RES 12B study guide

A concise guide to the combined RES 12B paper — RES 1B (Rules, Ethics and Skills for Securities Dealers of Non-Exchange Members) and RES 2B (the derivatives equivalent). It condenses the official study guide into what the examination tests, section by section.

• Exam: 60 multiple-choice questions, 1 hour 30 minutes, 75% to pass.
• Penalties: know which conduct is prohibited and the control that prevents it; the amount of any penalty is not tested.
• Currency of the law: the official guide states its material as current at 30 September 2023. Confirm the legislation, MAS notices, exchange rules and firm procedures before relying on a point operationally.

How to use this guide

• Every chapter ends with Exam cues — what is tested, the deciding distinction and the common trap.
• RES 1B and RES 2B share the market-participants, licensing, market-conduct and AML/CFT material. Study it once; the genuine differences are securities-specific (CPFIS, securities dealing skills) versus derivatives-specific (OTC derivatives, derivatives dealing).
• Learn the distinctions the paper tests — exchange vs OTC, agent vs principal, AI/II/EI vs retail, CAR vs CKA, EIP vs SIP — not the wording of the rules.

Coverage map

RES 1B

1. Capital markets industry and participants
2. Licensing and business operations
3. Market conduct
4. Ethics and standards for securities dealing
5. Securities dealing practices and skills
6. CPFIS
7. Prevention of financial crimes
8. Appendices A–H

RES 2B

1. Capital markets industry and participants
2. Licensing and business operations
3. Market conduct
4. OTC derivatives
5. Ethics and standards for derivatives dealing
6. Derivatives dealing practices and skills
7. Prevention of financial crimes
8. Appendices A–G

---

Contents

• 1B.1 The capital markets industry in Singapore and participants
• 1B.2 Licensing and business operations
• 1B.3 Market conduct
• 1B.4 Ethics, codes and standards for securities dealing
• 1B.5 Securities dealing practices and skills
• 1B.6 CPF Investment Scheme (CPFIS)
• 1B.7 Prevention of financial crimes
• Appendix A — Fit and Proper Criteria
• Appendix B — CAR criteria
• Appendix C — CKA criteria
• Appendix D — Overseas-listed risk warning
• Appendix E — Excluded Investment Products
• Appendix F — Suspicious transaction examples
• Appendix G — Review questions
• Appendix H — Essential readings
• 2B.1 The capital markets industry and derivatives participants
• 2B.2 Licensing and business operations
• 2B.3 Market conduct for derivatives
• 2B.4 OTC derivatives
• 2B.5 Ethics and standards for derivatives dealing
• 2B.6 Derivatives dealing practices and skills
• 2B appendices

Chapters that have questions end with a link to that chapter’s quiz.