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Securities Regulations M1 Flashcards

6 cards from real CMFAS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Securities Regulations M1 flashcards as text

  1. What is the 'fit and proper' requirement for representatives?

    Answer: Meeting criteria of honesty, integrity, competence, and financial soundness

    The 'fit and proper' criteria assess whether a person has the honesty, integrity, reputation, competence, and financial soundness to carry out regulated activities.

  2. How long must financial institutions retain records of transactions under the SFA?

    Answer: 5 years

    Financial institutions are generally required to retain transaction records for a minimum of 5 years under SFA regulations.

  3. What is the penalty for insider trading under the SFA?

    Answer: Fine and/or imprisonment

    Insider trading is a serious offence under the SFA that can result in substantial fines and/or imprisonment.

  4. What is a 'connected person' in securities regulation?

    Answer: A person related to or associated with an insider who has access to non-public information

    A connected person is someone who is related to or has a close association with a person possessing inside information.

  5. What does 'continuous disclosure' require of listed companies?

    Answer: Promptly disclosing material information that may affect share prices

    Continuous disclosure requires listed companies to promptly announce any material information that could affect their share price, ensuring all investors have equal access.

  6. Which of the following is an exempt financial institution under the SFA?

    Answer: Banks licensed under the Banking Act

    Banks licensed under the Banking Act are exempt from holding a separate CMS licence for certain regulated activities, as they are already regulated by MAS.

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  1. ibf.org.sg — Eligibility, fees, score release, registration, retake policy, exam format, passing score, time limit · verified Oct 2026