Sunday, December 11, 2011

MAS: Customer Account Review (CAR) and Specified Investment Products (SIP) e-Learning

The Monetary Authority of Singapore (MAS) has released new requirements on the sale/ trading in listed and unlisted Specified Investment Products (SIPs) aimed at safeguarding the interests of Singapore retail investors. These new requirements will come into full effect on 1 January 2012. The classifications of listed and unlisted SIPs are as follows:


The new measures are to assess whether you have the relevant knowledge or experience to understand risks and features of SIPs by conducting:

  1. A prescribed Customer Account Review (CAR) if you intend to trade in any listed SIPs

  2. A prescribed Customer Knowledge Assessment (CKA) for a specific unlisted SIP if you intend to trade in that specific unlisted SIP

To be eligible for trading in listed and/or unlisted SIPs, you need at least 6 trades in any listed SIPs and/or 6 trades in CFDs and/or 6 trades in LFX in the preceding 3 years any brokers, or satisfy one of the following four criteria

  1. Have a diploma or higher qualifications in accountancy, actuarial science, business/business administration/business management/business studies, capital markets, commerce, economics, finance, financial engineering, financial planning, computational finance and insurance; or

  2. Have a professional finance-related qualification; or

  3. Have a minimum of 3 consecutive years of working experience in the past 10 years In development of, structuring of, management of, sale of, trading of, research on or analysis of investment products, or the provision of training in investment products. Work experience in accountancy, actuarial science, treasury or financial risk management activities will also be considered relevant experience.Such working experience would also include provision of legal advice or possession of legal expertise on these areas.; or

  4. Demonstrate sufficient understanding of the features and risks of derivatives through the ' SGX Online Education on SIPs ' for listed SIPs.

With effect from 1 January 2012, unless you have passed the CAR/CKA assessment, you will not be allowed to establish any new positions in the listed or unlisted SIPs and may only transact in such products to close out existing positions.

What you need to do now is to

  1. Go to https://onlineeducation.sgx.com/specifiedinvestmentproducts/ (create an account if you don't have one)

  2. Proceed to fill up the Customer Account Review (CAR) Form.

  3. Complete the whole e-learning course (approximately an hour). You will need minimum 18 correct answers out of 20 to pass.

  4. You will receive your test result by email.

  5. Attach this test result (if you pass) and send to your broker.

For more information, read Safeguards When Purchasing Specified Investment Products from the Monetary Authority of Singapore.

ALL THE BEST!

First half of information adapted from Kim Eng EDM.

Related Readings

No comments:

Post a Comment

Do provide your constructive comment. I appreciate that.