What are the licensing requirements for Financial Advisers?

Well there are 3 types of Financial Advisory Firms which has different licensing requirements:

  1. Personal Bankers are under the Exempt FA license, but personal bankers need to take M5, M9, HI, M8. M6 is usually required to market structured products, bonds & other securities. M7 only if you advise on futures & other derivatives.
  2. Financial Planners under Insurance Companies need to take only M5, M9 before being able to market life insurance products or riders without Major Illness or Medical coverage. HI is needed to market with Major Illness and Medical. No need for the rest of the exams.
  3. Financial Advisers Representatives (FAR) under Financial Advisory Companies (multi-tied or independent) have the same requirement as financial planners under insurance companies, but require additional M8 to market collective investment schemes. Under M8, the FAR is required to have a basic understanding of unit trusts and other collective investment schemes in order to competently market them. M6 and M7 are optional.

M5 Rules and Regulations for Financial Advisory Services covers (100 MCQ, 2hrs):

  • The Regulatory Bodies and Associations
  • The Regulations
  • Conduct of Business
  • Financial Needs Analysis
  • The CPF Minimum Sum Scheme, CPF investment Scheme (CPFIS) and Supplementary Retirement Scheme (SRS)
  • Guidelines on Money Laundering

    • M9 Life Insurance and Investment-Linked Policies covers (125 MCQ, 2.5hrs):

    • Introduction & Basic Principles
    • Benefit Design
    • Disclosure & Sales Process
    • New Business & Underwriting
    • Policy Services & Claims
    • Law & Taxation Affecting Life Insurance

    M8 Collective Investment Schemes covers (50 MCQ, 1.5hrs):

    Contents

  • Types of Investment Assets
  • Financial Markets
  • Risk and Returns
  • Consideration for Investments
  • Unit Trusts
  • Funds Products

    • M6 Securities Products & Analysis covers (50 MCQ, 1.5hrs):

    Contents

  • Investment & Financial Markets
  • Risk & Return
  • Financial Statement Analysis
  • Equities Securities Analysis
  • Technical Analysis
  • Economical Analysis
  • Industry Analysis
  • Fixed Income Securities Analysis
  • Futures, Options, Warrants & Other Derivatives
  • Unit Trusts/Funds Products
  • Portfolio Theory
  • Portfolio Management
  • Performance Measurement

    • Health Insurance covers:

    • Overview of Healthcare Environment in Singapore
    • Medical Expense Insurance
    • Disability Income Insurance
    • Long Term Care Insurance
    • Other Types of Health Insurance
    • Managed Healthcare
    • Healthcare Financing
    • Common Policy Provisions
    • Health Insurance Pricing
    • Health Insurance Underwriting
    • Needs Based Analysis and Co-ordination of Benefit

    You can find other resources and info below that will help you in your journey:

    Forum about licensing exams at Hardwarezone

    Admission Requirements, Exemptions for M6, M7  from IBF

    Admission Requirements, Exemptions for M6, M7, M8 from MAS

    Links for Exam Preparations:

    Achieva Training: Mock Exams and Classroom lessons

    CMFAS.com.sg: Mock Exams

    Anyone has any other comments and advice about exam preparations? I’ll be glad to add it in if constructive.



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