RES5: Rules, Ethics and Skills for Financial Advisory Services

For Whom Those intending to:

1. advise others concerning:
   1. securities;
   2. units in a collective investment scheme;
   3. exchange-traded derivatives contracts (include futures contracts or not futures contracts);
   4. spot foreign exchange contracts for the purposes of leveraged foreign exchange trading;
   5. over-the-counter derivatives contracts.
2. provide advice on and/or arrange life insurance policies (whether or not including investment-linked policies),

are required to pass this RES5 on Rules, Ethics and Skills for Financial Advisory Services, in compliance with the requirements as laid down by the Monetary Authority of Singapore (MAS).

Please refer to MAS Notice FAA-N26 for more information. The MAS Notice FAA-N26 applies to all licensed financial advisers, exempt financial advisers and their appointed representatives. It will supersede Notice FAA-N13 Minimum Entry and Examination Requirements for Representatives of Licensed Financial Advisers and Exempt Financial Advisers, which will be cancelled with effect from 1 April 2024. Candidates are also advised to check with their Compliance Department for their applicable CMFAS examination modules.

Objectives
To test candidates on their knowledge and understanding of the:

• regulatory framework governing financial advisers and representatives under the FAA;
• Financial Advisers Regulations (FAR);
• Notices and Guidelines governing all financial advisory activities in respect of investment products;
• distribution or marketing of specific functionally similar investment products, namely, life insurance policies and collective investment schemes, including unit trusts.
• Security and Futures Act (2001)
• different types of market misconduct and related penalties
• relevant ethical behaviour and skills to perform their roles effectively.

Contents

Part I

• [1] Financial Advisers Act And Financial Advisers Regulations – Financial Advisers And Representatives
• [2] Financial Advisers Act And Financial Advisers Regulations – Conduct Of Business, Power Of Authority And Offences
• [3] MAS Notices – Part I [Notice Nos: FAA-N16; FAA-N03 And FAA-N11]
• [4] MAS Notices – Part II [Notice Nos: FAA-N02; FAA-N10; FAA-N12; FAA-N14; FAA-N20 And FAA-N26]
• [5] MAS Notice No: FAA-N06 - Prevention Of Money Laundering And Countering The Financing Of Terrorism – Financial Advisers
• [6] MAS Notices – Part III [Notices Nos: FAA-N17; FAA-N18; FAA-N19 And FAA-N21]
• [7] Notice No: MAS 307 - Investment-linked Policies (ILPs)
• [8] MAS Guidelines – Part I [Guideline Nos: FAA-G01; FSG-G01; FAA-G04 & FAA-G05] And Circular No: CMI 01/2011 (ILPs)
• [9] MAS Guidelines – Part II [Guideline Nos: FAA-G09; FAA-G10; FAA-G11 And FAA-G14]
• [10] MAS Guidelines – Part III [Guideline Nos: FAA-G13; FAA-G15; FAA-G16; CMG-G02 And FSG-G02]
• [11] Revised Code On Collective Investment Schemes
• [12] Securities Dealing – Market Conduct
• [13] Central Provident Fund

Part II

• [14] Why Professional Ethics Matter
• [15] Professionalism
• [16] Ethical Behavior
• [17] Unethical Behavior
• [18] Conflict Of Interest
• [20] Fair Dealing
• [21] Ethical Marketing & Sale Of Financial Products
• [22] Developing Client – Representative Relationships
• [23] Fact Finding And Needs Analysis
• [24] Analysing And Evaluating A Client’s Financial Status
• [25] Developing Appropriate Strategies And Solutions
• [26] Presentation Of Analysis And Solutions To Clients
• [27] Reviewing Clients’ Portfolios
• [28] Basic Financial Planning Guide

Structure & Format

150 MCQ Questions

• 110 Questions for Part I
• 40 Questions for Part II

Duration
3 hours.

Minimum Passing Grade & Result Slip
Passing Grade: Candidates are required to obtain at least 75% for Part I AND at least 80% for Part II.
One mark will be awarded for each correct answer.  No mark will be awarded or deducted for any wrong or blank answer.

No certificate will be issued. Only Result Slip will be issued.

Examination & Registration Fees (inclusive of prevailing GST)

For details, please refer to the Exam Fees section.

Study Materials / UpdatesCandidates would use the eBook to prepare for their examinations. Please note that hard copy study texts will no longer be issued. Any updates to the contents of the study text will be incorporated into the eBook. You may refer to the Version Control Record found at the back of the eBook to check the updates.

Examination Mode
English Medium - Computer Screen Examination (CSE)
The candidate can self-study for the closed book examination.

Examination Frequency & Schedule
The examination in English is conducted daily on weekday.

For details of the examination dates, please refer to the Examination Schedule section.

Examination ResittingThere is no limit to the number of times that a candidate can sit for an examination.

ExemptionFor a list of approved exemptions, please refer directly to MAS Website under MAS Notice FAA-N26: Competency Requirements for Representatives of Financial Advisers.

Registration
For details, please refer to the Examination Registration Policies section.

CPD Hours
Upon passing the examination for this module, you are entitled to 3 CPD Hours.

Programme Changes
SCI solely reserves the right whether or not to accept any candidate, or to make any changes (including the fees) owing to any unforeseen circumstances, or when it considers necessary or appropriate to do so.