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Error Trackers Flashcards

1
Q

Money received on account of customers of CMS license holders DOES NOT include? (4 examples)

A
  1. Money to be paid to the customer
  2. Money to be paid in accordance with the customer’s written direction
  3. Money used to reduce the amount owed by the customer to the holder
  4. Money used to defray the holder’s brokerage charges
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2
Q

Money received on account of customers of CMS license holders include? (4 examples)

A
  1. Money received in the course of business
  2. Money received on account of the customer for managing the customer’s funds
  3. In respect of sale of a futures contract
  4. In respect of a transaction for leveraged foreign exchange trading
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3
Q

A LFMC may make withdrawals from a customer’s trust account for purposes such as ____

A
  1. Defraying its brokerage and other proper charges
  2. Making an investment in accordance with the SFA
  3. Making a payment authorised by Law
  4. Reimbursing money that the LFMC has advanced to the account
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4
Q

If a representative of a Fund Management Company (FMC) ceases to be its representative, the FMC is required to notify MAS ____

A

On the next business day of the cessation

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5
Q

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

A

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6
Q

Under the SFA, the term Securities includes _____ (3 major types).

It doesn’t include _____ (4 major types)

A
  1. 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

  1. 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

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7
Q

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 ____

A

1 business day before the date of repayment

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8
Q

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

A

D

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9
Q

A member may withdraw money or assets from a customer’s account for _____ (4 types)

A

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

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10
Q

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?

A

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

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11
Q

What is the maximum validity period of temporary representative’s licence?

A

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

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12
Q

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?

A

The foreign entity purchases or provides services to a regulated person.

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13
Q

How many representatives must applicants seeking the grant of a CMS licence employ?

May include ____

A

At least 2

May include directors and CEO who are representatives

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14
Q

Entities, trustees or responsible persons must not ___; ___; ____ fail to notify SGX-ST of material information?

A

intentionally, recklessly, or negligently

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15
Q

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

A

D

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16
Q

Temporary representatives are appointed to _____.

They ___ pass the CMFAS exams.

A

Conduct regulated activities on a short-term basis in Singapore.

They don’t need to pass the CMFAS exams

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17
Q

A director of a corporation must disclose any change in his interests in the Relevant Securities within ____ after he becomes aware of the change.

A

2 business days

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18
Q

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 ____

A

14 days

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19
Q

Under the FMC Licensing Guidelines, what is the minimum number of relevant professionals, including directors, CEO and representatives, required for a Retail FMC?

A

3

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20
Q

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.

A

Quarterly

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21
Q

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

A

C

Portfolio management and cash management may be considered outsourcing because it’s high risk.

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22
Q

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?

A

Wash sale

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23
Q

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?

A

Connected Insider

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24
Q

What is referred to as a defence based on the concept of parity of information?

A

Where the two parties to the transaction were both in possession of the price sensitive information

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25
What's excluded when calculated the expense ratio? What's included when calculated the expense ratio?
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
26
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
27
What is referred to as collective investment schemes that invest in real estate and real estate-realted assets?
Property Funds
28
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
29
What changes in a CIS are considered significant for reporting to he MAS?
1. Appointment of a new sub-manager 2. Removal of an investment adviser 3. Increase in the manager's remuneration when the new remuneration is within the limit provided in the prospectus. 4. A change in the collateral policy of the CIS from that declared in the prospectus
30
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.
31
Fund management companies are NOT allowed to use the phrase ____ in any public material while referring to themselves.
CPF-Approved
32
Rectification of a breach by a Fund Management Company is required to be notified to the CPF Board _____
Within 7 days of such rectification
33
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
34
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
35
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.
36
For being included in CPFIS, funds should NOT have a total expense ratio (TER) _____
Greater than the median of existing CPFIS funds in its risk category
37
Under the Risk Classification System for funds included in the CPFIS, Focus risk refers to the level of focus of the funds investment with respect to ____
Geographical regions Foreign currencies Industries Individual companies
38
CIS is constituted as a trust and its invests primarily in real estate and real estate-related assets specified by the MA in the Code on CIS. Its prospectus includes projected percentage yields. The calculation of such yields should be based on _____
The IPO price of the units
39
CPF memebrs are allowed to invest up to ___ in property funds
35% of their investible savings limit
40
In the context of two CIS that are in the same Equity Risk category, a narrowly focused CIS has the potential to ____ compared to a Broadly Diversified CIS. (Return)
Produce higher returns in the short-term
41
ABC CIS has the following statement in its prospectus: If you buy before x p.m. on a business day, the price you pay will be based on the net asset value of the scheme at the close of that business day. If you buy after x p.m., the price you pay will be based on the net asset value at the close of the next business day. This is an example of:
Forward Pricing
42
According to Third Schedule of the SFR-CIS, the prospectus should state in which language and what facts about the CIS ___ ?
Should state, in plain English, the dealing deadline and whether pricing is done on a forward or historical basis.
43
The minimum credit ratings prescribed in the CPFIG refer to ____
Solicited ratings
44
The prospectus of a CIS may include details about ___
1. Any regular saving plan 2. The minimum fund size required 3. The procedure for switching of units, if applicable 4. How units in the Scheme can be redeemed or sold
45
The prospectus of a property fund should disclose ___
1. Permissible investments 2. any prohibition on investments by foreign investors (related to residential property) 3. the expertise of the key management personnel 4. the frequency of valuation of the properties
46
The prospectus of a CIS, not being a CIS that invests in real estate or related assets, must not include ____ and don't use the words such as ____ but can include ____ accompanied by a ____
Must not include any prediction, projection or forecast as to the future or likley performance of the Scheme or use words such as targeted or expected or any similar words or description in relation to a rate of return. May include a prediction, projection or forecast on the economy, stock/bond market or the economic trends of the markets which are targeted by the Scheme But such prediction, projection or forecast must be accompanied by a prominent statement to the effect that the prediction, projection or forecast is not necessarily indicative of the future or likely performance of the Scheme
47
If the prospectus of a CIS includes a comparison of the past performance of the CIS with that of an INDEX, the comparison can be based on ____
an offer-to-bid basis a bid-to-bid basis
48
For a recognised CIS (constituted outside Singapore), the FRONT PAGE of the prospectus should/should not state ___
Should State: 1) the Scheme is constituted outside Singapore; 2) the place of the constitution of the Scheme; and 3) if applicable that the prospectus includes and incorporates an offer document in respect of the Scheme registered outside Singapore The name and address of the representative for the Scheme need not be on the FRONT PAGE of the prospectus.
49
FMCS are required to provide ____ to selected Funds Tracking Companies (FTCs) which will _____ using ____. The FTCs DO NOT ____
Performance and risk monitoring information analyse and report on the performance and risk monitoring information for all funds under the CPFIS using a common methodology. The FTCs DO NOT report on the continued eligibility of the funds for being included in the CPFIS.
50
Quarterly submission by the FMCs to FTC inlcude _____
Total asset size of fund as at the end of the relevant reporting period NAV per unit in Singapore dollars for each month of the relevant reporting period.
51
FMCs included in the CPFIS are required to submit returns to confirm their continuing compliance with admission criteria. The returns are requried to be submitted ____
Within one month of completion of the quarter.
52
The expense ratio of a CIS should be caluclated in accordance with the guidelines on the disclosure of expense ratios issued by the ____ and based on _____
Investment Management Association of Singapore figures in the Scheme's latest audited accounts
53
The ETF included under the CPFIS ____ (LISTED PLACE)
Have to be listed on the SGX
54
Definition of a Commodity Murabaha?
It's an exchange contract trade between an investor (seller) and financial institution (buyer), and it has base metals listed on the major commodity exchanges as the subject matter.
55
FMCs may invest in debt securities which are ____ (ratings) There's no requirement that ___
Rated at least BAA by Moody's, BBB by S&P's or BBB by Fitch (including sub-categories or graduations therein). There's no requirement that the principal/interest must be guaranteed by rated entities.
56
A Fund Manager may obtain the approval of ___ for extension of the deadline for rectification of breaches.
Trustee
57
Fund Management Companies under ___ stage selection process for inclusion into CPFIS.
Two
58
Funds being offered under the CPFIS can invest in Commodity Murabaha without seeking approval of the CPF Board provided the financial institution with which it enters into the arrangement has ______
Financial strength ratings of above C by Moody's There's no forward contract involved and it meets the relevant CPF Investment Guidelines
59
The prospectus of a CIS must state the Scheme's investment ____
Investment Objectives (income or capital growth) Investment Focus (types of investment, i.e. whether equity, debt, money market or derivatives), the countries or markets in which the Scheme invests, i.e. whether county-specific or global, emerging or developed markets), and the target inudstry or sector
60
For a CIS where dividends have been declared or distributions have been made, the prospectus should state return on the scheme calculated on ______ , taking into account that ____
Return on the Scheme, calculated on the assumption that all dividends and distributions are reinvested, taking into account all charges which would have been payable upon such reinvestment
61
The factors to be taken into account when determining if there is any conflict of interests between a CIS and its management include ___
1. The nature and extent of the interests of the custodian for the scheme 2. The nature and extent of the interests of the investment adviser for the scheme 3. Any possibility of the Manager acquiring an interest in the Scheme
62
The CPF Investment Guidelines prescribed that a Fund may lend up to ___ of the value of its deposited property provided there is adequate collateral.
50%
63
Regarding the rebates given for purchase of funds under the CPFIS ____
Rabest can be given in cash but tokens CANNOT be given. Rebates can be given in bonus units which can be credited back to the memebr's CPFIS-OA/SA account.
64
Who's referred to as the responsible person in relation to a CIS which is constituted as a corporation?
Corporation
65
In the context of the criteria of eligibility conditions for Fund Management Companies to be included in the CPFIS, the definition of fund managers may include ____
PM, research analysts and traders
66
Guarantee in a capital guaranteed fund can ____
The guarantee can be for a limited period. The guarantee ma be applicable only if the units are held till maturity. The guarantee period NEED NOT necessarily commence from the date of the IPO. It may commence from the date of the participant's investment in the capital guaranteed fund. The gaurantee CAN be in respect of 100% of the monies paid by the participants.
67
If an Investment Scheme (IS) is constituted as a unit trust, the prospectus should provide ____ If an Investment Scheme (IS) is NOT constituted as a unit trust, the prospectus should provide ____
Where the Scheme IS constituted as a unit trust, the prospectus should provide 1) a list of the current trust deed and supplemental deeds and their corresponding dates, as well as 2) information on where these may be inspected. Where the Scheme is NOT constituted as a unit trust, the prospectus should state 1) the date on which the Scheme is constituted and 2) where the constituent documents of the Scheme may be inspected. 3) Expiry date of the prospectus and the place of the constitution of the Scheme must be included.
68
The FMC are required to report to the INVESTMENT CONSULTANT about changes in investment mandates of key personnel once every ____
Six months
69
What are offences included in the CDSA?
Theft Criminal Breach of Trust Extortion
70
According to the CPF Investment Guidelines, a Fund must be reasonably diversified based on _____
its type, size and the prevailing market conditions. Its manager's view on the market is NOT relevant.
71
Fund management companies domiciled outside Singapore are required to confirm to the CPF Board of the official launch date of a new fund included into the CPFIS _________ (when).
At least three days before the launch
72
If the prospectus of a CIS includes a comparison of the past performance of the CIS with that of another CIS _____ 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 ____
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. Similar risk profile
73
CPF memebrs are allowed to invest up to ___ of their investible savings in gold exchange traded funds and other gold products.
10%
74
Property funds included under the CPFIS-OA must be ____ (3 requirements)
Offered by a company that is incorporated in Singapore, denominated in Singapore dollars, and Listed on the SGX MainBoard.
75
CPF members are allowed to invest up to how much of their investible savings in shares, property funds and corporate bonds?
35%
76
Issuers should furnish investors with PHS for ______ (types of investment products/schemes)
1. Offers of Debentures in the form of debentures or units of debentures issued pursuant to a securitization transaction (asset-backed securities) 2. Structured notes (including exchange-traded notes) where the offer is made in or accompanied by a prospectus 3. Unlisted CIS and ETF where the offer is made in or accompanied by a prospectus
77
If an Investment Scheme is constituted as a unit trust, the name of ____ must be included. The name of ___ will be disclosed only if ____. If the Scheme is constituted other than as a unit trust, the name of ____. In either case, the names of _____ must de disclosed. (3 types of roles)
If an Investment Scheme is constittued as a unit trust, the name of trustee must be included. The name of custodian will be disclosed only if the trustee has delegated the safekeeping of the assets of the Scheme to a custodian. If the Scheme is constituted other than as a unit trust, the name of the custodian must be disclosed. In either case, the names of the investment advisor, auditor and registrar must de disclosed.
78
Funds may invest in financial derivatives for ____ rather than ___
Efficient portfolio management and hedging rather than investing and synthetic replication of an index
79
For being included in the CPFIS, a Fund Management Company is required have ____ fund managers, and ___
3 fund managers, one of whom must have at least five years fund management experience
80
The prospectus of a CIS should state the name of ____ which license or regulates the Manager ____
The Financial Supervisory Authority which licenses or regulates the Manager in its PRINCIPAL place of business and where applicable, the name of the financial supervisory authority of the manager of the underlying fund referred, and of each submanager.
81
What's the minimum age for a CPF member to participate in the CPFIS?
18
82
When a related financial institution with which the Fund has placed monies cease to meet the requisite minimum rating, the FMC must ____
either withdraw the monies as soon as possible, but in any event within 1 month or seek extension for fixed deposits.
83
In addition to the IMAS Code, which of the following is used by managrs of unit trusts under the CPFIS? 1. Guidelines on Corporate Governance 2. Code of Best Practices 3. Guidelines on Expense Ratios 4. None of the above
3
84
Sales charge of a CPFIS fund may not excced___
There's no sales charge under CPFIS.
85
In the case of a new scheme, the prospectus should state whether the manager of an underlying fund into which the Scheme invests more than ____ of its asset value receives or intends to receive soft dollars in respect of the underlying fund.
10%
86
FMCs are required to provide ____ to the FTCs?
Benchmark returns in Singapore dollars for each month of the relevant reporting period. Risk monitoring Performance
87
CPFIS admission criteria for Fund Management Companies (FMC) require that the FMC should have a minimum track record of ____ as a CMS licence holder under the SFA in the fund management industry in Singapore.
One year
88
The prospectus of a CIS MUST NOT contain any information on the past performance based on ____. However, ______ information can be submitted, inter-alia, if the scheme is _____
Simulated results of a hypotehtical CIS. Pro forma financial information If the scheme is a trust, it invests primarily in real estate and real estate-related assets specified by the MAS in the Code on CIS, and it has applied to an approved exchange for all or any of its units to be listed for quotation.
89
The circumstances under which the guarantee may be terminated include ____ (3)
1) where the guarantor goes into liquidation EXCEPT a voluntary liquidation for the purpose of reconstruction or amalgamation 2) any law is passed which renders the ageement for the guarantee illegal or which, in the opinion of the Trustee, renders it impracticable to continue with the guarantee 3) where the capital guaranteed fund is voluntarily terminated

M3 (5 decks)

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