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.