CFMAS Module 5 Mock Exam 1

CFMAS MODULE 5
(4th Edition)

Mock Exam 1

AXA Life Insurance Singapore Pte Ltd

CFMAS Module 5 Mock Exam 1

Mock Exam 1
C10/5.7
1. Under which programme issued by MAS is to help consumers to make informed financial
decisions?

A. Money SENSE
B. Money TALK
C. Money MIND
D. Money MARKET

C2/4.2
2. Which of the following is Not an Exempt Financial Advisers?

A. A company registered under the Insurance Act.

B. A Credit Company
C. A bank licensed under the Banking Act.
D. A holder of a capital markets services licence under the Securities and Futures Act.

C11/2.1.2
3. CPF LIFE is a scheme that provides the CPF member with a monthly payout from the draw
down age for as long as he lives. How many types of plans are available under CPF LIFE?

A. 5
B. 4
C. 3
D. 1

C3/11.1
4. No Licensed Financial Advisers shall grant unsecured loans to any of its representatives which
in the aggregate cannot exceed how much?

A. $1,000
B. $3,000
C. $5,000
D. $10,000

C2/10.4.1
5. Any representative who holds himself out as a representative of a financial adviser when his
name is not entered in the Public Register of the FAA, will be liable for :

A. Fine not exceeding $25,000 or imprisonment not exceeding 12 months or both.

B. Fine not exceeding $50,000 or imprisonment not exceeding 2 years or both.
C. Fine not exceeding $75,000 or imprisonment not exceeding 12 months or both.
D. Fine not exceeding $100,000 or imprisonment not exceeding 2 years or both.
CFMAS Module 5 Mock Exam 1

C4/1.7(sup notes 2/2/2012)

6. A financial adviser should not make a recommendation to a client to switch an investment
product except:

A. whether the client suffers any penalty for terminating the original product.
B. whether the client will incur any transaction cost without gaining any real benefit.
C. whether the replacement product confers a higher level of benefit at the same cost
D. whether the replacement product is less suitable for the client.

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

7. In order to advise on marketing collective investment schemes, advisers must pass module
M8 and which other modules?

A. M8A & 6A
B. M5 & M6A
C. M6 & M9A
D. M5 & M8A

C2/11.1, 12.1 &13

8. What is the difference in the criteria that is TRUE of a Appointed Representative (AP)
and that of a Provisional Representative (PR)?

A. Both can provide financial advisory services during the grace period of 3 months.
B. Both must satisfy exam requirements before their names can be entered in the Public
Register
C. Both should be at least 18 years old
D. Both whose names are entered in the Public Register of representatives and status has
not been revoked or suspended by MAS from providing that type of financial advisory
services.

C3/7.4
9. Interest earned from the Insurance Broking Premium Account in respect of amount due to the
insurer where cover commences after 1 Oct 2002,

A. shall belong to the financial adviser for its own benefit.

B. shall belong to the insurer, hence financial adviser cannot use it.
C. before the credit period shall be retained by the financial adviser for its own use
indefinitely.
D. after the credit period shall not be retained by the financial adviser for its own benefit and
shall be paid to the insurer.

C2/14.1
10. Section 23F(1) of the FAA provides that a principal who desires to appoint an individual as an
appointed or provisional representative shall lodge which following document to MAS?

A. A certificate that the principal is fit and proper.

B. An undertaking by the representative.
C. A notice of intent by the principal to appoint them as representatives.
D. Representative’s original examination certifications
CFMAS Module 5 Mock Exam 1

C12/6
11. The sales advisory stages stipulated by Life Insurance Association consists of a few stages,
which of the following is stage 3 of Needs Analysis?

A. Gather data and goals

B. Analyse and evaluate financial status
C. Establish and define client representative relationship
D. Develop and present recommendations

3/11.1
12. What is the unsecured loan amount that a Licensed FA can loan to its director who is not its
employee?

A. $3,000
B. $5,000
C. $7,000
D. 0

C8/8.1
13. What is the criteria to be considered as a High Net Worth person?

A. Net personal assets exceed S$1million

B. S$1 million invested in bank deposits, including structured deposits
C. Annual income of S$500,000 or more
D. Potential of earning $300,000 in 2 years’ time

C11/2.1.1
14. Which of the following option is available to CPF member under the Minimum Sum Scheme?

A. Leave it with CPF Board

B. Buy pension plan from an approved insurer
C. Invest in OA instruments – eg annuity
D. Use cash annuity poicies for exemption.

C11/3.4(a)
15. Which of the following is most true on the eligibility to participate in Supplementary Retirement
Scheme?

A. Foreigners
B. At least 21 years old
C. Undischarged Bankrupts
D. Must be Singaporeans

C8/5.7.3
16. “Disclosures To Client” ask that a Financial Adviser:

A. provides clients with adequate information about himself

B. provides facts and opinions on investment products
C. provides clear and inadequate information and not false and misleading
D. provides and draw clients’ attention to the warnings, disclaimers in all documents
 CFMAS Module 5 Mock Exam 1

C9/3
17. The Guidelines on Structured Deposits apply to all licensed or exempt financial advisers who
advices on Structured Deposits except to:

A. Elderly persons who are likely to withdraw their funds early

B. Any person in Singapore above the age of 21
C. High Net Worth Individual
D. Individual with a commercial presence in Singapore

C4/App4B(4)
18. Which of the following is true in comparing past performance of a Collective Investment
Scheme (CIS) with that of another form of investment?

A. Similar risk profile

B. Different risk profile
C. Bid to Offer Basis
D. Bid to Bid Basis

C9/3.7
19. Which Guidelines on Structured Deposits is NOT true?

A. Clients who need to withdraw from this investment will be penalised for early withdrawal.
B. Banks have to seek prior approval from MAS for Structured Deposits received from a road
show location.
C. Dual currency is not structured deposits covered under these guidelines.
D. Bank tellers are involved in the marketing or recommendation of structured deposits.

C5/6.1.1
20. For acts involving dishonesty and fraud, FA should :

A. Report immediately to MAS

B. Terminate the representative’s services
C. Lodge a police report and submit to MAS a copy of the report
D. Take action then report to MAS

C11/3.4(a)
21. Which of the following is Not true of the Supplementary Retirement Scheme?

A. Any SRS withdrawal must be made in cash only.

B. Participants can sell their investments anytime.
C. Participants are allowed to contribute to SRS after they have withdrawn on or after
retirement age.
D. Participants can contribute up to the SRS Contribution Cap.
CFMAS Module 5 Mock Exam 1

C2/3.3
22. “One Representative To Act for One Principal” comes under which principles underpinning
The FAA?

A. Customer Interest
B. Consistency
C. Reasonable basis of recommendations
D. Accountability

C3/2
23. Which section of the FAA requires licensed FAs to disclose to their clients all material
information relating to any designated investment products?

A. Section 24
B. Section 25
C. Section 26
D. Section 27

C4/4.1
24. Which of the following sentence is false regarding Dual Currency Investment and Structured
Deposits?

A. Dual Currency investment is structured deposits.

B. Dual Currency involves foreign exchange fluctuations.
C. Structured Deposit is not traditional deposit.
D. Structured Deposits have an investment element and returns may vary.

C7/2.1.2
25. Under MAS 302, how many days are required for Insurer to obtain a written approval from
MAS regarding launching of new products?

A. No later than 2 months before proposed official launch date.

B. No later than 1 month before proposed official launch date.
C. Within 7 workings after the launch date of the product.
D. Within 1 month after the launch date of the product.

C7/2.1.2
26. Which of the following under MAS 302 requires written approval from MAS before Insurer
could launch them?

A. Whole Life Policy

B. 5 year level term policy
C. Short term health policy
D. Accident policy
CFMAS Module 5 Mock Exam 1

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

27. What represents significant change to any ILP sub-fund that insurer should notify MAS?

A. Decrease in the remuneration of the insurer.

B. Any increase of fees payable out of the ILP Sub-fund that is 0.1% or less of the NAV of the
sub-fund.
C. The closure of the ILP sub-fund due to the maturity of the sub-fund.
D. Change from direct investment to feeder fund structure or vice versa.

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

28. The Semi Annual Report and the Relevant Audit Report shall be sent to all policyholders
within how many months from the last date of the period to which the report relates?

A. Within 2 months and 3 months respectively

B. Within 3 months and 2 months respectively
C. Within 30 days and 2 months respectively
D. Within 3 months and 1 month respectively

C7/4.19.2 (sup notes 2/2/2012)

29. When a valuation error represents ________or more of the ILP sub-fund’s NAV per unit, the
insurer should compensate policyholders.

A. 0.05%
B. 0.25%
C. 0.10%
D. 0.50%

C11/2.1.2
30. The CPF LIFE allows members to join if they are Singapore Citizens or Singapore Permanent
Residents between the ages of ______ and ________years with savings in their Retirement
Account.

A. 50 and 80
B. 55 and 62
C. 55 and 66
D. 55 and 80

C11/2.3.1
31. Public Housing Scheme does not include which of the following?

A. Executive Condominium
B. Design and Build
C. Resale Flats
D. Private Condominium
CFMAS Module 5 Mock Exam 1

C8/8.3
32. What is the criteria used by MAS in assessing Specialized Unit Servicing High Net Worth?

A. Clients serviced by the unit must be people in Singapore

B. Only applies to Licensed Financial Advisers.
C. Range of product and services offered by the Unit.
D. Track record of the High Net Worth individuals.

C9/3
33. Which of the following product and services would you NOT need to disclose information to
High Net Worth clients?

A. Structured Deposits
B. Investment Linked Policy
C. Any life’s policy
D. Any Capital Market product

C4/App4B(3)
34. Comparison of the past performance of a Collective Investment Scheme (CIS) with
that of another CIS shall be made on what basis?

A. Offer to Offer
B. Bid to Bid
C. Offer to Bid
D. Bid to Offer

C11/2.2.5
35. Which of the following is an affordable plan under CPF to provide for severe disability
insurance?

A. Medisave
B. Eldershield
C. Medishield
D. Medifund

C5/5.3.3(c) (sup notes 2/2/2012)

36. Under which situation the CMFAS Examination does not apply?

A. Providing advice on any Singapore government securities

B. Providing advice on capital market product
C. Providing advice on any investment product to a citizen of Singapore.
D. Providing advice on any investment product to a non related corporation of a
Licensed FA for whom the representative acts.
CFMAS Module 5 Mock Exam 1

C6/11.2
37. Which of the following best describes Money Laundering?

A. A process intended to mask the physical disposal of the benefits of criminal conduct from
their source.
B. A process to separate the benefits of criminal conduct from their source and to disguise
audit trail.
C A process intended to mask the benefits derived from criminal conduct, so that it appears
to have originated from a legitimate source.
D. A process of apparent legitimacy to the benefits of criminal conduct.

C6/fig 6.1
38. Mixing of illicit proceeds with legitimate deposits is which stage of money laundering activities?

A. Placement
B. Layering
C. Integration
D. Combination

C2/5.3
39. Given the circumstances, when will “Opportunity To be Heard” apply?

A. Payment of Representative’s licence

B. Refusal to grant Financial Adviser’s licence
C. Return of licence upon cessation
D. Granting of unsecured loans to directors and CEO.

C11/2.1.2(b)
40. Which of the following CPF Life Plans will not effect a refund to CPF member’s beneficiaries
upon the death of the CPF member?

A. Life Plus Plan

B. Life Balanced Plan
C. Life Basic Plan
D. Life Income Plan

C11/2.4.1(a)
41. Which CPFIS eligibility requirement is NOT true?

A. He is not an undischarged bankrupt.

B. He is at least 21 years old
C. He has more than $20,000 in the Ordinary Account
D. He has more than $40,000 in the Special Account
CFMAS Module 5 Mock Exam 1

C11/2.2.4
42. Private Medical Insurance Scheme allow CPF members to use Medisave savings for :

A. Approved Single Premium Policies

B. Approved Integrated Shield Plans
C. Approved Heath Insurance Polices
D. Medical Expense Insurance

C7/4.21(sup notes 2/2/2012)

43. The scheme charges a base fee of 2% and a performance fee of 5%. It is assumed that the
base 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:

Fund - XYZ Global Equity : 8%

Benchmark - MSCI World Index Return : 5%
Calculate fulcrum fee at year 3.

A. 0.14%
B. 0.15%
C. 2.4%
D. 2.15%

C12/5.1.3(i)
44. In the event of untimely death, FA needs to ensure that their clients are able to meet their
Final Expenses. Which of the following would constitute such an expense?

A. Fund for serious illness

B. Legal cost
C. Estate settlement
D. Loan and mortgages

C11/2.4.1(b)
45. In order to use one’s OA savings for investments through the CPFIS, member cannot open a
CPF Investment Account with which bank?

A. DBS Bank Ltd

B. Standard Chartered Bank
C. Overseas – Chinese Banking Corporation
D. United Overseas Bank

C11/3.4(c)
46. Which of the following is true of CPF Investment Scheme (CPFIS) and Supplementary
Retirement Scheme (SRS)?

A. CPFIS is voluntary but not SRS

B. Both CPFIS & SRS must open Investment Account.
C. CPFIS profits are withdrawal but not SRS.
D. SRS has a withdrawal penalty but not CPFIS
CFMAS Module 5 Mock Exam 1

C11/3.4(a)
47. Who is not eligible for Supplementary Retirement Scheme?

A. Singapore PR of age 19
B. Singapore Citizen
C. Foreigner
D. A person below age 18

C2/5, 5.2 & C8/2.1

48. Which is most true about granting a Financial Adviser’s license?

A. Applicant is a natural person age 21 years old and above

B. Applicant can be both a person and a corporation
C. Applicant is a corporation with a physical presence in Singapore
D. Applicant is a company with a physical presence in Singapore and has in force
Professional Indemnity Insurance Policy.

C3/12.1
49. What is MAS’s criteria for an institution in selecting their Chief Executive Officer?

A. Must be highly qualified

B. Honesty
C. Of good reputation
D. Fit and proper

C6/11.2
50. Which of the following is definitely not a stage of Money Laundering?

A. Placement
B Legitimization
C. Layering
D. Integration

C3/8
51. Which of the following must FA in Singapore do, if it wants to start providing something not in
their business portfolio, example arranging for their clients life insurance risks with
unregistered overseas insurer?

A. Obtain written approval from LIA and GIA

B. Must have a minimum paid up capital
C. Ensure foreign corporations maintains a good ranking in its home country
D. Obtain written approval from MAS
CFMAS Module 5 Mock Exam 1

C5/2.2
52. Introducers are not required to disclose to their client on request:

A. Remuneration
B. Number of years in the business
C. Factual product information
D. Information in accordance to Regulation 31 of the FAA

C11/2.2
53. What is the difference between Medisave and Medifund?

A. Medisave is income set aside to meet CPF members’ medical expenses, while Medifund is
set up by the Government to help Singapore Citizens who are unable to pay for their
medical expenses.
B. Medisave is a Medical Insurance Scheme to help meet CPF members’ hospitalizations,
while Medifund is set up by the Government to help Singapore Citizens who are unable to
pay for their medical expenses.
C. Medisave is income set aside to meet CPF members’ medical expenses, while Medifund is
to allow Medisave savings to buy Medisave-approved Integrated Shield Plans.
D. Medisave is a national medical savings scheme which helps members put aside part of
their income to meet their hospitalisation, while Medifund is a national scheme to help
needy Singapore Citizens to contribute in this account at a subsidised rate.

C12.2
54. Which of the following is NOT a benefit of Financial Needs Analysis?
A. To know clients and discover clients’ need
B. Discover and spent more time on clients’ situation to sell additional products.
C. Establish long term relationship with the client
D. By spending more time on discovering client’s situation, it will lead to the most suitable
product to buy and how much to buy.

C2/3
55. Which of the following is NOT a principle of the FAA and FAR?

A. Consistency
B. Competency
C. Accountability
D. Independence

C6/6.1
56. FA must conduct enhanced CDD on which of the following?

A. Singapore incorporated entity

B. Law corporation
C. Foreign government entity
D. Foreign incorporated company with a presence in Singapore
CFMAS Module 5 Mock Exam 1

C12/5.3.4(a) & (b)

57. Compute John’s cash flow. The following is John’s data:
Income : $20,000
Expenditure : $8,000
Cash in Bank : $80,000
Liabilities : $20,000

A. $12,000
B. $60,000
C. $72,000
D. $92,000

C12/5.3.3
58. Molly has a son age 5, calculate how many more years should Molly support her son?

A. 16 years
B. 18 years
C. 20 years
D. 25 years

C5/6.2
59. An “Update Report” has to be submitted by the financial adviser’s to MAS where:

A. when there is nothing to report for any calendar year

B. investigation has not been concluded
C. for acts involving fraud
D. for non compliance of FAA

C6/4.3.4
60. FA shall not be require to inquire if there exists any beneficial owner in relation to a customer
that is :

A. An individual who owns the policy

B. A company who owns the master policy
C. Foreign Government Entity
D. An entity not listed in the Singapore Exchange

C8/5.10
61. Which of the following liability of a licensed FA is true?

A. Get a public relation specialist to handle all complaints

B. Keep a register of complaints
C. Many officers to handle different complaints
D. Complaints should be handled in a fair and inappropriate manner
CFMAS Module 5 Mock Exam 1

C5/6.1.1(d)
62. Under Notice on Reporting of Misconduct of Representatives, those who did not comply with
regulatory requirement under FAA, FA should:

A. Report to MAS then take action

B. Report directly to MAS
C. Lodge a police report then report to MAS
D. Follow Intercompany policy, issue warning to the representatives, then report to MAS.

C5/6.1.3
63. For disciplinary action taken against their representatives, FA shall submit to MAS a report,
not later than:

A. 30 days after the discovery of the misconduct

B. 21 days after the discovery of the misconduct
C. 14 days after the discovery of the misconduct
D. 7 days after the discovery of the misconduct

C.1/2
64. What is the principal objective of MAS?

A. To issue Acts, legislations and guidelines

B. To promote a sound and progressive financial service sector
C. To sustain non inflationary economic growth
D. To act as a central bank of Singapore

C11/2.1.2(b)
65. Which is NOT true of CPF Life Scheme?

A. CPF Life monthly payouts are protected from creditors.

B. CPF Life monthly payouts are not fixed but stable.
C. CPF member is allowed to switch to another Life Plan within the options given under CPF
Life.
D. CPF Life Plus Plan offers a high payout and low bequest.

C11/2.4.1(f)
66. Which of the following is Not True of CPFIS investment’s distribution upon CPF members’
death?

A. It will form part of the deceased’s CPF member’s estate.

B. It will be protected from deceased’s CPF members’ creditors.
C. It will be distributed in according to applicable laws.
D. It will be paid to the beneficiaries for insurance proceeds.
CFMAS Module 5 Mock Exam 1

C11/2.3.1(a)
67. Under which circumstances can CPF savings be used when buying a flat from HDB?

A. Stamp Duty
B. Property Taxes
C. Estate Duty
D. Conservancy Charges

C2/5.4
68. What is the paid up capital if an applicant intends to carry on a business of providing advices
concerning futures contracts or arrangements for the purpose of foreign exchange trading?

A. S$150,000
B. S$300,000
C. S$400,000
D. S$500,000

C1/5.1.1
69. Which of the following is NOT a value underpinning LIA and its members?

A. Unified
B. Fair
C. Open and Honest
D. Diligence and hard work

C11/3.4(c)
70. Under Supplementary Retirement Scheme, what is the penalty for withdrawal before statutory
retirement age?

A. 5%
B. 7%
C. 9%
D. 10%

C5/6.1.3
71. A Financial Adviser must submit to MAS a “Misconduct Report” not later than ____days from
the date of discovery of misconduct committed by its representatives.

A. 14 days
B. 21 days
C. 30 days
D. 90 days
CFMAS Module 5 Mock Exam 1

C11/2.3.1(a)
72. Under the Public Housing Scheme, for a resale flat bought in the open market, how much CPF
savings can be used?

A. All the savings in Ordinary Account

B. The amount in excess of the initial deposit
C. Up to the valuation limit
D. Up to the market value of the flat

C11/2.2.2
73. Which of the following scheme is to enable needy Singaporean citizens to pay their medical
expenses?

A. Medishield
B. Medifund
C. Medisave
D. Eldershield

C12/ Table 12.2

74. John is currently employed. He is looking to invest in some investment products to protect him
against the risk of loss of income if he is disable and unable to work. Which product would
be most suitable?

A. Critical Illness Insurance

B. Medical Expense Insurance
C. Disability Income Insurance
D. Eldershield Insurance

C3/7.2
75. Under Section 32 of the FAA, Regulation 20 of the FAR, every licensed FA is required to
established and maintain a Life Insurance Broking Premium Account with a Licensed Bank.
Under which circumstances can the money be withdrawn from the account?

A. Payment to the auditor

B. Investment by way of a structured deposit placed with a licensed bank
C. Credited to the client’s account
D. Payment of premium to the insurer

C1/2.2
76. MAS issued a monograph on Tenets of Effective Regulation to communicate MAS approach
to developing effective regulation. Which of the following is Not considered a tenet?

A. Outcome Focused
B. Risk Appropriate
C. Shared Responsibility
D. Proactive and Unified
CFMAS Module 5 Mock Exam 1

C1/4.2.2
77. Investment Management Association of Singapore’s (IMAS) standards of professional conduct
do not cover which area?

A. Client Conduct
B. Investment Manager
C. Business Conduct
D. Investment Conduct

C2/4.5
78. Under the ambit of FAA, which of the following is an Investment Product?

A. Futures Product
B. General Insurance
C. Bank Deposit
D. Loan & Mortgage

C2/4.2
79. Section 23 of the FAA does not exempt which of the following to act as Exempt Financial
Advisers?

A. A Finance Company under the Finance Companies Act(Cap 108)

B. A Securities Exchange
C. Life Insurance Company registered under the Insurance Act (Cap 142)
D. A company licensed under the Trust Companies Act (Cap 336)

C10/9.4
80. The exposure to a counterparty may be construed as being lower if collateral is tendered to
the scheme. What can be used as collateral?

A. Money market instruments with embedded financial derivatives

B. Cash
C. Securitised debt instruments
D. Bonds with financial derivatives

C11/2.3.1(a)
81. Under the Public Housing Scheme, to buy a new HDB flat, how much can a member take from
CPF?

A. Only the initial deposit

B. Up to the valuation limit
C. Up to the Withdrawal Limit
D. All of Ordinary Account
CFMAS Module 5 Mock Exam 1

C8/8.2
82. Under Section 100(2) of the FAA, The Guidelines Exemption for Specialised Unit Servicing
High Net Worth Individuals, the Unit should be to target and serve prospective high net worth
individuals, therefore the unit should have its own:

A. Marketing Staff
B. Operational Staff
C. Underwriting Staff
D. Administrative Staff

C8/6.4
83. A financial adviser’s independence may be impaired by direct restriction. Example of direct
restriction:

A. FA is required to meet the sales quota of the product provider.

B. FA is required to provide a script for use by introducers.
C. FA is confined to selling that product provider’s investment products.
D. FA may be related to product provider

C4/3.7.12
84. Where Unit Trust provides for cancellation period, financial adviser should disclose and
explain the fall in the value of the units during the cancellation period should be borne by:

A. the nominee company which held the units on behalf of the client
B. the client
C. the financial adviser
D. the fund managers

C12/T12.2
85. Mary is concerned with Protection Needs that provides life cover and total permanent
disability, which type of life insurance products should the financial adviser advises?

A. Endowment
B. Critical Illness
C. Medical Expense Insurance
D. Disability Income Insurance

C8/4.1
86. The Circular On Due Diligence Checks and Documentation for appointment of
Representatives do not expect Financial Institutions to:

A. obtain and maintain written self declarations from its proposed representative that he had
read and understood the Guidelines on Fit and Proper Criteria.
B. solely rely on the self declarations by a proposed representative.
C. have a confirmation from the proposed representative that he is aware that it is an offence
to provide false and misleading statement.
D. conduct independent due diligence checks.
CFMAS Module 5 Mock Exam 1

C7/4.24(sup notes 2/2/2012)

87. Insurer should inform MAS within ________business days after insurer becomes aware of any
breach of the requirements and standards set out in the Notice in MAS 307 Investment linked
Life Insurance Policies?

A. 3 business days
B. 7 business days
C. 21 business days
D. 30 business days

C6/11.2
88. Money Laundering comprises of a few stages, which of the following is considered the last
stage of money laundering?

A. Layering
B. Placement
C. Integration
D. Legalization

C8/4.2.4
89. If MAS has reason to believe information furnished by a proposed representative or
the Financial Institution to MAS is false or misleading, MAS may:

A. allow to enter the name of an individual in the Public Register if he pays the fine.
B. revoke the status of an individual as a representative.
C. refuse to enter an additional type of regulated financial advisory activity in the Public
Register, unless financial institution signs an indemnity form.
D. issue a Prohibition Order.

C2/4.4
90. Under the FAA, financial advisory services regulated under FAA does not include:

A. advising others by issuing and promulgating research analyses or reports, whether in

electronic print or other forms concerning any investment products
B. marketing of any collective investment schemes
C. arranging a contract of insurance in respect of life policies
D. advising others, either directly or through publications or writings, whether in electronic
print or other forms concerning any investment products

C6/6.1
91. Under the Notice on prevention of money laundering and countering the financing of terrorism,
which of the following is Not a Politically Exposed Persons (PEPs)?

A. Senior position of a state owned corporation

B. Top management team of a financial institution
C. Close associates of PEPs
D. Immediate family member of PEPs
CFMAS Module 5 Mock Exam 1

C3/15
92. MAS has the power to issue Prohibition Order (PO). Which of the following regarding PO is
true?

A. To keep unfit persons from engaging in all financial advisory services regulated under
FAA.
B. Applies when the person in question is Fit and Proper
C. Once a PO is issued, it cannot be revoked.
D. When there is circumstantial evidence provided by FA.

C10/2
93. What is the aim of the revised Code on CIS?

A. To provide greater clarity and increase the flexibility for fund managers in managing their
funds.
B. Aims to enhance safeguards for managers in managing their fund.
C. To protect investors from losing all their money.
D. To provide better opportunity for retail investors to invest.

C10/5.7
94. When a financial institution fails to observe the Guideline on Fair Dealing to customers, MAS
will take supervisory or enforcement action. Which of the following is NOT true of such actions
taken by MAS?

A. Via on site inspections or visit to financial institution

B. Via meetings with Board and Senior Management
C. Via customer survey and mystery shopping exercise
D. Via educating consumers to help understand fair dealing

C4/4.1
95. Is Dual Currency a Structured Deposit?

A. No
B. Yes, if the alternative currency option is Singapore Dollar
C. Yes, if it invest in derivative products
D. Yes, if the product provider pays for the fees and charges

C5/7.1
96. Under Notice On Cancellation Period for Unlisted Debentures, which is not an obligation to
observe?

A. A relevant person shall sell to a client any unlisted debentures which does not contain a
right given by the issuer to cancel the agreement to purchase such debentures.
B. A relevant person shall conduct due diligence on issuers of unlisted debentures.
C. A relevant person shall ensure that the issuers have put in place steps and process that
satisfy the guidelines.
D. A relevant person shall explain the procedures for exercising his right to cancel
his purchase of the unlisted debentures.
CFMAS Module 5 Mock Exam 1

C9/5.2
97. MAS has issued “Guidelines on Fair Dealing Board and Senior Management Responsibilities
for delivering fair dealing outcome to customers. These outcomes do not include:

A. Customer’s confidence in dealing with financial institutions

B. Customers receive timely information to make financial decisions
C. Financial Institutions should offer the same products and services for all their customers,
regardless of segments.
D. Financial Advisers regardless of segments should handle customer complaints in a prompt
manner.

C6/2
98. Who is the “Beneficial Owner” in relation to a customer of a financial adviser?

A. A natural person who ultimately owns or controls a customer

B. An individual who owns his policy
C. Company who owns the master policy
D. Foreign government entity

C12/5.3.3
99. As a rule of thumb, FA helps their clients to answer the question on “Years to support” for their
dependants by adding _______years of the life expectancy to arrive at the years needed to
support them.

A. 5 years
B. 8 years
C. 10 years
D. 15 years

C6/4.3.4
100. A FA shall not be required to inquire if there exists any beneficial owner in relation to a
customer that is:

A. Privately owned company in Singapore

B. Company incorporated outside of Singapore
C. Joint Law Venture
D. An entity listed on the Singapore Exchange
CFMAS Module 5 Mock Exam 1

Answers – Mock Exam 1

1 A 26 A 51 D 76 D
2 B 27 D 52 B 77 A
3 B 28 A 53 A 78 A
4 B 29 D 54 B 79 D
5 A 30 D 55 B 80 B
6 C 31 D 56 C 81 D
7 D 32 C 57 A 82 A
8 D 33 A 58 C 83 C
9 D 34 C 59 B 84 B
10 C 35 B 60 C 85 A
11 B 36 A 61 B 86 B
12 D 37 C 62 D 87 A
13 B 38 A 63 C 88 C
14 A 39 B 64 D 89 B
15 A 40 D 65 C 90 A
16 D 41 B 66 B 91 B
17 C 42 B 67 A 92 A
18 A 43 D 68 B 93 A
19 D 44 B 69 D 94 D
20 C 45 B 70 A 95 A
21 C 46 D 71 A 96 A
22 D 47 D 72 C 97 C
23 B 48 D 73 B 98 A
24 A 49 D 74 C 99 B
25 B 50 B 75 D 100 D

Qn 43
Base fee = 2%
Performance fee = (8-5)% x 5% = 0.15%
Fulcrum fee = (2 + 0.15)% = 2.15%

Qn 57
Income – Expenditure
$20k - $8K = $12K

Qn 58
25 – 5 = 20 years