M5 Mock Exam 2

CMFAS Module 5 Mock Exam 2
CMFAS MODULE 5
(4th Edition)
Mock Exam 2
AXA Life Insurance Singapore Pte Ltd
AXA Life Singapore Pte Ltd 1

For Internal Use Only. Based on 4th Edition Text (March 2012)
Mock Exam 2
C10/9.4
1. Which of the following is NOT eligible as collateral under the Revised Code on Collective
Investment Scheme?
A. Bonds
B. Cash
C. Money market instruments
D. Bonds with financial derivatives
C10/3.14
2. XYZ Global Equity adopts the high water mark arrangement for calculating its performance
fee. The scheme’s benchmark is the MSCI World Index and its hurdle rate is the return of the
MSCI World Index. The scheme charges a management fee of 2% and a performance fee of
5%. It is assumed that the management fee and performance fees are calculated based on
year end NAV per unit. At year 3, the returns of fund and benchmark are as follows:
XYZ Global Equity : 8%

MSCI World Index Return : 5%
Year 2 HWM =1.03
NAV at the end of year 3 is 1.07
Calculate the total fee for year 3.
A. $0.0234
B. $0.0226
C. $0.0414
D. $0.0264
C8/5.5
3. Which of the following is true in determining competency of a FA and its representative?
A. FA who uses multi-tiered corporation, should ensure that their reps are competent to
handle at each level.
B. FA should train reps to do well in their own scope of work.
C. FA who offered many products to client regardless if reps are competent.
D. FA should ensure reps are train to provide advice on a wide array of product regardless of
qualifications.
C2/2.2.2
4. Which of the following regarding introducers is true?
A. Representative can recruit introducers if FA allows

B. Representative cannot employ introducers
C. FA cannot employ introducers
D. FA can recruit if introducers are not employed for other things like underwriting.

C9/4.3.1(a)
5. Representatives can advise client to switch designated investment product, provided:
A. Reps must ask client to sign whether the rep has drawn his attention to cost and
disadvantages associated with the switch.
B. Reps must sign an indemnity form.
C. Reps to pay for all loss due to the switch.
D. Reps must ask client to declare that he is fully informed of all free switching options.
C2/11.2
6. Under which situation, an individual shall cease to be an Appointed Representative in respect
of any type of financial advisory service?
A. He ceased to be the principal’s representative to provide financial advisory service on

behalf of the principal.
B. His principal ceases to provide that type of financial advisory services.
C. The individual dies
D. All of the above
C2/14.3
7. A principal who lodged a certificate with MAS under Notification Procedure shall keep copies
of all information and document for a period of ____from the date of lodgment?
A. 3 years
B. 4 years
C. 5 years
D. 6 years
C1/4.2.2
8. Which is NOT Investment Management Association of Singapore (IMAS)’s Standard of
Professional Conduct?
A. Business conduct
B. Investment Conduct
C. Client relations
D. Diligence conduct
C2/4.6
9. Which of the following product is NOT an investment product under the ambit of FAA?
A. Loan and Mortgages

B. Investment Linked Products.
C. Collective Investment Schemes
D. Securities and Futures

C10/3.5
10. A redemption request is considered received on day T, if it is received with all requisite
documents and information by the close of the dealings. What will it be for bonds and money
market schemes?
A. T + 5 business day
B. T + 6 business day
C. T + 4 business day
D. T + 7 business day
C7/3.5.5 (a) (sup notes 2/2/2012)

11. Insurer shall send to all policyholders the Semi Annual Report (in respect of ILP Sub-funds
other than property ILP sub-funds) within how many months from the last date of the period to
which the report relates?
A. 2 months
B. 3 months
C. 4 months
D. 5 months
C11/2.3.2
12. Which scheme offers a monetisation option to help low income elderly to unlock part of their
housing equity while continuing living in their homes and receive a life long income stream?
A. CPF Life Scheme

B. Public Housing Scheme
C. Lease Buyback Scheme
D. Eldershield
C1/3.2
13. Which regulatory function of SGX governs the listings of companies in Singapore?
A. Member Supervision
B. Issuer Regulation
C. Enforcement
D. Risk Management
C7/4.3.1(sup notes 2/2/2012)

14. An insurer should make payment as redemption proceeds to policyholders in respect of ILP
sub-funds which invest in another collective investment scheme within:
A. Day T + 6 business day

B. Day T + 4 business day
C. Day T + 5 business day
D. Day T + 7 business day

C7/3.1.1(b) (sup notes 2/2/2012)

15. Insurer shall notify MAS of any significant change to any ILP sub-fund before the change is to
take effect. Which of the following is NOT a significant change?
A. Increase in the remuneration payable to the insurer or manager

B. Increase another distribution channel for sale of ILP products
C. Change from direct investment to feeder fund structure
D. Change in the investment objective of the ILP sub-fund
C6/3.5
16. A Financial Adviser to recommend Structured Deposits,
A. if the client indicates that he may need to withdraw funds prior to the maturity to meet
certain needs.
B. to all high net worth regardless of age.
C. by a trained representative as it involves underlying financial instruments that are
complex and difficult to understand.
D. by a general rule that the more complex a structured deposit, the more educated the
client must be to fully comprehend.
C6/3.7
17. Who can most likely sell Structured Deposits?
A. Front line marketing staff

B. Back end staff who know the clients well
C. Staff who handles client’s fund is distinct from the marketing and advisory process.
D. Train introducers to sell
C6/4.3.4
18. A FA shall not be required to inquire if there exists any beneficial owner in relation to a
customer that is:
A. A foreign government entity

B. Privately owned company in Singapore
C. Company incorporated outside of Singapore
D. Joint law venture or former law alliance
C6/4.3.3
19. Where the customer appoints one or more natural persons to act on his behalf in establishing
business relations, FA shall:
A. Verify and question the customer’s authority

B. Customer’s authority is verified; hence no need to verify the natural persons.
C. Verify the identity of these persons using reliable, independent sources.
D. Verify the authority of such persons.

C6/4.3.1
20. A FA shall identify each customer who applies to the FA to establish business relations.
Which of the following information is Not use for verifying such customer?
A. Full name
B. Marital Status
C. Permanent mailing address
D. Identification number
C5/5.1.3(sup notes 2/2/2012)

21. To be able to advise on and/or marketing of Collective Investment Schemes, which CMFAS
Exam must the representative passed beside module 5?
A. Module 8A
B. Module 6A
C. Module 6
D. Module 9A
C4/3.7.11
22. In the case of an Investment Linked Life Policy, the risk of any fall in the value of the
underlying investments during free look period have to be:
A. Borne by the client

B. Borne by the FA
C. Borne by the representative
D. Borne by both the client and indemnify by the representative
C4/1.4a(sup notes 2 /2/2012)

23. Obligations under “Notice on Recommendations on Investment Products” do not apply to:
A. Mortgage reducing term assurance

B. Credit card balances/loans
C. Investment Linked Policy
D. Whole Life Policies
C4/3.2
24. “The Notice on Information to Clients and Product Information Disclosure” imposes an
obligation on licensed FAs to disclose to their clients and prospective clients all material
information relating to any designated investment product, including the form and manner in
which information shall be disclosed. Which section of the FAA is this from?
A. Section 25
B. Section 26
C. Section 27
D. Section 36

C3/7.2(d)
25. Section 32 of the FAA requires every licensed FA to maintain a separate account with a bank
for its life insurance broking premiums. Only which circumstances can the money be
withdrawn?
A. Credited to the client’s account

B. Erroneously credited into the account
C. Credited to the FA’s account
D. Investment in structured deposit.
C2/12.1
26. Under the FAA(Cap 110), who can be the Chief Executive Officer of licensed financial
advisers?
A. Must possess good academic qualifications

B. Must have sound financial backup
C. Must be fit and proper
D. Must be healthy and of sound mind
C12/6.1.2(b)
27. Which method is for quantifying protection needs to provide for dependants?
A. Replacement Ratio Method.

B. Expense Method
C. Income Approach
D. Multiple Approach
C11/2.3.1
28. CPF members using CPF savings to service their housing loans under the Public Housing
Scheme, are also covered by
A. Dependants’ Protection Scheme

B. Supplementary Retirement Scheme
C. Home Protection Scheme
D. Private Medical Insurance Scheme
C11/2.1.1.(a)
29. Who is most likely exempted from Minimum Sum Scheme?
A. Those who pledge their properties to this scheme

B. Those who use cash to purchase cash retirement policies
C. Pensioners
D. Those who are working beyond the age of 55

C11/3.3
30. The purpose of Workfare Income Scheme is
A. to encourage older low wage workers to work.

B. for employees to receive their workfare in cash payments and contributions to CPF.
C. to encourage older low wage workers to undergo training.
D. to encourage older low wage workers to undergo training and receive better Wages.
C11/2.3.1
31. Public Housing Scheme does not include which of the following?
A. Executive Condominium
B. Design and Build flats
C. Resale flats
D. Private Condominium
C2/4.3(f)
32. Under the First Schedule of the FAA, who is defined as a “excluded financial advisers” and do
not fall within the definition of “financial adviser”?
A. A company or society registered under the Insurance Act.

B. A finance company
C. A holder of a Capital Market Service Licence under the Securities and Futures Act.
D. Any public statutory corporation established under any Act in Singapore.
C1/2
33. Which of the following on MAS’s objectives is Not True?
A. To promote industry best practices and foster a spirit of collaboration and mutual respect
with government and business leaders.
B. Act as a central bank of Singapore
C. Manage the official reserves of Singapore
D. To develop Singapore as an international financial centre
C2/9
34. Representative Notification Framework is about:
A. The onus is on the principal to lodge a notice of intent with MAS to apply for a valid licence
B. The onus is on the principal to accept only fit and proper individuals as their
representatives.
C. The onus is on MAS to take a heavier role to ensure representatives are fit and proper.
D. MAS will issue licences to representative of licensed financial advisers before their names
are listed in the Public Register.

C2/6.1
35. Under the FAA, the Exempt Fund Managers who are exempted from holding a FA’s license to
conduct regulated activities can serve up to how many accredited investors?
A. 25
B. 30
C. 35
D. 60
C8/6.4
36. Who can be “independent” under the Guidelines on the use of the term “independent” by the
financial advisers?
A. FA is confined to selling product provider’s investment products

B. FA to only give advise on and/or distribute that life insurer’s life policies
C. FA is not required to meet specified sales targets
D. FA represents less than 4 product providers for each class of investment products.
C4/3.7.3
37. Representative of financial advisers when recommending collective investment scheme
should advise clients that:
A. Units are held in the client’s name

B. Units are held in the FA’s name
C Units are held in a nominee company’s name
D. Units are held in the representative’s name.
C2/6.1
38. Which prerequisites under the FAA, must be met by the Exempt Fund Managers who are
exempted from holding a FA’s license to conduct regulated activities?
A. Confidence and competence

B. Capability and confidence.
C. Competence and capability
D. Capability and credibility
C2/9.2
39. Under the new framework is the Public Register of Representatives for representatives
engaged in financial advisory services. Which of the following information is NOT contained in
this Register?
A. Disciplinary action taken

B. Past Principals
C. Marital Status
D. Current and past types of financial advisory service provided

C11/2.4.1b(ii)
40. Which of the following statements is incorrect?
A. A member wanting to invest his CPF Special Account money must open a CPF
Investment Account with one of the approved CPFIS agent banks.
B. Investing CPF Special Account does not require a CPF Investment
Account with any bank.
C. CPF Investment Account is needed to facilitate a member who wants to invest his CPF
Ordinary Account.
D. Each member can maintain only one CPF Investment Account.
C6/4.3.4
41. Under which situation is a financial advisor required to inquire if there exists any beneficial
owner in relation to a customer?
A. A Singapore government entity.

B. A foreign government entity.
C. An entity listed on the Singapore exchange.
D. A natural person
C3/5.2
42. Money collected by the financial adviser from a client under a Collective Investment Scheme
must be handed to the provider by the next business day unless there is special reason to
delay. Which one of the following reasons is considered acceptable?
A. The financial adviser is too busy with other administrative work.

B. The financial adviser has deposited the money in the bank to help the client
earn interest.
C. The financial adviser has obtained written consent from the client to hand over the
money after the specified date.
D. The money is held by the financial adviser’s representative and the representative has
forgotten to hand it over to the financial adviser.
C2/3.3, 10.1
43. The principle of accountability is to ensure absolute clarity to the investors who would be
accountable for the representative. Which statement is TRUE?
A. If a person is a tied agent, he can be a licensed financial adviser.

B. An appointed representative may be a representative of more than one principal if the
principals are related corporations.
C. An appointed representative may be a representative of more than one principal if he
and the principals are related.
D. An appointed representative shall not be a representative of more than one principal
even if the principals are related corporations.

C2/10.4
44. No individual will be allowed to act as a representative or hold himself to be a representative
of a financial adviser unless:
A. his name is entered in the Representative Notification Framework.

B. he meets the entry and examination requirements.
C. he meets the minimum paid up capital.
D. he has maintain in force a professional indemnity insurance policy.
C2/12.1c
45. Which of the criteria to be appointed as a Provisional Representative is false?
A. who satisfies the entry requirements

B. who intends to undergo an examination in order to satisfy the examination requirements
C. who has not previously been appointed as a provisional representative by MAS
D. whose name is entered in the public register as appointed representative.
C1/2.2c
46. Which of the following Tenets of Effective Regulation issued by MAS, deals with allowing
exercise of supervisory judgment to set higher standards or permit exemptions when merited
by circumstances?
A. Risk Appropriate
B. Shared Responsibility
C. Impact Sensitive
D. Responsive to changes and cycles
C3/15
47. Section 59(2) of the FAA provides that MAS has the power to issue Prohibition Orders.
Which of the following is untrue of Prohibition Orders?
A. It can permanently prevent a person from providing financial advisory services.

B. It can prohibit a person form becoming a substantial shareholder of a licensed financial
adviser.
C. It can be revoked.
D. It would be issued for any non compliance of FAA.
C3/12
48. Section 56(1) of the FAA provides that licensed financial advisers are required to seek
approval from the MAS for the appointment of its Chief Executive Officer via which form?
A. Form 11.
B. Form 12
C. Form 3A
D. Form 3B

C12/5.3.4
49. Which of the following is not regarded as Committed Expenditure?
A. Housing
B. Income tax
C. Insurance Premium
D. Transportation
C3/15.2
50. Which of the effects of a Prohibition Order (PO) issued by MAS is not true?
A. Prohibition a person from providing financial advisory services.

B. Prohibition a person from becoming a substantial shareholder of a licensed financial
adviser.
C. Removal of an officer from a licensed financial adviser.
D. Prohibit a FA from employing against a person served with a PO to provide a certain
type of financial advisory services.
C1/2.1.4
51. Which of the following statements correctly describes “Notices” and “Guidelines” under the
FAA?
A. Notices are not legally enforceable. Contravention of it is NOT an offence under the
Act.
B. Guidelines are legally enforceable. Contravention of it is an offence under the Act.
C. Notices are good practice and general guides; they do not create any legally
enforceable obligations.
D. Guidelines are good practice and general guides; they do not create any legally
enforceable obligations.
C4/1.4a (sup notes 2/2/2102)

52. The obligations under “Notice on Recommendation On Investment Products” shall not apply
to simple life policies sold as an ancillary product such as to cover personal loans, car loans
and credit card loans. True or False?
A. True but it excludes mortgage reducing term assurance plan

B. True and it includes mortgage reducing term assurance plan
C. True and it includes collective investment schemes
D. False
C5/6.5
53. Which of the aspects on “Misconduct of Representatives” is most true?
A. FA should ensure fairness in their disciplinary actions

B. FA should suspend representatives from providing FA services.
C. FA should ensure consistency in melting out disciplinary actions.
D. FA should serve a Prohibition Order for very severe cases.

C8/6.4
54. Under Regulation 21 of the FAR, FA shall use the word "independent" in certain situations.
Which of the following is untrue?
A. It operates free from any direct or indirect restriction relating to any investment product
which is recommended.
B. There is no conflict of interest created by connection to any product provider.
C. It does not receive any commission or other benefit from a product provider which may
create product bias.
D. FA represents less than 4 product providers for each class of investment products.
C8/7.1
55. Guidelines on Applications for Approval of Arrangement under Para 11 of the 1st schedule to
the FAA deals with :
A. Allows a foreign company to provide FA services if its related corporation is a licensed

FA or exempt FA.
B. Allows a foreign company to provide FA services provided to not more than 30
accredited investors on any one occasion.
C. Do not allow a foreign company to provide FA services if its related corporation is a
licensed FA or exempt FA.
D. Do not allow a foreign company to provide FA services unless the related corporation
is not an exempt FA but a licensed FA under the FAA.
C11/2.4 & 2.3

56. Which of the similarity between CPFIS (special account) and Supplementary Retirement
Scheme (SRS) is true?
A. Profits cannot be withdrawn for both schemes.

B. Both are voluntary schemes
C. SRS savings can be withdrawn at anytime for any amount and the same applies to
Special Account under CPFIS.
D. Health insurance are allowed for both schemes
C5/ 5 (Sup notes 2/2/2012)

57. Capital Markets & Financial Advisory Services (CMFAS) examination is from ___________.
A. Investment Management Association of Singapore

B. Monetary Authority of Singapore
C. Association of Financial Advisors
D. Life Insurance Association

C2/18
58. Any person who is aggrieved by the refusal of MAS under Section 23 of the FAA to enter his
name in the Public Register,
A. may appeal to the MAS within 7 days after he is notified.

B. may appeal to the Minister within 30 days after he is notified.
C. does not have a right to appeal, as the decision is final.
D. may have to re-file his entry again.
C3/7.3
59. What must financial adviser do if the amount of money received for investment is less than the
amount of money taken from the Insurance Broking Premium Account to invest?
A. Pay into the account the amount taken for investment.

B. Pledge extra collateral.
C. Offset against future profit.
D. Pay an amount equal to the difference between the amount invested and the amount
realised.
C1/2
60. Which of the following is a mission of Monetary Authority of Singapore?
A. To manage the official foreign reserves of Singapore

B. To conduct Integrated supervision of financial services and financial stability
surveillance.
C. To develop Singapore as an international financial centre
D. To sustain non-inflationary economic growth and promote a sound
progressive financial services sector.
C1/5.1
61. Which of the following is not an objective of Investment Management Association of Singapore
(IMAS)?
A. To promote professionalism and exemplary practice among members in their conduct of

investment management business.
B. To provide a forum for members to discuss issues relating to the investment
management industry
C. To be unified in their resolve to deliver innovative solutions where every individuals
needs are best met.
D. To promote public investor education.
C9/5.4
62. Which fair dealing outcome is to enable the customers to receive clear, relevant and timely
information to make informed decisions?
A. Fair Dealing Outcome Two

B Fair Dealing Outcome Three
C. Fair Dealing Outcome Five
D. Fair Dealing Outcome Four

C2/2
63. Which of the following statements is most correct about the Financial Advisers Regulations
(FAR)?
A. The FAR is a primary legislation to the FAA

B. The FAR is an optional legislation to the FAA
C. The FAR is a subsidiary legislation to the FAA
D. The FAR is a secondary legislation to the FAA
C5/2.3.2
64. When an introducer agrees to do the introducing job for the financial adviser, he has to comply
with which of the following?
A. The introducer when carrying out introducing activities can perform it as a full time
occupation.
B. The introducer has to state that all advice and opinions given is solely his own opinions.
C. The introducer has to get involved in the provision of the financial advisory service as
provided for by the financial adviser.
D. The introducer has to disclose to all the clients whether or not he will be remunerated by
the financial adviser for carrying out introducing activities.
C2/5.4
65. What is the minimum financial requirement for the grant of a financial adviser’s licence if they
are advising others, either directly or other form, concerning futures contracts or foreign
exchange trading.
A. S$150,000.
B. S$300,000
C. S$400,000.
D. S$500,000.
C2/5.4
66. A licensed financial adviser who contravenes the minimum financial requirement in application
of a licence is guilty and liable to a conviction of a fine not exceeding:
A. S$25,000
B. S$30,000
C. S$50,000
D. S$75,000
C7/4.17.1(Sup notes 2/2/2012)

67. Insurer should ensure that the units of an ILP sub fund should be valued every business day
with the following exceptions. Which is true?
A. ILP sub fund that does not offer dealing every business day, it should be valued at
least once a month.
B. ILP sub fund that does not offer dealing every business day, it should not promote such
funds.
C. Property ILP sub fund; a full valuation at least once every quarter.
D. ILP sub fund that invest in structured deposit; at least once every 3 months.

C4/1.6.3e (Sup notes 2/2/2012)

68. When a client does not want to accept recommendations of the FA and chooses to purchase
another product, FA has to highlight:
A. in writing that it is the client’s responsibility to ensure suitability of product selected.

B. in writing that it is the FA’s responsibility to ensure suitability of product selected.
C. it will not proceed with the client’s request as it does not meet reasonable basis of
recommendation.
D. it will proceed with the client’s request provided the client declare in writing that the
representative has drawn his attention to possible disadvantages of his decision.
C5/5.4(Sup notes 2/2/2012)

69. Who needs to re-take CMFAS Module 5 Exam to provide financial advisory services?
A. Individuals who have passed Module 5 but subsequently ceased providing

financial advisory services for 1 year before joining another FA.
B. Individuals who are exempted from Module 5 but require to complete the
non examinable course on Module 5, with no cessation of providing financial advisory
services.
C. Individuals who have passed Module 5 but did not commence provision of financial
advisory services with a FA within 3 years of the date of passing.
D. A representative of an exempt FA providing executed related advice, who has attended
the non examinable course on Module 5 and has ceased provision of such service for
a period not exceeding 3 years.
C8/6.1
70. The concept of independence is a important consideration because :-
A. Representatives of FAs ought to be independent to provide independent sound

financial advice.
B. Every client needs to make independent decision as to whether which product is
suitable for them.
C. It has to do with taking into consideration customer’s interest and operates with
objectivity and impartiality in providing advice by representatives of FAs.
D. It means representatives of FAs cannot receive commission from product providers.
C2/6.3
71. Define an “Accredited Investor”
A. A individual whose net personal assets exceed S$1m.

B. A individual whose income is less than S$200,000.
C. A corporation with net assets exceeding S$5m.
D. An entity with net assets exceeding S$10m.

C2/8
72. Financial advisers shall use the word “Independent” or any of its derivatives in any language
to promote its services if:
A. It does not receive any commission, to prevent biases.

B. It operates in connection with an association with a product provider.
C. It operates free from indirect restriction
D. It represents solely one product provider.
C11/2.3.1(b)(iv)
73. Any member who purchased a property under Public Housing Scheme by making false
statement, the board shall:
A. Impose a fine and imprisonment

B. Impose a fine
C. Seize the property.
D. Prevent member from another purchase.
C8/8.1
74. Who is considered a “high net worth individual”?
A. Maximum of S$1 million of assets.

B. An annual income of S$500,000
C. Minimum of S$500,000 in the form of life policies.
D. Total net personal assets of S$1.5 million or equivalent in foreign
currencies.
C7/ 4.20.5(Sup notes 2/2/2012)

75. Where more than 10% of the ILP sub fund’s assets are in Collective Investment Schemes,
which are constituted in a foreign jurisdiction, insurer together with its related corporations
should be managing at least ________of discretionary funds.
A. S$500,000
B. S$500 million
C. S$5 million
D. USD50,000
C2/6
76. Which category of “exempt persons” who conduct regulated activities or provide financial
advisory services in Singapore are exempted from holding a financial adviser’s licence with a
clientele restrictions of up to 30 qualified or accredited investors?
A. A Merchant Bank
B. Exempt Fund Manager
C. Society registered under the Insurance Act
D. A holder of a Capital Markets Service Licence

C3/9.1
77. Section 34 of the FAA provides that, with regard to the proposed contract of insurance, FA
should not :-
A. Omit to disclose to the insurer any material matter to the proposed contract.
B. Advise the insured to give information on matter that is material
C. Give any written material to the insurer that is false and misleading unless the insured
himself provides such information.
D. At all time ensure that representation and information provided to the insurer is clear
and accurate.
C12/5.3.2
78. What are some of the reasons why you have to find out about the client’s occupation and his
employment status?
A. To measure hazard and ability to commit.

B. To measure pay and affordability
C. To measure amount needed for retirement.
D. To measure income protection and the plan suitable for it.
C3/17
79. What is the likely offence that the licensee had committed, if it is punishable by a fine not
exceeding $100,000?
A. Negligence committed by a director of a company who fail to comply with the FAA.
B. Non disclosure of suspicious transactions
C. Contravention of the Prohibition Order issued by MAS.
D. Failure to performed enhanced customer due diligence on Politically Exposed
Persons(PEP).
C2/9.2
80. Underpinning the new Framework, Public Register of Representative is established for
representatives engaged in the financing advisory services. What is NOT contained in this
Register for each appointed and provisional representative?
A. Name of his current and past principal

B. Disciplinary proceedings taken against him by MAS.
C. The type of financial advisory services provided by him
D. His performance track record
C2/5 & C8/2.1.2(b)

81. Which of the following is false with regard to the FA’s license being granted only to a
corporation?
A. Ability to meet the minimum financial requirements.

B. Must have relevant competence and expertise to carry out its activities.
C. Must discharge its duties honestly and fairly.
D. Must procure professional indemnity insurance with the limit of indemnity not less than
S$300,000.

C5/2.2.3(e)
82. Which of the following is disregarded in the register of introducers maintained by the FA?
A. Years in business
B. Name
C. Place of business
D. Contact number
C12/5.3.6(d)
83. Which of the following statements is most accurate given researches done concerning funding
for retirement?
A. Most singles need 35%-45% of their pre-retirement income to maintain the same living
standard living standard after retirement.
B. Most singles need 50%-60% of their pre-retirement income to maintain the same living
C. Most singles need 65%-75% of their pre-retirement income to maintain the same living
D. Most singles need a least 80% of their pre-retirement income to maintain the same
living standard living standard after retirement.
C8/2.1.1(b)
84. In assessing an application for a FA’s licence, MAS will consider whether the Chief Executive
Officer, Directors of the Applicant have a minimum of ________relevant working experience in
respect of the financial advisory services.
A. 3 years
B. 4 years
C. 5 years
D. 6 years
C2/4.4(a)
85. Which is NOT the type of financial advisory service regulated under FAA?
A. Advising on corporate finance within the meaning of the Securities and Future Act (Cap
289).
B. Marketing of Unit Trust.
C. Arranging contract of insurance in respect of life policies
D. Advising other, either directly or through publications or writing, whether in electronic,
print or other form, concerning any investment product.
C7/4.15.1(sup notes 2/2/2012)

86. The value of the assets of an ILP sub fund in the case of quoted securities should be based
on:
A. Last known transacted price on the organized market on which the investment is quoted.
B. The transacted price where investments are transacted over an organized market at a
best price specified in the product summary.
C. A fair value of the asset.
D. The value given by a person approved by the insurer to qualified to value such assets.

C7/2.1.1
87. MAS 302 Notice is issued because of :
A. Adequate control and pricing of insurance products.

B. To obtain approval of all products from MAS.
C. To obtain approval of short term accident policy.
D. To obtain approval for the launch of a new short term health policy.
C8/2.1.2(d)
88. Criteria for the grant of a FA’s license, expects the applicant to have a minimum of a few years
proven track record in the financial advisory business. In the case of an applicant who does
not satisfy this record requirement set by MAS, then the Chief Executive Officer should own
not less than ________shareholdings of the applicant.
A. 20%
B. 30%
C. 40%
D. 50%
C10/1
89. Which is NOT True of the revised Code on Collective Investment Schemes (Code)?
A. Sets out the best practices on management, operation and marketing of capital markets
products.
B. A breach of this Code will result in MAS revoking or suspending the recognition of the
Scheme.
C. A breach of this Code by a trustee may result in MAS prohibiting the trustee from acting
as a trustee for any new scheme.
D. The Code is non statutory in nature.
C7/3.5.5 (Sup notes 2/2/2012)

90. Which of the following on disclosure of ILPs is false?
A. Insurer to inform existing policyholders of any significant change to be made to the ILP
or ILP sub fund not later than 1 month before the changes take effect.
B. Insurer shall not market any ILP sub find with sales material containing information
updated as of a date more than 12 prior to marketing it.
C. Insurer shall sent to all policyholders the semi-annual report within 4 months from the
last date of the period to which the report relates.
D. Insurer shall sent to all policyholders the Policy Statement within 30 days after each
policy anniversary date.
C12/5.3.4
91. Which is NOT a variable or manageable expenditure?
A. Education
B. Clothing
C. Savings
D. Transportation

C6/10.1
92. Regarding internal policies and compliance on Group Policy, which of the following is true?
A. A Financial Adviser (FA) that is incorporated in Singapore shall develop a group policy
on AML/CFT and extend it to all its branches outside Singapore.
B. Should the branch have inadequate measures, FA should ensure that the branch
adopt its AML/CFT of the Singapore branch.
C. Where the AML/CFT requirements in the host country is different from Singapore, FA
shall require that the overseas branch apply the lower of the two standards where
permissible.
D. Where the AML/CFT requirements in the host country is in conflict with Singapore law,
FA’s Head Office should adopt the host country requirements.
C10/4.1
93. Under Chapter 4 of the Code on Collective Investment Scheme, which is Not true with regard
to the naming requirement for funds that is undesirable or misleading?
A. Substantially similar to the name of another scheme.

B. Implies that the scheme has merit but not justifiable.
C. It is consistent with the scheme’s investment objective or approach.
D. Describing the scheme as a “plan” or “account”, when it is a collective Investment
Scheme.
C6/8
94. Which of the following is true regarding Record Keeping expected of a FA?
A. A FA shall prepare, maintain and retain documents on all its business relation
transactions with its customers such that MAS may be able to assess to FA’s
transactions.
B. FA can satisfy within a reasonable time frame, enquiry from relevant authorities.
C. FA shall observe a document retention period of at least 6 years following the
termination of business relation.
D. FA need not retain records longer than 5 years if the subject matter is under
investigation.
C12/5.1.3(b)
95. In the event of serious injury and not being able to work, your client’s financial need will NOT
be:
A. his current income

B. his current expenses
C. his current commitments
D. future income

C11/2.1.1(a)
96. All CPF members are required to set aside the Minimum Sum when they attain the age of 55.
However which of the following is allowed an exemption from this scheme?
A. CPF member with cash annuity policies.

B. Those with more than $40,000 in their retirement account.
C. CPF member with Cash Endowment Policies.
D. Those with less than $40,000 in their retirement account.
C11/2.4(a) & 3.4a

97. Which of the following is the similar criteria to participate in the Supplementary Retirement
Scheme and the CPF Investment Scheme (OA and SA ) is true?
A. At least 21 years old.

B. Not undischarged bankrupt
C. Investments will not form part of deceased ’s estate.
D. Need to open an investment account with approved banks.
C6/11.11
98. Which of the following situation is simplified CDD adopted?
A. When reliable information on customer is not publicly available.

B. When the AML/CFT control is unfamiliar to FA.
C. When the AML/CFT requirement is consistent with the standards set by FATF.
D. When the person is the head of a state/government.
C3/5.2
99. Regulation 19 of the FAR in relation to “receipt of client’s money or property” states:-
A. In the marketing of any collective investment scheme, client’s money/property shall be

handed over to MAS.
B. “Client’s money or property” means money received, or property deposited with a licensee
in the course of his business for which he is liable to account to the MAS.
C. Licensee should hand over client’s money not later than the business day immediately
following the day in which licensee receives the money.
D. Financial Advisers shall in its marketing of any Collective Investment Scheme receive
client’s money in the form of cash or cheque made payable to him.
C6/9 &11.15
100. Which of the following is NOT true regarding suspicious transaction reporting. FAs are :
A. require to have adequate process systems for identifying suspicious transactions.

B. require to establish a single reference point within the organization to whom all staff are
instructed to promptly refer all suspicious transaction.
C. to keep record of all transactions referred to STRO.
D. to ensure the suspicious transaction report to be completed without delay and
not exceeding 1 month of the case being referred by the staff, sent to STRO.

Answers – Mock Exam 2
1 D 26 C 51 D 76 B
2 A 27 D 52 A 77 A
3 A 28 C 53 C 78 A
4 B 29 C 54 D 79 A
5 A 30 A 55 A 80 D
6 D 31 D 56 B 81 D
7 C 32 D 57 B 82 A
8 D 33 A 58 B 83 B
9 A 34 B 59 D 84 C
10 C 35 B 60 D 85 A
11 A 36 C 61 C 86 A
12 C 37 C 62 D 87 A
13 B 38 C 63 C 88 A
14 D 39 C 64 D 89 A
15 B 40 A 65 B 90 C
16 C 41 D 66 A 91 A
17 C 42 C 67 A 92 A
18 A 43 B 68 A 93 C
19 C 44 B 69 C 94 B
20 B 45 D 70 C 95 D
21 A 46 A 71 D 96 A
22 A 47 D 72 C 97 B
23 B 48 A 73 C 98 C
24 A 49 D 74 B 99 C
25 B 50 D 75 B 100 D
Qn 2
Year 3
Above high water mark : Yes ( Yr 2 HWM is 1.03 compared to Yr 3 HWM is 1.07)
Above hurdle : Yes ( fund is 8%; benchmark is 5%)
Hence performance fee = (1.07 – 1.03)% x 5% = $0.002
Management fee = 2.0% X 1.07 = $0.0214
Total fees = $0.002 + $0.0214 = $0.0234


M5 Mock Exam 2

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

M5 Mock Exam 2

Caricato da

Copyright:

Formati disponibili

CMFAS Module 5 Mock Exam 2

AXA Life Insurance Singapore Pte Ltd

AXA Life Singapore Pte Ltd 1

XYZ Global Equity : 8%

Calculate the total fee for year 3.

A. Representative can recruit introducers if FA allows

AXA Life Singapore Pte Ltd 2

A. He ceased to be the principal’s representative to provide financial advisory service on

A. Loan and Mortgages

AXA Life Singapore Pte Ltd 3

C7/3.5.5 (a) (sup notes 2/2/2012)

A. CPF Life Scheme

C7/4.3.1(sup notes 2/2/2012)

A. Day T + 6 business day

AXA Life Singapore Pte Ltd 4

C7/3.1.1(b) (sup notes 2/2/2012)

A. Increase in the remuneration payable to the insurer or manager

A. Front line marketing staff

A. A foreign government entity

A. Verify and question the customer’s authority

AXA Life Singapore Pte Ltd 5

C5/5.1.3(sup notes 2/2/2012)

A. Borne by the client

C4/1.4a(sup notes 2 /2/2012)

A. Mortgage reducing term assurance

AXA Life Singapore Pte Ltd 6

A. Credited to the client’s account

A. Must possess good academic qualifications

A. Replacement Ratio Method.

A. Dependants’ Protection Scheme

A. Those who pledge their properties to this scheme

AXA Life Singapore Pte Ltd 7

A. to encourage older low wage workers to work.

A. A company or society registered under the Insurance Act.

AXA Life Singapore Pte Ltd 8

A. FA is confined to selling product provider’s investment products

A. Units are held in the client’s name

A. Confidence and competence

A. Disciplinary action taken

AXA Life Singapore Pte Ltd 9

A. A Singapore government entity.

A. The financial adviser is too busy with other administrative work.

A. If a person is a tied agent, he can be a licensed financial adviser.

AXA Life Singapore Pte Ltd 10

A. his name is entered in the Representative Notification Framework.

A. who satisfies the entry requirements

A. It can permanently prevent a person from providing financial advisory services.

AXA Life Singapore Pte Ltd 11

A. Prohibition a person from providing financial advisory services.

C4/1.4a (sup notes 2/2/2102)

A. True but it excludes mortgage reducing term assurance plan

A. FA should ensure fairness in their disciplinary actions

AXA Life Singapore Pte Ltd 12

A. Allows a foreign company to provide FA services if its related corporation is a licensed

C11/2.4 & 2.3

A. Profits cannot be withdrawn for both schemes.

C5/ 5 (Sup notes 2/2/2012)

A. Investment Management Association of Singapore

AXA Life Singapore Pte Ltd 13

A. may appeal to the MAS within 7 days after he is notified.

A. Pay into the account the amount taken for investment.

A. To manage the official foreign reserves of Singapore

A. To promote professionalism and exemplary practice among members in their conduct of

A. Fair Dealing Outcome Two