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Financial advisory
RES5Financial Advisory Services✓According to the RES 2B study guide, a CMS licence holder managing market risk should always consider which of the following? (a) Macroeconomic, market and liquidity conditions that contribute to market risk. (b) How its investment portfolio would be affected if market risk increased. (c) Whether it has a framework to identify, measure, evaluate, monitor, report and control market risk. (d) Whether MAS will compensate it for market losses.
RES 2B 6.7.2(i) to (iii): conditions contributing to market risk, the portfolio's sensitivity, and a full framework to identify, measure, evaluate, monitor, report and control the risk. MAS does not compensate market losses. Takeaway: conditions, portfolio impact, framework.
Statement (d) is the impostor; there is no MAS backstop for market losses.
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