CMFAS Securities Regulations M1

Question 1

Which act primarily governs the securities and futures industry in Singapore?

Accepted Answer

Securities and Futures Act (SFA)

Answer

The Securities and Futures Act (SFA) is the principal legislation governing the securities, futures, and derivatives industry in Singapore.

Question 2

What is the primary role of the Monetary Authority of Singapore (MAS)?

Accepted Answer

To regulate and supervise the financial sector

Answer

MAS is Singapore's central bank and integrated financial regulator, responsible for supervising all financial institutions.

Question 3

Which of the following activities requires a Capital Markets Services (CMS) licence?

Accepted Answer

Dealing in securities

Answer

Dealing in securities is a regulated activity under the SFA that requires a Capital Markets Services licence from MAS.

Question 4

What is the purpose of the Securities and Futures (Licensing and Conduct of Business) Regulations?

Accepted Answer

To prescribe licensing requirements and conduct standards

Answer

These regulations prescribe detailed requirements for licensing of intermediaries and set out standards of conduct for the financial industry.

Question 5

Who is required to pass the CMFAS examinations?

Accepted Answer

Representatives of licensed financial institutions

Answer

Representatives who carry out regulated activities on behalf of licensed financial institutions must pass the relevant CMFAS modules.

CMFAS Practice Test