RES 5 — Rules, Ethics and Skills for Financial Advisory Services (CMFAS)¶
Module Identity¶
- Module code: RES5 (also written as RES-5)
- Full name: Rules, Ethics and Skills for Financial Advisory Services
- Administering body: Singapore College of Insurance (SCI) — NOT IBF
- Regime: New CMFAS regime effective 1 April 2024
- Supersedes: Module 5 (M5) — Rules and Regulations for Financial Advisory Services under the cancelled MAS Notice FAA-N13
- Statutory basis: MAS Notice FAA-N26, Part 4 (effective 1 April 2024)
- Pass mark: 75% (per IBF announcement §5.3: 75% for all CMFAS RES and RESP modules)
Why RES5 Is Not in the IBF Announcement Table¶
The IBF announcement ("Implementation of New CMFAS Exams") lists only IBF-administered modules. RES5 is administered by SCI and therefore does not appear in that table. The authoritative source for RES5 requirements is MAS Notice FAA-N26, Annex B, Table B-1.
Regulatory Requirement: When RES5 Is Required¶
Per MAS Notice FAA-N26, paragraph 4.3, every individual must hold a valid pass in RES5 before being appointed as a representative in respect of any of the following types of financial advisory services:
(a) Advising others (directly or through publications) concerning any of the following investment products: - (i) securities - (ii) units in a collective investment scheme - (iii) exchange-traded derivatives contracts - (iv) spot foreign exchange contracts for leveraged foreign exchange trading - (v) over-the-counter derivatives contracts - (vi) life policies
(b) Arranging of any contract of insurance in respect of life policies (other than reinsurance)
RES5 is a prerequisite module — it must be combined with the relevant product knowledge module(s) depending on the specific activity and product type (see table below).
RES5 + Product Knowledge Module Combinations (FAA-N26 Table 1)¶
| Financial Advisory Service | Product Type | RES5 Required | Product Knowledge Module |
|---|---|---|---|
| Advising on securities | Excluded Investment Products (EIP) | Yes | CM-EIP |
| Advising on securities | Specified Investment Products (SIP) | Yes | CM-SIP |
| Advising on units in a CIS | EIP | Yes | M8 (or CM-CIS to cover both) |
| Advising on units in a CIS | SIP | Yes | M8A (or CM-CIS) |
| Advising on exchange-traded derivatives (futures) | EIP | Yes | CM-EIP |
| Advising on exchange-traded derivatives (non-futures) | SIP | Yes | CM-SIP |
| Advising on spot FX for leveraged FX trading | EIP | Yes | CM-EIP |
| Advising on OTC derivatives | SIP | Yes | CM-SIP |
| Advising on life policies | EIP | Yes | M9 (or CM-LIP to cover both) |
| Advising on life policies | SIP | Yes | M9A (or CM-LIP) |
| Arranging insurance — life policies | EIP | Yes | M9 (or CM-LIP) |
| Arranging insurance — life policies | SIP | Yes | M9A (or CM-LIP) |
Additional health insurance requirement: Representatives advising on or arranging life policies with accident and health benefits must also obtain the requisite qualification under MAS Notice 117 (Training and Competency Requirement: Health Insurance Module), unless exempted under paragraphs 6 or 7 of that notice.
Combined Product Knowledge Modules (Alternatives to Individual Modules)¶
Per FAA-N26 Table 2, an individual may pass a combined module in lieu of the corresponding individual modules:
| Combined Module | Replaces | Scope |
|---|---|---|
| CM-CIS | M8 + M8A | Advising on CIS (both EIP and SIP) |
| CM-LIP | M9 + M9A | Advising on/arranging life policies (both EIP and SIP) |
| CM-LIC | M8 + M8A + M9 + M9A | CIS and life policies (all types combined) |
| CM-CMP | CM-EIP + CM-SIP | Capital markets (securities, derivatives, CIS, FX — all types) |
Exemptions from RES5 (FAA-N26 paragraph 4.7)¶
The following individuals are NOT required to pass RES5:
(a) SFA dealer providing execution-related FAA advice: - Is an appointed representative under the SFA for dealing in any type of capital markets products; - Whose FAA provision is limited only to advising others concerning capital markets products by providing execution-related advice as a dealer; AND - Who has passed the applicable RES module under SFA 04-N22 for dealing in those capital markets products.
(b) SFA fund manager providing limited FAA advice: - Is an appointed representative under the SFA for fund management; - Whose FAA provision is limited to: (A) advising, as a portfolio manager, concerning only investment products in which the individual carries out fund management; or (B) advising, as a marketing representative of a Specified FMC, concerning only investment products in which the individual's principal carries out fund management; AND - Who has passed the applicable RES module under SFA 04-N22 for fund management (i.e., RES3).
Validity of RES5 Pass¶
Per FAA-N26 paragraphs 4.15–4.19:
A pass in RES5 ceases to be valid if the individual: - Did not commence providing any financial advisory service mentioned in paragraph 4.1 as an appointed representative within three years after the date of passing RES5; OR - Ceased to provide such financial advisory services and did not re-commence within three years after cessation.
A deemed pass in RES5 (by virtue of having passed old Module 5 before 1 April 2024) ceases to be valid under the same 3-year rule.
Where a pass or deemed pass ceases to be valid, the individual must re-take RES5 and pass it before being re-appointed.
Transitional Arrangement: Module 5 (M5) Grandfathering¶
Per FAA-N26 paragraph 4.11:
An individual who passed Module 5 (M5) of the CMFAS Exam under the Cancelled Notice (FAA-N13), or completed the non-examinable course on Module 5 administered by SCI, is deemed to have passed RES5 under FAA-N26.
This deemed pass is subject to the same 3-year validity rules described above.
CPD Context: After Passing RES5¶
Passing RES5 is the entry requirement. Once appointed, the representative must also satisfy annual CPD requirements per FAA-N26 Part 5:
- Core CPD: 6 hours per calendar year in ethics or rules and regulations (IBF- or SCI-accredited), regardless of product scope
- Supplementary CPD: additional hours depending on activity type:
- General insurance (mortgage reducing term assurance / group term life only): 10 supplementary hours/year
- Investment products (including life policies, CIS, securities, derivatives): 24 supplementary hours/year
- Total: 6 core + 24 supplementary = 30 hours per year (for representatives advising on investment products)
- First calendar year of appointment: CPD requirements do not apply
- Pro-rated rules apply when appointed for less than a full calendar year
Source Documents¶
- MAS Notice FAA-N26 — Competency Requirements for Representatives of Financial Advisers (effective 1 April 2024), Part 4 (paragraphs 4.1–4.22) and Annex B Table B-1
- IBF Announcement: Implementation of New CMFAS Exams (September 2023)
- MAS Notice FAA-N13 — Cancelled with effect from 1 April 2024 (superseded by FAA-N26)