Why do I need to take a knowledge and experience assessment? 

Investment products vary in risk and complexity. To protect your interests as an investor, we need to know if you have the relevant knowledge or experience to understand the features and risks associated with Specified Investment Products (SIPs) before recommending or selling them to you.  

In our assessment, we look at your educational qualifications, work experience, and investment experience. 

 

Is this the same as taking a CKA or CAR? 

Yes. Our knowledge and experience assessment combines the Customer Account Review (CAR) and Customer Knowledge Assessment (CKA). 

Before you can trade in Specified Investment Products (SIPs), you need to go through:  

  • CAR for listed SIPs 
  • CKA for unlisted SIPs 

With a simplified assessment, you don’t have to take the CKA and CAR separately. 

 

I’ve taken the CAR/CKA elsewhere. Do I still need to take it with DBS?  

Yes. CKA and CAR outcomes are not transferrable. We need to make our own assessment of your knowledge and experience before selling SIPs to you.  

 

How often do I need to take the knowledge and experience assessment? 

Typically, the validity of the assessments are as follows: 

CKA1 year from assessment date 

CKA3 years from assessment date  

However, as our assessment combines the CKA and CAR, you’ll need to take it annually. 

 

What qualifications or experience do I need in order to buy or trade SIPs? 

You should meet at least of these 3 criteria in order to buy or trade SIPs: 

1. Educational Qualification 

Have a diploma or higher qualification in one of these fields: 

  • Accountancy 
  • Actuarial Science 
  • Business, or Business Studies 
  • Business Administration 
  • Business Management 
  • Capital Markets 
  • Commerce 
  • Computational Finance 
  • Economics 
  • Finance 
  • Financial Engineering 
  • Financial Planning 
  • Insurance 
  • Professional finance-related qualifications, including Chartered Financial Analyst Examination conducted by CFA Institute, USA and the Association of Chartered Certified Accountants (ACCA) 

2. Work Experience 

Have a minimum of 3 consecutive years of working experience (
including the provision of legal advice or possession of legal expertise) in the past 10 years, in: 

  • Development of, structuring of, management of, sale of, trading of, research on or analysis of investment products, 
  • Provision of training in investment products as defined in Section 2 of the Financial Advisers Act (Cap. 110), or 
  • Accountancy, Actuarial Science, Treasury or Financial Risk Management activities  

Note: Support functions in the areas mentioned above that are administrative or clerical in nature are not considered relevant experience. 

3. Investment or Trading Experience 

  • For Unlisted SIPs (Group A)Transacted in unit trusts and/or Investment-linked Life Insurance Policies (ILPs) at least times in the preceding 3 years 
  • For Unlisted SIPs (Group B) Transacted in unlisted SIP (other than unit trusts and/or ILPs) at least times in the preceding 3 years 
  • For Listed SIPs (Group C)Transacted in listed SIPs at least times during the preceding 3 years, or at least 6 times in the preceding 3 years with any brokers. 
 

What are Specified Investment Products (SIPs)?  

The Monetary Authority of Singapore (MAS) classifies certain products as Specified Investment Products (SIPs). These are generally financial products which contain derivatives. Thetend to be more complex in their product structure, features and risksand are not as widely understood by retail investors. 

Some SIPs are listed on an exchangeand you can trade them with your brokerage account. There are also unlisted SIPs, which are available directly from financial institutions. 

We’ve grouped SIPs by product categories: 

 

Group

Product Category

Examples

A Unlisted SIPs
Unlisted Collective Investment Schemes (CIS) and Investment-Linked Life Insurance Policies (ILPs)
  • Unit Trusts
  • Investment-Linked Life Insurance Policies (ILPs)
B Unlisted SIPs
Unlisted products which are neither listed nor quoted on a securities market or a futures market (excluding CIS & ILPs)
  • Currency-linked investments
  • Structured Deposits
  • Asset-backed Securities & Structured Notes
  • Equity-linked Notes
  • Leveraged Foreign Exchange
  • Foreign Exchange Margin Trading Line
  • Foreign Exchange Forward Contracts
  • Over-The-Counter Products
C Listed SIPs
Listed Collective Investment Schemes (CIS) and any exchange securities which may contains derivatives
  • Certificates
  • Exchange Traded Funds (ETFs)
  • Exchange Traded Notes (ETNs)
  • Futures (Extended Settlement Contracts)
  • Structured Warrants
  • Callable Bull / Bear Contracts (CBBCs)