CMFAS RES 1A Securities Dealing Practices & Skills question: listed Specified Investment Product trading account

CMFAS RES 1ASecurities Dealing Practices & Skills

Madam Goh passed a Customer Account Review on 10 August 2022 and opened a listed Specified Investment Product trading account. She has not transacted a listed Specified Investment Product through that account since. On 15 September 2025 she calls to buy a structured warrant. What must the firm do?

A Conduct a Customer Knowledge Assessment instead, because a review for listed products is valid for one year
B Decline unless she traded a listed SIP through the account more than once in the preceding 3 years, or a new review is done or relied on
C Execute the order, because a Customer Account Review outcome does not expire once the account is open
D Treat the review as valid for a further year, because the 3-year period runs from the opening of the account

Show the answer and explanation

Answer: B. Decline unless she traded a listed SIP through the account more than once in the preceding 3 years, or a new review is done or relied on

MAS Notice SFA 04-N12 paragraph 16 with RES 1B section 2.5.1.4 and RES 2B section 6.6.4: after 3 years from the date of the review the customer may not transact unless the trading test is met or a new review is done. The one-year validity belongs to the Customer Knowledge Assessment, which covers unlisted SIPs. Takeaway: 3 years from the review, not from the account.

Common mistake

One year and the knowledge assessment belong to unlisted products.

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Answer: B. Decline unless she traded a listed SIP through the account more than once in the preceding 3 years, or a new review is done or relied on

Common mistake

One year and the knowledge assessment belong to unlisted products.

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CMFAS RES 1A Securities Dealing Practices & Skills question: listed Specified Investment Product trading account

Answer: B. Decline unless she traded a listed SIP through the account more than once in the preceding 3 years, or a new review is done or relied on

Common mistake

Related CMFAS RES 1A questions

CMFAS RES 1A Securities Dealing Practices & Skills question: listed Specified Investment Product trading account

Answer: B. Decline unless she traded a listed SIP through the account more than once in the preceding 3 years, or a new review is done or relied on

Common mistake

Related CMFAS RES 1A questions