CMFAS RES5 MAS Notices — Product & ILP Regulation question: non-mandatory Part II standards of Notice

CMFAS RES5MAS Notices — Product & ILP Regulation

A manager fails to observe one of the non-mandatory Part II standards of Notice 307. Which statement best describes the consequences?

A It does not itself breach the Notice, but may be cited in civil or criminal proceedings and lead MAS to direct withdrawal of the sub-fund
B It is automatically a criminal offence in the same way as a breach of a mandatory Part I requirement
C It has no legal effect, cannot be referred to in any civil or criminal proceedings and cannot lead MAS to act
D It is a breach of the Notice that voids the ILP contract and entitles every policyholder to a full premium refund

Show the answer and explanation

Answer: A. It does not itself breach the Notice, but may be cited in civil or criminal proceedings and lead MAS to direct withdrawal of the sub-fund

A failure to comply with a Part II standard does not of itself breach the Notice or trigger criminal proceedings, but it may be relied on by any party in civil or criminal proceedings, and it may lead MAS to direct the insurer to withdraw the sub-fund.

Common mistake

Part II is non-mandatory but not toothless: it can still be cited in proceedings and support a withdrawal direction, without being a criminal breach in itself.

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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.