Sunday Study Mock Things To Note

Question 1

Is a company with an overseas register address but have branches operating in singapore considered a resident?

Answer 1

Non resident of singapore- A company whose permanent or registered address is outside singapore.

Question 2

What should be provided to the RM (Script) when carrying out introducing activities:

Answer 2

• factual information of ABC bank to b provided to client
• Information specifying that RM shall not receive client’s money or property in relation to introducing activities.
• Factual information on the investment products to which the introducing activists relate to.
• note - Factual info on RM’s past experience as and introducer need not be given.

Question 3

An RM wants to gather non-financial personal/family information from his client. Why is this so:

Answer 3

• Proper ID of the BO’s and account holders.
• Segmentation of primary and secondary relationships within the family to determine who are the principal leaders or key decision makers.
• Appreciation of evolving individual/family values that will affect WM focus.
• Current or anticipated changes to nationality/ dom etc.

Question 4

What is the “fair dealing outcome two” entail:

Answer 4

• covered entity should undertake formal due diligence on any investment product it intends to distribute in order to assess and fully understand the features and risk-reward characteristics of product and identify customer segments for which the product is suitable or not suitable for.

Question 5

What features does an unlisted debenture need to have for a client to cancel an agreement within 7 days of agreement date:

Answer 5

• Tenure of 3 months or longer**!!!!

- Not exempted from the prospectus requirements of the SFA.

Question 6

What is the covered entity prohibited from doing:

Answer 6

Dealing as a principal with client

Trading against client

Cross trading

All 3 are prohibited unless prior consent is given.

Question 7

Client has not requested for a portfolio review in the last 3 years. He however, wants want now. What should the RM do:\

Answer 7

Consolidate review of all assets and liabilities under client’s name. In addition. A separate review should be done on each portfolio and to reassess client’s needs and financial objectives (as they may have changed)

Question 8

What does a business insurance (buy-sell) agreement entail.

Answer 8

This is when 2 or more partners enter into an arrangement and use an insurance policy to Ensure that if any partner passes away there would be an agreement to structure the purchase of shares of the deceased partner, hence keeping ownership of the company with the original owners.

Question 9

Client who owns a number of assets would like to hold o not them but avoid capital gains or inheritance tax. What should we recommend:

Answer 9

Private placement Life insurance(insurance wrapper)- transferring custody of the investments to the insurance company that provides the product.

Question 10

Before a coveredpersons establishes business with a limited liability partnership. It is required by MAS to

Answer 10

Identify all partners
Identify all creditors
Obtain information as the purpose and intended nature of the business relation