CMFAS RES 1A CPF Investment Scheme (CPFIS) question: SGX-listed shares with CPF Ordinary Account funds on Tuesday

CMFAS RES 1ACPF Investment Scheme (CPFIS)

Mr Halim buys SGX-listed shares with CPF Ordinary Account funds on Tuesday. His broker keys the purchase trade into the system on Wednesday morning, the day after the purchase contract was made. On Wednesday afternoon Mr Halim asks to sell the same shares. What does the RES 1B guide say?

A He may sell only after the purchase has settled on T+2 and the shares are registered in his own name at CDP
B He may not sell shares bought under CPFIS-OA at all; they must be held until he reaches 55 and sets aside his FRS
C He may sell, because a CPFIS-OA purchase may always be sold one trading day after the purchase date, however it was keyed
D He may sell only if the agent bank accepted the trade, which needs keying on the contract day, so the late keying defeats the sale

Show the answer and explanation

Answer: D. He may sell only if the agent bank accepted the trade, which needs keying on the contract day, so the late keying defeats the sale

RES 1B ch.6.6. A member may sell investments listed on SGX-ST one trading day after the purchase date if the purchase trade has been accepted by the agent bank as a CPFIS-OA trade. Acceptance depends on the broker having keyed the purchase trade on the day the purchase contract was made and the trade being successful, and on the member having sufficient investible funds and stock or gold limits in the CPF Investment or Ordinary Account to settle the purchase.

Common mistake

The one trading day rule is conditional on the agent bank accepting the trade, and the keying date is part of that test.

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Study note: CPF Investment Scheme (CPFIS)CMFAS RES 1Apractice questions & mock exams

Answer: D. He may sell only if the agent bank accepted the trade, which needs keying on the contract day, so the late keying defeats the sale

Common mistake

The one trading day rule is conditional on the agent bank accepting the trade, and the keying date is part of that test.

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Original study material mapped to the public CMFAS RES 1A syllabus. Unofficial, not endorsed by MAS or IBF. Verify figures and rules against current guidance before relying on them.

CMFAS RES 1A CPF Investment Scheme (CPFIS) question: SGX-listed shares with CPF Ordinary Account funds on Tuesday

Answer: D. He may sell only if the agent bank accepted the trade, which needs keying on the contract day, so the late keying defeats the sale

Common mistake

Related CMFAS RES 1A questions

CMFAS RES 1A CPF Investment Scheme (CPFIS) question: SGX-listed shares with CPF Ordinary Account funds on Tuesday

Answer: D. He may sell only if the agent bank accepted the trade, which needs keying on the contract day, so the late keying defeats the sale

Common mistake

Related CMFAS RES 1A questions