C o n t e n t

Introduction > 3

Examination Regulations > 4

* Objectives of CMFAS
* Which Module to Enrol
* Types of Activities

Study Guides > 5

Exemptions > 5

Examination Duration > 7

Enrolment Procedures > 8

* Where to Enrol
* Examination Venue
* Examination Fee
* MAS Notices Under SFA/FAA
* Enquiries on Examination Administrative Matters

Appendix: Examination Syllabus > 9

 INTRODUCTION

In line with the introduction of a new licensing framework under the Securities and Futures Act (SFA) and
Financial Advisers Act (FAA), the MAS has launched a new modular examination structure, known as the
Capital Markets and Financial Advisory Services Examination (CMFAS Exam).

The CMFAS Exam comprises the following Modules:

Rules & Regulations

Module 1A Rules and Regulations for Dealing in Securities
(SGX-ST Members)
Module 1B Rules and Regulations for Dealing in Securities
(Non-SGX-ST Members)
Module 2A Rules and Regulations for Trading in Futures Contracts
(for members of the Singapore Exchange Derivatives
Trading Limited (“SGX-DT”))
Module 2B Rules and Regulations for Trading in Futures Contracts
(for members of the Singapore Mercantile Exchange (“SMX”))
Module 3 Rules and Regulations for Fund Management
Module 4A Rules and Regulations for Advising on Corporate Finance
4B Rules and Regulations for Advising on Corporate Finance
(Solely Debt Securities)
Module 5 Rules and Regulations for Financial Advisory Services
Module 10 Rules and Regulations for REIT Management, with Product
Knowledge and Analysis

Product Knowledge & Analysis

Module 6 Securities Products and Analysis
Module 7 Futures Products and Analysis
Module 8 Collective Investment Schemes
Module 9 Life Insurance and Investment-linked Policies

The Institute of Banking & Finance (IBF) will administer Modules 1A, 1B, 2A, 2B, 3, 4A, 4B, 6, 7
and 10.

The Singapore College of Insurance (SCI) will administer Modules 5, 8 and 9.

The syllabus of each Module is listed in the Appendix.

For more information on Modules 1A, 1B, 2A, 2B, 3, 4A, 4B, 6, 7 and 10, please visit IBF
website at www.ibf.org.sg or contact IBF at 6220 8566.

For more information on Modules 5, 8 and 9, please visit SCI website at

www.scicollege.org.sg or contact SCI at 6221 2336.

3 CMFAS Examination
 Objectives of CMFAS
To test candidates on their knowledge and understanding of:

* the regulatory framework including the laws and regulations and associated codes, notices,
practice notes and guidelines governing the capital markets and life insurance intermediaries
examination regulations

* the product characteristics as well as the tools and techniques to analyse the products

Candidates who pass the examinations are eligible to apply to the MAS for a representative’s licence under the
Securities and Futures Act or the Financial Advisers Act. Such application is subject to the approval of the MAS.

Which Module to Enrol

Unless otherwise exempted, candidates applying for a representative’s licence in each regulated activity must
attempt the relevant modules. The requirements are summarised as follows:

MODULES

TYPES OF ACTIVITIES Rules & Product Knowledge

Regulations & Analysis

Regulated Activities Under SFA 1A 1B 2A 2 B 3 4A 4B 5 10 6 7 8 9

Dealing in Securities X X
(SGX-ST Members)
Dealing in Securities X X
(Non-SGX-ST Members) Either Modules

Trading in Futures Contracts X X

- SGX-DT members
Trading in Futures Contracts X X
- SMX members
Trading in Futures Contracts X
Either Module
- Non SGX-DT and Non SMX members X
Fund Management
- solely securities funds X X
Fund Management
- solely futures funds X X
Fund Management X X
- both securities and futures funds
REIT Management X
Advising on Corporate Finance X
Advising on Corporate Finance X
- solely debt securities
Leveraged Foreign Exchange Trading X X
Any of these Modules Either Module

Regulated Activities Under FAA 1A 1B 2A 2 B 3 4A 4B 5 10 6 7 8 9

Advising others concerning securities X

(excluding collective investment
schemes)
Advising others concerning futures X
Advising on and/or arranging life X
insurance policies (whether or not X
include Investment- linked life
policies)
Advising on and/or marketing of X
collective investment schemes

CMFAS Examination 4
 Updated As At 11 August 2010

exemptions
Candidates with the following qualifications or experience are
exempted from the requirement to take the product knowledge
modules as specified below:

Module 6
1 Degree or higher qualification with emphasis on accountancy,
actuarial science, business/business administration/business
management/business studies, capital markets, commerce,
economics, finance, financial engineering, financial planning and
computational finance;
2. Trading Representatives’ Examination Paper II [previously
conducted by the Institute of Banking and Finance (“IBF”)];
3. Investment Representatives’ Examination Paper II (previously
conducted by IBF);
4. Diploma in Investment (previously conducted by IBF);
5. Diploma in Investment Analysis (previously conducted by the
Singapore Securities Research Institute);
6. Diploma in Investment conducted by The Singapore Human
Resources Institute [“SHRI”];
7. Diploma in Banking and Finance (previously conducted by IBF);
8. Diploma in Banking and Finance conducted by SHRI;

study guides 9. Diploma In Financial Planning from IBF/Singapore College of

Insurance [“SCI”];
10. Diploma in Financial Planning from the Financial Planning
Candidates registering for the various Modules for Association of Australia;
the first time will receive a Study Guide to assist
them in their preparation for the examination. 11. Diploma in banking, finance, accountancy, business or business
administration from all polytechnics in Singapore;
12. Diploma in Business Administration from University of
Singapore;
13. Graduate Diploma in Financial Management from Singapore
Institute of Management [“SIM”];
14 Royal Melbourne Institute of Technology University’s Diploma
of Financial Services conducted by SIM;
15. Professional or Applied Diploma in Banking or Financial Services
from the ifs School of Finance, UK;
16. Skills Certificate - Investment (previously awarded by IBF);
17. Skills Certificate - Investment awarded by SHRI;
18. Certificate in Private Banking awarded by Wealth Management
Institute Pte Ltd, Singapore;
19. Certificate in Financial Needs Analysis & Plan Construction
awarded by Singapore College of Insurance, Singapore;
20. Chartered Financial Analyst Level 1 Examination conducted by
the Association for Investment Management & Research, USA;
21. Associate Financial Consultant awarded by Insurance and
Financial Practitioners Association of Singapore (previously
known as Life Underwriters Association of Singapore);
22. Associate Financial Planner or Associate Wealth Planner awarded
by the Financial Planning Association of Singapore;
23. Series 6 or Series 7 of the National Association of Securities
Dealers, USA;
24. Investment Management Certificate of the UK Society of
Investment Professionals (previously known as UK Institute of
Investment Management & Research Examinations);

5 CMFAS Examination
 Updated As At 11 August 2010

25. Chartered Life Underwriter by the American College, USA; Module 7

or Chartered Life Underwriter Singapore by the SCI;
1. Degree in finance-related disciplines with at least 50%
26. Chartered Financial Consultant by the American College, coverage on futures and derivatives products;
USA; or Chartered Financial Consultant Singapore by SCI;
2. Futures Trading Test (previously conducted by IBF);
27. Certified Financial Planner by the Certified Financial Planners
3. Futures Examination Paper II (previously conducted by IBF
Board of Standards;
between January 1994 to December 1996);
28. Certificate in Securities, Derivatives or Securities and
4. Futures Examination Paper III (previously conducted by IBF
Financial Derivatives by the Securities & Investment
between January 1997 to 30 November 2002);
Institute, recognised by the UK Financial Services Skills
Council and Financial Services Authority (formerly known 5. Series 3 of the National Association of Securities Dealers,
as the Registered Persons Examination by the Financial USA;
Services Authority, UK)1;
6. Futures and Options Representative’s Examination
29. The Association of Chartered Certified Accountants (ACCA) conducted by the Securities & Futures Authority Ltd, UK;
Qualifications;
7. Certificate in Derivatives by the Securities & Investment
30. The Chartered Accountant (ACA) Qualifications; Institute, recognised by the UK Financial Services Skills
Council and Financial Services Authority4;
31. Associate/Fellow of the Institute of Actuaries, England;
8. Diploma in Investment (previously conducted by IBF between
32. Associate/Fellow of the Faculty of Actuaries, Scotland;
October 1998 and December 2001);
33. Associate/Fellow of the Society of Actuaries, USA;
9. Diploma In Investment conducted by SHRI;
34. Associate/Fellow of the Institute of Actuaries of Australia;
10. Certified Financial Planner by the Certified Financial Planners
35. Associate/Fellow of the Casualty Actuarial Society, USA; Board of Standards, USA;
36. Associate Member of CPA Australia2; 11. Chartered Financial Analyst Level 1 Examination conducted
by the Association for Investment Management & Research,
37. Module 1 of the Investor Contact Competency Examination
USA;
(ICCE Module 1), administered by the Securities and
Exchange Commission, Thailand3 ; 12. Chartered Financial Consultant by the American College,
USA; or Chartered Financial Consultant Singapore by SCI;
38. Three years’ relevant and continuous working experience
in respect of the regulated activity to be conducted provided 13. Advanced Certification in Investment conducted by the
there is no break-inservice of more than three years between Nanyang Polytechnic;
the specific representative’s last working experience in the
14. Three years’ relevant and continuous working experience in
regulated activity and the date of his licence application or
respect of the regulated activity to be conducted provided
entry into the industry, as the case may be. However, this
there is no break-inservice of more than three years between
does not apply to persons who fall within paragraph 7(a)(ii)
the specific representative’s last working experience in the
of this Notice.
regulated activity and the date of his licence application or
[SFA 04-09 2010]
entry into the industry, as the case may be. However, this
does not apply to persons who fall within paragraph 7(a)(ii)
of this Notice.
[SFA 04-09 2010]

1 Persons who possess the qualification of the Registered Persons Examination by the Financial Services Authority, UK, by no later than
1 December 2001, shall be deemed to possess the qualification of the Certificate in Securities, Derivatives or Securities and Financial
Derivatives by the Securities & Investment Institute, recognised by the UK Financial Services Skills Council and Financial Services
Authority, for the purposes of Annex 1 of this Notice.

2 Qualification attained by membership is recognised.

3 Person has to be licensed by the Securities and Exchange Commission of Thailand and needs to submit documentary evidence to his
proposed principal certifying his licence or authorization status in Thailand.

4 Persons who possess the qualification of a Level 3 Certificate in Investments (Derivatives) by the Securities & Investment Institute,
recognised by the UK Financial Services Skills Council and Financial Services Authority, by no later than 1 November 2004, shall be
deemed to possess the qualification of a Certificate in Derivatives by the Securities & Investment Institute, recognised by the UK
Financial Services Skills Council and Financial Services Authority, for the purposes of Annex 2 of this Notice.

CMFAS Examination 6
 examination duration

Duration of the examination in respect of each Module is as follows:

No of Time
Module Questions (Hr)
1A Rules and Regulations for Dealing in Securities 100 2
(SGX-ST Members)
1B Rules and Regulations for Dealing in Securities 50 1
(Non-SGX-ST Members)
2A Rules and Regulations for Trading in Futures Contracts 100 2
(for members of the Singapore Exchange Derivatives
Trading Limited (“SGX-DT”))
2B Rules and Regulations for Trading in Futures Contracts 100 2
(for members of the Singapore Mercantile Exchange (“SMX”))
3 Rules and Regulations for Fund Management 100 2
4A Rules and Regulations for Advising on Corporate Finance 50 1¼
4B Rules and Regulations for Advising on Corporate Finance 50 1¼
– Solely Debt Securities
5 Rules and Regulations for Financial Advisory Services 100 2
6 Securities Products and Analysis 100 2
7 Futures Products and Analysis 100 2
8 Collective Investment Schemes 50 1¼
9 Life Insurance and Investment-Linked Policies 125 2½
10 Rules and Regulations for REIT Management, with 100 2
Product Knowledge and Analysis

The minimum pass mark for Rules and Regulations Module is 75% and for Product Knowledge and
Analysis Module it is 70%.

Candidates will be issued their result slips at the end of the examinations. Candidates applying for
a representative’s licence under the Securities and Futures Act/Financial Advisers Act must submit a
copy of the result slip together with their licence’s application forms to:

Type of Application Relevant Department in MAS

Application under the Securities
Capital Markets Intermediaries
and Futures Act
Application under the Financial Financial Advisers &
Advisers Act Insurance Intermediaries

7 CMFAS Examination
 Where to Enrol
Candidates enrolling for Modules 1A, 1B, 2A, 2B, 3, 4A, 4B, 6, 7 and 10 are required to
register directly with The Institute of Banking & Finance (IBF).

Candidates enrolling for Modules 5, 8 & 9 with the Singapore College of Insurance
procedures (SCI), please observe the following:

• Candidates who represent BOTH Life and General

Insurance Companies MUST register via their Life
Insurance Company. Please check with your
respective Agency Training Department of the Life
Insurance Company for details.

• Candidates who represent Banks/Securities Houses

MUST register via their Training/Insurance
Department. Please check with your respective Examination Venue
Training/Insurance Department for details. Examinations for Modules 1A, 1B, 2A, 2B,
3, 4A, 4B, 6, 7 and 10 will be held at
• Candidates who represent ONLY General Insurance The Institute of Banking & Finance
Companies CAN register via any of their principals. 10 Shenton Way
Please check with any one of them for details. #13-07/08 MAS Building
Singapore 079117
enrolment

• Candidates who represent the LIA-registered broking Examinations for Modules 5, 8 and 9
firms MUST register via their broking firms. Please will be held at
check with the respective broking firm for details. Singapore College of Insurance
9 Temasek Boulevard
• Candidates who do not belong to any Company, Suntec Tower 2
please contact SCI’s Examination Department for #14-01/02/03
registration details, Tel: 6221 2336. Singapore 038989

Examination Fee (for each module)

Module 1 to 9 Module 10
First Attempt (SCI/IBF member) $100 + GST $200 + GST
(Non-member) $120 + GST $240 + GST
Fee paid for the first attempt is inclusive of a Study Guide.
Subsequent Attempts (SCI/IBF member) $ 80 + GST $160 + GST
(Non-member) $100 + GST $200 + GST
All fees paid are non-refundable and non-transferable. The fees may be revised without notice.

MAS Notices Under SFA/FAA

For more details on the examination requirements, please refer to the notices issued by the MAS at
www.mas.gov.sg

Enquiries on Examination Administrative Matters

For Modules 1A, 1B, 2A, 2B, 3, 4A, 4B, 6, 7 or 10, please contact IBF at 6220 8566 or [email protected]
For Modules 5, 8 or 9, please contact SCI at 6221 2336 or [email protected]

CMFAS Examination 8
module 1 Rules and Regulations for Dealing in Securities (SGX-ST Members)
A A The Regulatory Bodies
The Monetary Authority of Singapore
Payment to clients
Operation of stock account and
G CPF Investment Scheme
General information of the Scheme
administered by
IBF Singapore Exchange Ltd & Singapore suspense account Amount an investor can use
Exchange Securities Trading Ltd Handling of customers’ assets Approved investments
(SGX-ST) Certain persons to disclose certain Operations and charges
The Central Depository (Pte) Ltd interest
Register of Interest in Securities H Single Stock Futures (SSF) Contracts
B The Regulations Recommendations by certain persons Operation of SSF on SESOPS terminal
Securities & Futures(SF) Act and Priority to customers’ orders Execution of SSF on SESOPS terminal
SF Regulations Trading standards Position limit and margin requirement
SGX-ST Rules and Bye-laws Trading by employees Best Practices
CDP Clearing Rules Code of Conduct for Dealing in Error trade policy and procedures
Securities SGX ETS SCC
C Dealing Mechanics Core Trading Rules Busting of trades
Stocks traded on the Exchange Securities hawking prohibited Offences under SGX-DT Rules and
Trading on CLOB SFA/SFR
Operation of SESOPS terminal F Market Conduct
Trading via the Exchange Link False trading and market rigging I Guidelines on Prevention of Money
transactions Laundering
D Settlement Procedures Securities market manipulation Key legal obligations
Due dates and settlement False or misleading statements, etc Basic principles and policies to
Mode of settlement Fraudulently inducing persons to deal combat money laundering
SGX-SPV in securities Know your customer
Employment of manipulative and - Compliance with laws
E Conduct of Business deceptive devices - Cooperation with law enforcement
Account opening requirements Dissemination of information about agencies
Time stamping requirements illegal transactions - Policies, procedures and training
Issue of contract notes and statement Continuous disclosure
of account to client Insider trading

module 1 Rules and Regulations for Dealing in Securities (Non-SGX-ST Members)

B A The Regulatory Bodies
The Monetary Authority of Singapore
C Market Conduct D CPF Investment Scheme
General information of the Scheme
False trading and market rigging
administered by
IBF Singapore Exchange Ltd & Singapore transactions Amount an investor can use
Exchange Securities Trading Ltd Securities market manipulation Approved investments
(SGX-ST) Operations and charges
The Central Depository (Pte) Ltd False or misleading statements, etc
Fraudulently inducing persons to E Guidelines on Prevention of Money
B Conduct of Business deal Laundering
Handling of customers’ assets in securities Key legal obligations
Handling of trust account Employment of manipulative and Basic principles and policies to
Lending on customer’s securities combat money laundering
deceptive devices Know your customer
Issue of contract notes Dissemination of information about - Compliance with laws
Statement of Accounts illegal transactions - Cooperation with law enforcement
Priority to customers’ orders Continuous disclosure agencies
Registration of Securities Insider trading - Policies, procedures and training
Trading practices and conduct

module 2 Rules and Regulations for Trading in Futures Contracts(for members of the Singapore Exchange
Derivatives Trading Limited (“SGX-DT”))
A A The Regulatory Bodies and the C Clearing & Settlement Procedures Position Change Sheet (PCS)
Regulations SGX Derivatives Clearing Ltd Reporting
administered by
IBF The Monetary Authority of Singapore Novation Final Long Positions
Singapore Exchange Derivatives Clearing Of Trades Intra- and Inter-Commodity Spreads
Trading Ltd (SGX-DT) Ex-Pit Trades Margining
Singapore Exchange Derivatives SGX Trade Allocation And Registration Types Of Margins
Clearing Ltd (SGX-DC) System (STAR) Gross Margining System
SGX Regulation Of The Securities And Trade Registration Standard Portfolio Analysis Of Risk
Futures Market Status Codes Acceptable Margin Collateral
MAS-SGX Regulatory Relationship Give-Up Trade (GUT) System Delivery
Mutual Offset System (MOS)
B The Trading System Trade Management System (TMS) D Regulatory Requirements Relating To
Types of Futures and Options Local Trade Matching Process Business Operations
Contracts Traded on The Exchange Clearing Operations And Risk SGX-DT Regulatory Supervision
SGX-DT Contract Specifications Evaluation System (CORE) Framework
Features of SGX-DT Trading Systems Member Submission Sub-system Arbitration and Hearing Procedures
Settlement Prices, Opening And Position Adjustments SGX-DT Compensation Fund
Closing Range Option Exercise/Do-not-exercise Conduct of Business Requirements
Mutual Offset System Inter-exchange (IE) Trade under the SGX-DT Rules
Error Trade Busting Policy And Reconciliation Cycles Margins of Customer
Procedure For SGX QUEST Trades Trade And Clearing Reports Customers’ Protection
9 Appendix
 module 2 Rules and Regulations for Trading in Futures Contracts (for members of the Singapore Exchange
Derivatives Trading Limited (“SGX-DT”))
A Record keeping requirements under Penalties for Market Misconduct F Prevention of Money Laundering
the SFA and SFR(LCB) under the SFA Introduction to Prevention of Money
administered by
IBF Customer Assets Requirements Penalties for Market Misconduct Laundering
under SFA and SFR(LCB) under SGX-DT Rules Summary of the Key Provisions of the
con’t Conduct of Business Requirements Trading Related Acts/Regulations/ CDSA
under the SFA and SFR(LCB) Rules MAS Notice on Prevention of Money
Trading Related Acts/Regulations Laundering
E Regulatory Requirements Relating under SFA/SFR(LCB) Customer Identification
To Market Conduct & Trading Trading Related Rules under SGX-ST Record Keeping
Introduction Rules Reporting Suspicious Transactions
Market Misconduct under the SFA The Disciplinary Process Compliance and Training
Market Misconduct under SGX-ST
Rules

module 2 Rules and Regulations for Trading in Futures Contracts (for members of the Singapore Mercantile
Exchange (“SMX”))
B A The Regulatory Bodies and D Security Deposit and Margin G Post Trade Management
Regulations Requirements Order and Trade Modification
administered by
IBF Monetary Authority of Singapore Introduction Manual Trade Entry
SMX Overview SMX Membership Give-Up Trades
The Role of SMX Broker Member (BM)
The Role of SMXCC Remote Member (RM) H Clearing, Settlement and Delivery
Regulation Of Commodity Derivatives Trade Member (TM) Introduction
Markets By SMX/SMXCC SMXCC (Clearing) Membership Novation
General Clearing Member (GCM) Settlement Guarantee Fund
B Requirements for Members and Special Clearing Member (SCM) Multilateral Netting
Nominated Representatives - SMXCC Membership Structure Daily Settlement Price (DSP)
Introduction Appointment of Nominated Final Settlement Price (FSP)
SMX Membership Representatives Settlement
Broker Member (BM) Authorised Users - Cash Settlement
Remote Member (RM) - Physical Settlement
Trade Member (TM) E Trading Daily Settlement Amount (DSA)
SMXCC (Clearing) Membership Dealing on Behalf of Customers Final Settlement Amount (FSA)
General Clearing Member (GCM) Customer Money Settlement Bank Interface
Special Clearing Member (SCM) Placing an Order Daily Pay-Ins and Pay-Outs
- SMXCC Membership Structure Types of Orders Accepted by the Settlement of Physical Delivery
Appointment of Nominated Exchange
Representatives - Orders with Time-Related I Default and Discipline
Authorised Users Parameters Managing Default Risk
- Orders with Price-Related Inspections and Investigations
C SMX Products Parameters Event of Breach
Introduction Prices Declared Default
Standardisation of SMX Futures - Bid Price Rights of the Exchange
Contracts - Ask Price Disciplinary Rules
- Contract Details - Last Traded Price Appeals Rules
- Delivery Details Trading Hours
- Delivery Logic Automated Trading System J Regulatory Requirements Relating To
- Base Price Customer Systems Business Operations
- Life of a Futures Contract Exchange Gateways Record keeping requirements under the
- Expiration Date Exchange Servers and Applications SFA and SFR(LCB)
Registering an EFP and/or an EFS Market Data Customer Assets Requirements under
Transaction - Level 1 Data – Best Bid / Ask Data SFA and SFR(LCB)
- Nature of the Transaction - Level 2 Data – Market Depth Data Conduct of Business Requirements under
- Relationship of Instruments End of Day / Historical Data the SFA and SFR(LCB)
- Relationship of the Parties to the Order Validation and Matching
Transaction Daily Price Range (DPR) K Regulatory Requirements Relating To
- Price of the Transaction Market Makers Market Conduct & Trading
- Restrictions during the Delivery Messages To Members Market Misconduct under the SFA
Period Penalties for Market Misconduct under
- Documents required at the Time F Risk Management and Surveillance the SFA
of Registering EFP and EFS Introduction Trading Related Acts/Regulations under
Transactions Alerts SFA/SFR(LCB)
- Documents Required to be Margin Utilisation Monitoring
Maintained by Members in Variation Margin Monitoring
Support of EFP/EFS - Example of VM Computation
Transactions Intraday
- Procedure for Registering EFP and - Example of VM Computation at the
EFS Transactions on the End of the Day
Exchange Position Limits
- Exchange Approval Market Irregularities and Manipulative
- Audit Trail Trade Practices
Appendix 10
 module 2 Rules and Regulations for Trading in Futures Contracts (for members of the Singapore Mercantile
Exchange (“SMX”))
B L Prevention of Money Laundering and MAS Notice on Prevention of Money Record keeping
administered by
IBF Countering The Financing Of Terrorism Laundering Reporting Suspicious Transactions
Introduction to Prevention of Money Customer Due Diligence (“CDD”) Internal Policies, Compliance, Audit
con’t Laundering and Countering The Simplified Customer Due Diligence and Training
Financing Of Terrorism Enhanced Customer Due Diligence ANNEXURE: Know Your Customer
Summary of the Key Provisions of the Performance of Customer Due Checks (MAS Notice)
CDSA Diligence Measures by Appendix 1: Intermediary Introduction
Intermediaries Certificate

module 3 Rules and Regulations for Fund Management

A Fund Management Regulatory D Conduct of Business Recognised CISs
administered by
IBF Bodies and Self-Regulatory Introduction Administration of Recognised CISs
Organisations Returns to the MAS Managers of Recognised CISs
The Monetary Authority of Singapore Register of Interests in Securities Application for Authorisation or
Singapore Exchange Limited (SGX) Record Keeping Requirements Recognition of a CIS
and Singapore Exchange Securities Handling of Customer’s Assets Refusal to Authorise or Recognise a CIS
Trading Ltd (SGX-ST) Customer's Money and other Assets Prospectus and Offer Documents
The Central Depository (Pte) Ltd (CDP) Statement of Account to Customers Restrictions on Advertisements
Singapore Exchange Derivatives Limits for Unsecured Credit and Credit
Trading Limited (SGX-DT) Facilities G Central Provident Fund Investment
SGX Regulation of the Securities and Securities Borrowing and Lending Scheme (CPFIS)
Futures Market Advertisements Introduction to the CPFIS
MAS-SGX Regulatory Relationship Certain Representations Prohibited FMCs
Investment Management Association Disclosure of Certain Interest in Investment Products under the CPFIS
of Singapore Respect of Underwriting Agreement Application and Admission Criteria for
Outsourcing Arrangements Funds Managed by FMCs
B Fund Management Regulations and Fund Management Accounts
Guidelines E Market Conduct Risk Classification for CIS Included
The Securities and Futures Act Introduction under the CPFIS
CPF Investment Scheme Types of Market Misconduct in Disclosure Requirements for FMCS
Prevention of Money Laundering and Relation to Securities under the CPFIS
Countering the Financing of Types of Market Misconduct in Compliance with the CPFIG
Terrorism Relation to Futures and Leveraged
IMAS Code of Ethics and Standards of Foreign Exchange Trading H Prevention of Money Laundering
Professional Conduct Insider Trading Introduction to Prevention of Money
Continuing Disclosure Obligations Laundering
C Licensing Extra-Territorial Jurisdiction Summary of Key Provisions of the CDSA
Licensing Requirements for Fund Penalties for Market Misconduct and MAS Notice on Prevention of Money
Management Insider Trading Laundering
Capital Requirements for a CMS Customer Due Diligence (CDD)
Licence Holder for Fund F Collective Investment Schemes Simplified Customer Due Diligence
Management Introduction Enhanced Customer Due Diligence
Representatives of a CMS Licence Offers of CIS Performance of Customer Due
Holder Authorised CISs Diligence Measures by
CEO and Directors of a CMS Licence Continual Compliance for Authorised Intermediaries
Holder CISs Record Keeping
Guidelines on Fit and Proper Criteria Managers of Authorised CISs Reporting Suspicious Transactions
Extra-Territoriality of the SFA Trustees of Authorised CISs Internal Policies, Compliance, Audit
Operations Pertaining to Authorised and Training
CISs

module 4 Rules and Regulations for Advising

A The Regulatory Bodies
on Corporate Finance
General Principles Listing Requirements for Foreign
A The Monetary Authority of Singapore Types of Offer Issuers of Securities
Singapore Exchange Limited Concert Parties Investment Funds
administered by
IBF
Securities Industry Council Period Leading to an Offer: Some SGX-ST Corporate Disclosure Policy
Relevant Rules
B SFA and Regulations Conduct During the Offer: Some E Public Listing of Companies
Stabilisation Action During IPO Relevant Rules Introduction
Offering of Investments Offer Timetable - Key Dates Listing Process
Disclosure of Interest in Securities Lodgment of Documents Prospectus Requirements
Prohibition of Insider Trading and Acceptances Advantages and Disadvantages of a
other Market Misconduct Whitewash Waiver Public Listing
Other Methods of Issuing Capital by a
C Singapore Code on Take-Overs and D SGX-ST Listing and Disclosure
Mergers Listed Company
Requirements
Introduction Listing Requirements
Compliance with the Code Debt Securities

11 Appendix
 module 4 Rules and Regulations for Advising on Corporate Finance (Solely Debt Securities)
B A The Regulatory Bodies Listing Procedures in Respect of Provisions of Appendix 7.1 of the
The Monetary Authority of Singapore Submission for Debt Securities Listing Manual
administered by
IBF Continuing Listing Obligations Exceptions to the Disclosure
Singapore Exchange Limited
Securities Industry Council Obligations
D Prospectus Requirements Examples of the Operation of the
B Regulations Regarding Debt Under the SFA Disclosure Obligation
Offerings Lodgment and Registration of the Confidentiality
Paying Agent Prospectus Clarification or Confirmation of
Release of Reports Supplementary or Replacement Rumours or Reports
Adjustments Documents Unusual Trading Activity
Trustee and Trust Deed Stop Orders Policy on Thorough Public
Return of Subscription Monies Paid by Dissemination
C Listing Requirements for Debt Investors Content and Preparation of Public
Securities Announcement
General E SGX-ST Corporate Disclosure Policy Policy on Insider Trading
Listing Requirements for Local Debt Disclosure Obligations under the Role of Market Surveillance
Securities Listing Manual
Listing Requirements for Foreign Compliance with CG Code
Debt Securities

module 5 Rules and Regulations for Financial Advisory Services

administered by
SCI A The Regulatory Bodies and C Conduct of Business Product recommendations and
Associations Restriction on granting unsecured presentation
The Monetary Authority of Singapore loans Client review
Singapore Exchange Ltd & Obligation to disclose product
Singapore Exchange Securities information to clients E Minimum Sum Scheme, CPF
Trading Ltd (SGX-ST) Statements by licensees Investment Scheme (CPFIS)
The Central Provident Fund Board Recommendations by licensees and Supplementary Retirement
The Investment Management Receipt of clients’ money or property Scheme (SRS)
Association of Singapore Obligation to furnish information to Minimum Sum Scheme
Life Insurance Association of Authority Features of CPFIS and SRS
Singapore Insurance broking premium accounts Differences between CPFIS and SRS
Negotiation and placement of risk Conduct of financial advisers related
B The Regulations with unregistered insurer to CPFIS
Financial Advisers (FA) Act and FA Representations by licensees
Regulations Licensees to disclose certain interests F Guidelines on Money Laundering
Written Directions/Guidelines in securities Key legal obligations
MAS Notices Offences Basic principles and policies to
Code of Conduct Securities hawking prohibition combat money laundering
Code on Collective Investment - Know your customer
Schemes D Financial Needs Analysis - Compliance with laws
Fact Find - Cooperation with law enforcement
Identifying client’s needs agencies
Quantifying the needs - Policies, procedures and training

module 6 Securities Products and Analysis

A Investments and Financial Markets Challenges to technical analysis Time path of a bond
administered by
IBF Financial assets Technical indicators Measures of bond yields
Financial markets Term structure of interest rates
F Economic Analysis Measures of bond price volatility
B Risk and Return Components of growth Convertibles
Risk-return trade-off Economic indicators
Measures of return Monetary policy I Futures
Measure of risk Fiscal policy Futures contract
Structure of futures markets
C Financial Statement Analysis G Industry Analysis Mechanics of futures trading
Major types of financial statements Industry life cycle Uses of futures contracts
Financial ratio: types and uses Competitive forces and industry Spot-futures parity theorem
DuPont system of analysis structures Stock index futures
Comparative and trend analysis Business cycle analysis Interest rate futures
Limitations of ratio analysis Single Stock Futures (SSF)
H Fixed Income Securities Analysis Differences between stock, SSF and
D Equities Securities Analysis Types of fixed income securities Stock Index Futures
Characteristics and type of equity Characteristics and features of bonds
securities Type of risks in bonds J Options
Stock market indices Valuation of bond Definitions and terminology
Equity valuation methods Relationship between bond price Call options, put options and
and required yield warrants
E Technical Analysis Relationship between coupon rate, Payoffs and profits from option
Basic philosophy and assumptions required yield and price positions

Appendix 12
 module 6 Securities Products and Analysis
Option strategies Foreign exchange swap N Portfolio Theory
Option valuation Swaps in capital markets Diversification and portfolio risk
administered by
IBF Interest rate swaps
Attractions of options Systematic and unsystematic risk
con’t Stock index options Currency swaps Correlation coefficient
Interest rate options Calculating portfolio return and risk
Currency options M Unit Trusts/Funds Products International diversification
Definition of unit trust Capital Asset Pricing Model and
K Warrants and Other Investment Investment trusts other asset pricing models
Products Advantage of investing in unit trusts
Warrants Types of funds (including unit trusts O Portfolio Management
Exchange-Traded Funds and hedge funds) Portfolio management process
American Depository Receipts Innovative unit trust schemes Determinants of investment policy
Real Estate Investment Trusts (REITS) Asset allocation
L Foreign Exchange and Swap Charges and fees
Contracts Bid and offer prices P Performance Measurement
The foreign exchange market CPFIS – Risk classification system Measuring investment returns
Foreign exchange rate quotations Evaluation of unit trusts Risk-adjusted measures of
Forward foreign exchange contract performance
Performance attribution

module 7 Futures Products and Analysis

administered by
IBF A Fundamentals of Futures Contracts Trader Arbitraging
Characteristics of a futures contract - Spread trading - Cash and futures arbitrage
Types of futures contracts - Inter-commodity and - Yield curves
(include stock index futures and inter-market spread
single stock futures contracts) - Managing risk/reward C Fundamentals of Options
Stock, single stock futures and Fundamentals of options pricing
relationship
stock index futures differences Types of options contracts
Hedging
Types of orders (including options on futures)
Futures vs cash markets - Measuring risk
Specifications of options contracts
Contract specifications and value - Relationship between cash and
Trading strategies
Participants in the futures market futures prices
- Convergence of basis D Forecasting Techniques
B Futures Applications - Long and short hedge Fundamental analysis
Speculating - Developing an effective hedge Technical analysis
- Scalper, day trader, position programme Statistical analysis
- Managing the hedge

module 8 Collective Investment Schemes

A Investment and Financial Markets Liquidity Types of funds (including unit trusts
administered by
SCI Types of investment Time horizon and hedge funds)
Financial markets Tax consideration Innovative unit trust schemes
Regulation and legal constraints Real Estate Investment Trusts
B Risk and Return Diversification (REITS)
Risk-return trade-off Charges and fees
Measures of return D Unit Trust/Funds Products Bid and offer prices
Measures of risk Unit Trust/Investment Trust Forward pricing vs historical
The required rate of return Role of Trustee pricing
Role of fund managers CPF Investment Scheme
C Consideration for Investments Advantages of investment in - Risk Classification System
Investment objectives and risk unit trusts Evaluation of unit trusts
tolerance

module 9 Life Insurance and Investment-Linked Policies

PART 1 INTRODUCTION AND BASIC PRINCIPLES
administered by
SCI
A Risks and Insurance What is insurable interest PART 2 BENEFIT DESIGN
Risks
Insurance as a risk transfer C Financial Markets and Investment Risks A Classification Of Life Insurance Products
mechanism Investment and financial markets Ways of classifying life insurance
Types of personal risks that can Risk and return products
be insured Considerations for investments - by statutory insurance fund
What is life insurance - by product type
Uses of life insurance D Setting Life Insurance Premium - by premium type
Pricing consideration - by ownership
B Basic Life Insurance Principles Determining gross premium
Law of large numbers Other factors that affect the amount of
Principle of utmost good faith >
premium that a policy-owner has to pay
and life insurance

13 Appendix
 module 9 Life Insurance and Investment-Linked Policies
PART 2 BENEFIT DESIGN
administered by
SCI B Non-Participating Insurance How does ILP work for regular
What is ILP
con’t Products Purposes of ILPs premium
What is meant by non-participating Types of ILPs
insurance G Investment-linked Funds
How do non-participating insurance E Definitions, Features and Charges Definitions of investment-linked funds
products work of Investment-linked Insurance Types of investment-linked funds
Types of non-participating policies Products
Premium payment modes Definitions H Benefits and Risks of Investment-
Benefits and limitations of non- - Bid price, offer price, bid-offer linked Insurance Products (ILPs)
participating insurance spread Benefits
- Single pricing Risks
C Participating Insurance Products - Premium allocation Compare ILPs with unit trusts
What is meant by participating - Reduced allocation period
insurance - Front-end load/Back-end load/ I Annuities
How do participating insurance Level load What are annuities
products work - Single/different accounts How do annuities work
Types of participating policies - Forward pricing and historic pricing Parties to an annuity contract
Premium payment modes Features of investment-linked life Types of annuities
Benefits and limitations of insurance products Variations of annuity policies
participating insurance Types of charges
J Group Life Insurance
D Introduction, Purposes and Types F How do Investment-linked Characteristics of Group Life
of Investment-linked Insurance Insurance Products (ILPs) Work Insurance
Products (ILPs) How does ILP work for single premium Types of Group Life Policies
PART 3 DISCLOSURE AND SALES PROCESS
A Establish Client’s Needs B Disclosure Requirements Benefit illustration
Considerations for life insurance LIA disclosure guidelines Proposal form
Considerations for annuities Your guide to life insurance Policy contract
Product summary
PART 4 NEW BUSINESS AND UNDERWRITING
A Application and Underwriting Other sources of underwriting Effecting the annuity policy
Life Insurance application form information General underwriting principles
Basic principles of underwriting Underwriting decision for Group Life Insurance
Medical and non-medical applications Commencement of risks
PART 5 POLICY SERVICES AND CLAIMS
A Premium Payments Policy loans Joint ownership
Modes of premium payments Withdrawing cash bonus Claims settlement
Methods of premium payments Documents required for the
Premium receipt C Policy Lapses and Surrenders settlement of death claims
Premium notice Lapsing of policies Disability claims
How insurance advisers can help Reinstatement of lapsed policies Maturity claims
their clients Surrendering of policy Dread disease rider claims
Alternatives to surrendering of policies Hospital cash (income) rider claims
B Policy Transactions Documents required for the Benefit rider claims
Why are policy alterations necessary surrendering of policies Personal accident claims
Types of alteration Settlement options
Duplicate policy D Claims: Death, Disability and Maturity Annuity payout & claims
Assignment of a policy Death claims procedures
PART 6 LAW AND TAXATION
A Law of Contract C Income Tax and Life Insurance Gifts and estate duty
What is a contract What is taxable Assigned policies
Elements of a valid contract Assessable income and chargeable Trust policies created under
Life insurance contract income Section 73 of the Conveyancing
Common contract provisions in Personal reliefs and deductions and Law Of Property Act (Cap. 61)
an annuity policy Rates of tax Use of life Insurance to pay off
- Rebates estate duty
B Law of Agency - Tax position of a person who does Policies taken on another person’s
Agency, agents and principals not contribute to CPF life
Creation of an agency - Tax position of a person contributing Computation of estate duty
Duties of an insurance agent to CPF
Agent’s authority - Tax benefit for SRS participants E Beneficiary, Wills and Trust
Acts outside authority on withdrawal Nomination of beneficiary
Ratification of a contract Tax on annuity proceeds The will
Waiver and estoppel What is a trust?
Rights of an agent D Estate Duty and Life Insurance Policies issued under Section 73
Termination of agency What is an estate of the Conveyancing and Law of
Types of agency What is dutiable Property Act of Singapore (Cap. 61)
Role of agents in claims What is “property passing on death” Bankrupts

Appendix 14
 module 10 Rules and Regulations for REIT Management, with Product Knowledge and Analysis
SECTION I : INTRODUCTION H Due Diligence Corporate Disclosure Policy Under the
administered by
IBF A Introduction to Singapore Real Overview of the Due Diligence Process SGX-ST Listing Manual
Estate Investment Trusts (S-REITs) Scope of Due Diligence Best Practices on Dealing in Securities
Overview and History Objectives of Due Diligence Penalties for Market Misconduct and
Structure and Nature of an S-REIT Areas of Due Diligence Insider Trading
Key Elements of an S-REIT and Roles Due Diligence (Property / Technical)
of Key Participants in an S-REIT Due Diligence (Legal) M Prevention of Money Laundering
Regulatory Bodies The Due Diligence Process Introduction
Legislation, Rules & Regulations Verification Meeting Process of Money Laundering
Differences Between S-REIT and Sources of Law Governing Money
Securities Collective Investment SECTION III : RULES & REGULATIONS Laundering and Terrorism Financing
Schemes I Legal Framework of S-REITs and Property Corruption, Drug Trafficking and Other
Funds Guidelines Serious Crimes (Confiscation of Benefits)
SECTION II : PRODUCT KNOWLEDGE Introduction Act
B Introduction to the Property Market Definition of “Collective Investment Scheme” Liabilities for Breaching the Five Basic
Property Market (Asset Classes & Offers of Units in a Collective Investment Money Laundering Offences
Geographical) Scheme Failure to Comply with Enforcement Law
Types of Asset Classes Authorised Collective Investment Schemes Agencies
Real Estate as an Asset Class Trustee Record Retention Obligation Under CDSA
Features of Property as an Investment Manager New Reporting System for Cross Border
Advantages of Real Estate Investment Trust Deed Movements of Physical Currency and
Disadvantages of Real Estate Permissible and Restricted Investments Bearer Negotiable Instruments
Investment Valuations Anti-Terrorism Financing Law
Portfolio Diversification (Asset Class Aggregate Leverage Limits MAS Notice and Guidelines on Prevention
& Geography) Maintaining a Register of Participants of Money Laundering and Countering
Global Real Estate Markets Accounts and Reports the Financing of Terrorism
Other Operational Obligations Basic Principles and Policies to Combat
C Yield Considerations For Property Related Party Transactions Money Laundering and Terrorism
Investment Application for Authorisation of S-REIT Financing
Yield Considerations Revocation, Suspension or Withdrawal of Customer Due Diligence (“CDD”)
Valuation Authorisation Simplified CDD
Valuation Methodology Winding Up an S-REIT Enhanced CDD
Performance of Customer Due Diligence
D Basic Asset Management of Property J Regulatory Requirements relating to Offer of Measures by Intermediaries
What is Asset Management? Units in S-REIT Record Keeping Obligations Under MAS
What is Property Management? Prospectus Requirements Under the Notice
Outsourcing of Property Management Securities and Futures Act Reporting Suspicious Transactions
Functions Disclosure Documents Internal Policies, Compliance, Audit and
Leases Information to be Included in Disclosure Training
Documents
E Basic Structuring of an S-REIT Liabilities for Not Complying with the N Conduct of Business
Differences Between Listed and Prospectus Requirements Introduction
Private Vehicles Lodgment and Registration of Disclosure Returns to the MAS
Capital Structure Documents Register of Interests in Securities
Debt and Equity Allocation Lodgment of Supplementary Documents or Base Capital Requirement
Replacement Documents Total Risk Requirement
F Pricing and Investing In An S-REIT Duration of Validity of Prospectus Register Representatives
Pricing an S-REIT Stop Order / Interim Stop Order Record Keeping Requirements
Investing in an S-REIT: Key Drivers for Restrictions on Advertisements Penalties
Success Listing Requirements Under the Listing Certain Representations Prohibited
Manual Outsourcing arrangements
G Key Ratios and Performance Use of the Terms “Real Estate Investment
Measures Trust” or “REIT” O Differences between Real Estate
Capitalisation Rate Investment Trusts and Business
Deposited Property K Continuing Listing Obligations Trusts
Net Property Income Introduction Introduction to Business Trusts
EBITDA Announcements and Notifications Regulatory Regime
Equity Market Capitalisation Periodic Reports Use of the Term “Real Estate Investment
Distributable Income Free Float Trust” by a Business Trust
Distributions Per Unit Listing Fees Ownership Rights
Distribution Yield Corporate Governance Key Operational Concepts
Aggregate Leverage Related Party Transactions Enhanced Reporting Requirements of a
Net Asset Value Take-Overs Involving S-REITs Business Trust
Price to Net Asset Value Circulars to Unitholders Board Composition of a Business Trust
Premium/Discount to Net Asset Value Operational Matters Staffing Requirements
Weighted Average Lease Expiry Issue of Units
(“WALE”) L Market Conduct Removal of Trustee-Manager and Manager
Usage Mix Introduction Licensing Framework
Total Returns Types of Market Misconduct in Relation to Rights of Unitholders and Creditors Rights
Debt Headroom Securities
Interest Coverage Ratio (“ICR”) Insider Trading
Debt Service Cover Ratio (“DSCR”) Extra-Territorial Jurisdiction Clause for
Insider Trading

15 Appendix
Singapore College of Insurance The Institute of Banking & Finance
9 Temasek Boulevard 10 Shenton Way
Suntec Tower 2, #14-01/02/03 #13-07/08 MAS Building
Singapore 038989 Singapore 079117
tel: 6221 2336 tel: 6220 8566
fax: 6220 6684 fax: 6224 4947
email: [email protected] email: [email protected]
www.scicollege.org.sg www.ibf.org.sg