FTT Securities & Futures Regulations 1

Question 1

Which Act is the primary legislation governing 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 in Singapore regulating the securities and futures industry, covering licensing, market conduct, and trading activities.

Question 2

Which regulatory body oversees the securities and futures markets in Singapore?

Accepted Answer

Monetary Authority of Singapore (MAS)

Answer

The Monetary Authority of Singapore (MAS) is Singapore's central bank and financial regulatory authority, responsible for overseeing the securities and futures markets.

Question 3

Under the SFA, carrying on a regulated activity without a Capital Markets Services licence is punishable by:

Accepted Answer

A fine not exceeding $150,000 and/or imprisonment not exceeding 3 years

Answer

Under the SFA, carrying on a regulated activity without a CMS licence is an offence punishable by a fine up to $150,000 and/or imprisonment up to 3 years.

Question 4

What is the minimum base capital requirement for a CMS licence holder dealing in securities?

Accepted Answer

S$1 million

Answer

CMS licence holders dealing in securities are required to maintain a minimum base capital of S$1 million as prescribed under the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations.

Question 5

Which of the following is NOT a regulated activity under the Second Schedule of the SFA?

Accepted Answer

Providing accounting services

Answer

Providing accounting services is not a regulated activity under the SFA. Regulated activities include dealing in capital markets products, advising on corporate finance, fund management, real estate investment trust management, and providing custodial services.

Singapore FTT Practice Test

Singapore FTT Practice Test

FTT Securities & Futures Regulations 1