Appendix G — Review questions

The source questions cover licensing changes, overseas-product warnings, statements, trust-account advances, extraterritorial market conduct, false information, connected persons, securities lending, penalties, ethics, conflicts, risk profiling, investor category, recommendations, best execution, client relationships, CPFIS and AML. They are orientation questions, not a complete study substitute.

The 30 source questions are organised as follows:

1. Chapter 2: notification of changes to a CMS licence holder’s records; fit-and-proper considerations for representatives; the signed overseas-listed product risk-warning acknowledgement; monthly account statements and exceptions; and permitted advances of a CMS holder’s money to a customer trust account.
2. Chapter 3: extraterritorial insider trading; techniques for circulating false or misleading information; connected-person transactions; securities borrowing and lending conditions; and civil, criminal and other consequences of market misconduct.
3. Chapter 4: external influences on ethical judgement; self-interest threats; misrepresentation; conflicts of interest; and applying an ethical decision framework.
4. Chapter 5: the four-eyes control for objective risk profiling; investor-category classification; information required at onboarding; best execution; and practices that build a strong client–representative relationship.
5. Chapter 6: the 35% CPFIS-OA limit, agent banks, eligibility, ETF inclusion criteria and the probate document used to claim residual CPFIS investments after death.
6. Chapter 7: placement, layering and integration; the main money-laundering statute; five-year document retention; KYC information; and the response to a sanctions-list match.

These questions familiarise candidates with scope, general nature and format; they do not cover all examination material. The expanded question bank in RES12B_QUESTIONS.md therefore includes both these themes and additional application questions.