Untitled Document
Licensed dealer and Financial Adviser   CPFIS Registered Investment Administrator
fundsupermart.com
 
FAQ

16. CPFIS registered Investment Administrator
1) How does investing with a CPFIS registered Investment Administrator benefit us as an investor?
2) How are the agent bank charges different?
3) What are the cost savings?
4) Do I automatically enjoy all the above benefits?
5) What are the other benefits that I will enjoy with a CPFIS registered Investment Administrator?
6) How do I move my funds from "Non-IA" status to "IA" status?
7) 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?
8) 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?
9) If I transfer my CPF holdings from another distributor to Fundsupermart.com, will they be under "Non-IA" or "IA" status?
10) What is iFAST Financial's role?
11) What will happen to my existing CPF OA/SA RSP transactions from 1 March 2005 onwards?
12) What will happen to my existing CPF RSP transactions from 1 March 2005 onwards?
13) 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?
14) When is my account deducted to pay for purchases?
15) When will proceeds from redemptions be paid to my account?

Q: How does investing with a CPFIS registered Investment Administrator benefit us as an investor?

A: iFAST Financial Pte Ltd has attained the CPFIS registered Investment Administrator status. From 1 March 2005, Fundsupermart.com, 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, Fundsupermart.com 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, Fundsupermart.com 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.
 
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Q: How are the agent bank charges different?

A: Summary of Agent Bank Charges

Type of transactionBefore 1 March 2005From 1 March 2005
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
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
 
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Q: What are the cost savings?

A: 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

Cost Savings
BUYI 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%

SELLI 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

 
 

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%
RSPI do a Regular Savings Plan (RSP) transaction of $1,000 into 5 fund every month for 1 year. Fund price is $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%
 
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Q: Do I automatically enjoy all the above benefits?

A: You will automatically enjoy all the above benefits for CPF-OA transactions put in on 1 March 2005 and thereafter. In your "View Holdings" page, you will see "IA" indicated for this.

However, for funds bought before 1 March 2005, you will not automatically enjoy all the above benefits. In your "View Holdings" page, you will see "Non-IA" indicated for these funds purchased before 1 March 2005. These "Non-IA" funds will continue to incur full agent bank charges.
 
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Q: What are the other benefits that I will enjoy with a CPFIS registered Investment Administrator?

A: Faster completion time for CPF transactions. Completion of a CPF transaction is cut down by 50%. Now, it will take T+4 for your CPF transaction under "IA" to be completed instead of T+10. 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.
 
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Q: How do I move my funds from "Non-IA" status to "IA" status?

A: 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.
 
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Q: 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?

A: This fund will appear twice in your monthly statement and "View Holdings" and indicated "Non-IA" and "IA" respectively. The "Non-IA" units will continue to incur "Non-IA" agent bank charges until you do a switch (which involves a sell transaction followed by a buy transaction), or a sell.
 
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Q: 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?

A: You will not be able to purchase units as the fund cannot take in further subscriptions until further notice. This fund will continue to exist under "Non-IA".
 
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Q: If I transfer my CPF holdings from another distributor to Fundsupermart.com, will they be under "Non-IA" or "IA" status?

A: They will be under "Non-IA" status. However, 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.
 
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Q: What is iFAST Financial's role?

A: iFAST Financial is the dealer and investment administrator and maintains the client register of unit trust holdings.
 
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Q: What will happen to my existing CPF OA/SA RSP transactions from 1 March 2005 onwards?

A: From 1 March 2005 onwards, all RSP deductions will be performed by iFAST Financial Pte Ltd instead of DMG & Partners Securities Pte Ltd.
 
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Q: What will happen to my existing CPF RSP transactions from 1 March 2005 onwards?

A: For RSPs using CPF-OA/SRS, no action will be required from you. From 1 March 2005 onwards, iFAST Financial will be drawing monies from your Agent Bank for CPF-OA/SRS and the CPF Board for CPF-SA. This role was previously performed by the fund houses whom you have purchased funds from.
 
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Q: 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?

A: 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. 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.
 
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Q: When is my account deducted to pay for purchases?

A: iFAST Financial will request to withdraw monies from either your CPF investment account, CPF Account or SRS account on T+1. Your account will be deducted on T+2 so that iFAST Financial can receive the monies to pay for the purchases.
 
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Q: When will proceeds from redemptions be paid to my account?

A: iFAST Financial will pay proceeds to your CPF agent bank(for CPFISOA trades), CPF Account (for CPFISA trades) or SRS account (for SRS trades).
 
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