deposit are made by employees and employers into specific accounts.

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7
Q

The CPF members are allowed to do what with their CPF account?

A

Use monies in their accounts for specified investments

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8
Q

What’s the purpose of IMAS Code?

A

The IMAS Code endeavours to foster professionalism in the Investment Management Industry and strengthens investor protection.

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9
Q

What are the two functions of IMAS Code?

A
  1. Foster professionalism in the Investment Management Industry
  2. Strengthen Investor Protection
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10
Q

The IMAS Code prescribes ___ and ___ market practices related to ___

A

Fair and ethical market practices related to fund management operations

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11
Q

The IMAS Code supplements other laws and regulations, and set the minimum standard applicable to ____

A

Fund managers in Singapore

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12
Q

Apart from the Code, IMAS has also issued _____ (3)

A
  1. Guidelines on Corporate Governance
  2. Guidelines for the disclosure of expense ratio
  3. Code of Best Practice in Advertising CIS & Investment Linked Life Insurance policies, which is jointly issued with the Life Insurance Association.
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13
Q

Which practice/policy is jointly issued by IMAS and the Life Insurance Association?

A

Code of Best Practice in Advertising CIS & Investment Linked Life Insurance Policies

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14
Q

What’s the purpose and nature of CPF Code (Code of Professional Conduct for Asset Managers)?

A

Voluntary code that encourages ethic practice by asset managers, mainly seeking them to put the client’s interest at first

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15
Q

Definition of Fund Management?

Who defines it?

What’s not included?

A

Fund management is defined under the SFA as the following activities done on behalf of a customer on a discretionary or non-discretionary basis:

1) Management of a portfolio of securities or future contracts

2) Foreign exchange trading or leveraged foroeign exchange trading for managing the customer’s funds.

3) It doesn’t include real estate investment trust (REIT) management

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16
Q

Under what condition a person that acts as an investment advisor, sub-advisor or gives research to other investment managers (either in SG or overseas) is considered to be conducting fund management activity?

A

If the person is able to excersie direct or indicrect control over the management of the investment potfrolio.

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17
Q

What are the types FMCs in Singapore?

A

1) LFMC: A licensed fund FMC holding a CMS license for fund management

2) RFMC: Registered with MAS as a registered FMC

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18
Q

What’s a LFMC? What’re the types of LFMC in Singapore?

A

LFMC is a licensed fund FMC holdings a CMS license for fund management in Singapore.

1) Retail LFMC: Serving all types of investors, including retail investors

2) A/I LFMC (Licensed Accredited / Institutional FMCs) which must serve only accredited or institutional investors, without any limits on the number of clients.

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19
Q

What’s an RFMC? What are the requirement for RFMC? What’s the AUM requirement?

A

RFMC registered with MAS as a registered FMC

1) RFMC can’t manage over SGD250mn assets

2) Can’t serve more than 30 qualified investors, of which not more than 15 close-end fund, which include close-end funds and CIS

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20
Q

Who’re Qualified Investors? (5 types)

A
  1. Accredited investor, subject to exceptions
  2. A CIS offered to accredited and/or institutional investors
  3. A close-end fund offered only to accredited investors
  4. An institutional investor, other than CIS
  5. A limited partnership, where the limited partners comprise solely of accredited or institutional investors.
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21
Q

Who’re accredited investors but not quaified investors? (5 types)

A
  1. Partiticpants in a CIS offered to Accredited or Institutional Investors.
  2. Holders of units in a close-end fund offered only to accredited or institutional investors
  3. An entity with net assets exceeding SGD10 million in value which is related to or controlled by an RFMC, or a key officer or substantial shareholder of such person
  4. An entity with net assets exceeding SGD10 million in value, the share or debentures of which are offered to any non-accredited investor.
  5. A corporation or an entity which is a CIS or a closed-end fund offered to any non-accredited investor.
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22
Q

In determining the value of ASUM, only assets in respect of ____ should be included.

What should be excluded from the FMC’s AUM?

How to determine the value of assets under management? Managed assets should be based on ____value of the assets being managed.

A

which the FMC has an agreement to provide the fund management services

1）Moneys committed by investors but not drawn down should be excluded, which is commonly seen in private equity funds.

2) Any leverage to which the managed assets are exposed should be excluded.

Managed assets should be based on the net value of the assets being managed.

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23
Q

Which type of RFMCs should closely monitor its AUM in order to meet the AUM thresholds for its business?

A

RFMCs which manage private equity investments or funds that operate on COMMITTED CAPITAL basis, should consider the total committed capital of the fund.

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24
Q

The FMC Licensing Guidelines_____

A

stipulate the general criteria for licensing or registration of FMCs.

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25
Q

What stipulate the general criteria for licensing or registration of FMCs?

A

The FMC Licensing Guidelines

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26
Q

What’s The Letter of Responsibility?

A

The Letter of Responsibility is basically a commitment from the parent company that it will oversee the applicant’s operations, financial position, compliances, management and other relevant issues.

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27
Q

Due Diligence Checks Include___ (6 items)

For self-employed person, records from ___ should be obtained to confirm _____

A
  1. Probity checks on the identity and verification of the representative’s identity.

Fore foreigners, the FMC should verify that he possesses the EP or has applifed for the same to the relevant authorities.

  1. Checks on past records, including reference checks with the previous employers of the employers for confirming that he has not been dismissed or asked to resign whether he has any adverse records.
  2. Checking the Public Register of Representatives on MAS webiste and conduct probity searches for verifying the past records of employment and regulatory status of the proposed representatives.
  3. Probity checks on the financial status, which requires FMC to obtain reports from Ministry of Law’s Insolvency and Public Trustee’s Office Online Portal to make sure that the proposed representative is not an undischarged bankrupt.
  4. For self-employed person, records from CPF Board should be obtained to confirm the proposed representative is not in arrears of his contributions to CPF Board.
  5. Checks should be perfomred with credit agencies regarding bankruptcy status abroad and the credit status from the Credit Bureau in Singapore
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28
Q

What’s the spirit of Effects Doctrine of the SFA for any act conducted wholly outside Singapore? If the act has ______ effect in Singapore.

When a foreign entity would be caught no matter it fits into the spirit of Effects Doctrine or not?

A

If the act has both a SUBSTANTIAL and Reasonably foreseeable effect in Singapore.

The act will be substantial based on ____

The act will be foreseeable if___

However, if the foreign entity conducts any regulated activity to service Singapore clients through a regulated person or any other Singapore entity, that act wouldn’t be caught.

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29
Q

For a foreign company to apply for conducting regulated activity, the foreign related corporation should perform its functions ___, ___, and ____

A

efficiently, honestly, and fairly.

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30
Q

Base Capital

A

Base Capital = Paid-up ordinary share capital
+
Paid-up irredeemable and non-cumulative preference share capital
+
Unappropriated profit or loss in the latest accounts
-
Any interim loss in the latest available account and any dividend that has been declared sicne the latest audited account

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31
Q

What does net head office funds means?

A

Net liability of the Singapore branch of the foreign company to its head office and other overseas branches

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32
Q

What’s the requirement for LFMCs under the new RBC Framework?

A

A LFMC incorporated in Singapore:

  1. Should not cause its financial resources to fall below its TRR;
  2. Must maintain adequate financial resources so that the Financial Resources > or = 120% TRR
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33
Q

Financial Resources =

A

Base capital + other forms of captial - deductibles

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34
Q

Under FULL RBC, TRR covers_____ (5 types of risks)

A

Operational risk

Counterparty risk

Position risk

Underwriting risk

Large exposure risk under SFA-04-N13

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35
Q

Average Adjusted Assets

Assets are measured at ______

A

Average Adjusted Assets = (AM1 + AM2 + AM3) / 3

where each AM refers to the asset measure measured as at the end of the month of the immediately preceding quarter

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36
Q

Asset Measure =

A

Asset Measure = On balance sheet assets + off balance sheet assets - deductibles

Deductibles include cash and equivalents, bank deposits, etc.

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37
Q

What types of “soft dollar” are prohibited?

A

Receipt of travel, accomodation and entertainment benefits

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38
Q

A trading halt due to sensitive/material information disclosure may last for ____

A

A minimum 30 mintues after the announcement or any other period decided by SGX-ST

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39
Q

The issuer may request for a temporary suspension in trading if it’s not able to release the material info by _____

Such temporary suspension may last for _____

A

by the end of the trading halt

30 minutes after the announcement

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40
Q

Prohibited market conduct includes: (7 activities)

A
  1. False Trading and Market Rigging Transactions
  2. Securities Market Manipulation
  3. False or Misleading Statement and Information
  4. Fraudulently Inducing Persons to deal in Securities
  5. Employment of Manipulative and Deceptive Devices
  6. Dissemination of Information about illegal transactions
  7. Insider Trading
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41
Q

Which types of matching orders are not offences under false trading?

A
  1. Marriages, which involve the tying up of 2 coinciding orders, one from a seller and a corresponding order from a buyer, by a broker
  2. Put throughs, which are transactions executed outside the exchange, but put through to SGX-ST for record and compliance with its rules.
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42
Q

What are Fales trading and market rigging in relation to securities? (4 examples)

A
  1. Buying and selling
  2. Wash trades
  3. Matching orders
  4. Window dressing
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43
Q

What are two common methods of market manipulation that use false or misleading information?

A
  1. Pump and dump
  2. Short and distort
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44
Q

A person is conisdered “connected to a corporation” if he ____(5 types)

A
  1. an officer of the corporation or of a related corporation
  2. Substantial shareholder
  3. Occupies a position that may reasonably be expected to provide him with access to price sensistive info
  4. The issuer’s lawyer, accountant, banker, investment banker, public relations consultant, advertising agency, consultant, valuers and etc.
  5. Counterparty in an ongoing M&A
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45
Q

A person is an officer of a corporation if he’s ____ (5 types)

A
  1. A director, secretary or employee
  2. A receiver, or receiver and manager, of property of the corporation
  3. A judicial manager
  4. A liquidator
  5. A trustee or other person administering a compromise or arrangement involving the corporation
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46
Q

What’s the “Parity of Information” legal theory?

A

What is known to the defendant is already known or available in the general market.

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47
Q

What’s securities hawking? It’s not applicable to ____

A

Representatives are prohibited from offering or inviting any subscription or purchase of securities, during unsolicited meetings with clients or other investors.

However, the requirement is not applicable to offers that are made to securities that do not need a prospectus, e.g. those to instiutional investors, accredited investors.

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48
Q

What’s Churning?

A

Excessive Trading

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49
Q

What’s Late Trading?

A

Late trading is the practice where an ivnestor places an order to subscribe, swithch, cancel or redeem units or shares in a CIS after the time which the CIS has calculated its net asset value.

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50
Q

What’s buying in?

Who’s buying in?

A

The CDP buys securities on behalf of sellers who do not possess securities for delivery on settlement day.

In a buying in, the cost of purchase and an additional penalty is charged to the seller who fails to deliver the securities.

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51
Q

What’s suggested in the SGX-ST rules to prevent manipulation and the creation of a false market?

A

The Vigilant Practices

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52
Q

The Vigilant Practices suggested in the SGX-ST rules aims to ____

A

Prevent manipulation and the creation of a false market

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53
Q

Crossings refer to ____

A

Transactions between the same parties for the same volumes, which are later reversed at the same prices

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54
Q

What’s bucketing?

A

Bucketing is said to take place if a representative directly or indirectly takes the opposite side of a customer’s order into his own account or any other account in which he has an interest.

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55
Q

What’re pre-arranged trades?

A

Trades discussed and arranged outside of the SGX QUEST system

56
Q

What re not considered pre-arranged trades under the SGX-DT Futures and Trading Rules:

A
  1. An Exchange of Underlying for Futures Contracts
  2. A Negotiated large trade
  3. A request for a quote from a designated market maker approved by SGX
57
Q

With bid/offer price available, when a buy/sell order will be executed immediately?

A

If the sell-order price is lower than existing bid price, it will be executed immediately.

If the buy-order price is higher than existing offer price, it will be exectued immediately.

58
Q

For buy/sell order, what’s a better price when compared last traded price?

A

Buy Order: Price higher than the last traded price

Sell Order: Price lower than the last traded price

59
Q

Extra-territorial reach for market misconduct / insider tradition behaviors include following three question _____

A
  1. Does it partly in and partly outside Singapore
  2. Does it outside Singapore, but the act has a substantial and reasonably foreseeable effect in Singapore
  3. Even if the acts occured outside Singapore, does it relate to xxxxx in Singapore
60
Q

The civil penalty for Market Misconduct under the SFA can be _____

A

The higher of either the following sums:

  1. A sum not exceeding 3 times the amount of profit the defendant gained or the amount of loss that was avoided, as a result of the contravention
  2. A sum equal to SGD50,000 if he is not a corporation
  3. SGD100,000 if he’s a corporation
61
Q

Definition of CIS

A

A CIS is an arrangement regarding any property under which the property is managed by a manager who manages contributions of participants that are pooled together

62
Q

What’s the difference between close-end funds and open-ended CIS?

A

Closed-end fund are usually non-redeemable at the discretion of the unit holders.

63
Q

A close-end fund is now regulated as a CIS if ____

A
  1. It falls within the definition of CIS under SFA
  2. Most of its units cannot be redeemed at the election of the unit holders
  3. Its investment policy aims to give participants the benefits of the results of the investments, and not for operating a business
64
Q

The Code on CIS is a ____ document that _____ on the ____ of CIS in Singapore for ___ (whom?)

A

A non-statutory document that stipulates the best practices on the management, operation, and marketing of CIS in Singapore for managers and trustees

65
Q

Authorized CIS are normally constituted as ____

A

normally constituted as unit trusts

66
Q

The trustee is not considered independent from a CIS if any person ____

A

who has an interest in 20% or more of the shares issued by the trustee also has an interest in 20% or more of the shares issued by the CIS mangaer or its related corporations.

67
Q

Specialized CISs comprise of ___ ( 5 types of Funds)

Non-specialized CISs are those CISs that ____

A

Money Market Funds

Hedge funds

Capital Guaranteed Funds

Index Funds

Property Funds

68
Q

A redemption request of CIS is considere to be received on day T if ____

A

It’s received with all requisite documents and information by the close of dealing as stipulated in the prospectus

69
Q

The proceeds of CIS redemption are considered as paid on that day if ____

A

the participant’s account is credited or a cheque is mailed to the participant

70
Q

What’s the profile statement of a recognised CIS?

A

An extract form, or an abridged version of the prospectus.

71
Q

CISs required to carry out CKA on retail customers/investors before the purchase of a CIS.

Here retail investors are ____

A

Natural person, exlcudes institutional investors, accredited investors, expert investors and HNW

72
Q

What does CPFIS stand for?

A

Central Provident Fund Investment Scheme

73
Q

CPFIS Investments may include _____ (3 types)

A
  1. CISs, including unit trusts and Singapore listed ETFs
  2. Investment-linked insurance products or ILPs
  3. FMAs
74
Q

How many parts does the CPFIS have? What are they?

A

The CPFIS has two parts.

CPF Investment Scheme-Ordinary Account or CPFIS-OA

and

CPF Investment Scheme-Special Account (CPFIS-SA)

75
Q

CPFIS is administered by ____

A

the CPF Board

76
Q

Who can participate in CPFIS?

A

CPF members who fulfill the following conditions

  1. 18 years old or above
  2. Those who are not undischarged bankrupts
  3. Those who have more than SGD20,000 in their CPF Ordinary Account and / or more than SGD40,000 in their CPF Special Account
77
Q

How much can be invested in CPFIS?

A
  1. Monies in excess of SGD20,000 in their CPF Ordinary Account and SGD40,000 in their CPF Special Account
  2. Up to 35% of their investible savings, i.e. the sum of their CPF Ordinary Account balance and net amount of CPF monies withdrawn from investment and education purposes, in shares, property funds and corporate bonds
  3. Up to 10% of their investable savings in gold exchange traded funds (ETFs) and other gold products
78
Q

What are the main investment products offered by FMCs under the CPFIS?

A
  1. CISs, including unit trusts and Singapore listed ETFs
  2. Investment-linked insurance products or ILPs
  3. FMAs
79
Q

Under CPFIS Admission Requirements for FMCs (both incorporated in Singapore & Foreign ones), what’s the minimum track record requirement?

A

FMC: 1-year track record as a CMS licence holder under the SFA, in the fund management industry in Singapore

The group as a whole must have min. 3 years in fund management

Foreign FMC of a recognised CIS must have a min. track record of 3-years in fund management.

80
Q

Under CPFIS Admission Requirements for FMCs, what’s the minimum amount of funds under management requirement?

A

In Singapore: The FMC and its related group of companies must either manage min. SGD500 million worth of funds

or

manage SGD1 billion of discretionary funds globally if the FMC offers funds to be sub-managed by another FMC or offer funds that feed into CISs constituted outside Singapore or offer recognised CISs directly.

81
Q

Under CPFIS Admission Requirements for FMCs, what’s the fund manager requirement?

A

The FMC must have at least 3 fund managers, one of whom must have min. 5 years of fund management experience.

82
Q

What’s the definition of fund manager under CPFIS Admission requirement for FMCs?

A

PM, research analysts and traders

83
Q

What kind of review process is conducted by the investment consultant on inclusion of each fund managed by FMC under the CPFIS?

A

2-tiered review process:

Quantitative and Qualitative analysis

84
Q

What’s FMAs (Fund Management Accounts)? FMAs are managed for whom?

A

FMAs are the portfolios managed by the fund manager for a CPFIS investor on a segregated basis.

85
Q

CIS funds included under the CPFIS are classified by ____

A

A Risk Classification System or RCS based on the fund’s risk-return profile.

86
Q

How many categories of risks under the RCS?

A

Equity Risk and Focus Risk

87
Q

What’s definition of Equity Risk under the RCS?

A

Equity risk is related to the exposure of a fund to riskier types of investments.

88
Q

The Equity risk under the RCS is classified into ____

A

Higher risk

Medium to high risk

Low to medium risk

Lower risk

89
Q

Under RCS, focus risk refers to ___

A

Concentration of the investment of a fund to a particular geographical region, or county, or industry sector, ot currencies etc.

90
Q

Focus risk can be classified into _____

A

Broadly Diversified and Narrowly Focused

91
Q

What are the examples of Narrowly Focused risk cateogry investments?

A

Single-country focused securities

Regional focused securities

Sector Focused Securities

92
Q

The interest credited to the Retirement Account (RA) is based on _____ and computed _____

A

The weighted average interest rate of the entire portfolio of these SSGS invested using new and existing RA savings and is computed YEARLY in Janauary

93
Q

The first SGD 60,000 of the combined CPF accounts of a memebr earn an ____ interest.

A

extra 1%

94
Q

The CPF interest rate for the Ordinary Account (OA) is based on _____

A

The weightage of 80% of the avg. 12-month fixed deposit and 20% of the avg. saving rates published by major local banks, subject to a min. 2.5% per annum.

95
Q

The CPIFG stipulates _____ in addition to the _____

A

Stipulates the investment guidelines that FMCs must comply with in addition to the investment requirements prescribed in the Code and the relevant MAS requirements.

96
Q

Permissible Investments of a fund according to CPIFG include ___ (3 types)

A
  1. Cash
  2. Deposits with financial institutions having financial strength ratings of above C by Moddy’s, or viability ratings of above BBB by Fitch
  3. Money market instruments
97
Q

Debt securities eligible under the CPIFG include ___ (3 types)

A
  1. Units in CISs, provided they are approved by the CPF Board’s approval
  2. Shares, including rights and warrants issued directly by the underlying company
  3. Depositary receipts listed and traded on an exchange.
98
Q

What are the financial crimes that impact financial institutions and systems the most?

A

Money Laundering, Terrorism Financing, Embargoes and Sanctions, and Fraud

99
Q

What are the main stages of Money Laundering?

A

The placement stage

The layering stage

The integration stage

100
Q

What is considered as the reverse of money laundering?

A

Terrorism Financing

101
Q

What’s the Financial Action Task Force (FATF)?

A

Inter-government body for developing and promoting policies for combating money laundering and countering the financing of terrorist acts.

102
Q

The Penal Code of Singapore

A

The Penal Code of Singapore lays down the general principles of the criminal law of Singapore, and the elements and penalties of criminal offence such as homicide, theft and cheating

103
Q

CDSA stands for?

A

Corruption, Drug Trafficking and Other Serious Crimes are listed in Confiscation of Benefits Act (CDSA)

104
Q

In Singapore, money laundering is an ____ under the CDSA.

A

Offense

105
Q

What’s the ambit of the CDSA?

A

Money laundering activities and confiscation of benefits from corruption and criminal conduct.

106
Q

The money laundering offences under the law are _____

A
  1. Laundering Own Criminal Benefits
  2. Money Laundering by Acquisition
  3. Knowingly assisting to conceal
  4. Knowingly assisting to retain or control by arrangement
  5. Tipping-off Offences
  6. Statutory Protection in Reporting
  7. Production Order
107
Q

What’s designated as money-laundering predicate offences?

A

Tax evasion and serious fraudulent tax evasion under the Income Tax Act and the Goods and Services Tax (GST) Act

108
Q

Sections that cover Tax Evasion, Serious Fraudulent Tax Evasion, Indirect Tax Offences, Tax Evaision (assisting), Impropertly Obtaining Refund

A

Tax Evasion (Section 96)

Serious Fraudulent Tax Evasion (Section 96A)

Indirect Tax Offences (Sections 62 and Sections 63 of the GST Act)

Tax Evaision (assisting) Section 62

Impropertly Obtaining Refund (Section 63)

109
Q

Which source is most reliable to get information about the client?

A

Official subscribed database and original identitfication records are considered the most reliable because they provide indemnity and assurances of the correctness of information.

110
Q

CMS licence holders are normally not required to inquire UOB of a financial institution supervised by MAS, except for ____

A

Holders of a money changer’s or remittance licence

111
Q

Under the Risk Based Approach of Client On-boarding, the risk score of the client determines ____

A

the frequency of review

112
Q

Under the Risk Based Approach, what determines the frequency of review of client’s info?

A

Risk Score

113
Q

What’s Kiting?

A

A process in which a person deposits an overseas bank’s cheque for a large sum into his account.

Knowing that there will be no funds upon presentation for clearing.

Further, the clearance process for foreign cheques takes a long time.

Meanwhile, the person withdraws the amount against the un-cleared funds, and disappears after that.

114
Q

CMS licence holder should get approval of ____ for establishing or continuing business relations with a PEP or if the BO is a PEP.

A

Senior management

115
Q

CMS licence holders should also check ____ if they intend to make marekting calls.

A

DO NOT CALL Registry

116
Q

A KYC framework can be summarized as follows___ ( 6 parts/steps)

A
  1. KYC / Customer selection
  2. Maintain the KYC documentation
  3. Monitor the transactions
  4. Report suspicious transaction to the manager and the Compliance deparment.
  5. Work with the Compliance and management to ascertain if the transaction should be reported to the police or the central bank
  6. Avoid tipping off
117
Q

Breaches of security invoke ______

A

Banking Secrecy provisions in the Banking Act

and

Provisions of the Personal Data Protection Act or the PDPA

118
Q

The prevention and detection summary of FRAUD

A

F: Following of Policies & Procedures

R: Reporting of suspicious transactions or inconsistencies to Compliance and Management through a whistle blowing process.

A: Acting in the case of suspicion and investigating the matter

U: Unite with the Management, Compliance & Enforcement Agencies to bring the perpetrators to book

D: Disciplinary action should be taken and criminal charges should be brought agaisnt the perpetrators.

119
Q

A Compliance Control Programmes should include ____

A
  1. Key performance indicators and control tests
  2. Procedures for checking PEPs, transactions and ensuring that documentation requirements are in place after CDD or EDD.
120
Q

In relaiton to a CMS licence holder for fund management, what is referred to as its “adjusted net head office funds” in the case of a Singapore branch of a foreign corporation?

A

The Net Head Office Funds less any intangible asset in the latest accounts of the CMS licence holder

121
Q

What’s referred as the “IMAS Code”?

A

Code of Ethics and Standards of Professional Conduct

122
Q

Under the purpose of the Outsourcing Guidelines, whihc types of activities won’t be considered as Outsourcing?

A

Arrangements where the required infrastructure necessitates substantial investments for in-house provision (e.g. telephone services), tasks that the LFMC is unable to do for lack of expertise (e.g. statutory audit and independent audit assessments) and low-risk services such as printing

123
Q

What common technique in market misconduct essentially involves the entering in of an order for the purchase of securities with the knowledge that a sales order has been entered or will be entered into at substantially the same time, size, and price?

A

Matching Orders

124
Q

Definition of Connected Insider

A

A Connected Insider is whom connected to a corporation and who possesses price sensitive information in respect of the corporation that is not generally available

125
Q

Who is referred to as one who is NOT connected to a corporation but possesses price sensitive information that is not generally available?

A

Tippee

126
Q

Section 231 of the SFA states that based on the principle of the Parity of Information, if both parties have the same information ____

A

The parties would be considered to be an equal footing and can enter into the transaction with one another

127
Q

What’s excluded when calculated the expense ratio?

What’s included when calculated the expense ratio?

A
  1. Brokerage and other transaction costs
  2. Foreign exchange gains and losses
  3. Front-end or back-end loads arising from the purchase or sale of other funds
  4. Tax deducted at source or arising from income received
  5. Investment management fee is included
128
Q

An offeror is not required to issue a prospectus for an offer of units in a CIS if the total amount raised by the CIS over any period of 12 months does not exceed ____

A

SGD 500 mn

129
Q

An accredited investor includes a corporation with net assets exceeding ____ in value.

An accredited investor includes an individual whose net personal assets exceeding ____ in value.

A

$10 million

$2 milion

130
Q

When are collective investment scheme considered “authorised” vs. “recognised”?

A

If they are established or constituted in/out Singapore

131
Q

Funds classified within the same Equity Risk category have _____ expected long-term reward.

A

roughly similar

132
Q

Prospectus should tate the following fees and charges in a table.

A
  1. Payable by the Investor: Subscription fee or preliminary charge, Realisation fee, and Switching fee.
  2. Payable by the SCHEME: Management fee, including the amount retained by the Manager as a percentage of the Management fee and the trailer fee paid by the Manager to the financial adviser as a percentage of Management fee, Trustee fee, Performance fee, and Guarantee fee.
  3. Fees charged by other funds in which the Scheme invests should also be mentioned. Such fees include subscription fee or preliminary charge, realisation fee, management fee, performance fee, trustee or and custodian fee.
  4. Any other substantial fee or charge, i.e. 0.1% or more of the scheme’s or the underlying fund’s asset value, should also be incldued.
133
Q

What does Single pricing and dual pricing describe?

A

of units allotted to an investor based on a particular investment amount

134
Q

According to the CPF Investment Guidelines, Fund Management Companies are allowed to invest in unlisted shares within ____ limit, excluding _____

A

Within the 5% deviation limit, excluding IPO shares which have been approved for listing

135
Q

Who is referred to as the responsible person in relation to a CIS which is NOT constituted as a corporation?

A

The Manager

136
Q

Financial Derivative Instruments (FDIs) can be used for ____

A

hedging, efficient portfolio management and investment purpose

137
Q

The prospectus of a recognized UCITS scheme or an authorized scheme which invests substantially in an underlying UCITS scheme or UCITS schemes they use FDIS must disclose ____

A
  1. If there’s a possiblity of a significant volatility in the NAV of the scheme’s units
  2. any relevant quantitative limits on the use of FDIs
  3. the types of FDIS that will be used

M3 (5 decks)

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