Monetary Authority of Singapore (MAS) has introduced new requirements to provide safeguards to retail investors who wish to trade Specified Investment Products (SIPs), with effect from 1st Jan 2012.
In accordance, financial institutions like Phillip Futures will be assessing our customers on their relevant knowledge or experience of such SIPs (Futures, Forex and Contract For Difference products), before offering the products.
Phillip Futures will conduct two assessments – Customer Knowledge Assessment (CKA) and Customer Account Review (CAR). Retail customers are required to satisfy the criteria of the assessments before they can proceed to invest/trade in SIPs.
Specified Investment Products are likely to contain derivatives, and may have features, and risks that can be more difficult for retail consumers to understand. Examples include structured notes, exchange traded funds, exchange traded notes, investment linked insurance policies, warrants and options, futures, and certificates.
All of Phillip Futures’ product offerings fall under the SIP category. This includes but is not limited to
For learning modules on Listed SIPs (Futures, Options), you may click here
For learning modules on Unlisted SIPs (Leveraged Bullion/CFD/Forex/OTC Metals), you may click here.
We will request information on your educational, work and investment experience through the Customer Knowledge Assessment and Customer Account Review. Based on this information, we will assess if the level of risk inherent in trading leveraged products is appropriate for you.
|Assessment Criteria||CAR||CKA (CFD)||CKA (FX)|
Have a diploma or higher qualification in relevant courses such as:
|Have a professional finance-related qualification (e.g CFA, AFP, CPA/ACCA)|
|Have a minimum of 3 consecutive years of working experience in the past 10 years in the development of, structuring of, management of, sale of, trading or, or research and analysis of investment products or the provision of training in investment products. (Work experience in accountancy, actuarial science, treasury or financial risk management may also be considered relevant experience)|
|Done 6 or more transactions in Futures and Options (Exchange Listed) products in the past 3 years|
|Done 6 or more transactions in Leveraged Bullion/CFD/Forex/OTC Metals in the past 3 years|
|Obtained a Pass in SGX Online Education on Specified Investment Products|
|Obtained a Pass in ABS-SAS Learning Module on Contracts For Difference AND obtained a Pass in ABS-SAS Learning Module on Foreign Exchange Margin Trading|
Below is a non-exhaustive list of web resources and guides that provides information on the MAS new requirements and how the Customer Knowledge Assessment and Customer Account Review affects you.
The Customer Account Review (CAR) enables us to assess if you have the relevant knowledge or experience to trade in listed SIP products.
The Customer Knowledge Assessment (CKA) enables us to assess if you have the relevant knowledge or experience to trade in unlisted SIP products.
For unlisted SIPs (e.g. Leveraged CFD/Forex), you will be qualified to trade if you pass the ABS-SAS assessment on CFD/Foreign Exchange Margin Trading respectively.