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Dialogue Session

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our report thereon dated _. These financial statements are the responsibility of ... the Fund as at _and for the year then ended and have issued our report thereon ... – PowerPoint PPT presentation

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Title: Dialogue Session


1
Dialogue Session
17 Jan 2007 Central Provident Fund
Board Institute of Certified Public Accountants
of Singapore
2
AIM
  • To dialogue and communicate
  • Changes to funds under CPFIS
  • Sharing of observations in breach of CPFIS terms
    and conditions
  • Other matters

3
Lower charges for new CPF investments in funds
under CPFIS
  • 1. Sales Charges
  • From 1 Jul 07, sales charges must not exceed
    3.

4
Lower charges for new CPF investments in funds
under CPFIS
2. Expense Ratios From 1 Jan 08, expense
ratios must not exceed the expense ratio
criterion
Reviewed periodically based on median expense
ratio of funds included under CPFIS as at end of
each year. Last review based on end 2005
ratios. However, decided to retain end 2004
ratios rounded off to the nearest 0.05.
5
What happens to funds that exceed the sales
charge and expense ratio criteria?
  • Not allowed to take in new CPF monies - until
    their sales charges expense ratios are below
    the criteria set.
  • Funds with expense ratios higher than the levels
    set for their risk categories - to provide free
    switch to other funds under CPFIS.

Existing CPF investors need not redeem their
investments, if they so decide.
6
List A and B funds
  • List A Funds
  • Have met the CPFIS admission criteria for funds
  • List B Funds
  • All other funds under CPFIS

7
List A and B (for existing funds)
8
Concession granted by CPFB
  • Funds that meet the admission criteria after
    re-evaluation, except for the expense ratio
    criterion
  • Concession for these funds - An additional
    year to comply with the expense ratio criterion,
    i.e. by 1 Jan 09.

9
SUMMARY OF CHANGES
10
Whose responsibility to ensure compliance?
  • Product providers and their agents
  • Sales charges computed at the point when new
    units are created.
  • Expense ratio based on last audited expense
    ratio before the cap kicks in.

11
Reminders
  • Funds names To reflect correctly
  • Prescribed format for reporting To use
    appropriate format to the type of operations
    (i.e. agent bank or product provider) or products
    (unit trusts, fund management accounts etc)
  • Submission To submit audit report on time

12
Clarifications / implications of non-compliance
  • Derivatives if they are for hedging or efficient
    portfolio management, they do not fall under the
    deviation limit (up to 5) in paragraph 8 of
    CPFIG.
  • Minimum Service Delivery Standards Implications
    for non-compliance -
  • Fraud whether there are controls
  • Investment Administrators cash accounts

13
Q A
14
Thank You
15
Supplementary Slides
16
Audit Report - Format for FMC
  • Annex A
  • The Board of Directors
  • Fund Management Company Our ref
  • Address 1
  • Address 2 Contact
  • Singapore
  • Date
  • Dear Sirs
  • AUDITORS REPORT ON NAME OF FMC or SINGAPORE
    REPRESENTATIVE (THE COMPANY) UNDER
  • CENTRAL PROVIDENT FUND INVESTMENT SCHEME (CPFIS)
    FOR THE YEAR ENDED ________________
  • We have audited the financial statements of the
    Company as at _______ and for the year then ended
    and have issued
  • our report thereon dated _______. These
    financial statements are the responsibility of
    the Companys directors. Our
  • responsibility is to express an opinion on those
    financial statements based on our audit.
  • We conducted our audit in accordance with
    Singapore Standards on Auditing for the purpose
    of expressing our opinion

17
Audit Report - Format For Funds
  • Annex B
  • Date
  • Fund Managers
  • Trustee
  • Dear Sirs
  • AUDITORS REPORT ON NAME OF SCHEME (THE FUND)
    FOR SCHEME INCLUDED UNDER CENTRAL PROVIDENT FUND
  • INVESTMENT SCHEME (CPFIS) FOR THE YEAR ENDED
    ________________
  • We have audited the financial statements of the
    Fund as at _____________ and for the year then
    ended and have issued our report thereon
  • dated _______________.
  • The preparation of those financial statements
    are the responsibility of NAME of FMC (the
    "Manager") or Board of Directors of NAME OF
  • SCHEME. The responsibility to cause those
    financial statements to be audited is that of
    NAME OF TRUSTEE (the "Trustee")/ N.A where
    not applicable.
  • Our responsibility is to express an opinion on
    those financial statements based on our audit.

18
Audit Report - Format For Agent Banks
  • Annex B
  • The Manager
  • Investment Schemes Branch
  • Central Provident Fund Board
  • 79 Robinson Road
  • 12-08 CPF Building
  • Singapore 068897
  • Dear Sirs
  • AUDITORS REPORT ON NAME OF BANK (THE AGENT
    BANK) UNDER THE CPF INVESTMENT SCHEME - ORDINARY
    ACCOUNT (CPFIS-OA) TERMS AND CONDITIONS FOR AGENT
    BANKS FOR THE YEAR ENDED ____________________
  • We have audited the financial statements of the
    Bank as at _______ and for the year then ended
    and have issued our report thereon dated _______.
    These financial statements are the
    responsibility of the Companys directors. Our
    responsibility is to express an opinion on those
    financial statements based on our audit.
  • We conducted our audit in accordance with
    Singapore Standards on Auditing for the purpose
    of expressing our opinion on the financial
    statements under review as required by statute.
    Those standards require that we plan and perform
    the audit to obtain reasonable assurance whether
    the financial statements are free of material
    misstatement. Our work was necessarily conducted
    on a test basis and included such samples as we
    deemed appropriate. In this connection, we have
    reviewed the accounting system and system of
    internal controls in operation in the Company and
    reliance has been placed on the internal controls
    where considered appropriate.
  • During the course of our audit, except for those
    matters referred to in our _____________ report
    dated , nothing came to our
    attention that caused us to believe that the
    operations of the Bank relating to CPF Investment
    Accounts of CPF members were not conducted in
    accordance with the Central Provident Fund
    (Investment Scheme) Regulations and any
    amendments or modifications thereof and the terms
    and conditions laid down in the Deed of Indemnity
    dated__________.
  • This report is issued for submission to the
    Central Provident Fund Board and should not be
    used for any other purposes.

19
Audit Report - Format For Bond Dealers
  • Annex B
  • The Manager
  • Investment Schemes Branch
  • Central Provident Fund Board
  • 79 Robinson Road
  • 12-08 CPF Building
  • Singapore 068897
  • Dear Sirs
  • AUDITORS REPORT ON NAME OF BANK (THE BOND
    DEALER) UNDER THE CPF INVESTMENT SCHEME-SPECIAL
    ACCOUNT (CPFIS-SA) TERMS AND CONDITIONS FOR BONDS
    DEALERS FOR THE YEAR ENDED ________________
  • We have audited the financial statements of the
    Bank as at _______ and for the year then ended
    and have issued our report thereon dated _______.
    These financial statements are the
    responsibility of the Companys directors. Our
    responsibility is to express an opinion on those
    financial statements based on our audit.
  • We conducted our audit in accordance with
    Singapore Standards on Auditing for the purpose
    of expressing our opinion on the financial
    statements under review as required by statute.
    Those standards require that we plan and perform
    the audit to obtain reasonable assurance whether
    the financial statements are free of material
    misstatement. Our work was necessarily conducted
    on a test basis and included such samples as we
    deemed appropriate. In this connection, we have
    reviewed the accounting system and system of
    internal controls in operation in the Company and
    reliance has been placed on the internal controls
    where considered appropriate.
  • During the course of our audit, except for those
    matters referred to in our _____________ report
    dated , nothing came to our
    attention that caused us to believe that the
    operations of the Bank relating to approved bonds
    of CPF members were not conducted in accordance
    with the Central Provident Fund (Investment
    Scheme) Regulations and any amendments or
    modifications thereof and the terms and
    conditions laid down in the Deed of Indemnity
    dated________.
  • This report is issued for submission to the
    Central Provident Fund Board and should not be
    used for any other purposes.

20
Audit Report - Format For FD Banks
  • Annex B
  • The Manager
  • Investment Schemes Department
  • Central Provident Fund Board
  • 79 Robinson Road
  • 12-08 CPF Building
  • Singapore 068897
  • Dear Sirs
  • AUDITORS REPORT ON NAME OF FIXED DEPOSIT BANK
    (THE BANK) UNDER CENTRAL PROVIDENT FUND
    INVESTMENT SCHEME (CPFIS) TERMS AND CONDITIONS
    FOR FIXED DEPOSIT BANKS FOR THE YEAR ENDED
    ________________
  • We have audited the financial statements of the
    Bank as at _______ and for the year then ended
    and have issued our report thereon dated _______.
    These financial statements are the
    responsibility of the Banks directors. Our
    responsibility is to express an opinion on those
    financial statements based on our audit.
  • We conducted our audit in accordance with
    Singapore Standards on Auditing for the purpose
    of expressing our opinion on the financial
    statements under review as required by statute.
    Those standards require that we plan and perform
    the audit to obtain reasonable assurance whether
    the financial statements are free of material
    misstatement. Our work was necessarily conducted
    on a test basis and included such samples as we
    deemed appropriate. In this connection, we have
    reviewed the accounting system and system of
    internal controls in operation in the Bank and
    reliance has been placed on the internal controls
    where considered appropriate.
  • During the course of our audit, except for those
    matters referred to in our _____________ report
    dated , nothing came to our
    attention that caused us to believe that the
    operations of the Bank relating to fixed deposits
    placed by CPFIS members were not conducted in
    accordance with the Central Provident Fund
    (Investment Scheme) Regulations and any
    amendments or modifications thereof and the terms
    and conditions laid down in the Deed of Indemnity
    dated________.
  • This report is issued for submission to the
    Central Provident Fund Board and should not be
    used for any other purposes.

21
Audit Report - Format For Investment
Administrators
  • Annex B
  • The Board of Directors
  • Name of Investment Administrator or IA Our
    ref
  • Address 1
  • Address 2 Contact
  • Singapore
  • Date
  • Dear Sirs
  • AUDITORS REPORT ON NAME OF IA (THE COMPANY)
    UNDER CENTRAL PROVIDENT FUND INVESTMENT SCHEME
    (CPFIS) TERMS AND CONDITIONS FOR INVESTMENT
    ADMINISTRATORS FOR THE YEAR ENDED
    ________________
  • We have audited the financial statements of the
    Company as at _______ and for the year then ended
    and have issued our report thereon dated _______.
    These financial statements are the
    responsibility of the Companys directors. Our
    responsibility is to express an opinion on those
    financial statements based on our audit.
  • We conducted our audit in accordance with
    Singapore Standards on Auditing for the purpose
    of expressing our opinion on the financial
    statements under review as required by statute.
    Those standards require that we plan and perform
    the audit to obtain reasonable assurance whether
    the financial statements are free of material
    misstatement. Our work was necessarily conducted
    on a test basis and included such samples as we
    deemed appropriate. In this connection, we have
    reviewed the accounting system and system of
    internal controls in operation in the Company and
    reliance has been placed on the internal controls
    where considered appropriate.
  • During the course of our audit, except for those
    matters referred to in our _____________ report
    dated , nothing came to our
    attention that caused us to believe that the
    operations of the Company relating to investment
    holdings of CPF members were not conducted in
    accordance with the Central Provident Fund
    (Investment Scheme) Regulations 2000 and any
    amendments or modifications thereof and the terms
    and conditions laid down in the Deed of Indemnity
    dated_____.
  • This report is issued for submission to the
    Central Provident Fund Board and should not be
    used for any other purposes.
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