CMFAS Cheat Sheet 2026

The 30 highest-yield CMFAS facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the function of the Central Depository (CDP)? → To provide depository, clearing, and settlement services for securities
2. What is trade-based money laundering? → Using international trade transactions to move value and disguise proceeds of crime
3. What is an American Depositary Receipt (ADR)? → A certificate representing shares of a foreign company traded on US exchanges
4. What is a beneficiary in a life insurance policy? → The person designated to receive the death benefit
5. What is the CPF Life scheme? → A national annuity scheme that provides lifelong monthly payouts to Singaporeans
6. What happens to a fund's NAV when markets fall? → NAV typically decreases
7. What is a policy loan? → A loan taken against the cash value of a life insurance policy
8. What is an Exchange-Traded Fund (ETF)? → A fund traded on the stock exchange that tracks an index or basket of assets
9. What is a money market fund? → A fund that invests in short-term, low-risk instruments like treasury bills
10. What is the role of the Suspicious Transaction Reporting Office (STRO)? → To receive, analyse, and disseminate STRs to law enforcement
11. What is a non-participating policy? → A policy with guaranteed benefits that does not share in the insurer's profits
12. What is the settlement cycle for equities traded on SGX? → T+2 (two business days)
13. What is a feeder fund? → A fund that invests substantially all its assets into another fund
14. What is ongoing monitoring in AML? → Continuously reviewing customer transactions and relationships for suspicious activity
15. What is the balanced scorecard framework for financial advisers? → A framework that assesses advisers on multiple criteria including ethics, not just sales
16. What is a 'collective investment scheme' (CIS)? → An arrangement where investors pool funds to be managed by a professional
17. What is the Total and Permanent Disability (TPD) benefit? → A benefit paid if the insured becomes totally and permanently disabled
18. What is the MAS Notice on Product Advertising for insurance? → Rules governing how insurance products can be advertised to the public
19. What is a risk-based approach to AML? → Allocating resources and applying measures proportionate to the assessed risk level
20. What is the Singapore Savings Bond (SSB)? → A government bond designed for individual investors with flexible redemption
21. What is Customer Due Diligence (CDD)? → The process of verifying a customer's identity and assessing the risk they pose
22. What reporting obligation does a substantial shareholder have? → Must notify the company and SGX when reaching 5% or more of voting shares
23. What is a product highlights sheet? → A concise document summarizing a CIS's key features, risks, and costs
24. What is a 'connected person' in securities regulation? → A person related to or associated with an insider who has access to non-public information
25. What is the price-to-earnings (P/E) ratio? → The price of a share divided by earnings per share
26. What is the concept of 'leverage' as it applies to futures trading? → The ability to control a large contract value by depositing only a small initial margin
27. What is a debenture? → An unsecured bond backed only by the issuer's creditworthiness
28. What is beneficial ownership? → The natural person(s) who ultimately own or control a legal entity
29. What is the difference between accumulation and distribution classes of a fund? → Accumulation reinvests income; distribution pays income to investors
30. What is the purpose of the MAS Fair Dealing Guidelines in financial advisory? → To ensure fair treatment of customers at all stages of the advisory relationship