1) The public may access the Public Register of Representatives through the

____ website.

MAS

Singapore Exchange Ltd

LIA

Association of Financial Advisers

2) A FA is required to collect and document the client's ___ as part of the KYC
process required under the Notice on Recommendations On Investment
Products.

lifestyle preference

educational background

employment status

non-financial objectives

3) There are ___ classes of representatives under the FAA (Cap. 110).

4) In evaluating the integrity, honesty and reputation of a representative from a

FA, one of the factors being considered is whether:

the rep. has been in the financial industry for more than 10 years.

the rep. has been issued a prohibition order by the MAS before.

compliments have been given to the rep. by his or her customers.

the FA has issued any commendation or award to the rep.

5) The methods a FA may use for non-face-to-face verification of customer's

identity include:

confirming of address through an exchange of correspondence

certifying identification documents through notary publics

calling customer at a residential number that can be verified independently.

All of the above.

6) Which of the following statements is FALSE in relation to terrorist financing?

Terrorist financing does not always involves large amount of funds.

Terrorist financing is only derived from criminal activities.

Terrorist organisations tend to use complex methods to move funds.

Sources of terrorist financing may not be illegitimate.

7) What is the third stage of the sales advisory process as stipulated by the
LIA?

Gather data

Periodic review with client

Implement recommendations

Evaluate and analyse financial status

8) The 'Notice On Recommendations On Investment Products' applies to:

persons who are exempt under FA Regulation 29.

exempt FAs.

rep. of FAs.

All of the above.

9) The specialised unit serving high net worth individuals should have its own
____ staff.

Claims

Underwriting

Management

Marketing

10) A FA may apply ____ customer due diligence where it is satisfied that there
is low risk of money laundering.

Detailed
Intermediate

Enhanced

Simplified

11) ____ is an affordable severe disability insurance scheme that provides basic
financial protection to those who need long-term care.

Medifund

Medisave

MediShield Life

ElderShield

12) Under the FAA, the MAS has the power to issue a/an ___ order to keep unfit
persons from engaging in any or all of the financial advisory.

Exclusion

Prevention

Objection

Prohibition

13) The ___ function of the Singapore Exchange Limited reviews applications for
listings.

Enforcement

Member Supervision

Issuer Regulation

Market Surveillance

14) A financial institution should limit the supervisory span of control of its
supervisors:

so that they do not go out of control.

so that their sales targets can always be achieved.

so that they can effectively coach and monitor their reps.

so that they can continue to serve their clients.

 15) A manager of Collective Investment Scheme should notify both the MAS and
the ___ as soon as practicable when he becomes aware of an error in the
calculation of a scheme's Net Asset Value per unit.

Custodian

legal officer

compliance officer

trustee

16) The FA may allow a client to transact in an unlisted Specified Investment

Product (SIP) for a period of ____ months from the date of the Customer
Knowledge Assessment.

12

18

24

17) The ____ financial education programme conducts activities to consumers to

help them make informed financial decisions.

MoneyTALK

MoneyGROW

MoneyWISE

MoneySENSE

18) The rationale behind Fair Dealing Outcome One of the 'Guidelines On Fair
Dealing - Board and Senior Management Responsibilities For Delivering Fair
Dealing Outcomes To Customers' is that financial institutions:

play an important role in influencing customers' financial decisions.

should access the suitability of every investment product before marketing it to customers.

should implement remuneration structures that align reps' interests with those of their customers.

should establish a robust process to resolve customers' grievances independently.

19) The MAS determines whether a rep. of a FA is fit and proper by the criteria
of:
competence and capability.

confidence and capability.

competitiveness and competence.

competence and confidence.

20) Adequate procedures and processes for handling complaints are important to
ensure that:

complaints are handled partially.

clients can send in more complaints easily.

an officer is designated to handle incoming complaints.

the MAS receives lesser complaints.

21) Which of the following has the force of law that financial institutions or other
specified persons have to adhere to?

Practice Notes

Subsidiary Legislation

Guidelines

Codes

22) As provided by the 'Notice On Information To Clients And Product

Information Disclosure', product info given to clients by a FA must be:

reviewed every 3 years.

presented fully in graphical format.

disclosed in a subjective manner.

stored in accordance with the industry's best practices.

23) A FA should file a/an ____ report if any suspicion arises during Customer
Due Diligence.

anti-money laundering

suspicious transactions

high risk
anti-terrorism

24) An 'introducer' refers to someone who:

records the client's particulars, with the client's consent, for the introducee.

provides investment advices to the client.

introduces to the insurer a variety of insurance products for marketing.

performs need-based analysis for the client.

25) Which of the following is/are services regulated under the FAA (Cap. 110)?

Marketing of any collective investment scheme.

Advising others by issuing research reports.

Arranging of any contract of insurance in respect of life policies, other than a contract of reinsurance.

All of the above.

26) The 'Guidelines on Standards of Conduct for Financial Advisers and

Representatives' is meant to:

standardise the conducts of FAs and their reps.

provide conflict resolutions for the FAs and their reps.

regulate marketing activities conducted by the FAs and their reps.

set out the standards of conduct expected of FAs and their reps.

27) Under the FAA, which of the following falls under the definition of 'Financial
Adviser'?

A holder of a CMS Licence under the SFA.

The Public Trustee in exercising his powers under the Public Trustee Act.

A person acting in relation to a company as its liquidator.

A law corporation whose provision of financial advisory services is solely incidental to its carrying on of
the business

28) A principal who wishes to appoint an individual as an appointed rep shall

lodge a ____ with the MAS.

transaction report
notice of intent

MOU

recommendation letter

29) When comparing past performance of a CIS with other forms of investment,
its ____ should be similar to that of the CIS.

fund size

manager

number of unit holders

risk profile

30) One of the objectives of the FAA is to:

govern the business conduct of persons providing financial advisory services.

attract higher employments in the financial advisory industry.

impose an entry barrier to foreign financial institutions.

increase competition in the financial advisory market.

31) The objective of the CPF Public Housing Scheme is to allow the CPF
member to:

buy a flat for investment.

buy a flat for occupation.

sell a flat to the public.

rent his flat for additional income.

32) Information disclosed to clients in any advertisement should be presented

_____ so that the clients can understand.

with technical analysis

in plain language

with professional analysis

with industry jargons

33) An individual rep. of a FA must be at least ____ years old.

18

19

20

21

34) Structured deposits ____, thus all reps of a FA should be equipped with the
necessary expertise.

are the riskiest products

are the most widely transacted product in the market

are often complex and difficult to understand

derive the most profits for the FA.

35) To act in the BEST interest of its clients, a FA should:

treat selected clients fairly.

avoid situations where conflict of interest may arise.

pay more attention to the high net clients.

encourage clients to buy products that have been highly profitable in the recent months.

36) An appointed rep. may represent more than one principal if:

all principals agree verbally.

all principals agree in writing.

all principals are related corporations.

no conflict of interest can be proven to exist.

37) Which of the following is TRUE?

The FA only needs to disclose the remuneration if it is quantifiable.

If the FA only charges a fee, it can decide whether to disclose the details of the fee.

The FA only needs to disclose the distribution cost item in the BI in the case of a life policy.

The FA needs to disclose all remuneration it has received including those unrelated to its provision of
financial advisory services.
 38) The revised Code on CIS is aimed at:

enhancing safeguards for the fund managers.

protecting investors of CIS against any form of losses.

providing the fund managers with more variety of investment instruments.

providing greater clarity and increasing the flexibility for fund managers in managing their funds.

39) An introducer is obliged to disclose which of the following?

His recommendations on any investment products.

Whether he is remunerated by the FA.

The number of years he has been with the same FA.

The non-financial advisory services he is authorised by the FA to provide.

40) How many months from the date when the name of the rep. is entered into
the public register of representatives is the appointment of a provisional rep.
valid for?

41) Under Notice No: MAS 307, the insurer is not required to compensate policy
owners for any loss incurred by policy owners when a valuation error of the
Investment-linked policy sub-fund's Net Asset Value per unit falls within ____
%.

0.5

0.6

0.7

0.8

42) A FA licence can only be granted to a:

Partnership

sole proprietorship
natural person

corporation

43) There are ___ fair dealing outcomes in the 'Guidelines On Fair Dealing -
Board and Senior Management Responsibilities For Delivering Fair Dealing
Outcomes To Customers'.

44) The back-end monitoring of switching of investment products include:

tracking the volume of switches.

checking possible future transactions of the clients.

MAS reviewing each switch recommended by a rep.

clients making a declaration that a switch recommend by a rep is appropriate.

45) Which of the following describes the FA Regulations?

Circular

Code

Guideline

Subsidiary Legislation

46) Which of the following is an acceptable reason for NOT handling a client's
money for CIS by the next business day to the product provider?

The FA has obtained written consent from the client to hand over the money after a specified date.

The FA's internal policy to consolidate all moneys collected from all clients before handling the money to
the product provider.

The FA is conducting financial audit during that period.

The client has a direct relationship with the FA.

47) The collateral for a CIS should be:

free from all prior encumbrances

low risk instruments.

high risk instruments.

sold or given as security interests.

48) Which one of the following info is required to be disclosed to the client when
marketing a dual currency investment?

Assumptions used in setting the spot rate.

Analysis of the risk of default upon maturity.

That the maturity amount paid will be in the alternate currency.

Impact of foreign exchange rate movements on the maturity payout.

49) Which one of the following products is defined as an 'investment products'

under the FAA?

Products that require deposits.

Products that require collaterals.

Capital markets products.

General insurance policies.

50) Which of the following is one of the DISADVANTAGES associated with

switching from the original investment product to a replacement product that
needs to be disclosed by the FA to its clients?

The client may incur penalties for terminating the existing investment product.

The switch may yield a higher rate of return in the long run.

The replacement product will offer a higher level of benefit at a lower cost

The replacement product may offer the same level of benefit at a lower cost

51) Which of the following statements regarding the FA's licence is TRUE?

All companies in Singapore must apply for a FA's licence in order to conduct business.

The FA's licence is subject to renewal.

Individuals with exceptional qualities may be granted the FA licence after satisfying stringent criteria.
A professional indemnity insurance policy is required from applicants of the FA licence.

52) A high net worth individual is one whose minimum annual income is not less
than ____ in SGD or the equivalent in foreign currencies.

$30596

$300,000

$500,000

$1 million

53) Under Notice No: MAS 307, an insurer is required inform the MAS of its
intention to launch any ILP sub-fund at least ______ days before the ILP
sub-fund is established.

14

21

30

54) A rep from a licensed FA shall disclose in writing to the client:

the FA's CMS License Number.

the FA's balance sheet.

his years of experience in the financial industry.

the type of financial advisory service he is authorised to provide under the FAA.

55) An individual who is or has been entrusted with prominent public functions in
Singapore or overseas is known as a/an ___ person.

politically motivated

high risk

enhanced CDD

politically exposed

56) FAs are required to seek MAS's prior approval for the appointment of its
____.

Accountant
CFO

CEO

Auditor

57) Any person who is aggrieved by the suspension of his status as an appointed
representative may appeal to the Minister within ____ days after he is
notified of MAS's decision.

14

21

30

58) For Singapore citizens or PRs who are self employed, the law requires them
to make CPF contributions only to the ____ account.

Special

Ordinary

Medisave

Retirement

59) The 'Guidelines on Criteria for the Grant of a Financial Adviser's Licence' is
intended to:

ensure only fit and proper individuals can apply.

ensure the renewal terms of the licence is clear to applicants.

provide guidance on the licensing admission criteria for persons applying for the licence.

spell out the code of conducts expected of the FAs and their reps.

60) A client has NO right to expect the FA to disclose the ___ when he decides
on a designated investment product.

nature and objective of the product

fees and charges payable

amount invested by the FA

relevant contractual rights and obligations of clients

 61) Which of the following ways is NOT one to monitor the implementation of the
fair dealing strategy?

Monitoring complaints trends.

Preparing compliance reports.

Conducting customer surveys.

Gathering feedback from reps.

62) Which of the following is NOT required to be complied when a FA appoints

an introducer?

To monitor the conduct of the introducer.

To enter into a written agreement with the introducer.

To ensure that the introducer deposit moneys received from customers into the trust account on the
same business day.

To maintain a register containing the introducer's particulars.

63) Which of the following info is NOT required by a FA for conducting CDD?

Nationality.

Date of birth.

Educational qualification.

Unique identification number.

64) FAs may only use the term 'independent' if they can clearly demonstrate that
they do NOT have financial or commercial links with the ____.

product resellers

product providers

product regulators

product inventors

65) The 'Notice On Cancellation Period For Unlisted Debentures' does

NOT apply to unlisted debentures with tenures of ___ months or shorter.
1

12

66) Which of the following is NOT an AML compliance officer's

responsibility?

Ensuring a slow response when money laundering is suspected.

Advising and training senior management and staff on policies, procedures and
controls on AML.

Carrying out monitoring and review activities for compliance.

Taking overall charge of all AML/CFT matters within the organisation.

67) Which of the following info is NOT required to be disclosed by a

licensed FA to its client?

T&Cs of a designated investment product.

Benefits illustrations of a designated investment product.

Fees and charges relating to the designated investment product.

Statistics on the clients who have previously purchased the same designated
investment product.

68) An exempt fund manager who is also an exempt FA may serve up to

___ qualified or accredited investors.

10

20

30

40

69) An insurer is NOT ALLOWED to charge any costs arising from ____
failed trades to the ILP sub-fund.

Cash

Electronic

Contra
CPF

70) In assessing whether a switch in investment product is detrimental to

the client, which of the following is NOT one of the factors which the MAS
will use?

The client's relationship with the FA or the FA's rep.

Whether the client will incur any transaction cost without gaining any real benefit
from such a switch.

Whether the replacement product is less suitable for the client.

Whether the client suffers any penalty for terminating the original product.

71) Which of the following type of insurance policies does NOT require
prior written approval from the MAS before new product launch?

Whole Life

Term (duration of 5 years or less)

Single premium Endowment

ILP

72) Which of the following is an INCORRECT entry requirement for an

individual to be a provisional representative in Singapore?

Must be at least 21 years old.

Has at least a Bachelor's Degree (or equivalent).

Has relocated to Singapore, or in the process of doing so.

Has at least 5 years of relevant working experience.

73) An accredited investor means one whose individual income in the

preceding 12 months is NOT less than SGD ____.

$30596

$300,000

$500,000

$1 million

74) The FA shall ___ if the client chooses to not receive any
recommendation about an unlisted Specified Investment Product.
decline to serve the client politely

have the liberty to sell any product to the client

refer the client to another competent FA

ensure proper documentation that demonstrates so

75) The discovery of which of the following misconduct does NOT require
a police report to be lodged by the FA?

Negligent misrepresentation.

Criminal breach of trust.

Forgery.

None of the above.

76) Which of the following scenarios is NOT an example of a suspicious

transaction that should be referred to the STRO?

A customer purchasing a $50,000 single premium life insurance policy using his
CPF savings.

A customer making a single payment of S$25,000 in cash.

Second change to the authorised signatories within a week.

None of the above.

77) Which of the following is NOT required to be disclosed by the FA when

making a recommendation of investment product to a client?

The potential risks of the product.

The potential benefits of investing in the product.

The fees charged by the FA.

The sales strategy employed by the FA.

78) In relation to the Maintenance of Register Of Introducers, which of the

following info of the introducer is NOT required to be maintained in the
register?

Date of appointment/termination

Places of businesses

Business registration numbers or Identity card numbers

Financial status

79) The period under review of an audit on the internal control and
processes of the ILP sub-funds by an external auditor (audit by way of the
second method) shall NOT be less than _____ months.

12

80) Which of the following statements regarding the Product Highlights

Sheet (PHS) is INCORRECT?

A glossary is to be attached to the PHS to explain the technical terms if such terms
are used.

The PHS can merely make reference to info in other sources so as explain key info.

References to websites in the right hand column of the PHS may be included.

The PHS highlights the key features and risks of the ILP sub-fund.

81) Probity checks on a representative's ____ is NOT part of the due diligence
checks the FA should conduct as part of the Fit & Proper declaration.

Identity

past records

risk tolerance

financial status

82) Which of the following info is NOT included in the Product Highlights
Sheet?

Fees and charges.

Investment strategy.

Client's particulars.

Sub-Fund suitability.

83) The Product Highlights Sheets (excluding diagrams and glossary) for an ILP
shall NOT be longer than ______ pages.
2

84) Which of the following is NOT one of the ways in which the MAS will
employ when assessing if a financial institution has observed the Guidelines on Fair
Dealing?

Mystery shopping.

Visiting the financial institution.

Interview with the Board of Directors.

Questioning of the financial institution's customers at MAS building.

85) Which of the following activities is NOT defined as Execution Activities

under the SFA?

Trading in futures contracts.

Forex trading.

Leveraged foreign exchange trading.

Investing in Collective Investment Schemes.

86) John wishes to retire in 20 years' time. Risk analysis:

Risk profile =Low
Risk of capital loss = Low
Objective = Provide a lump sum in 20 years for retirement use.
Which one of the following products is MOST suitable for this client?

Term Insurance policy with a 20-year term.

Endowment Insurance policy with a 20-year term.

Blue chips shares.

ILP with 80% weightage in equities vs bonds.

87) OPQ Bank has recently launched a new financial product. According to Fair
Dealing Outcome Four, the bank should provide its customers with:

with more confidence in dealing with them as fair dealing is central to the bank's
culture.
with products and services that are suitable for their target customer segments.

with competent reps who can provide customers with quality advice and appropriate
recommendations.

clear and relevant info to enable them to make informed decisions.

88) A needs analysis was carried out for a client and the details are as described
below:
Risk profile = Low
Risk of Capital loss = Low
Concern = High hospitalisation bill in future
Based on the info above, which of the following products is MOST suitable for this
client?

Disability Income Insurance.

Medical Expense Insurance.

Whole Life Insurance.

Term Insurance.

89) A client plans to buy a luxury property in 15 years' time. Needs analysis:
Risk profile = High
Risk of capital loss = High
Objective = To accumulate a sum of money for the down payment of a luxury
property in 15 years' time.
Based on the info above, which one of the following products is LEAST suitable for
this client?

Unit Trust.

Stocks.

Term insurance policy.

Money Market Securities.

90) Mary wants to buy a life insurance policy on her own life. She prefers to
have the flexibility to change the mix between insurance cover and investment.
Which one of the following insurance products is MOST suitable for her?

Term Insurance.

Whole Life Insurance.

Endowment Insurance.

Universal Life Insurance.

 91) ABC Fund adopts the fulcrum fee arrangement for calculating its
performance fees. The benchmark is the XYZ Index. The scheme charges a base fee
of 2% and a performance fee of 5%.The performance of the fund and benchmark for
Year 3 are as described below:
Year 3:
ABC Fund return =8%
XYZ Index return = 5%
Assume the base fee and performance fee are calculated based on year end NAV per
unit, calculate the fulcrum fee for Year 3.

0.15%

1.85%

2.15%

5.15%

92) Calculate the number of units outstanding of a Collective Investment

Scheme which has a NAV of S$125 million and price per unit of S$2.50.

5 million.

25 million.

50 million.

55 million.