Title: Dialogue Session
1Dialogue Session
17 Jan 2007 Central Provident Fund
Board Institute of Certified Public Accountants
of Singapore
2AIM
- To dialogue and communicate
- Changes to funds under CPFIS
- Sharing of observations in breach of CPFIS terms
and conditions - Other matters
3Lower charges for new CPF investments in funds
under CPFIS
- 1. Sales Charges
- From 1 Jul 07, sales charges must not exceed
3.
4Lower 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.
5What 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.
6List A and B funds
- List A Funds
- Have met the CPFIS admission criteria for funds
- List B Funds
- All other funds under CPFIS
7List A and B (for existing funds)
8Concession 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.
9SUMMARY OF CHANGES
10Whose 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.
11Reminders
- 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
12Clarifications / 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
13Q A
14Thank You
15Supplementary Slides
16Audit 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
17Audit 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.
18Audit 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.
19Audit 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.
20Audit 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.
21Audit 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.