FTT Securities & Futures Regulations 2

Question 1

Under MAS licensing, which licence is required to provide financial advisory services including recommending investment products?

Accepted Answer

Financial Adviser's Licence

Answer

A Financial Adviser's Licence under the Financial Advisers Act (FAA) is required to provide financial advisory services, including advising on and recommending investment products to retail clients.

Question 2

What does 'exempt financial adviser' status mean under the FAA?

Accepted Answer

The entity is exempt from holding a Financial Adviser's Licence but must still comply with conduct rules

Answer

An exempt financial adviser is not required to hold a Financial Adviser's Licence but must still comply with specific conduct requirements under the FAA. Banks, insurers, and certain other entities may qualify for exempt status.

Question 3

Which entity is automatically an exempt financial adviser under the FAA?

Accepted Answer

A bank licensed under the Banking Act

Answer

Banks licensed under the Banking Act are automatically exempt financial advisers under the FAA, allowing them to provide financial advisory services without a separate Financial Adviser's Licence.

Question 4

MAS's representative notification framework requires financial advisers to notify MAS when:

Accepted Answer

A representative is appointed, ceases, or has a change in particulars

Answer

Under the representative notification framework, financial advisers must notify MAS when a representative is appointed, when they cease to act as a representative, and when there are changes to their particulars.

Question 5

The 'fit and proper' criteria for MAS licensing includes:

Accepted Answer

Honesty, integrity, reputation, competence, and financial soundness

Answer

MAS's 'fit and proper' criteria encompasses honesty, integrity and reputation, competence and capability, and financial soundness. All these dimensions are assessed when granting and maintaining licences.

Singapore FTT Practice Test

Singapore FTT Practice Test

FTT Securities & Futures Regulations 2