What are CM-EIP and RES 1B?
CM-EIP (Capital Markets: Excluded Investment Products) and RES 1B are Capital Markets and Financial Advisory Services (CMFAS) examinations run by the Institute of Banking and Finance (IBF). They are taken by people who want to deal in securities, such as dealers and remisiers at broking firms and securities staff at banks. CM-EIP is the product knowledge module: shares, bonds, ETFs, unit trusts and REITs, how markets work, and the maths behind returns. The RES modules (Rules, Ethics and Skills) test the law and conduct rules you must follow. After you pass the modules, a notification must be lodged with MAS (by your firm, under section 99H of the Securities and Futures Act) before you can carry out regulated activities.
TestReady SG is an independent practice platform and is not connected to IBF, MAS or SGX. Our questions are original practice questions written from the Securities and Futures Act 2001, its regulations, MAS notices and guidelines, SGX and MAS MoneySense guides. They are not past exam questions.
Exam format
| Module | Questions | Time | Pass mark |
|---|---|---|---|
| CM-EIP | 90 MCQs | 2.5 hours | 70% (63 out of 90) |
| RES 1B | 60 MCQs | 1.5 hours | 75% |
| RES 1A | 80 MCQs | 2 hours | 75% |
| RES 1BE1 (SGX-ST rules) | 40 MCQs | 1 hour | 75% |
All of these are computer-based exams. Results are shown on screen after the exam, and you can print your result slip from your IBF Portal account the next business day. Which RES module you need depends on your role and whether your firm is a member of SGX-ST, so use IBF's module finder or ask your compliance team. Our timed mock uses the CM-EIP format: 90 questions in 150 minutes, which gives you 100 seconds a question.
What the syllabus covers
IBF lists 12 chapters for CM-EIP: introduction to investing and financial markets; risk, return and time value calculations; key drivers of market movements; foreign exchange; company analysis and financial statements; equity securities; deposits and fixed-income securities; portfolio management; ETFs, unit trusts, REITs and insurance; warrants; technical and quantitative analysis; and case studies. RES 1B covers the capital markets industry in Singapore, licensing and business operations, market conduct, ethics and professional standards, securities dealing practices, the CPF Investment Scheme and the prevention of financial crimes.
Our bank groups this into eight practice sections:
- Capital Markets Industry and Licensing: MAS, SGX and CDP, the capital markets services licence, appointed, provisional and temporary representatives, and the public register.
- Market Misconduct and Insider Trading: false trading, market rigging, manipulation, misleading statements, insider trading, defences, criminal and civil penalties under Part 12 of the SFA.
- Client Dealing, Client Assets and Ethics: customer priority, principal trades, contract notes, statements, trust accounts, the Fair Dealing outcomes, SIP safeguards (CAR and CKA) and CPFIS.
- AML/CFT and Financial Crime: customer due diligence, politically exposed persons, record keeping, suspicious transaction reports and tipping-off under MAS Notice SFA04-N02.
- SGX Trading, Clearing and Settlement: market phases, board lots, order types, circuit breakers, error trades, short selling, T+2 settlement, CDP accounts and depository agents.
- Equities and Company Analysis: shareholder rights, rights and bonus issues, dual class shares, financial ratios and company warrants.
- Bonds, REITs, ETFs and Foreign Exchange: bond pricing and risks, SGS and Singapore Savings Bonds, REIT structure and risks, cash-based and synthetic ETFs, exchange rates.
- Investment Returns and Analysis: holding period and annualised returns, real returns, beta, diversification and portfolio return.
We have kept unit trust pricing and the Code on Collective Investment Schemes light here, because they are covered in depth in our CMFAS M8 practice test.
Calculations to practise
Expect short calculations. Our bank includes P/E, dividend yield, payout ratio, ROE, current ratio and price-to-book; the theoretical ex-rights price and the value of a right; ex-bonus prices; warrant intrinsic value, premium and gearing; bond current yield and zero-coupon prices; REIT distribution yield; exchange rate conversions and cross rates; and holding period, annualised and real returns. There are also two civil penalty calculations under section 232 of the SFA. Check IBF's rules on calculators before exam day.
How to prepare
- Learn the numbers that matter. T+2 settlement, contract notes by the next business day, customer money in a trust account by the next business day, the S$20,000 CDD threshold for one-off transactions, 5-year record keeping, and the $250,000 or 7-year maximum for market misconduct.
- Know the insider trading tests. Many questions turn on whether information is generally available, whether it is material, and whether a person is connected to the company.
- Work every calculation twice. A missed step, such as a dividend or a bonus share, is the usual cause of a wrong answer.
- Practise under time pressure. Full timed mocks show you your pace and your weak sections.
- Use IBF's study guides. Our questions are for testing yourself, not a replacement for the official materials.
Rules change. Our questions follow the law and the MAS, SGX and CPF Board guidance in force on 6 October 2026, including SGX's board lot changes that started on 5 October 2026. If your exam is much later, check IBF's exam page and your study guide for updates.
Three worked examples
One question from different sections of the full pack, with the answer and explanation.
Under section 82(3) of the SFA, what is the maximum penalty for carrying on business in a regulated activity without a capital markets services licence (first conviction, ignoring daily fines)?
- A fine of up to $150,000, jail of up to 3 years, or both
- A fine of up to $50,000, jail of up to 12 months, or both
- A fine of up to $250,000, jail of up to 7 years, or both
- A fine of up to $20,000 only, with no jail term
Under section 197(1) of the SFA, a person must not do anything if a purpose of doing it is to create a false or misleading appearance of what?
- The audited profits of a company that is listed on an exchange
- The credit rating of a bond issuer that is listed on an exchange
- Active trading in, or the market for or price of, capital markets products
- The size of a broker's client base or its market share
Under regulation 47(1) of the SF(LCB) Regulations, what must a broker or its representative never do with a customer's order?
- Enter it into the trading system during the pre-open phase of the trading day
- Split it into smaller lots when the order is too large to be filled at once
- Confirm it with the customer before entering it into the market
- Withhold or withdraw it from the market for their own or another's benefit