Cmfas M1 Mock Exam

1) ZZZ Stock Broking Company Pte Ltd has 2000 lots of ABC shares in its stock account. Recommendation of ABC shares by its research department is: (A) Strictly prohibited due to conflict of interest (B) Allowed as there is proper Chinese walls between the dealing and research department (C) Allowed provided a statement on the Company's interest in ABC shares is included and the font is not smaller than the remainder of the written communication (D) Allowed provided a concise statement of the nature of the Company's interest included and the font is not smaller than the remainder of the written communication (A) After due date (B) On purchase date (C) One day after due date (D) One day after purchase date 3) If a Trading Representative is subject to SGX ‐ ST disciplinary committee, he can appoint a lawyer to defend him. True or False? (A) TRUE (B) FALSE 4) Who is the most suitable person to conduct a compliance check on a Trading Member? (A) Internal Auditor who reports to a person independent of sales, operations and dealing functions (B) Compliance officer who reports directly to the Head of Operations (C) Head of Dealing as he can monitor the activities in the trading (D) Head of Corporate Finance Department 5) Does a client need the approval from the designated director of the Member Company to open a trading account? (A) Yes (B) No 6) Upon acquiring any interest in securities, a Trading Member must enter the particulars of the securities in the Register of Securities within: (A) 30 days (B) 14 days 2) CDP will mail contract statements or contract notes to clients:

(C) 7 days (D) 3 days 7) Licensed Representatives should keep records of: (A) Time of receipt (B) Time of amendment (C) Time of cancellation (D) All of the above 8) Paul received an order to buy 10 lots of XYZ SSF at $10.10. At the same time, he also received another order to sell 2 lots of XYZ SSF at $10.10. The