Securities Regulations M1 Flashcards

What is the purpose of the MAS Guidelines on Fair Dealing?

Answer: To ensure financial institutions treat customers fairly

The Guidelines on Fair Dealing set out MAS's expectations for financial institutions to adopt fair dealing as a core business principle in their dealings with customers.

What is a 'collective investment scheme' (CIS)?

Answer: An arrangement where investors pool funds to be managed by a professional

A CIS involves pooling contributions from investors, which are then managed as a whole by a fund manager to generate returns.

What is the role of a compliance officer in a financial institution?

Answer: To ensure the institution complies with laws and regulations

A compliance officer monitors and ensures that the financial institution adheres to all applicable laws, regulations, and internal policies.

Under the SFA, what are 'business conduct regulations' designed to achieve?

Answer: Protect investors and maintain market integrity

Business conduct regulations establish standards that protect investors, maintain fair markets, and reduce systemic risk.

What is the maximum civil penalty MAS can impose for market misconduct?

Answer: $2,000,000

Under the civil penalty regime of the SFA, MAS can seek civil penalties up to $2,000,000 for market misconduct offences.

What must a financial institution do before providing investment advice?

Answer: Conduct a suitability assessment of the customer

Financial institutions must assess the customer's financial situation, investment experience, and objectives to ensure recommendations are suitable.