CMFAS M5 Exam – Rules, Ethics and Skills for Financial Advisory Services

In accordance with the updated MAS requirements detailed in MAS Notice FAA-N26, the CMFAS M5 examination module will be renamed to RES5: Rules, Ethics, and Skills for Financial Advisory Services.

For Whom

The M5 exam is intended for those who are looking to:
1. advise others concerning:

1. Securities;
2. Units in a collective investment scheme;
3. Exchange-traded derivatives contracts (include futures contracts or not futures contracts);
4. Spot foreign exchange contracts for leveraged foreign exchange trading;
5. Over-the-counter derivatives contracts.

2. provide advice on and/or arrange life insurance policies (whether or not including investment-linked policies),

You are required to pass this Module 5 on Rules and Regulations for Financial Advisory Services, in compliance with the requirements as laid down by the Monetary Authority of Singapore (MAS).

Candidates are also advised to check with their Compliance Department for their applicable CMFAS examination modules.

Objectives of M5

The objective of this course is to test candidates on their knowledge and understanding of the:

1. Regulatory framework governing financial advisers and representatives under the FAA;
2. Financial Advisers Regulations (FAR);
3. Notices and Guidelines governing all financial advisory activities in respect of investment products;
4. Distribution or marketing of specific functionally similar investment products, namely, life insurance policies and collective investment schemes, including unit trusts.
5. process of conducting a proper clients’ needs analysis; CPF and its schemes.

The contents of the course include:

• Chapter 1: The Regulatory Bodies and Associations
• Chapter 2: Financial Advisers Act And Financial Advisers Regulations – Financial Advisers And Representatives
• Chapter 3: Financial Advisers Act And Financial Advisers Regulations – Conduct of Business, Powers Of Authority And Offence
• Chapter 4: MAS Notices – Part I [Notice Nos: FAA-N16; FAA-N03 & FAA-N11]
• Chapter 5: MAS Notices – Part II [Notice Nos: FAA-N02; FAA-N10; FAA-N12; FAA-N13; FAA-N14; FAA-N15 & FAA-N20]
• Chapter 6: MAS Notice No: FAA-N06 – Prevention Of Money Laundering And Countering The Financing Of Terrorism – Financial Advisers
• Chapter 7: MAS Notices -Part III [Notice Nos: FAA-N17; FAA-N18; FAA-N19 & FAA-N21]
• Chapter 8: MAS Notice Nos: MAS 302 And MAS 307
• Chapter 9: MAS Guidelines – Part I [Guideline Nos: FAA-G01; FSG-G01; FAA-G04; FAA-G05; FAA-G06 & FAA-G07] And Circular No: CMI 01/2011
• Chapter 10: MAS Guidelines – Part II [Guideline Nos: FAA-G08; FAA-G09; FAA-G10; FAA-G11 & FAA-G14]
• Chapter 11: MAS Guidelines – Part III (Guideline Nos: FAA-G13; FAA-G15; FAA-G16; CMG-G02 & FSG-G02]
• Chapter 12: Revised Code On Collective Investment Schemes
• Chapter 13: Central Provident Fund (CPF)
• Chapter 14: Needs Analysis

Structure & Format

100 multiple-choice questions.

Duration

2 hours.

Minimum Passing Grade & Result Slip

• Passing Grade: 75%
• One mark will be awarded for each correct answer.
• No mark will be awarded or deducted for any wrong or blank answer.
• No certificate will be issued. Only Result Slip will be issued.

Study Materials / Updates

Candidates are asked to use the eBook to prepare for their examinations. Hard-copy study texts will no longer be issued. Any updates to the contents of the study text will be incorporated into the eBook.

Examination Mode

• English Medium – Computer Screen Examination (CSE)
• The candidate can self-study for the closed-book examination.

CMFAS M9 Exam – Life Insurance And Investment-Linked Policies

For Whom

The M9 exam is intended for those who are looking to provide advice on and/or arrange life insurance policies (whether or not including investment-linked policies)

You are required to pass this module, together with Module 5 on Rules And Regulations For Financial Advisory Services, in compliance with the requirements as laid down by the Monetary Authority of Singapore (MAS).

Candidates are also advised to check with their Compliance Department for their applicable CMFAS examination modules.

Objectives of M9

1. The objective of this course is to test candidates on their knowledge and understanding of the:
2. Life insurance and life insurance concepts, including setting life insurance premiums and classification of life insurance products;
3. Different types of traditional life insurance products;
4. Various types of riders; investment-linked policies; and annuities;
5. Industry practices including the application and underwriting process; policy services and claims practices; and
6. Contractual provisions and legal issues such as the law of agency and other relevant aspects such as income tax, insurance nomination, wills, and trust.

The contents of the course include:

• Chapter 1 – Risk And Life Insurance
• Chapter 2 – Setting Life Insurance Premium
• Chapter 3 – Classification Of Life Insurance Products
• Chapter 4 – Traditional Life Insurance Products
• Chapter 5 – Riders (Or Supplementary Benefits)
• Chapter 6 – Participating Life Insurance Policies
• Chapter 7 – Investment-linked Life Insurance Policies (ILPS): Types, Features, Benefits, And Risks
• Chapter 8 – Investment-linked Sub-Funds
• Chapter 9 – Investment-linked Life Insurance Products: Computational Aspects
• Chapter 10 – Annuities
• Chapter 11 – Application And Underwriting
• Chapter 12 – Policy Services
• Chapter 13 – Life Insurance Claims
• Chapter 14 – The Insurance Contract
• Chapter 15 – Law Of Agency
• Chapter 16 – Income Tax And Life Insurance
• Chapter 17 – Insurance Nomination, Wills And Trusts

Structure & Format

100 multiple-choice questions.

Duration

2 hours

Minimum Passing Grade & Result Slip

• Passing Grade: 70%
• One mark will be awarded for each correct answer.
• No mark will be awarded or deducted for any wrong or blank answer.
• No certificate will be issued. Only Result Slip will be issued.

Study Materials / Updates

Candidates are asked to use the eBook to prepare for their examinations.
Hard-copy study texts will no longer be issued. Any updates to the contents of the study text will be incorporated into the eBook.

Examination Mode

English Medium – Computer Screen Examination (CSE)
The candidate can self-study for the closed-book examination.

CMFAS M9A Exam -Life Insurance And Investment-Linked Policies II

For Whom

The M9A is intended for new or existing representatives of financial advisers who need to comply with the MAS requirement to possess the requisite knowledge to advise others and/or arrange Investment-linked Life Insurance Policies (ILPs).
Candidates are also advised to check with their Compliance Department for their applicable CMFAS examination modules

Objectives of M9A

The objective of this course is to test candidates on their knowledge and understanding of the:

1. Features, types, advantages, and disadvantages of structured products, comparison with other investment options, governance structure;
2. Documentation and risks associated with the investment of structured products, particularly Structured ILPs;
3. Structured ILPs on product features, inherent risks, and performance under various market conditions in determining product suitability for the clients;
4. Various types of derivatives in the market, both on-the-exchange and over-the-counter; and
5. Applications of structured funds relating to product features, inherent risks, and performance of such funds under various market conditions in determining product suitability for the clients’

The contents of the course include:

• Chapter 1 – Introduction To Structured Products
• Chapter 2 – Risk Considerations Of Structured Products
• Chapter 3 – Understanding Derivatives
• Chapter 4 – Introduction To Structured ILPs
• Chapter 5 – Portfolio Of Investments With An Insurance
• Chapter 6 – Case Studies

Structure & Format

50 multiple-choice questions.

Duration

1 hour.

Minimum Passing Grade & Result Slip

• Passing Grade: 70%
• One mark will be awarded for each correct answer.
• No mark will be awarded or deducted for any wrong or blank answer.
• No certificate will be issued. Only Result Slip will be issued.

Study Materials / Updates

Candidates are asked to use the eBook to prepare for their examinations.

Hard-copy study texts will no longer be issued. Any updates to the contents of the study text will be incorporated into the eBook.

Examination Mode

English Medium – Computer Screen Examination (CSE)
The candidate can self-study for the closed book examination.

CMFAS HI Exam – Health Insurance

For Whom

The HI exam is intended for all life and general insurance intermediaries and company staff members who are involved in advising and/or selling any Health Insurance products including:

1. Medical Expense Insurance
2. Disability Income Insurance
3. Long-Term Care Insurance
4. Critical Illness Insurance
5. Managed Healthcare Insurance

Those who provide advice on and/or arrange contracts of insurance in respect of the Health Insurance products that contain only critical illness benefits and/or hospital income benefits are not required to comply with such requirements, provided that they have obtained passes in the Certification in General Insurance – Basic Insurance Concepts & Principles and Personal General Insurance, or Capital Markets & Financial Advisory Services (CMFAS) Module 9: Life Insurance and Investment-Linked Policies.

Objectives of HI

The objective of this course is to ensure insurance intermediaries and company staff members who are involved in advising and/or selling Health Insurance products have the requisite knowledge of the healthcare environment in Singapore, as well as the various types of Health Insurance products in the insurance market.

The contents of the course include:

• Chapter 1 – Overview Of Healthcare Environment In Singapore
• Chapter 2 – Medical Expense Insurance
• Chapter 3 – Group Medical Expense Insurance
• Chapter 4 – Disability Income Insurance
• Chapter 5 – Long-Term Care Insurance
• Chapter 6 – Critical Illness Insurance
• Chapter 7 – Other Types of Health Insurance
• Chapter 8 – Managed Healthcare
• Chapter 9 – Healthcare Financing
• Chapter 10 – Common Policy Provisions
• Chapter 11 – Health Insurance Pricing
• Chapter 12 – Health Insurance Underwriting
• Chapter 13 – Notice No: MAS 120 – Disclosure And Advisory Process Requirements For Accident And Health Insurance Products
• Chapter 14 – Financial Needs Analysis
• Chapter 15 – Case Studies

Structure & Format

50 multiple-choice questions.

Duration

1 hour 15 minutes.

Minimum Passing Grade & Result Slip

• Passing Grade: 70%
• One mark will be awarded for each correct answer.
• No mark will be awarded or deducted for any wrong or blank answer.
• No certificate will be issued. Only Result Slip will be issued.

Study Materials / Updates

Candidates are asked to use the eBook to prepare for their examinations.
Hard-copy study texts will no longer be issued. Any updates to the contents of the study text will be incorporated into the eBook.

Examination Mode

English Medium – Computer Screen Examination (CSE)
The candidate can self-study for the closed-book examination.