CMFAS RES5 FAA & FA Regulations question: application for a financial

CMFAS RES5FAA & FA Regulations

When assessing an application for a financial adviser's licence, MAS considers all of the following EXCEPT:

A Track record, management expertise and financial soundness of the applicant
B Fitness and propriety of the applicant, its directors, CEO and substantial shareholders
C Strength of internal compliance systems and the business plan
D A guaranteed minimum first-year sales volume for the applicant's representatives

Show the answer and explanation

Answer: D. A guaranteed minimum first-year sales volume for the applicant's representatives

MAS weighs track record/financial soundness, ability to meet minimum financial and PII requirements, internal compliance, business plans, and fitness and propriety. There is no 'guaranteed sales volume' criterion.

Common mistake

Sales targets are not a licensing criterion — fit-and-proper and prudential factors are.

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Original study material mapped to the public CMFAS RES5 syllabus. Unofficial, not endorsed by MAS or SCI. Verify figures and rules against current guidance before relying on them.