CMFAS RES 1A The Capital Markets Industry & Participants question: Government of Singapore and statutory bodies established under an Act

CMFAS RES 1AThe Capital Markets Industry & Participants

Which of the following fall within the institutional investor category under the SFA, as set out in the guide? (a) The Government of Singapore and statutory bodies established under an Act. (b) Licensed banks, licensed merchant banks and licensed finance companies. (c) An individual whose financial assets, net of liabilities, exceed S$1 million. (d) Approved exchanges, approved clearing houses and licensed trade repositories. Which of the following are CORRECT?

A (a), (b) and (c)
B (c) and (d) only
C All of (a), (b), (c) and (d)
D (a), (b) and (d)

Show the answer and explanation

Answer: D. (a), (b) and (d)

SFA section 4A. The institutional investor list is institutional by nature and also covers foreign central banks and government agencies, prescribed multilateral agencies, licensed insurers and trust companies, pension funds and collective investment schemes, CMS licence holders, recognised market operators and clearing houses, approved holding companies and depositories. An individual who meets a wealth or income threshold is an accredited investor, a different class with a different consequence.

Common mistake

No individual becomes an institutional investor by being wealthy; the financial asset test belongs to the accredited investor definition.

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