What is the Validity of CMFAS Exams?

How many years? How many months? Is validity calculated from the exam date? Or the date of receiving the result notification? Or the date of receiving the certificate?

 

What is CMFAS?

Capital Markets and Financial Advisory Services (CMFAS) Examinations are used to give the licensing mandates to professionals or industry newcomers in the capital markets and financial advisory services industry in Singapore.

Capital market services relate to the execution of the client’s trade, and are governed by the Securities and Futures Act (SFA). The CMFAS exams cover capital market products, corporate finance, fund management, real estate investment, product financing, custodial services, and credit rating services.

E.g., 

• Conrad has been living in Singapore for 38 years and wants to invest in shares from the Singapore Exchange (SGX). Upon identifying the most suitable stocks to invest in, he can visit the Bank of Singapore to execute the trades.

• Cindy is a Singapore resident who wants to invest in bonds from Singapore Exchange (SGX). She can visit the CGS-CIMB Securities International Pte. Ltd. (“CGS-CIMB”) to execute the trade.
• In the above cases, Bank of Singapore and CGS-CIMB Securities International Pte. Ltd are where investors like Conrad and Cindy execute their investments or seek financial advisory. Hence, staff members who serves them in such financial services will have to take the CMFAS examinations.

Financial advisory services refer to the professional advice that helps the client to make sound financial decisions, and it is regulated by the Financial Advisers Act (FAA). 

• E.g., Meher is married with 5 children and wants to take up a healthcare policy for her family. She can visit Pacific Insurance Brokers Pte Ltd in Singapore, where the staff member of Pacific Insurance will be advising Meher about the most suitable healthcare policies. In this case, Meher as an investor does not need to take the exam. But staff members who advises Meher will have to take the relevant CMFAS exam.
• Before Conrad executes his stock trade, he can seek advice on the most suitable stock to trade on from the Bank of Singapore. 

Under what situation do I need to do the exam?

In order to begin offering the capital markets and financial advisory services, one is mandated to take the relevant CMFAS exams and licenses.

For example; 

• Mia completed a bachelor’s degree in actuarial science from Singapore Management University (SMU) and wants to join the financial sector as an insurance agent. For example, Mia should take and pass the CMFAS M5 exam and apply for the financial adviser representative license in order to begin practicing. Here is the link to registering for CMFAS Module 5 Examination: https://www.scicollege.org.sg/Exam/ExamDetails/M5

• Similarly, Joey just graduated with a bachelor’s degree in finance from Murdoch University Singapore and wants to start providing capital market services as a securities trading agent. Therefore, Joey should register, sit, and pass (either CMFAS Module 1A or 1B) + module 6 + module 6A exams and then be registered as a capital markets services (CMS) representative to begin practicing.These modules can be found here;

M1A: https://www.ibf.org.sg/programmes/examination/Pages/Module-1A-Details.aspx

M1B: https://www.ibf.org.sg/programmes/examination/Pages/Module-1B-Details.aspx

M6: https://www.ibf.org.sg/programmes/examination/Pages/Module-6.aspx

M6A: https://www.ibf.org.sg/programmes/examination/Pages/Module-6A-Details.aspx

 

Photographer：Jeswin  Thomas: https://www.pexels.com/zh-tw/photo/3380743/ 

What are the 2 different types of CMFAS Exams?

Before discussing the validity of the CMFAS Examination, we need to first distinguish between the 2 types of CMFAS Exams – (1) Rules and Regulatory Examinations and (2) Product Knowledge Examinations.

 

Rules and Regulatory Examinations of the CMFAS Licensing Examination include M1A, M1B, M2A, M3, M4A, M5 and M10. These are the modules that talk about the framework of the Singapore financial market, such as the regulatory structure, the relevant rules and regulations, licensing and business operation requirements, etc;

 

while

 

Product Knowledge Examinations contain M6, M6A, M8, M8A, M9 and M9A. These are modules delving into the products, approaches and the financial market, such as characteristics of major securities products, futures, options and structured exchange-traded funds.

 

Rules and Regulatory Examinations		Product Knowledge Examinations
M1A	Rules & Regulations for Dealing in Securities (SGX-ST Members)	M6	Securities Products & Analysis
M1B	Rules & Regulations for Dealing in Securities (Non-SGX-ST Members)	M6A	Securities & Futures Product Knowledge
M2A	Rules & Regulations for Trading in Futures Contracts (SGX-DT Members)	M8	Collective Investment Schemes
M3	Rules & Regulations for Fund Management	M8A	Collective Investment Schemes II
M4A	Rules & Regulations for Advising on Corporate Finance	M9	Life Insurance And Investment-Linked Policies
M5	Rules And Regulations For Financial Advisory Services	M9A	Life Insurance And Investment-Linked Policies II
M10	Rules & Regulations for REIT Management, with Product Knowledge & Analysis

 

The Validity of the CMFAS Rules and Regulation Modules Exam results

The CMFAS Rules and Regulation Modules exam results are valid for 3 years (36 months). The validity period is computed from the date of passing the exams to the date of commencing the regulated services.

E.g.,

• John passed the CMFAS M5 exam on 1st January 2017 and wants to commence being an insurance agent in September 2021. Here, the deadline he can get a license with the passing result obtained then is 1st January 2020. Thus, John has to retake the M5 exam since the 3-year validity period of the results has already elapsed.

• Anderson passed CMFAS M1A and M2A on 5th September 2019 and wants to commence being a foreign exchange trading agent in October 2021. The last day his exam result is valid for applying for a license is 5th September 2022. Since the 3-year validity period has not elapsed, Anderson is not required to retake the exams in order to commence the services.

The Validity of the Representative Status

The representative status can be reactivated within 3 years (36 months) with no need to retake the relevant exam, which is computed from the date one ceased providing the regulated services to the date they recommenced providing the regulated services. 

E.g.,

• Alex was a stockbroker at the Singapore Exchange (SGX). He ceased to conduct the services on 8th October 2018 and did not recommence any of the services by 7th October 2021. 

• At that point, Alex cannot resume practicing the services unless he retakes the CMFAS exam, since the representative status is deemed invalid, i.e., the 3-year validity period (36 months) has elapsed. Therefore, Alex will be required to retake the CMFAS M6 exam in order to begin practicing again.

• Susan was selling insurance policies under the Bank of Singapore. But she fell ill and ceased to provide the services on 8th October 2018. On 10th May 2020, Susan intends to rejoin the industry.

• The 3-year period (36 months) for reactivation has not elapsed yet. She can re-enter the industry with the existing exam result on or before 8th October 2021. Hence, Susan’s representative status is still valid and she is allowed to continue offering the services without having to retake the CMFAS M5 exam.

 

Extended Reading

What is a CMFAS License?

 

How can we help?

Passcmfas.online provides CMFAS, HI, BCP, PGI, CACS and FMRP related exam preparation materials. We sell mock question banks and offer 1 on 1 tutorial services for the following exam papers.

 

Capital Markets and Financial Advisory Services (CMFAS) Examination

• CMFAS Module 1A – Rules & Regulations for Dealing in Securities (SGX-ST Members)
• CMFAS Module 1B – Rules & Regulations for Dealing in Securities (Non-SGX-ST Members)
• CMFAS Module 2A – Rules & Regulations for Trading in Futures Contracts (SGX-DT Members)
• CMFAS Module 3 – Rules & Regulations for Fund Management
• CMFAS Module 4A – Rules & Regulations for Advising on Corporate Finance
• CMFAS Module 5 – Rules And Regulations For Financial Advisory Services
• CMFAS Module 6 – Securities Products & Analysis
• CMFAS Module 6A – Securities & Futures Product Knowledge
• CMFAS Module 8 – Collective Investment Schemes
• CMFAS Module 8A – Collective Investment Schemes II
• CMFAS Module 9 – Life Insurance And Investment-Linked Policies
• CMFAS Module 9A – Life Insurance And Investment-Linked Policies II
• CMFAS Module 10 – Rules & Regulations for REIT Management, with Product Knowledge & Analysis

 

Health Insurance Module

 

General Insurance Examination

• Basic Insurance Concepts and Principles (BCP)
• Personal General Insurance (PGI)

 

Client Advisor Competency Standards (CACS) Assessment

 

Financial Markets Regulatory Practices (FMRP) Examination

 

Besides, we have also made FREE tutorial videos for certain CMFAS modules and posted on public channels Youtube.

 

Should you need any help please visit https://passcmfas.online/ or contact us through: 

Whatsapp: +65 88743947  Email: [email protected] Phone: +65 60111029