CMFAS RES5 Balanced Scorecard & Remuneration question: population for the ISA Unit's sampling

CMFAS RES5Balanced Scorecard & Remuneration

For a new representative who has provided financial advisory services for less than three months, which method must the financial adviser apply to determine the population for the ISA Unit's sampling?

A The actual transaction count method, based on the measurement quarter's transactions
B The historical average transaction count method over the past 12 months
C A fixed minimum population of 30 transactions set for all new representatives
D The representative is exempt from sampling until he has completed 12 months of service

Show the answer and explanation

Answer: A. The actual transaction count method, based on the measurement quarter's transactions

FAA-N20 requires the actual transaction count method for a new representative who has provided financial advisory services for less than three months (and for an existing representative who effected no transactions in the preceding 12 months). The historical average method needs a 12-month track record that a new representative does not have.

Common mistake

The historical average method presupposes prior history; a sub-3-month new rep must use the actual transaction count method, and is not exempt.

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Related CMFAS RES5 questions

A representative receives an annual bonus that relates to financial advisory services provided across several calendar quarters. Under FAA-N20, how must the financial adviser treat this specified variable income for grading purposes?A representative's specified variable income for a transaction is S$1,500: S$1,000 is paid in the current quarter and S$500 is deferred and paid roughly a year later. Under FAA-N20, the deferred S$500 must be Under FAA-G14, which measure applies to a representative assigned a balanced scorecard grade of 'E'?

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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.