Customer Knowledge Assessment
The Monetary Authority of Singapore (MAS) requires all financial institutions to assess customers on their financial knowledge and experience to understand the risks and features of unlisted SIP which includes your ILP policy before allowing them to purchase unlisted Specified Investment Product (SIP) independently. In Aviva, unlisted Specified Investment Product refer to an investment-linked policy or unit trust.
To safeguard the interest of customers, especially for those who may not have the relevant knowledge or experience in purchasing or trading SIPs, the Customer Knowledge Assessment (CKA) has been implemented. This assessment is effective from 1 January 2012.
For more information on CKA, please refer to MAS publication - Regulatory Regime for Listed and Unlisted Investment Products or you may visit www.mas.gov.sg ("Safeguards when purchasing Specified Investment Products – A Quick Guide for Consumers") for more details.
Below are the 3 criteria set for the customer knowledge assessment. To fulfill or “pass” the CKA, you need to satisfy just ONE of the following criteria.
- Investment Experience
Have performed at least 6 transactions in unlisted Specified Investment Products (unit trusts or investment linked product) in the last 3 years;
- Working Experience
Have a minimum of 3 consecutive years of working experience in the past 10 years in the development of , structuring of, management of, sale of, trading of, research on and analysis of investment products, or the provision of training in investment products. Work experience in accountancy, actuarial science, treasury or financial risk management activities will also be considered relevant work experience.
- Education Qualification
a) Have a diploma or higher qualifications in accountancy, actuarial science, business/business administration/business management/business studies, capital markets, commerce, economics, finance, financial engineering, financial planning, computational finance and insurance’
b) Have a professional finance-related qualification. Examples of this would include the Chartered Financial Analyst Exam conducted by the CFA Institute, USA and the Association of Chartered Certified Accountants (ACCA) Qualifications.
In Aviva, the following transactions will require customer to complete a CKA:
- New Business
- Lump Sum Top Up
- Fund Switch
- Increase in Premium (only applicable for Investment-Linked plans)
- Premium Redirection (only applicable for Investment-Linked plans)
- Additional Subscriptions (only applicable for Navigator transactions)
- Changes to easy save (only applicable for Navigator transactions)
Examples of the unlisted SIPs relevant to Navigator and Aviva are:
- Collective Investment Scheme (commonly known as "unit trusts")
- Investment Link Product ("ILP")
(1) Assess your educational qualification, work experience and investment experience and;
(2) Provide you with your CKA outcome.
Failing the CKA does not prevent you transacting in unlisted SIPs. You will, however, be required to seek advice from your financial adviser with the outcome of purchasing products that are suitable for your financial needs/risks.
|Customer Knowledge Assessment|
|I have an investment-linked policy|
As a investment-linked policyholder who wishes to purchase or trade unlisted SIPs, you are required to undergo the Customer Knowledge Assessment (CKA). This assessment may be conducted by your financial adviser. Upon completion, you will be informed of your CKA outcome. If you are deemed to posses the relevant knowledge or experience to purchase or trade unlisted SIPs, the positive outcome of your CKA will be valid for 1 year from the date of assessment.
Please approach your financial adviser who will be able to assist you with the Customer Knowledge Assessment.
The CKA questionnaire will:
MAS Press Release on CKA
MAS Quick Guide for Consumers