Notice on Minimum Entry and Examination Requirements for Representatives of Holders of Capital Markets Services Licences and Exempt Financial Institutions (Updated May 2012)
(A) Minimum Entry Requirements
1. Can the 4 GCE “O” Level be obtained from more than one sitting?
Yes.
2. What is considered equivalent to 4 GCE “O” level credit passes?
The minimum educational qualification requirement for persons conducting regulated activities under the SFA is 4 GCE “O” level credit passes. So long as an individual has 4 GCE “O” level credit passes or higher educational qualifications such as a GCE “A” level certificate, diploma or degree in any discipline, he would be considered as meeting the
minimum educational requirement. For foreign qualifications, individuals must possess at least 4 passes in any national examination that is equivalent to 4 GCE “O” level passes.
3. Is a temporary representative as defined under section 99F of the SFA required to comply with the minimum entry requirement spelled out in this Notice?
No. A temporary representative is subject to a separate set of requirements as
specified in the Notice on the Entry Requirements of a Provisional or
Temporary Representative (Notice SFA 04-N10).
4. Can persons who do not satisfy the minimum 4 GCE “O” level requirement conduct a regulated activity under the SFA?
They must have at least 4 GCE “O” level credit passes or its equivalent.
Alternatively, if they have sat for the GCE “O” Level Examination before or in the year 1980, they must have at least 2 GCE “O” level credit passes and at least 3 years of relevant and continuous working experience over the past 5 years in respect of the regulated activity to be conducted. 3
5. If a person does not have 4 GCE “O” level credit passes but has been working as a trading clerk with a broking company, can he subsequently act as a remisier or dealer of the company?
No, unless the person has – (i) sat for the GCE “O” Level Examination before or in the year 1980 and obtained at least 2 GCE “O” level credit passes; (ii)at least 3 years of working experience as a trading clerk over the past 5 years; and (iii) satisfied the examination requirements.
1. Can the 4 GCE “O” Level be obtained from more than one sitting?
Yes.
2. What is considered equivalent to 4 GCE “O” level credit passes?
The minimum educational qualification requirement for persons conducting regulated activities under the SFA is 4 GCE “O” level credit passes. So long as an individual has 4 GCE “O” level credit passes or higher educational qualifications such as a GCE “A” level certificate, diploma or degree in any discipline, he would be considered as meeting the
minimum educational requirement. For foreign qualifications, individuals must possess at least 4 passes in any national examination that is equivalent to 4 GCE “O” level passes.
3. Is a temporary representative as defined under section 99F of the SFA required to comply with the minimum entry requirement spelled out in this Notice?
No. A temporary representative is subject to a separate set of requirements as
specified in the Notice on the Entry Requirements of a Provisional or
Temporary Representative (Notice SFA 04-N10).
4. Can persons who do not satisfy the minimum 4 GCE “O” level requirement conduct a regulated activity under the SFA?
They must have at least 4 GCE “O” level credit passes or its equivalent.
Alternatively, if they have sat for the GCE “O” Level Examination before or in the year 1980, they must have at least 2 GCE “O” level credit passes and at least 3 years of relevant and continuous working experience over the past 5 years in respect of the regulated activity to be conducted. 3
5. If a person does not have 4 GCE “O” level credit passes but has been working as a trading clerk with a broking company, can he subsequently act as a remisier or dealer of the company?
No, unless the person has – (i) sat for the GCE “O” Level Examination before or in the year 1980 and obtained at least 2 GCE “O” level credit passes; (ii)at least 3 years of working experience as a trading clerk over the past 5 years; and (iii) satisfied the examination requirements.
(B) Examination Requirements
1. Some companies require their representatives to pass relevant CMFAS exams even though these representatives already have certain educational qualifications (e.g. a degree in finance) and/or relevant work experience. Are such representatives obliged to meet the requirements imposed by their principal?
MAS places the onus on principals to satisfy themselves and certify to MAS that their representatives are fit and proper. The principal has to ensure that the proposed representatives are fit and proper (including examination requirement) before appointing them as representatives under the SFA and FAA. The fit and proper criteria (i.e. integrity, competence and financial soundness) set out in MAS Guidelines on Fit and Proper Criteria (FSG-G01) are the minimum standards that representatives are expected to meet.
Principals are encouraged to set standards that are higher than the minimum standards required by MAS, so as to adequately reflect the integrity, professionalism and conduct they expect of their representatives. Where a principal takes the view that the current educational background and/or work experience of existing or prospective representatives are insufficient, it may require that these be supplemented by additional educational qualifications, such as to pass certain CMFAS exams beyond what is strictly required by MAS. Existing and potential representatives should check directly with the compliance officer of their principal on the specific fit and proper requirements expected of them.
2. Are persons who wish to carry out only leveraged foreign exchange trading subject to the CMFAS Exam requirements?
Yes, they have to pass Module 1A, 1B, 2A or 2B, and Module 6A (unless otherwise exempted).
3. For appointed representatives carrying out securities dealing and wish to expand their activity to include the trading of equity index futures contracts, which modules should they take?
They must pass Module 2A or 2B, and Module 6A (unless otherwise exempted) to conduct the additional activities. Module 7 has been replaced by Module 6A with effect from 1 January 2012.
4. Are persons employed by a bank to deal solely in Singapore Government securities subject to the CMFAS Exam requirements?
No.
5. Are persons who intend to deal in bonds with accredited investors subject to the CMFAS Exam requirements?
No. The CMFAS Exam does not apply to them as long as they confine their
regulated activity to bond dealing with accredited investors.
6. Are persons subject to the CMFAS Exam requirements if they are employed by a CMS licensee as proprietary trader with respect to trading in futures contracts?
No.
7. Do the CMFAS Exam requirements apply to persons employed with an exempt fund management company to conduct fund management for not more than 30 qualified investors?
The CMFAS Exam does not apply to such persons. However, if they subsequently wish to join a CMS licensee or an exempt financial institution [“exempt FI”] to conduct any regulated activity, they will have to comply with the examination requirements.
8. For a person who was previously working in a specialised unit serving high net worth individuals exempted under section 100(2) of the Financial Advisers Act [“FAA”], is he required to pass Modules 3, 6 and 6A if he subsequently joins a fund management company that is not exempted under section 100(2) of the FAA?
Yes, they will have to pass Module 3 and Module 6 or 6A (unless otherwise
exempted).
9. What is the difference between Module 4A and Module 4B?
Module 4A applies to persons who wish to conduct corporate finance advisory while Module 4B applies to those who confine their corporate finance advisory to debt securities. Persons who have passed Module 4A will not have to pass Module 4B. However, persons who have passed Module 4B and confine their activity to debt securities, will have to pass Module 4A if they subsequently wish to expand their activity to offer other corporate finance advisory services such as merger and acquisitions and corporate finance advice relating to equity.
10. For persons who wish to conduct corporate finance advisory and dealing in securities in connection with corporate finance advisory, such as placement and underwriting of IPOs, what modules should they take?
They will have to pass Module 4A to conduct corporate finance advisory. If they also intend to conduct placement and underwriting activities in relation to the corporate finance activities of their principal company, they will have to pass Modules 1B and 6. With effect from 1 January 2012, they also have to pass Module 6A if they are carrying out placement and underwriting of securities which are Specified Investment Products.
11. Would a person who has passed the relevant CMFAS Exams more than 3 years ago, but did not commence any regulated activities, be required to retake the CMFASExams if he wishes to carry out the relevant regulated activity now?
Such persons are required to re-take and pass the relevant rules and regulations module(s) before commencing the activity. They are not required to re-take the module(s) on product knowledge. However, with effect from 1 January 2012, they have to pass Module 6A if they wish to carry out dealing in securities (which are Specified Investment Products), trading in futures contracts or leveraged foreign exchange.
12. For persons who were employed with a CMS licensee/Exempt FI to carry out regulated activity under the SFA on 1 October 2002, but who left the company subsequently without completing a non-examinable course by the stipulated deadline of 30 November 2003, can they take a non-examinable course now if they wish to re-commence the same regulated activity.
No. They have to pass the relevant rules and regulations module(s) beforere commencing the activity.
13. For persons employed with a CMS licensee/Exempt FI to carry out regulated activity under the SFA on 1 October 2002, and who completed the relevant non-examinable course, but subsequently ceased carrying out the relevant regulated activity, are they required to re-take the relevant rules and regulations module(s) if they wish to join a CMS licensee/Exempt FI to conduct the same activity in the future?
As the completion of the non-examinable course is valid for 3 years following the cessation of the regulated activity, they will be required to re-take the relevant rules and regulations module(s) if they intend to re-commence the relevant regulated activity with a CMS licensee or an exempt FI more than 3 years after the date of their cessation.
14. Will existing representatives conducting additional regulated activities be “exempted” from passing the CMFAS Exam?
No. They will be treated as new entrants in respect of the new regulated
activities, and must pass the relevant CMFAS Exam before they can commence the new regulated activities.
15. For persons employed with a bank in Singapore to conduct corporate finance advisory activities for 3 continuous years before taking a break of slightly more than 6 months, are they required to take Module 4A if they wish to re-commence the same activity again?
They do not need to take Module 4A if they had previously passed Module 4A or completed a non-examinable course prior to 30 June 2005 on Module 4A while they were employed with the bank. The passing of Module 4A is valid for 3 years following their cessation of the regulated activity.
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