SGX Online Education Quiz

I received an email from one of the online brokers informing me that I need to complete the Customer Account Review form.  This is in accordance with Monetary Authority of Singapore’s initiatives to provide trading safeguards to Singaporean retail investors, brokers must assess if investors have the relevant knowledge and experience before they can invest in Specified Investment Products.

I heard about this new ruling sometime back but didn't realize that I would have to participate and pass the SGX online quiz in order to maintain my trading account. As this new ruling will take effect from 1 January 2012, I must complete and pass this quiz before end of this month!

I had to read and understand these 7 modules in order to pass the quiz.   You need at least an hour to go through the 7 modules.  The quiz consist of 20 multiple choice questions.  Sounds simple?  Well, simple if you understand what you've read from the online modules.

Module 1:  Introduction
Module 2: Warrants & Options
Module 3: Exchange Traded Funds (ETFs)
Module 4: Exchange Traded Notes (ETNs)
Module 5: Futures
Module 6: Certificates
Module 7: Callable Bull/Bear Contracts (CBBC)

Of the above 7 modules, I'm only familiar with Options and ETFs though I don't know about their features.  SGX and MAS require that retail investors must be aware that Specified Investment Products have structures, features and risks that may be more complex and require more knowledge to understand.

The current list of Specified Investment Products includes:

• Exchange Traded Funds (ETFs)
• Exchange Traded Notes (ETNs)
• Futures (Extended Settlement contracts)
• Structured Warrants
• Futures and Options

More of such products may be introduced to the market in future.

In order to pass this quiz, you need to score a minimum of 18 out of 20 questions.  My first attempt I scored 17 and on my second attempt, I got 16!  I know I should have read the modules and understand them.  At each module, I kept clicking on all the links and the icons but without reading and really understanding them.  I was merely trying to rush through the modules and do the quiz so I took the shortcut way ie just running through the questions and "lucky dip" the answers.

I had to re-sit the quiz yet again and this time, I went through the 7 modules again.  I had to read and comprehend the modules.  This time I made it.  I scored 19 out of the 20 questions!  Yeah!!