FTT MAS Licensing Requirements 2

Question 1

What does 'dealing in securities' as a regulated activity cover under the SFA?

Accepted Answer

Buying, selling, or exchanging securities as agent or as principal, or making or offering to make agreements to do so

Answer

Dealing in securities as a regulated activity under the SFA covers any person who buys, sells, or exchanges securities as agent or as principal, or who makes or offers to make agreements to do so. It includes both acting for clients (agency) and trading for the firm's own account (principal).

Question 2

What must a CMS licence holder do to add a new regulated activity to its licence?

Accepted Answer

Apply to MAS to have its CMS licence varied to include the additional regulated activity

Answer

A CMS licence is specific to the regulated activities approved by MAS. If a licence holder wishes to conduct additional regulated activities, it must apply to MAS to have its licence varied (amended) to include those activities.

Question 3

What is the 'financial resources requirement' (FRR) for CMS licence holders?

Accepted Answer

A risk-based minimum financial resources requirement calculated using a prescribed formula, which must be maintained at all times

Answer

The FRR requires CMS licence holders to maintain minimum financial resources (risk-based capital) at all times, calculated using the formula prescribed in the SF(FMR) Regulations, taking into account assets, liabilities, and the risks of their regulated activities.

Question 4

If a CMS licence holder's financial resources fall below the minimum required level, it must:

Accepted Answer

Immediately notify MAS and take steps to restore the financial resources to the required level

Answer

If a CMS licence holder's financial resources fall below the minimum required level, it has an immediate obligation to notify MAS and take prompt corrective action to restore resources. Failing to notify MAS promptly is itself a separate regulatory breach.

Question 5

Under MAS Technology Risk Management guidelines, within what timeframe must a CMS licence holder notify MAS of a significant operational disruption?

Accepted Answer

1 business day

Answer

Under MAS TRM guidelines and notification requirements, CMS licence holders must notify MAS within 1 business day of becoming aware of a significant operational disruption or technology incident that impacts regulated activities.

Singapore FTT Practice Test

Singapore FTT Practice Test

FTT MAS Licensing Requirements 2