FTT MAS Licensing Requirements — Questions and Answers
Question 1: What is the minimum age to be registered as a CMS Representative in Singapore?
- 21 years old (Correct answer)
- 18 years old
- 25 years old
- There is no minimum age requirement
Correct answer: 21 years old
Under the SFA, a person must be at least 21 years of age to be appointed and registered as a CMS Representative, ensuring a minimum level of maturity and professional development.
Question 2: Which examination is typically required to be registered as a CMS Representative for dealing in securities?
- CMFAS Module 6 (Securities and Futures Product Knowledge) (Correct answer)
- Singapore Bar Examination
- CFA Level 1
- MAS Certified Trader Examination
Correct answer: CMFAS Module 6 (Securities and Futures Product Knowledge)
The CMFAS Module 6 examination, administered by the Institute of Banking and Finance (IBF) Singapore, is typically required for individuals seeking registration as a CMS Representative for dealing in securities.
Question 3: What is a 'provisional representative' under MAS's framework?
- A person appointed by a CMS licence holder who is still completing licensing examinations and may only conduct regulated activities under direct supervision (Correct answer)
- A representative on a 3-month probationary period before full licensing
- A foreign representative temporarily authorised to work in Singapore
- A retired representative re-joining the industry on a part-time basis
Correct answer: A person appointed by a CMS licence holder who is still completing licensing examinations and may only conduct regulated activities under direct supervision
A provisional representative is appointed by a CMS licence holder and registered with MAS but has not yet passed all required CMFAS examinations. During this period, they may conduct regulated activities only under the direct supervision of a fully qualified representative.
Question 4: What is the purpose of Continuing Professional Development (CPD) for licensed representatives?
- To ensure representatives keep their knowledge and skills current through ongoing training throughout their career (Correct answer)
- To allow representatives to upgrade their licence to a higher category
- To meet a renewal requirement every 5 years
- To qualify representatives to deal in additional product types
Correct answer: To ensure representatives keep their knowledge and skills current through ongoing training throughout their career
CPD requirements ensure that licensed representatives maintain and update their professional knowledge, skills, and competence throughout their career, keeping pace with regulatory changes, new products, and evolving industry practices.
Question 5: Which of the following would cause MAS to revoke a CMS licence?
- The licence holder is convicted of a serious financial crime (Correct answer)
- The licence holder has fewer than 10 clients
- The licence holder charges higher fees than competitors
- The licence holder only deals in one type of product
Correct answer: The licence holder is convicted of a serious financial crime
MAS may revoke a CMS licence if the licence holder ceases to be fit and proper, which includes being convicted of offences involving dishonesty, financial crimes, or other serious offences that undermine the integrity required of licence holders.
Question 6: When a CMS Representative moves to a new firm, what must the new firm do?
- Notify MAS of the appointment through the MAS representative notification system (MASNET) (Correct answer)
- Wait for the old firm to cancel registration first, then apply for a new licence
- Apply to SGX directly for approval
- Inform all existing clients of the representative before the appointment
Correct answer: Notify MAS of the appointment through the MAS representative notification system (MASNET)
When a CMS Representative joins a new firm, the new appointing firm must notify MAS through the representative notification system. The old firm must also separately notify MAS of the cessation of the representative's appointment.
FTT MAS Licensing Requirements
What is the minimum age to be registered as a CMS Representative in Singapore?