FAQ - CPFIS registered Investment Administrator

CPFIS registered Investment Administrator

1. How does investing with a CPFIS registered Investment Administrator benefit us as an investor?

iFAST Financial Pte Ltd has attained the CPFIS registered Investment Administrator status. From 1 March 2005, FSM Global (formerly known as Fundsupermart.com/ FSM Global), the online division of iFAST Financial Pte Ltd will be the first online unit trust distributor in Singapore to offer this service. As a CPFIS registered Investment Administrator, FSM Global will now be able to draw a consolidated amount directly from your CPF agent bank for all your CPF investments. What this means is that you enjoy huge savings in agent bank charges when you invest your CPF monies. See graphical representation of the new IA Buy Process.

Previously, whenever you purchase a fund, FSM Global will send instructions to the fund house, who will draw monies from your CPF agent bank account to make payment for the purchase. If you purchase funds from different fund houses, each of them will individually draw from your CPF agent bank account. Each time this happens, you incur CPF agent bank charges.

2. How are the CPF/SRS agent bank charges different?

Summary of Agent Bank Charges

Type of transaction	Before 1 March 2005	From 1 March 2005 (Excluding GST)
Per buy transaction	*$2.50 per 1,000 units or part thereof subject to a maximum of $25 per fund	$2.50 regardless of number of units and number of funds
Per sell transaction	*$2.50 per 1,000 units or part thereof subject to a maximum of $25 per fund	$2.50 regardless of number of units and number of funds Note: the flat charge is applicable to sell transactions with the same completion/settlement date. The agent bank charges are determined by the frequency of in-flow money credited into agent bank account.
Per fund switch (This involves a sell transaction followed by a buy transaction)	Sell: $2.50 per 1,000 units or part thereof subject to a maximum of $25 per fund + Buy: $2.50 per 1,000 units or part thereof subject to a maximum of $25 per fund	No agent bank charges incurred whatsoever
Quarterly service charge	*$2.00 per fund	$2.00 regardless of number of funds (Please check with your respective agent bank for any minimum charge imposed)

*Based on the average agent bank charges

3. What are the cost savings when your holdings is under Investment Administrator (IA) status ?

Summary of Cost Savings

	Transaction	"Non-IA" Status Funds that have been purchased before 1 March 2005	"IA" Status Funds that have been purchased from 1 March 2005 onwards (Excluding GST)	Cost Savings
BUY	I invest $10,000 each into 5 funds. Each fund is priced at $1.	I will be paying $25 on every fund. Total cost for 5 funds at point of transaction: $125 Quarterly charge: $40 per year TOTAL COST THAT YEAR: $165	Total cost for 5 funds at point of transaction: $2.50 Quarterly charge: $8 flat per year TOTAL COST THAT YEAR: $10.50	98% savings 80% savings TOTAL SAVINGS THAT YEAR: 94%
SELL	I sell 5 funds each worth $10,000. Each fund is priced at $1.	I will be paying $25 on every fund. Total cost for 5 funds at point of transaction: $125 TOTAL COST THAT YEAR: $125	Total cost for 5 funds at point of transaction: $2.50 TOTAL COST THAT YEAR: $2.50 #please see remarks below	98% savings TOTAL SAVINGS THAT YEAR: 98%
SWITCHING - Involves a sell transaction followed by a buy transaction	I switch $10,000 of 1 fund into another. Each fund is priced at $1.	Sell: I will be paying $25. Buy: I will be paying $25. TOTAL COST: $50	No agent bank charges incurred whatsoever.	TOTAL SAVINGS THAT YEAR:100%
RSP	A Regular Savings Plan (RSP) transaction of $1,000 into 5 fund every month for 1 year. Fund price is at $1.	I will be paying $12.50 every month. TOTAL COST OF RSP TRANSACTION THAT YEAR: $150	I will be paying $2.50 a month.TOTAL COST OF RSP TRASACTION THAT YEAR: $30	TOTAL SAVINGS THAT YEAR: 80%

Remarks (sell - IA Status):
1. The agent bank charges are determined by the frequency of in-flow money credited into agent bank account. If the sell orders are completed on different settlement date, the agent bank charges will be incurred each time when the money is credited into the account.

4. What are the other benefits that I will enjoy with a CPFIS registered Investment Administrator?

Faster completion time for CPF transactions. Completion of a CPF transaction is cut down by 50%. Now, it will take Transaction Date (T) + 4 business days for your CPF transaction under "IA" to be completed instead of Transaction Date (T) +10 business days. This means that you are less exposed to market risk, because with faster completion, it means that you can sell faster if you need to.

5. How do I move my funds from "Non-IA" status to "IA" status?

If you do a switch (which is essentially a sell and a buy), we will sell your holdings under "Non-IA", and purchase them again under "IA". However, do note that the 'sell' part of your switch will incur full agent bank charges, but the 'buy' part of it will enjoy the new low rate.

If you sell your "Non-IA" holdings, and you buy at a later time, the new purchases will be under the "IA" status.

6. I have an existing fund bought before 1 March 2005 (Indicated "Non-IA") and later invest in the same fund after 1 March 2005 (Indicated "IA"). How will it appear in my "View Holdings" page?

7. I have an existing fund bought before 1 March 2005 and I wish to have it under "IA". But the fund has closed for subscription. What happens?

8. If I transfer my CPF holdings from another distributor to FSM Global, will they be under "Non-IA" or "IA" status?

Such CPF holdings are under "Non-IA" status when we process the transfer request. However, when the transfer process has completed, we will convert the holdings into "IA" status as follows: upon the successful transfer-in, iFAST will sell the above funds and buy back the exact units at a later date. Clients' unit holdings will not be affected by this exercise. All charges will be borne by iFAST Financial Pte Ltd.

9. What is iFAST Financial's role as Investment Administrator ?

10. If I do a buy order for a fund using CPF-OA before 3pm and put in another buy order at 7pm in the evening, how am I charged on the agent bank charges?

Charges are based on per dealing day before 3pm. A dealing day is between after 3pm on a business day (or 11am on the eve of national public holiday where applicable) and before 3pm on the next business day. Any buy order put through after 3pm will incur another $2.50 + GST. Regardless of the number of buy orders you put in, as long as they are within the dealing day of 3pm to 3pm, you will only incur 1 charge.

11. When is my CPF / SRS account deducted to pay for purchases?

12. When will the unit trust proceeds from redemptions be paid to my CPF / SRS account?

iFAST Financial will pay the sell/redemption proceeds when the sell order has been completed/ settled (on the redemption completion date) respectively to your CPF agent bank (for CPFIS-OA trades), CPF Account (for CPFIS-SA trades) or SRS account (for SRS trades).

The final credited amount may be subjected to any applicable agent bank charges and GST. For a detailed breakdown of these charges, please check with your CPF agent bank.

CPFIS registered Investment Administrator

1. How does investing with a CPFIS registered Investment Administrator benefit us as an investor?

2. How are the CPF/SRS agent bank charges different?

3. What are the cost savings when your holdings is under Investment Administrator (IA) status ?

4. What are the other benefits that I will enjoy with a CPFIS registered Investment Administrator?

5. How do I move my funds from "Non-IA" status to "IA" status?

6. I have an existing fund bought before 1 March 2005 (Indicated "Non-IA") and later invest in the same fund after 1 March 2005 (Indicated "IA"). How will it appear in my "View Holdings" page?

7. I have an existing fund bought before 1 March 2005 and I wish to have it under "IA". But the fund has closed for subscription. What happens?

8. If I transfer my CPF holdings from another distributor to FSM Global, will they be under "Non-IA" or "IA" status?

9. What is iFAST Financial's role as Investment Administrator ?

10. If I do a buy order for a fund using CPF-OA before 3pm and put in another buy order at 7pm in the evening, how am I charged on the agent bank charges?

11. When is my CPF / SRS account deducted to pay for purchases?

12. When will the unit trust proceeds from redemptions be paid to my CPF / SRS account?

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