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Questions and Answers
What does the secondary market primarily allow investors to do?
What does the secondary market primarily allow investors to do?
Which of the following is NOT considered a common derivative product?
Which of the following is NOT considered a common derivative product?
What is the primary focus of Chapter 1 in the Study Guide?
What is the primary focus of Chapter 1 in the Study Guide?
What role does the Singapore Exchange (SGX) play in risk management?
What role does the Singapore Exchange (SGX) play in risk management?
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Which chapter discusses the roles of parties involved in equity and bond issues?
Which chapter discusses the roles of parties involved in equity and bond issues?
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Which sector is NOT mentioned as part of the listings on the Singapore Exchange?
Which sector is NOT mentioned as part of the listings on the Singapore Exchange?
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What key process is outlined in Chapter 3 of the Study Guide?
What key process is outlined in Chapter 3 of the Study Guide?
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What was a significant effect of the Asian Financial Crisis of 1997 on Singapore's bond market?
What was a significant effect of the Asian Financial Crisis of 1997 on Singapore's bond market?
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What aspect of post-listing is highlighted in Chapter 4?
What aspect of post-listing is highlighted in Chapter 4?
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Which product type is classified under risk management facilitated by SGX?
Which product type is classified under risk management facilitated by SGX?
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Which component is included in the Study Guide to enhance understanding of key learning points?
Which component is included in the Study Guide to enhance understanding of key learning points?
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What type of bonds are included in Singapore's bond market post-crisis?
What type of bonds are included in Singapore's bond market post-crisis?
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Candidates are encouraged to pursue which of the following after passing the CMFAS Examinations?
Candidates are encouraged to pursue which of the following after passing the CMFAS Examinations?
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Which of the following statements about SGX is incorrect?
Which of the following statements about SGX is incorrect?
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Which chapter addresses the ethical principles relevant to corporate finance?
Which chapter addresses the ethical principles relevant to corporate finance?
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What is the main purpose of the Study Guide's organization?
What is the main purpose of the Study Guide's organization?
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What is the primary purpose of the capital markets?
What is the primary purpose of the capital markets?
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Which regulatory body is responsible for overseeing the capital markets in Singapore?
Which regulatory body is responsible for overseeing the capital markets in Singapore?
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What type of securities might a company issue to raise capital in the primary market?
What type of securities might a company issue to raise capital in the primary market?
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The process of selling financial instruments once they are issued takes place in which market?
The process of selling financial instruments once they are issued takes place in which market?
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Which of the following is NOT a component of the Representative Notification Framework under MAS?
Which of the following is NOT a component of the Representative Notification Framework under MAS?
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Which regulatory organization is responsible for overseeing trading activities in Singapore?
Which regulatory organization is responsible for overseeing trading activities in Singapore?
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What is a common type of risk that investors take on when purchasing securities?
What is a common type of risk that investors take on when purchasing securities?
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The rules governing the operations of the Central Depository (CDP) include which of the following?
The rules governing the operations of the Central Depository (CDP) include which of the following?
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What is the purpose of SGX RegCo's establishment?
What is the purpose of SGX RegCo's establishment?
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Which entity is responsible for the day-to-day regulation of the securities market in Singapore?
Which entity is responsible for the day-to-day regulation of the securities market in Singapore?
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What distinguishes the Mainboard from Catalist on SGX-ST?
What distinguishes the Mainboard from Catalist on SGX-ST?
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Which body has the authority to impose disciplinary actions for non-compliance with trading rules?
Which body has the authority to impose disciplinary actions for non-compliance with trading rules?
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Which of the following entities collaborates with SGX on regulatory policies?
Which of the following entities collaborates with SGX on regulatory policies?
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What model does Catalist utilize for companies wishing to list?
What model does Catalist utilize for companies wishing to list?
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Which agency is NOT mentioned as collaborating with SGX?
Which agency is NOT mentioned as collaborating with SGX?
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What function does SGX RegCo NOT perform?
What function does SGX RegCo NOT perform?
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What is the Base Capital Requirement (BCR) for a CMS licence holder advising on corporate finance?
What is the Base Capital Requirement (BCR) for a CMS licence holder advising on corporate finance?
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Which of the following statements about the Capital Markets Services (CMS) licence holder's requirements is true?
Which of the following statements about the Capital Markets Services (CMS) licence holder's requirements is true?
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If a corporate finance adviser holds multiple regulated activities, what will their Base Capital Requirement be based on?
If a corporate finance adviser holds multiple regulated activities, what will their Base Capital Requirement be based on?
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What is the role of the Monetary Authority of Singapore (MAS) in approving CMS licence applicants?
What is the role of the Monetary Authority of Singapore (MAS) in approving CMS licence applicants?
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Options on equity indices like SGX Nifty are categorized under which type of derivatives?
Options on equity indices like SGX Nifty are categorized under which type of derivatives?
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What must be true about the substantial shareholders and officers of a CMS licence applicant?
What must be true about the substantial shareholders and officers of a CMS licence applicant?
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Which of the following is NOT a reason MAS would reject a CMS licence application?
Which of the following is NOT a reason MAS would reject a CMS licence application?
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What is one of the conditions for an applicant to be considered for a CMS licence?
What is one of the conditions for an applicant to be considered for a CMS licence?
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What is the time frame for a CMS licence holder to inform MAS of any change in particulars?
What is the time frame for a CMS licence holder to inform MAS of any change in particulars?
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Which of the following is NOT a required change that must be reported to MAS?
Which of the following is NOT a required change that must be reported to MAS?
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What may cause a CMS licence to lapse?
What may cause a CMS licence to lapse?
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What action may MAS take if it believes that a CMS licence holder has not acted in the best interest of its customers?
What action may MAS take if it believes that a CMS licence holder has not acted in the best interest of its customers?
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What can happen if a CMS licence holder continues business after its licence has lapsed?
What can happen if a CMS licence holder continues business after its licence has lapsed?
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Which particular information must be reported if the business operates under a different name?
Which particular information must be reported if the business operates under a different name?
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What is the primary reason MAS requires updates on changes in particulars?
What is the primary reason MAS requires updates on changes in particulars?
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Which of the following may NOT lead to the revocation of a CMS licence?
Which of the following may NOT lead to the revocation of a CMS licence?
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Study Notes
Capital Markets and Corporate Finance in Singapore
- Primary Market: Businesses raise capital through securities (shares, bonds, warrants). Investors buy these, taking on risk tied to company performance.
- Secondary Market: Allows investors to manage or transfer risk through trading in securities, futures, options, or derivatives. SGX (Singapore Exchange) is a key platform in the Asia Pacific region.
Debt Capital Markets in Singapore
- Significant diversification in financial services markets, especially after the 1997 Asian Financial Crisis.
- Singapore's bond market offers various securities, including government, quasi-government, and corporate bonds.
Regulatory Bodies and Oversight
- MAS (Monetary Authority of Singapore): Key regulatory body governing capital markets activities.
- SGX (Singapore Exchange): Provides capital raising and risk management opportunities.
- SGX RegCo (Singapore Exchange Regulation Pte Ltd): Independent subsidiary focusing on regulatory functions, separated from commercial activities.
- SGX-ST (Singapore Exchange Securities Trading Limited): Securities subsidiary of SGX, responsible for securities market regulation, rules, and membership.
- CAD (Commercial Affairs Department): Collaborates with SGX on regulatory policies, risk management, and enforcement.
- ACRA (Accounting and Corporate Regulatory Authority): Collaborates with SGX.
Capital Markets Services (CMS) Licence
- Base Capital Requirement (BCR): S$250,000 for corporate finance advisors. Higher BCR applies if conducting multiple activities.
- General Criteria: Focus on applicant reputation, established track record (at least 5 years), supervision by home regulatory authority, and "fit and proper" individuals (officers, employees, representatives).
- Notification of Changes: Changes to business particulars (name, address, activities) must be reported to MAS within 14 days.
- Lapsing/Revocation/Suspension: Licence lapses on winding up, dissolution, or other MAS-prescribed occurrences. MAS can revoke/suspend for lack of efficiency, honesty, fairness, or acting against customer interests.
Key Legislation and Rules
- Securities and Futures Act (SFA) and Regulations: Key legislation governing capital markets activities in Singapore.
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Description
This quiz explores the intricacies of capital markets and corporate finance in Singapore. It covers the primary and secondary markets, the role of regulatory bodies like MAS and SGX, and the evolution of the debt capital markets post-1997. Test your knowledge on how these components contribute to Singapore's financial landscape.