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
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Candidates who wish to act as an appointed CMFAS representative are required to pass the applicable CMFAS
examinations prior to lodgement of the notification to act as an appointed representative with MAS.
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The Capital Markets and Financial Advisory Services Examination (CMFAS Exam) is a modular examination
structure effective since 1 December 2002 in accordance with the Notices issued by MAS under the SFA and FAA.
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 6A Securities & Futures Product Knowledge
Module 8 Collective Investment Schemes
Module 8A Collective Investment Schemes II
Module 9 Life Insurance and Investment-linked Policies
Module 9A Life Insurance and Investment-linked Policies II
The Institute of Banking & Finance (IBF) administers Modules 1A, 1B, 2A, 2B, 3, 4A, 4B, 6, 6A and 10.
The Singapore College of Insurance (SCI) administers Modules 5, 8, 8A, 9 and 9A.
The syllabus of each Module conducted by IBF is listed in the Appendix.
For more information on Modules 1A, 1B, 2A, 2B, 3, 4A, 4B, 6, 6A and 10, please visit IBF website at
www.ibf.org.sg or contact IBF at 6220 8566.
For more information on Modules 5, 8, 8A, 9 and 9A, please visit SCI website at www.scicollege.org.sg or
contact SCI at 6221 2336.
3 CMFAS Examination
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Candidates who wish to act as an appointed CMFAS representative are required to pass the applicable CMFAS examinations
prior to lodgment of the notification to act as an appointed representative with MAS.
Which Module to Enrol
Unless otherwise exempted, candidates applying for a representatives licence in each regulated activity must attempt the
relevant modules. The requirements are summarised as follows:
MODULES
Rules & Regulations
TYPES OF ACTIVITIES
Regulated Activities Under SFA 1 A 1 B 2 A 2 B 3 4 A 4 B 5 1 0 6 6 A 8 / 8 A 9 / 9 A
Dealing in Securities X X X
(SGX-ST Members)
Dealing in Securities X X
(Non-SGX-ST Members)
Trading in Futures Contracts X X
- SGX-DT members
Trading in Futures Contracts X X
- SMX members
Trading in Futures Contracts
- Non SGX-DT and Non SMX members X
Fund Management X X
REIT Management X
Advising on Corporate Finance X
Advising on Corporate Finance X
- solely debt securities
Leveraged Foreign Exchange Trading
(with effect from 1 January 2012) X
Regulated Activities Under FAA 1 A 1 B 2 A 2 B 3 4 A 4 B 5 1 0 6 6 A 8 / 8 A 9 / 9 A
Advising ot hers concerning securities
X X
(excluding collect ive invest ment
schemes)
Advising others concerning fut ures X
cont ract s
Advising on and/ or arranging life
insurance policies (whether or not X
include Invest ment- linked life
pol icies)
Advising on and/ or market ing of X
collective invest ment schemes
Advising ot hers concerning cont ract s or
arrangement s for the purposes of X
leveraged foreign exchange t rading
CMFAS Examination 4
Product Knowledge
& Analysis
X
Any of these Modules
X
Either Modules
X
Either Module
X
Module 6
Persons possessing any of the following qualifications (which must be attained through passing the specific respective examination(s))
or working experience are not required to pass 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 and financial planning, or
computational finance;
2. Chartered Financial Analyst (CFA) by the CFA Institute, USA;
3. The Association of Chartered Certified Accountants (ACCA) Qualifications;
4. Associate Chartered Accountant (ACA) of the Institute of Chartered Accountants in England and Wales
1
;
5. Associate/ Fellow of the Institute of Actuaries, England;
6. Associate/ Fellow of the Faculty of Actuaries, Scotland;
7. Associate/ Fellow of the Society of Actuaries, USA;
8. Associate/ Fellow of the Institute of Actuaries of Australia;
9. Associate/ Fellow of the Casualty Actuarial Society, USA;
10. Associate/ Fellow of CPA Australia
2
;
11. Investment Company Products/ Variable Contracts Limited Representative Examination (Series 6) or General Securities
Representative Examination (Series 7) administered by the Financial Industry Regulatory Authority (FINRA), USA;
12. Module 1 of the Investor Contact Competency Examination (ICCE Module 1); administered by the Securit ies and Exchange
Commission, Thailand
3
;
13. Three years of relevant and continuous working experience in respect of the financial advisory service to be provided with no
break in service of more than 3 years between the individuals last working experience and the date of his application for a
representatives licence prior to 26 November 2010, or commencement of the provision of financial advisory services prior to 26
November 2010, or his principals lodgment with the Authority of documents under section 23F of the Act, in relation to his
appointment as an appointed representative, as the case may be.
Module 6A
A specific representative who possesses any of the following qualifications, is not required to pass Module 6A:
1. a degree or higher qualification in finance, financial engineering or computational finance; or
2. Chartered Financial Analyst (CFA) by the CFA Institute, USA.
[SFA 04-N09 (Amendment) 2011]
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5 CMFAS Examination
With effect from 19 October 2011
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Qualification attained by membership is recognised.
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 authorisation status
in Thailand
Duration of the examination in respect of each Module administered by IBF 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 1
4B Rules and Regulations for Advising on Corporate Finance 50 1
Solely Debt Securities
6 Securities Products and Analysis 100 2
6A Securities & Futures Product Knowledge 90 2
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.
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Where to Enrol
Candidates enrolling for Modules 1A, 1B, 2A, 2B, 3, 4A, 4B, 6, 6A and 10 are required
to register directly with The Institute of Banking & Finance (IBF).
Candidates enrolling for Modules 5, 8, 8A, 9 & 9A with the Singapore College of
Insurance (SCI), please contact SCIs Examination Department for registration details.
Examination Venue
Examinations for Modules 1A, 1B, 2A, 2B, 3, 4A, 4B, 6, 6A and 10 will be held at
The Institute of Banking & Finance
10 Shenton Way
#13-07/ 08 MAS Building
Singapore 079117
Examinations for Modules 5, 8, 8A, 9 and 9A will be held at
Singapore College of Insurance
9 Temasek Boulevard
Suntec Tower 2
#14-01/ 02/ 03
Singapore 038989
CMFAS Examination 8
Ex a m i n a t i o n s Fe e s
Module Title Duration Fees (before GST)
Member Non- Member
First / Subsequent First / Subsequent
Attempt Attempt
1A Rules & Regulations for Dealing in Securities (SGX-ST Members) 2 hrs $150 / $130 $170 / $150
1B Rules & Regulations for Dealing in Securities (Non SGX-ST Members) 1 hr $150 / $130 $170 / $150
2A Rules & Regulations for Trading in Futures Contracts (SGX-DT members) 2 hrs $180 / $160 $200 / $180
2B Rules & Regulations for Trading in Futures Contracts (SMX members) 2 hrs $180 / $160 $200 / $180
3 Rules & Regulations for Fund Management 2 hrs $180 / $160 $200 / $180
4A Rules & Regulations for Advising on Corporate Finance 1.25 hrs $180 / $160 $200 / $180
4B Rules & Regulations for Advising on Corporate Finance 1.25 hrs $180 / $160 $200 / $180
(Solely Debt Securities)
6 Securities Products and Analysis 2 hrs $150 / $130 $170 / $150
6A Securities & Futures Product Knowledge 2 hrs $150 / $130 $170 / $150
10 Rules & Regulations for REIT Management, 2 hrs $250 / $210 $290 / $250
with Product Knowledge and Analysis
Electronic / e-book versions of the Study Guides will be made available to all registrants. Candidates who wish to purchase hard copies of the
Study Guides will have to pay an additional fee as shown below:-
$20 + GST per copy (for Modules 1A, 1B, 2A, 2B, 3, 4A, 4B, 6, 6A); and
$40 + GST per copy (for Module 10)
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, 6A or 10, please contact IBF at 6220 8566 or cmfas@ibf.org.sg
For Modules 5, 8, 8A, 9, 9A please contact SCI at 6221 2336 or talk2us@scidomain.org.sg
1 The Regulatory Bodies
Monetary Authority of Singapore
( MAS )
Singapore Exchange Limited ( SGX )
Singapore Exchange Securities
Trading Limited ( SGX-ST )
Central Depository (Pte) Ltd ( CDP )
Singapore Exchange Derivatives
Trading Limited ( SGX-DT )
SGX Listing Framework
SGXs Regulation of the Securities and
Futures Markets
2 Dealing Mechanics and Settlement
Procedures
Securities Trading Infrastructure
Dealing Mechanics
Settlement
3 Regulatory Requirements Relating to
Trading Representatives and
Operations
Trading Representatives
Operational Requirements
Conduct of Business Requirements
under the SFA and SFR(LCB)
4 Regulatory Requirements Relating to
Market Conduct and Trading
Introduction
Market Misconduct Under the SFA
Market Misconduct Under SGX-ST
Rules
Penalties for Market Misconduct
Under the SFA
Penalties for Market Misconduct
Under the SGX-ST Rules
Trading Related Acts / Regulations /
Rules
Trading Related Acts / Regulations
Under SFA / SFR (LCB)
Trading Related Rules Under the SGX-
ST Rules
5 Central Provident Fund Investment
Scheme (CPFIS)
General Information
Difference Between CPFIS-OA and
CPFIS-SA
Eligibility Criteria
Application Procedures
Operational Process (for CPFIS-OA
only)
Dividend and Profits Earned
Transfer of Monies from CPF
Investment Account to CPF Ordinary
Account
Charges
Release of Investment Holdings
Bankruptcy
Death
Types of Investments and Investment
Limits
Investments Included Under CPFIS
Investment Conditions for Inclusion of
Products Under CPFIS
6 Extended Settlement (ES)
Contracts
What is an ES Contract?
Risks of Trading ES Contracts
Regulatory Framework for ES
Contracts
Offences Under the SFA
Offence of Overtrading (SGX-ST Rule
19.12)
Emergency Powers (SGX-ST Rule
19.14)
7 Prevention of Money Laundering and
Countering the Financing of
Terrorism
Introduction to the Prevention of
Money Laundering and Countering
the Financing of Terrorism
Summary of Key Provisions of the
CDSA
MAS Notice on Prevention of Money
Laundering
Customer Due Diligence ( CDD )
Simplified CDD
Enhanced CDD
Performance of CDD Measures by
Intermediaries
Record Keeping
Reporting Suspicious Transactions
Internal Policies, Compliance, Audit
and Training
Annexure: Know Your Customer
Checks (MAS Notice SFA 04-N02)
9 Appendix
1 The Regulatory Bodies and Self-
Regulatory Organisations
MAS
SGX
SGX-ST
CDP
SGX-DT
SGX Listing Framework
SGXs Regulation of the Securities and
Futures Markets
2 Regulatory Requirements Relating to
Business Operations
Conduct of Business Requirements
under the SFA and SFR (LCB)
3 Regulatory Requirements Relating to
Market Conduct and Trading
Introduction
Market Misconduct Under the SFA
Penalties for Market Misconduct
Under the SFA
Trading Related Acts / Regulations
Under SFA / SFR (LCB)
4 Central Provident Fund Investment
Scheme (CPFIS)
General Information
Difference Between CPFIS-OA and
CPFIS-SA
Eligibility Criteria
Application Procedures
Operational Process (for CPFIS-OA
only)
Dividend and Profits Earned
Transfer of Monies from CPF
Investment Account to CPF Ordinary
Account
Charges
Release of Investment Holdings
Bankruptcy
Death
Types of Investments and
Investment Limits
Investments Included Under CPFIS
Investment Conditions for Inclusion
of Products Under CPFIS
5 Prevention of Money Laundering
and Countering the Financing of
Terrorism
Key legal obligations
Basic principles and policies to
combat money laundering
Know your customer
- Compliance with laws
- Cooperation with law enforcement
agencies
- Policies, procedures and training
Rules and Regulations for Dealing in Securities (SGX-ST Members)
module
1
administered by
IBF
A
Rules and Regulations for Dealing in Securities (Non-SGX-ST Members)
module
1
administered by
IBF
B
Appendix 10
1 The Regulatory Bodies and Self-
Regulatory Organisations
MAS
SGX
SGX-ST
CDP
SGX-DT
SGX Regulation of the Securities And
Futures Markets
2 The Trading System
Derivatives Trading Infrastructure
Types of Futures and Options
Contracts Traded on SGX-DT
Types of Orders Available on SGX
Quest
Mutual Offset System
Direct Market Access
3 Listing and Features of SGX-DT
Contracts
Listing and Trading of Contracts
Default Relating to Contracts
Rules Applicable to Option Contracts
4 Regulatory Requirements Relating to
Business Operations
Singapore Exchange Derivatives
Clearing Limited ( SGX-DT )
Regulatory Supervision Framework
Conduct of Business Requirements
Under the SGX Futures Trading
Rules
Margins of Customer
Transfer of Error Trades to House
Account (SGX Futures Trading Rule
3.3.15)
Transfer of Unsuccessful Give-Up
Trades to House Account (SGX
Futures Trading Rule 3.3.16)
Reporting of Account Identity (SGX
Futures Trading Rule 3.3.17)
Reporting Of Open Positions (SGX
Futures Trading Rule 3.3.18)
Omnibus Accounts (SGX Futures
Trading Rule 3.3.19)
Customers Protection
Conduct of Business Requirements
Under the SFA and SFR
Record Keeping Requirements Under
the SFA and SFR(LCB)
Customer Assets Requirements Under
the SFA and SFR(LCB)
Conduct of Business Requirements
Under the SFA and SFR(LCB)
5 Regulatory Requirements Relating to
Market Conduct & Trading
Introduction
Market Misconduct Under the SFA
Market Misconduct Under SGX
Futures Trading Rules
Penalties for Market Misconduct
Under the SFA
Penalties for Market Misconduct
Under the SGX Futures Trading
Rules
Trading Related Acts / Regulations /
Rules
Trading Related Acts / Regulations
Under SFA/ SFR(LCB)
Trading Related Rules Under the SGX-
DT Futures Trading Rules
6 SGX Extended Settlement (ES)
Contracts
What is an ES Contract?
Risks of Trading ES Contracts
Regulatory Framework for ES
Contracts
Licensing Requirements for Trading
Representatives
Risk Disclosure Acknowledgement
Offences Under the SFA and SFR(LCB)
Offence of Overtrading (SGX-ST Rule
19.12)
Emergency Powers (SGX-ST Rule
19.14)
7 . P r e v e n t i o n o f M o n e y
L a u n d e r i n g a n d Co u n t e r i n g t h e
F i n a n c i n g o f Te r r o r i s m
Introduction to the Prevention of
Money Laundering and
Countering the Financing of
Terrorism
Summary of Key Provisions of the
CDSA
MAS Notice on Prevention of
Money Laundering
Customer Due Diligence ( CDD )
[Paragraph 4 of the Notice;
Paragraphs 21 to 23 and 47 of
the Guidelines]
Simplified CDD [Paragraph 5 of the
Notice; Paragraphs 48 to 50 of
the Guidelines]
Enhanced CDD [Paragraph 6 of the
Notice; Paragraphs 52 to 56 of
the Guidelines]
Rules and Regulations for Trading in Futures Contracts(for members of the Singapore Exchange
Derivatives Trading Limited (SGX-DT))
administered by
IBF
module
2
A
Performance of Customer Due
Diligence Measures by
Intermediaries [Paragraph 7 of
the Notice; Paragraphs 57 to 58
of the Guidelines]
Record Keeping [Paragraph 8 of
the Notice]
Reporting Suspicious Transactions
[Paragraph 9 of the Notice;
Paragraphs 61 to 67 of the
Guidelines]
Internal Policies, Compliance,
Audit and Training [Paragraph
10 of the Notice; Paragraphs 68
to 70 of the Guidelines]
11 Appendix
Rules and Regulations for Trading in Futures Contracts (for members of the Singapore Mercantile
Exchange (SMX))
administered by
IBF
module
2
B
1 The Regulatory Bodies and
Regulations
MAS
SMX Overview
The Role of SMX
The Role of SMXCC
Regulation Of Commodity Derivatives
Markets By SMX/ SMXCC
2 Requirements for Members and
Nominated Representatives
Introduction
SMX Membership
Broker Member (BM)
Remote Member (RM)
Trade Member (TM)
SMXCC (Clearing) Membership
General Clearing Member (GCM)
Special Clearing Member (SCM)
- SMXCC Membership Structure
Appointment of Nominated
Representatives
Authorised Users
3 SMX Products
Introduction
Standardisation of SMX Futures
Contracts
- Contract Details
- Delivery Details
- Delivery Logic
- Base Price
- Life of a Futures Contract
- Expiration Date
Registering an EFP and/ or an EFS
Transaction
- Nature of the Transaction
- Relationship of Instruments
- Relationship of the Parties to the
Transaction
- Price of the Transaction
- Restrictions during the Delivery
Period
- Documents required at the Time
of Registering EFP and EFS
Transactions
- Documents Required to be
Maintained by Members in
Support of EFP/ EFS
Transactions
- Procedure for Registering EFP and
EFS Transactions on the
Exchange
- Exchange Approval
- Audit Trail
4 Security Deposit and Margin
Requirements
Introduction
SMX Membership
Broker Member (BM)
Remote Member (RM)
Trade Member (TM)
SMXCC (Clearing) Membership
General Clearing Member (GCM)
Special Clearing Member (SCM)
- SMXCC Membership Structure
Appointment of Nominated
Representatives
Authorised Users
5 Trading
Dealing on Behalf of Customers
Customer Money
Placing an Order
Types of Orders Accepted by the
Exchange
- Orders with Time-Related
Parameters
- Orders with Price-Related
Parameters
Prices
- Bid Price
- Ask Price
- Last Traded Price
Trading Hours
Automated Trading System
Customer Systems
Exchange Gateways
Exchange Servers and Applications
Market Data
- Level 1 Data Best Bid / Ask Data
- Level 2 Data Market Depth Data
End of Day / Historical Data
Order Validation and Matching
Daily Price Range (DPR)
Market Makers
Messages To Members
6 Risk Management and Surveillance
Introduction
Alerts
Margin Utilisation Monitoring
Variation Margin Monitoring
- Example of VM Computation
Intraday
- Example of VM Computation at the
End of the Day
Position Limits
Market Irregularities and Manipulative
Trade Practices
7 Post Trade Management
Order and Trade Modification
Manual Trade Entry
Give-Up Trades
8 Clearing, Settlement and Delivery
Introduction
Novation
Settlement Guarantee Fund
Multilateral Netting
Daily Settlement Price (DSP)
Final Settlement Price (FSP)
Settlement
- Cash Settlement
- Physical Settlement
Daily Settlement Amount (DSA)
Final Settlement Amount (FSA)
Settlement Bank Interface
Daily Pay-Ins and Pay-Outs
Settlement of Physical Delivery
9 Default and Discipline
Managing Default Risk
Inspections and Investigations
Event of Breach
Declared Default
Rights of the Exchange
Disciplinary Rules
Appeals Rules
10 Regulatory Requirements Relating To
Business Operations
Record keeping requirements under the
SFA and SFR(LCB)
Customer Assets Requirements under
SFA and SFR(LCB)
Conduct of Business Requirements
under the SFA and SFR(LCB)
11 Regulatory Requirements Relating To
Market Conduct & Trading
Market Misconduct under the SFA
Penalties for Market Misconduct under
the SFA
Trading Related Acts/ Regulations under
SFA/ SFR(LCB)
12 Prevention of Money Laundering and
Countering The Financing Of Terrorism
Introduction to Prevention of Money
Laundering and Countering The
Financing Of Terrorism
Summary of the Key Provisions of the
CDSA
MAS Notice on Prevention of Money
Laundering
Customer Due Diligence ( CDD )
Simplified CDD
Enhanced CDD
Performance of CDD Measures by
Intermediaries
Record keeping
Reporting Suspicious Transactions
Internal Policies, Compliance, Audit
and Training
ANNEXURE: Know Your Customer
Checks (MAS Notice)
Appendix 1: Intermediary Introduction
Certificate
Appendix 12
1 Fund Management Regulatory
Bodies and Self-Regulatory
Organisations
MAS
SGX
SGX-ST
CDP
SGX-DT
SGX Regulation of the Securities and
Futures Market
MAS-SGX Regulatory Relationship
Investment Management Association
of Singapore
2 Fund Management Regulations and
Guidelines
The Securities and Futures Act
CPF Investment Scheme
Prevention of Money Laundering and
Countering the Financing of
Terrorism
IMAS Code of Ethics and Standards of
Professional Conduct
3 Licensing
Licensing Requirements for Fund
Management
Capital Requirements for a CMS
Licence Holder for Fund
Management
Representatives of a CMS Licence
Holder
CEO and Directors of a CMS Licence
Holder
Guidelines on Fit and Proper Criteria
Extra-Territoriality of the SFA
4 Conduct of Business
Introduction
Returns to the MAS
Register of Interests in Securities
Record Keeping Requirements
Handling of Customers Assets
Customer' s Money and other Assets
Statement of Account to Customers
Limits for Unsecured Credit and Credit
Facilities
Securities Borrowing and Lending
Advertisements
Certain Representations Prohibited
Disclosure of Certain Interest in
Respect of Underwriting Agreement
Outsourcing Arrangements
5 Market Conduct
Introduction
Types of Market Misconduct in
Relation to Securities
Types of Market Misconduct in
Relation to Futures and Leveraged
Foreign Exchange Trading
Insider Trading
Continuing Disclosure Obligations
Extra-Territorial Jurisdiction
Penalties for Market Misconduct and
Insider Trading
6 Collective Investment Schemes
Introduction
Offers of CIS
Authorised CISs
Continual Compliance for Authorised
CISs
Managers of Authorised CISs
Trustees of Authorised CISs
Operations Pertaining to Authorised
CISs
Recognised CISs
Administration of Recognised CISs
Managers of Recognised CISs
Application for Authorisation or
Recognition of a CIS
Refusal to Authorise or Recognise a CIS
Prospectus and Offer Documents
Restrictions on Advertisements
7 Central Provident Fund Investment
Scheme (CPFIS)
Introduction to the CPFIS
FMCs
Investment Products under the CPFIS
Application and Admission Criteria for
Funds Managed by FMCs
Fund Management Accounts
Risk Classification for CIS Included
under the CPFIS
Disclosure Requirements for FMCS
under the CPFIS
Compliance with the CPFIG
8 Prevention of Money Laundering
Introduction to Prevention of Money
Laundering
Summary of Key Provisions of the CDSA
MAS Notice on Prevention of Money
Laundering
Customer Due Diligence`(CDD)
Simplified CDD
Enhanced CDD
Performance of CDD`Measures by
Intermediaries
Record Keeping
Reporting Suspicious Transactions
Internal Policies, Compliance, Audit
and Training
Rules and Regulations for Fund Management
administered by
IBF
module
3
13 Appendix
1 The Regulatory Bodies
The Monetary Authority of Singapore
Singapore Exchange Limited
Securities Industry Council
2 SFA and Regulations
Stabilisation Action During IPO
Offering of Investments
Disclosure of Interest in Securities
Prohibition of Insider Trading and
other Market Misconduct
3 Singapore Code on Take-Overs and
Mergers
Introduction
Compliance with the Code
General Principles
Types of Offer
Concert Parties
Period Leading to an Offer: Some
Relevant Rules
Conduct During the Offer: Some
Relevant Rules
Offer Timetable - Key Dates
Lodgment of Documents
Acceptances
Whitewash Waiver
4 SGX-ST Listing and Disclosure
Requirements
Listing Requirements
Debt Securities
Listing Requirements for Foreign
Issuers of Securities
Investment Funds
SGX-ST Corporate Disclosure Policy
5 Public Listing of Companies
Introduction
Listing Process
Prospectus Requirements
Advantages and Disadvantages of a
Public Listing
Other Methods of Issuing Capital by a
Listed Company
Rules and Regulations for Advising on Corporate Finance
administered by
IBF
module
4
A
1 The Regulatory Bodies
The Monetary Authority of Singapore
Singapore Exchange Limited
Securities Industry Council
2 Regulations Regarding Debt
Offerings
Paying Agent
Release of Reports
Adjustments
Trustee and Trust Deed
3 Listing Requirements for Debt
Securities
General
Listing Requirements for Local Debt
Securities
Listing Requirements for Foreign
Debt Securities
Listing Procedures in Respect of
Submission for Debt Securities
Continuing Listing Obligations
4 Prospectus Requirements
Under the SFA
Lodgment and Registration of the
Prospectus
Supplementary or Replacement
Documents
Stop Orders
Return of Subscription Monies Paid by
Investors
5 SGX-ST Corporate Disclosure Policy
Disclosure Obligations under the
Listing Manual
Compliance with CG Code
Provisions of Appendix 7.1 of the
Listing Manual
Exceptions to the Disclosure
Obligations
Examples of the Operation of the
Disclosure Obligation
Confidentiality
Clarification or Confirmation of
Rumours or Reports
Unusual Trading Activity
Policy on Thorough Public
Dissemination
Content and Preparation of Public
Announcement
Policy on Insider Trading
Role of Market Surveillance
Rules and Regulations for Advising on Corporate Finance (Solely Debt Securities)
administered by
IBF
module
4
B
Appendix 1 4
1 Investments and Financial Markets
Financial assets
Financial markets
2 Risk and Return
Risk-return trade-off
Measures of return
Measure of risk
3 Financial Statement Analysis
Major types of financial statements
Analysis of financial ratios
Liquidity/ Solvency ratios
Leverage ratios
Operating efficiency/ Activity ratios
Profitability ratios
DuPont system of analysis
Comparative and trend analysis
Limitations of ratio analysis
4 Common Stock and Preferred Stock
Analysis
Types of equity securities
Types of common stock
Basic calculations for equity securities
Stock market indexes
Passive versus active management
strategies for equities
Time value of money
The dividend discount model
Earnings multiplier model
Price to book value
Price to sales ratio
5 Economic Analysis
Framework for fundamental analysis
Measuring economic performance
GNP
Economic activity and security
markets
Economic indicators
Money supply, the economy and stock
prices
Inflation, interest rates and security
prices
Fiscal policy
political analysis
6 Industry Analysis
Importance of industry analysis
Classifying industries
Industry life cycle
Competitive forces and industry
structures
Business cycle analysis
7 Technical Analysis
Basic philosophy and assumptions
Challenges to technical analysis
Technical indicators
Trends, support and resistance levels
Significance of volume
Stock price and volume techniques
Chart patterns
8 Fundamentals of Fixed Income
Securities
Characteristics of bonds
Price Quotations
Special features of bonds
High-yield bonds
Mortgage-backed securities
Eurobonds
Bond ratings
Sources of risk
9 Bond Pricing, Return Measures and
Interest Rates
Bond valuation
Relationship between bond price and
required yield
Relationship between coupon rate,
reuired yield and price
Time path of a bond
Yield measures
Term structure of interest rates
Anlaysis of convertible bonds
10 Futures
Futures contract
Structure of futures markets
Mechanics of futures trading
Uses of futures contracts
Spot-futures parity theorem
Stock index futures
Interest rate futures
11 Options
Definitions and terminology
Call options and put options
Payoffs and profits from option
positions
Option strategies
Option valuation
Attractions of options
Stock index options
Interest rate options
Currency options
Securities Products and Analysis
administered by
IBF
module
6
12 Warrants and Other Investment
Products
Features of Warrants
Warrant valuation
Warrant premium
Exchange-Traded Funds
American Depository Receipts
13 Foreign Exchange and Swap
Contracts
The foreign exchange market
Foreign exchange rate quotations
The forward foreign exchange contract
Foreign exchange swap
Swaps in capital markets
Interest rate swaps
Currency swaps
14 Unit Trusts/ Managed Funds
Definition of unit trust
Investment trusts
Advantage of investing in unit trusts
Major types of unit trusts
Real Estate Investment Trusts (REITS)
Charges and fees
Bid and offer prices
CPF investment scheme - risk
classification system
Evaluation of unit trusts
15 Portfolio Theory
Diversification and portfolio risk
Systematic and unsystematic risk
Correlation coefficient
Calculating portfolio return and risk
Interantional diversification
The capital asset pricing model
Arbitrage pricing theory
16 Portfolio Management
Portfolio management process
Determinants of investment policy
Asset allocation
17 Performance Measurement
Measuring investment returns
Risk-adjusted measures of
performance
Performance attribution
15 Appendix
Securities & Futures Product Knowledge
administered by
IBF
module
6
1 Overview of Securities and Futures
Introduction
Derivatives
Exchange-Traded Derivatives
Over-the-Counter ( OTC )
Derivatives
Uses of Derivatives
Types of Derivatives
Other Financial Derivatives
The Derivatives Market in
Singapore
2 The Framework For Making
Investment Decisions
Fundamental Analysis
Technical and Statistical Analysis
Sentiment
3 Fundamental Analysis
Fiscal Policy and Treasury Operations
Monetary Policy and Central Bank
Operations
Factors Affecting Interest Rates and
Yield Curves
Factors Affecting Foreign Exchange
Rates
Factors Affecting Stock Markets
4 Technical and Statistical Analysis
Technical Analysis
Charts and Charting
Dow Theory
Trendlines and Channels, Support and
Resistance
Volume and Open Interest
Major Chart Patterns
Statistical Analysis
Elliot Wave Theory
Cycle Theory
Random Walk Theory
Contrarian Theory
5 Futures
Introduction to the Futures Industry
Elements of Financial Futures
Contract Specifications
Financial Futures Versus Cash Market
Applications of Futures Contracts
6 Strategies for Futures Markets
Participants in Futures Markets
Speculating and Trading
Hedging and Portfolio Management
Arbitraging
7 Trading Risk Control and
Management
Categories of Risks and Measurement
Segregation of Responsibilities
Accounting Procedures
8 Options
What is an Option?
Introduction to Options Trading
Definitions and Basic Concepts
Pricing
Valuation Models
A
Risks in Trading Options (And
Derivatives In General)
Option-Based Strategies
Market Outlook Strategies
Other Types of Options
9 Warrants and Other Investment
Products
Company Warrants
Structured Warrants
Exotic Options / Warrant Structures
and Features
Other Investment Products
Market Outlook and Products
10 Basics of Structured Products
What is a Structured Product?
Components of a Structured Product
Different Types of Structured Products
Similarities and Differences Between
the Product Categories
Uses of Structured Products
Suitability of Structured Products to
Investors
11 Key Risks
Key Risks of Structured Products
Generic Risks
Summary
12 Structured Notes
What is a Structured Note?
Issuer
Wrapper
What Type of Investors Would Invest in
Structured Notes
Documentation Required for
Structured Notes
Examples of Structured Notes
After Sales
13 Structured Funds and Structured
Exchange Traded Funds
Structured Funds
What is a Structured Fund?
How Are Structured Funds Different
from Traditional Mutual Funds?
How Are Structured Funds Different
from Trackers?
Input Parameters for a Structured
Fund
The Usage of Derivatives Contracts
within a Structured Fund
Various Structures and Design
Common Terminology
Managers Functions and
Responsibilities
Trustees Functions and
Responsibilities
What Type of Investors Would Invest
in Structured Funds
When Are Structured Funds
Unsuitable for Investors
Typical Types of Documentation
Types of Risks
Potential Conflicts of Interest
How to Best Manage the Underlying
Risk Exposure(s) in a Structured
Fund
Common Examples of Structured
Funds
After Sales
Structured Exchange Traded Funds
(ETFs)
What is a Structured ETF?
Governance
What Types of Investors Invest in
Structured ETFs
When Are Structured ETFs Unsuitable
For Investors
Risks of Structured ETFs
Common Examples of Synthetic ETFs
After Sales
14 Comparison of Different Types of
Structured Products
Same Wrapper, Seemingly Same
Structures but Different Features
Similarities and Differences If the
Structure Were In Various Forms
Cross-Product Case Study
15 Introduction to Other Financial
Derivatives
Knock-Out Products
Contracts for Differences (CFDs)
Extended Settlement (ES) Contracts
16 Knock-Out Products
Complex Options
Barrier Options
Types of Knock-Out Barrier Options
Callable Bull / Bear Contracts (CBBCs)
Risks Involved in CBBCInvestments
Similarities and Differences Between
Knock-Out Products and Structured
Warrants (Or Other Products)
17 Contracts for Differences (CFDs)
Introduction to Contracts for Difference
Trading Mechanisms for CFDs (Including
Examples)
Global Trading Opportunities
CFD Trading Strategies
Risks of Investing in CFDs
18 Extended Settlement (ES) Contracts
What Is An (ES) Contract?
What Types of Investors Would Invest in
ES Contracts
Risks of Trading ES Contracts
Contract Specifications and Trading
and Settlement of ES Contracts
Calculation of Profit and Loss for ES
Contracts
Marking-To-Market and Margining
Managing Positions
Comparing ES Contracts with Contra
and Margin Financing
19 Case Studies
Case Studies on Structured Notes
Case Studies on Structured Funds
Case Studies on Knock-Out Products
Rules and Regulations for REIT Management, with Product Knowledge and Analysis
administered by
IBF
module
10
SECTION I : INTRODUCTION
1 Introduction to Singapore Real
Estate Investment Trusts (S-REITs)
Overview and History
Structure and Nature of an S-REIT
Key Elements of an S-REIT and Roles
of Key Participants in an S-REIT
Regulatory Bodies
Legislation, Rules & Regulations
Differences Between S-REIT and
Securities Collective Investment
Schemes
SECTION II : PRODUCT KNOWLEDGE
2 Introduction to the Property Market
Property Market (Asset Classes &
Geographical)
Types of Asset Classes
Real Estate as an Asset Class
Features of Property as an Investment
Advantages of Real Estate Investment
Disadvantages of Real Estate
Investment
Portfolio Diversification (Asset Class
& Geography)
Global Real Estate Markets
3 Yield Considerations For Property
Investment
Yield Considerations
Valuation
Valuation Methodology
4 Basic Asset Management of Property
What is Asset Management?
What is Property Management?
Outsourcing of Property Management
Functions
Leases
5 Basic Structuring of an S-REIT
Differences Between Listed and
Private Vehicles
Capital Structure
Debt and Equity Allocation
6 Pricing and Investing In An S-REIT
Pricing an S-REIT
Investing in an S-REIT: Key Drivers for
Success
7 Key Ratios and Performance
Measures
Capitalisation Rate
Deposited Property
Net Property Income
EBITDA
Equity Market Capitalisation
Distributable Income
Distributions Per Unit
Distribution Yield
Aggregate Leverage
Net Asset Value
Price to Net Asset Value
Premium/ Discount to Net Asset Value
Weighted Average Lease Expiry
( WALE )
Usage Mix
Total Returns
Debt Headroom
Interest Coverage Ratio ( ICR )
Debt Service Cover Ratio ( DSCR )
8 Due Diligence
Overview of the Due Diligence Process
Scope of Due Diligence
Objectives of Due Diligence
Areas of Due Diligence
Due Diligence (Property / Technical)
Due Diligence (Legal)
The Due Diligence Process
Verification Meeting
SECTION III : RULES & REGULATIONS
9 Legal Framework of S-REITs and Property
Funds Guidelines
Introduction
Definition of Collective Investment Scheme
Offers of Units in a Collective Investment
Scheme
Authorised Collective Investment Schemes
Trustee
Manager
Trust Deed
Permissible and Restricted Investments
Valuations
Aggregate Leverage Limits
Maintaining a Register of Participants
Accounts and Reports
Other Operational Obligations
Related Party Transactions
Application for Authorisation of S-REIT
Revocation, Suspension or Withdrawal of
Authorisation
Winding Up an S-REIT
10 Regulatory Requirements relating to Offer of
Units in S-REIT
Prospectus Requirements Under the
Securities and Futures Act
Disclosure Documents
Information to be Included in Disclosure
Documents
Liabilities for Not Complying with the
Prospectus Requirements
Lodgment and Registration of Disclosure
Documents
Lodgment of Supplementary Documents or
Replacement Documents
Duration of Validity of Prospectus
Stop Order / Interim Stop Order
Restrictions on Advertisements
Listing Requirements Under the Listing
Manual
Use of the Terms Real Estate Investment
Trust or REIT
11 Continuing Listing Obligations
Introduction
Announcements and Notifications
Periodic Reports
Free Float
Listing Fees
Corporate Governance
Related Party Transactions
Take-Overs Involving S-REITs
Circulars to Unitholders
Operational Matters
12 Market Conduct
Introduction
Types of Market Misconduct in Relation to
Securities
Insider Trading
Extra-Territorial Jurisdiction Clause for
Insider Trading
Corporate Disclosure Policy Under the
SGX-ST Listing Manual
Best Practices on Dealing in Securities
Penalties for Market Misconduct and
Insider Trading
13 Prevention of Money Laundering
Introduction
Process of Money Laundering
Sources of Law Governing Money
Laundering and Terrorism Financing
Corruption, Drug Trafficking and Other
Serious Crimes (Confiscation of Benefits)
Act
Liabilities for Breaching the Five Basic
Money Laundering Offences
Failure to Comply with Enforcement Law
Agencies
Record Retention Obligation Under CDSA
New Reporting System for Cross Border
Movements of Physical Currency and
Bearer Negotiable Instruments
Anti-Terrorism Financing Law
MAS Notice and Guidelines on Prevention
of Money Laundering and Countering
the Financing of Terrorism
Basic Principles and Policies to Combat
Money Laundering and Terrorism
Financing
Customer Due Diligence ( CDD )
Simplified CDD
Enhanced CDD
Performance of Customer Due Diligence
Measures by Intermediaries
Record Keeping Obligations Under MAS
Notice
Reporting Suspicious Transactions
Internal Policies, Compliance, Audit and
Training
14 Conduct of Business
Introduction
Returns to the MAS
Register of Interests in Securities
Base Capital Requirement
Total Risk Requirement
Register Representatives
Record Keeping Requirements
Penalties
Certain Representations Prohibited
Outsourcing arrangements
15 Differences between Real Estate
Investment Trusts and Business
Trusts
Introduction to Business Trusts
Regulatory Regime
Use of the Term Real Estate Investment
Trust by a Business Trust
Ownership Rights
Key Operational Concepts
Enhanced Reporting Requirements of a
Business Trust
Board Composition of a Business Trust
Staffing Requirements
Issue of Units
Removal of Trustee-Manager and Manager
Licensing Framework
Rights of Unitholders and Creditors Rights
16 Appendix
The Institut e of Banking & Finance
10 Shenton Way
#13-07/ 08 MAS Building
Singapore 079117
tel: 6220 8566
fax: 6224 4947
email: cmfas@ibf.org.sg
www.ibf.org.sg