Cacs Paper 1 Trial Questions (client Advisor Competency Standards)

Relation Manager

Investment Consultant and Product Specialist

Team Leader of Relationship Manager

D. Relationship Manager, Investment Consultant, Product Specialist, Assistant Relationship Manager and Team Leader

The failure of a Covered Person to meet the “fit and proper” criteria set out in the Guideline may not lead to an automatic revocation of the status of an “appointed representative”

The failure of a Covered Person to meet the “fit and proper” criteria set out in the Guideline will lead to an automatic revocation of the status of an “appointed representative”

The Guideline are only statement of best practice and there is no adverse consequence if a Covered Person does not meet the “fit and proper” criteria

A Covered Entity has no duty to report to the MAS if any of its Covered Person fails to satisfy the Guideline as long as the Covered Entity deals with the non-compliant act based on its internal policies

A wholesale bank can accept fixed deposits of at least S$250,000 from both residents and non-residents of Singapore but an offshore bank can accept fixed deposits of at least S$250,000 only from non-resident of Singapore

A wholesale bank can accept fixed deposits of at least S$250,000 from only residents of Singapore but an offshore bank can accept fixed deposits of at least S$250,000 from both residents and non-resident of Singapore

A wholesale bank can accept S$ fixed deposits of any amount from both residents and non-residents of Singapore but an offshore bank can only accept fixed deposits of at least S$250,000 non-resident of Singapore

Both wholesale and offshore banks are subject to restrictions when dealing in S$. There is no difference between them

I only

I, II and III

II and IV

None of the above

The introducer refers clients to an appointed representative of the Covered Entity

The introducer provides factual information about investment products to the clients

The introducer provides advice on investment products to the clients

The introducer adheres to the script provided by the Covered Entity when carrying out introducing activities

I and II

II and III

II, III and IV

I and III

All of the above

II only

I and II

I, II and III

Identify the wire transfer originator and verify his identity as well as record adequate details of the wire transfer so as to permit its reconstruction

The Covered Entity cannot include the customer’s personal details in the payment instruction even with the customer’s consent as this will be a breach of Section 47 of the Banking Act

There are no regulatory requirements when executing a cross-border wire transfer with a value of less than S$10,000

The Covered Entity, which is an ordering institution in a cross-border wire transfer, is only required to include the name of the remitter in the payment instruction for a transfer amount that exceeds $S2,000

Only commercial banks are required to comply with MAS Notice 626 on the Prevention of Money Laundering is only Countering the Financing of Terrorism

Customer Due Diligence is only required to be performed for the customer and not their beneficial owners

Customer Due Diligence is only required to be performed for on-boarding new customer. Once the business relationship has been established, there is no requirement to perform on-going Customer Due Diligence

Additional KYC requirements have to be applied when dealing with Politically Exposed Persons

The amount of commissions the product would generate for the bank and for the Covered Person

The client’s financial objectives, risk tolerance, financial situation and current investment portfolio

Products which offer rebates to clients

The networth of the client

All of the above

II, III and IV

II and III

II and IV

All of the above

II and III

II only

IV only

Not later than the business day immediately following the sale of the shares

As soon as practicable

No later than 7 calendar days immediately following the sale of the shares

No later than 3 calendar days immediately following the sale of the shares

IV only

I and II

I, II and III

I and III

I, II and III

I and II

I, II and IV

All of the above

I, II and III

I and II

I, II and IV

All of the above

IV only

I, II and III

I and III

I only

A covered Entity should implement and maintain proper procedures to preserve the confidentiality of any information it receives from a client

A covered Entity should have in place adequate procedures and processes for handling complaints

When a misconduct has been committed by a Covered Person, the Covered Entity has to report the misconduct to MAS no later than 21 days after the discovery of the misconduct

A Covered Entity has to ensure that its Covered Persons meets continuing education requirements

Singapore because this is stated in the trust document

Indonesia because your client is an Indonesian citizen

It depends on where the wife and children and domiciled

Singapore because all the assets in the trust are in Singapore

Inform the client that this is not possible as only appointed trustee can have a say in the investment and distribution of the trust assets

The client can state in his letter of wishes that he wishes to be consulted on all appointments and distributions. Also, the terms of the trust can provide for a protector and your client can be appointed as the protector

Inform the client that a Singapore Trust does not allow for the settler to reserve full investment power for himself

The client can be appointed as the protector to be consulted on matters relating to the investment of the trust. However, the final decision rests with the appointed trustee

Purchase life insurance policy to protect against the financial loss. The death benefit payout from the policy could be used to fund operating cash flow needs

Establish a vista Trust

Establish a Business Continuity Plan

Buy a term life policy as the policy can be surrendered at any time and the cash value can be used to fund operating cash flow needs