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Customer Knowledge Assessment & Customer Account Review

Customer Knowledge Assessment & Customer Account Review

Learn more about these safeguards to retail investors who wish to trade Specified Investment Products (SIPs)

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 and Forex products), before offering the products. Phillip Futures will conduct two assessments: 

  • the “Customer Account Review (CAR)” if you wish to purchase a Specified Investment Product that is not listed on an exchange; and
  • the “Customer Knowledge Assessment (CKA)” if you wish to open an account to trade Specified Investment Products listed on an exchange.

Retail customers are required to satisfy the criteria of the assessments before they can proceed to invest/trade in SIPs. The results of these assessments will only affect your ability to trade SIPs starting from 1st Jan 2012.

Specified Investment Products are products that have structures, features and risks that may be more complex in nature.

All of Phillip Futures' investment products fall under the SIP category. This includes but is not limited to

  1. Futures
  2. Options
  3. Leveraged Forex/Bullion
  4. OTC metals

Yes it is compulsory. MAS new measures require Phillip Futures to assess all existing clients of their investment knowledge and experience. 

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.

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.


Customer Knowledge Assessment (CKA)  = Eligible to trade Forex and OTC products, subject to final approval.

Customer Account Review (CAR)  = Eligible to trade Futures & Options, subject to final approval. 

Assessment Criteria CKA CAR
Done 6 or more transactions in Futures and Options(Exchange Listed) products in the past 3 years  
Done 6 or more transactions in Leveraged Forex/Bullion/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 Foreign Exchange Margin Trading  
Have a diploma or higher qualification in relevant courses such as
  • Accountancy
 
  • Economics
  • Actuarial Science
 
  • Finance
  • Business
 
  • Financial Engineering
  • Capital Markets
 
  • Financial Planning
  • Commerce
 
  • Insurance
  • Computational Finance
 
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)

 

The Customer Account Review will be conducted every 3 years, while the Customer Knowledge Assessment will be conducted every year.

No, you will have to be assessed independently by Phillip Futures again. The Assessment is done on an individual basis, and each brokerage will exercise due diligence and conduct their own CKA & CAR Assessment as part of the Know Your Client (KYC) guidelines.

For listed SIPs (e.g. Futures), you will be qualified to trade if you pass the SGX Online Education Quiz. 

For unlisted SIPs (e.g. Leveraged Forex), you will be qualified to trade if you pass the ABS-SAS assessment on Foreign Exchange Margin Trading. 

If you have trading experience in Futures but not in Forex (or vice versa), we will need to review other areas of your profile to ensure that you are suitable to trade in Forex/Futures. This is due to the assessment criteria for listed and unlisted products being slightly different.

Please refer to Q4 for the complete assessment criteria. 

For the trading of specified investment products, an independent third party assessment is necessary.

For listed products, the SGX Online Education Programme is a standardised benchmark stipulated by MAS to assess investment knowledge. You are strongly encouraged to pass the quiz for knowledge assessment:  https://onlineeducation.sgx.com/specifiedinvestmentproducts

For unlisted products, ABS-SAS E-learning Portal is a standardised benchmark stipulated by MAS to assess investment knowledge. You are strongly encouraged to pass the quiz for knowledge assessment: http://sips.abs.org.sg/.