CMFAS RES 1A Licensing & Business Operations question: exempt from holding a CMS licence for dealing in capital markets products

CMFAS RES 1ALicensing & Business Operations

Which of the following persons are exempt from holding a CMS licence for dealing in capital markets products? (a) A licensed bank. (b) A merchant bank. (c) A finance company. (d) A retail investor trading for their own account. Which of the following are CORRECT?

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

Show the answer and explanation

Answer: A. (a), (b) and (c) only

Financial institutions in (a)–(c) are exempt under s.99; a person trading purely for their own account is not carrying on a business of dealing and needs no licence at all — which is a different concept from an exemption.

Common mistake

Own-account trading is outside the licensing net, not 'exempt' under s.99.

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Related CMFAS RES 1A questions

Which of the following is NOT generally regarded as an exempt financial institution able to conduct regulated activities without a CMS licence?An individual who has been licensed for derivatives dealing in a comparable overseas jurisdiction for the past 2 years joins a Singapore CMS licence holder and has not yet passed the requisite CMFAS module. Which status allows him to start conducting regulated activities while he sits the examination?A derivatives dealer at Firm X receives a large customer order. A friend at Firm Y, an unrelated broker, asks about its size so he can position ahead of it, and the dealer tells him. Which statement is correct?

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