The MAS has proposed a number of changes to the CMFAS exam framework for representatives including new ethics and skills modules. The new exams should be in place by early next year.

The consultation paper, issued earlier this month, looks at the competency requirements for representatives conducting regulated activities under the Financial Advisers Act and Securities and Futures Act. The consultation closes on 5 October 2020 and the paper can be read in full on the MAS website here: Draft Notices on the Competency Requirements for Representatives Conducting Regulated Activities under the Financial Advisers Act and Securities and Futures Act

Key changes to CMFAS Exams

As part of the consultation, the MAS has issued draft notices that are intended to replace the existing Minimum Entry and Examination Requirements notices under the FAA and SFA.  The main changes relate to the Capital Markets and Financial Advisory Services Examinations (CMFAS Exams) framework for representatives.  The key changes to the CMFAS Exams are:

  • introducing ethics and skills content into the existing examination modules in relation to rules and regulations (e.g. M1A, M3) to form the rules, ethics and skills (RES) modules
  • adding new RES modules in relation to trading on specific securities and derivatives exchanges (for example, ICE Futures Singapore)
  • provide representatives with the option to take a newly combined product knowledge module

Notably, existing representatives will not be required to take the revised CMFAS Exams modules, unless they intend to conduct additional regulated activities. The current CMFAS Exams carve-outs, such as representatives carrying out A/I fund management only, will be carried forward to the new framework.

The revised CMFAS Exams should be in place by Q1 2021.  On the effective date, the existing CMFAS Exams will be relinquished and only the revised CMFAS Exams will be offered. The CMFAS Exams providers will issue the revised study guides at least two months before the effective date to allow individuals to register for the revised CMFAS Exams.

Bovill can help

We can help assess what CMFAS Exams you need for your MAS license, and monitor your training programme to ensure compliance with the competency requirements.  Get in touch to find more.