Error Trackers Flashcards
Money received on account of customers of CMS license holders DOES NOT include? (4 examples)
- Money to be paid to the customer
- Money to be paid in accordance with the customer’s written direction
- Money used to reduce the amount owed by the customer to the holder
- Money used to defray the holder’s brokerage charges
Money received on account of customers of CMS license holders include? (4 examples)
- Money received in the course of business
- Money received on account of the customer for managing the customer’s funds
- In respect of sale of a futures contract
- In respect of a transaction for leveraged foreign exchange trading
A LFMC may make withdrawals from a customer’s trust account for purposes such as ____
- Defraying its brokerage and other proper charges
- Making an investment in accordance with the SFA
- Making a payment authorised by Law
- Reimbursing money that the LFMC has advanced to the account
If a representative of a Fund Management Company (FMC) ceases to be its representative, the FMC is required to notify MAS ____
On the next business day of the cessation
For the purpose of Outsourcing Guidelines, which of the following services would generlaly not be considered outsourcing when performed by a third party?
A. Sale of insurance policies by agents or brokers, and ancillary services relating to those sales
B. Accounting, internal audit
C. Back office management
D. Document processing
A
Under the SFA, the term Securities includes _____ (3 major types).
It doesn’t include _____ (4 major types)
- Include:
1) Any option of any debenture
2) Debentures proposed to be issued by a body unincorporated
3) Derivative of any debentures of a real estate investment trust
4) Any derivative of a unit in a business trust
5) Any right under a contract for differences
- It doesn’t include:
1) Futures contracts which are traded on a futures market
2) Bills of exchange
3) Promissory notes
4) Certificates of deposit issued by a bank or finance company whether situated in Singapore or elsewhere
If a subordinated loan principal has matured, repayment of such loan principal by the licensed FMC is not allowed unless it notifies MAS at least ____
1 business day before the date of repayment
Which of the following is a regulated activity under SFA?
A. Arranging for general insurance contracts
B. Arranging for life insurance contracts
C. Arranging for medical insurance contracts
D. None of the above
D
A member may withdraw money or assets from a customer’s account for _____ (4 types)
A. Making a deposit to the Clearing House for the customer
B. Paying proper charges
C. Making a payment to any other person or account in accordance with written directions of the customer
D. Securities lending as per SFR
In relation to a CMS licence holder for fund management, what’s referred to as its “financial resources” in the case of Singapore incorporated corporation?
The sume of base capital and irredeemable and cumulative preference share capital in the latest accounts of CMS licence holder, less any intangible assets in the latest accounts of the CMS holder
What is the maximum validity period of temporary representative’s licence?
The status of a provisional or temporary representative is only valid for a maximum of 3 months from the date his name is entered into the Register of Representatives
In the context of the “Effects Doctrine”, which of the following is an example of circumstances where an act done wholly outside Singapore will not be caught?
The foreign entity purchases or provides services to a regulated person.
How many representatives must applicants seeking the grant of a CMS licence employ?
May include ____
At least 2
May include directors and CEO who are representatives
Entities, trustees or responsible persons must not ___; ___; ____ fail to notify SGX-ST of material information?
intentionally, recklessly, or negligently
Under the SFA, which of the following is NOT an excuse for a listed corporation to fail to inform the securities exchange of material information?
A. Negligence
B. Recklessness
C. Intentional
D. Accidental
D
Temporary representatives are appointed to _____.
They ___ pass the CMFAS exams.
Conduct regulated activities on a short-term basis in Singapore.
They don’t need to pass the CMFAS exams
A director of a corporation must disclose any change in his interests in the Relevant Securities within ____ after he becomes aware of the change.
2 business days
If the Lincensed FMC ceases to conduct business in all of the regualted activities for which it is licensed, it must return the license to MAS within ____
14 days
Under the FMC Licensing Guidelines, what is the minimum number of relevant professionals, including directors, CEO and representatives, required for a Retail FMC?
3
During the year, a LFMC is required to submit a Statement of financial resources, total risk requirement and aggregate indebtedness to the MAS on a ____ basis.
Quarterly
For the purposes of Outsourcing Guidelines, which of the following services would be regarded as outsourcing when performed by a third party?
A. Telephone, utilities
B.Printing services
C. Portfolio management, cash management
D. Statutory audit, independent audit assessments, and independent consulting
C
Portfolio management and cash management may be considered outsourcing because it’s high risk.
What common technique in market misconduct is referred to as a transaction effected through the market which involves no change in the beneficial ownership of security?
Wash sale
Who is referred to as one who is connected to a corporation and who possesses price sensitive information in respect of the corporation that is not generally available?
Connected Insider
What is referred to as a defence based on the concept of parity of information?
Where the two parties to the transaction were both in possession of the price sensitive information
What’s excluded when calculated the expense ratio?
What’s included when calculated the expense ratio?
- Brokerage and other transaction costs
- Foreign exchange gains and losses
- Front-end or back-end loads arising from the purchase or sale of other funds
- Tax deducted at source or arising from income received
- Investment management fee is included
The ASEAN CIS framework launched in August 2014 facilitates cross-border offer of CIS to retail investors in which of the following countries?
Singapore Malaysia and Thailand
What is referred to as collective investment schemes that invest in real estate and real estate-realted assets?
Property Funds
ABC Asset Management appointed a sub-manager to manage a CPFIS unit trust. The sub-manager breaches one of the CPF limits on investments on 22nd June, and informed ABC Asset Management on 24th June. ABC Asset Management should inform MAS within ____.
3 business days from 24th June
What changes in a CIS are considered significant for reporting to he MAS?
- Appointment of a new sub-manager
- Removal of an investment adviser
- Increase in the manager’s remuneration when the new remuneration is within the limit provided in the prospectus.
- A change in the collateral policy of the CIS from that declared in the prospectus
What’s the credit rating requirement on FMCs and its branc/subsidiaries
A subsidiary of a financial institution must have their own credit ratings.
A branch of a financial institutions is deemed to have the same credit rating as its head office.
Ratings of a financial institution refers to solicited ratings and NOT pi, i.e., public information ratings.
Fund management companies are NOT allowed to use the phrase ____ in any public material while referring to themselves.
CPF-Approved
Rectification of a breach by a Fund Management Company is required to be notified to the CPF Board _____
Within 7 days of such rectification
Fund Management Companies are required to inform the CPF Board at least _____ they actually start offering Fund Management Account services to the CPF members
Two weeks
Under what conditions, the prospectus of a CIS must state the track record of the manager for the underlying fund or submanager respectively?
If the CIS invests in another scheme (the underlying fund) and such investment constitutes 30% or more of the asset value of the Scheme, or where 30% or more of the asset value of Scheme is sub-managed bu another manager
Where the prospectus includes any comparison of the past performance of the Scheme with that of another form of investment, such other form of investment must have ____
What’s the specific requirement for the comparison of CIS?
A risk profile which is similar to that of the Scheme
and the comparison must be made on an offer-to-bid basis and such basis shall be stated in the prospectus.
The comparison must be made on an offer-to-bid basis.
The other CIS should have a similar investment objectives / focus
The comparison should be based on a common currency.