What is the purpose of a Customer Knowledge Assessment (CKA)?
The purpose of the Customer Knowledge Assessment (CKA) is to ascertain a potential investor's financial knowledge and experience to understand the risks and features of Unlisted* Specified Investment Products prior to any purchases made online or at the Bank's branch.
*Unlisted Specified Investment Products refer to the following 2 Product Categories:
|Product Category||Examples of Unlisted Specified Investment Products|
|A. Collective Investment Schemes (CIS) and Investment-linked Life Insurance Policies (ILPs)
B. Specified Investment Products which are neither listed nor quoted on a securities market or a futures market (excluding CIS & ILPs)
|• Unit Trusts; and/or
• Investment-linked Life Insurance Policies
• Currency-linked Investments;
• Structured Deposits;
• Asset-backed Securities & Structured Notes;
• Equity-linked Notes; and/or
• Foreign Exchange Margin Trading Line and Foreign Exchange Forward Contracts
How often will I need to go through the Customer Knowledge Assessment (CKA)?
If you have been assessed to have attained a positive CKA outcome, the Bank will not be required to conduct a CKA on you when you buy the unlisted Specified Investment Product online during the one year period. Otherwise, the Bank will have to conduct a new CKA on you before allowing you to purchase an unlisted Specified Investment Product online during the one year period.
The positive outcome of the CKA for any unlisted Specified Investment Product is valid for a period of one year from the date of the assessment.
After a year has elapsed from when the CKA was first conducted, the Bank will have to conduct a new CKA before allowing you to purchase an unlisted Specified Investment Product online.
What are the questions under CKA?
There are 3 questions to be answered by the potential investor under CKA relating to the potential investor's (i) highest education attained; (ii) occupation in the past ten years; and (iii) investment experience in Unlisted Specified Investment Products.
A sample of the questions to be answered by the potential investor is as follows:
How does a potential investor satisfy CKA?
A potential investor who satisfies any of the following may be assessed as possessing the knowledge or experience in an unlisted Specified Investment Product for the purpose of the satisfaction of the Customer Knowledge Assessment in the Specified Investment Product concerned:
Where the investor is assessed to not possess knowledge or experience in an unlisted Specified Investment Products, but subsequently demonstrates sufficient understanding of the features and risks of that Specified Investment product through financial education, the investor may be deemed to possess the knowledge to transact in that unlisted Specified Investment Product.
Insurance Act, First Schedule: Definitions related to life business "life policy" means any policy which -