CMFAS RES 1A Securities Dealing Practices & Skills question: route remains open

CMFAS RES 1ASecurities Dealing Practices & Skills

Mr Raj holds a diploma in civil engineering, has spent four years as a construction project manager, and has bought two unlisted unit trusts in the past three years. He asks to buy an unlisted structured note. What is the outcome of the Customer Knowledge Assessment, and what route remains open to him?

A He passes, because the two unit trusts are unlisted Specified Investment Products of the same class as the structured note
B He fails, and he can never be assessed as having knowledge of that product unless he gains an investment diploma
C He fails all three criteria, but may still qualify by completing the relevant ABS-SAS learning module or passing CM-SIP, M8A or M9A
D He passes on the strength of his diploma, because a diploma of any discipline satisfies the qualification criterion

Show the answer and explanation

Answer: C. He fails all three criteria, but may still qualify by completing the relevant ABS-SAS learning module or passing CM-SIP, M8A or M9A

RES 1B Appendix C, reproducing Annex 3 of MAS Notice SFA 04-N12, and RES 2B section 6.6.1 with Practice Note FAA PN-02: the transaction limb needs at least 6 transactions in the relevant class in the preceding 3 years. Where a learning module is relied on, the firm must obtain his acknowledgement that he sat the assessment himself, his scores, and how often another firm has declined to let him transact in that product. Takeaway: three criteria missed, one remedy left.

Common mistake

Civil engineering is a diploma, not a listed discipline, and two trades is not six.

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Related CMFAS RES 1A questions

Which is the key difference between contra trading and margin financing?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?Mrs Lim passed a Customer Knowledge Assessment for unlisted collective investment schemes on 2 April 2024. On 20 June 2025 she calls to switch S$80,000 into a different unlisted fund and says she wants no advice because she has read the prospectus. What must the firm do before it transacts?

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