Breaking Down CM-EIP & CM-SIP: Retail vs. Complex Products

Two exams. One licence track. And a classification system that determines exactly what products you're allowed to sell.

If you're working toward your Dealer's Licence in Singapore, CM-EIP and CM-SIP are not optional extras. They are the product knowledge exams that define the scope of your practice — and understanding the difference between them starts with understanding what MAS actually means by Excluded and Specified Investment Products.

Get this wrong in the exam and you fail. Get it wrong on the job and the consequences are far more serious.

Let's break it down.

The MAS Classification Framework — EIP vs SIP

MAS divides capital markets products into two categories for the purpose of retail distribution. The classification determines what safeguards apply when selling to retail investors — and what qualifications a representative needs to hold.

Excluded Investment Products (EIPs) are products that are well established in the market, with features and risks that are generally understandable by retail investors without specialist knowledge.

Specified Investment Products (SIPs) are everything else — products with more complex structures, risk-return profiles, and features that require a higher level of financial literacy to understand. These come with enhanced distribution safeguards to protect retail investors.

The distinction matters because it determines what you can sell, to whom, and under what conditions.

What Counts as an EIP?

EIPs are the simpler end of the product spectrum. Think of them as the products a reasonably informed retail investor can be expected to understand without specialist guidance.

Examples include:

Shares listed on recognised exchanges (SGX, NYSE, LSE, etc.)
Government bonds and plain vanilla corporate bonds
Unit trusts and collective investment schemes without embedded derivatives
Exchange Traded Funds (ETFs) that track standard indices without leverage
Singapore Savings Bonds
REITs listed on recognised exchanges
Foreign exchange spot contracts

The key characteristic: straightforward risk-return profile, transparent pricing, no complex payoff structures.

If you hold CM-EIP and not CM-SIP, these are the products within your permitted scope.

What Counts as a SIP?

SIPs are the complex end — products where the structure, embedded features, or risk profile require a level of financial sophistication beyond what a typical retail investor can be assumed to have.

Examples include:

Derivatives — futures, options, swaps, warrants
Contracts for Difference (CFDs)
Structured products — equity-linked notes, principal-protected notes, barrier products
Unlisted collective investment schemes with embedded derivatives
Leveraged and inverse ETFs
Perpetual securities and certain hybrid instruments

The defining feature: complexity. A product where the downside, the conditions, or the payoff structure cannot be understood without specialist knowledge is almost certainly a SIP.

Selling or recommending SIPs to retail investors requires additional safeguards — specifically the Customer Account Review (CAR) for listed SIPs and the Customer Knowledge Assessment (CKA) for unlisted SIPs.

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The Two Exams — What Each One Covers

Side by Side

CM-EIP vs CM-SIP — The Full Comparison

Same licence track. Very different exams. Know exactly what you're walking into before you register.

Factor	CM-EIP Formerly M6 · Excluded Investment Products	CM-SIP Formerly M6A · Specified Investment Products
Products Covered	Retail-grade products Shares, bonds, unit trusts, plain ETFs, REITs, FX spot contracts, Singapore Savings Bonds	Complex products Derivatives, options, futures, swaps, CFDs, structured products, leveraged/inverse ETFs, warrants
Format	90 MCQs 150 minutes · Calculation-heavy · Replaces old M6	80 MCQs + 6 Case Studies 150 minutes · Case studies worth 22.5% of score · Replaces old M6A
Pass Mark	70%	70%
Difficulty	High — calculations under time pressure Bond yields, DCF valuations, warrant pricing. ~1.67 min per question. No room for slow working.	Very High — the "final boss" of CMFAS Options payoff logic, barrier products, CFD mechanics, and 6 case studies requiring multi-step reasoning.
Pre-requisite	None — sit first	CM-EIP strongly recommended first
Killer Chapters	Bond pricing & yield calculations · DCF analysis · Warrant pricing · FX mechanics	Chapter 4 (Options) · Chapter 10 (CFDs) · Chapter 11 (Investment Risks) · Chapter 12 (Case Studies)
Study Time	~80 hours recommended	~100 hours recommended

The CAR and CKA — What Representatives Need to Know

Once you hold CM-SIP, you're qualified to deal in SIPs. But that doesn't mean every retail client you encounter can immediately invest in them.

MAS requires distributors to assess whether a retail investor has the knowledge and experience to understand SIPs before any transaction.

There are two mechanisms:

Customer Account Review (CAR) — applies to listed SIPs (e.g. warrants, structured certificates listed on SGX). The client must demonstrate relevant qualifications, work experience, or prior investment experience in capital markets products.

Customer Knowledge Assessment (CKA) — applies to unlisted SIPs (e.g. OTC derivatives, unlisted structured products). Higher bar. The client must pass an assessment or demonstrate qualifying criteria before transacting.

As a representative, understanding CAR and CKA is not just exam content. It is a compliance requirement you will apply on the job from day one.

The Hardest Part of Each Exam — and How to Beat It

CM-EIP: The Calculation Speed Problem

You have 90 questions in 150 minutes. That's 1 minute and 40 seconds per question. For a multiple-choice paper that includes bond yield calculations, DCF valuations, and warrant pricing, that is tight.

Candidates who fail CM-EIP almost always fail on time management — not content knowledge. They spend five minutes on one bond calculation and never recover the deficit.

The fix: practice under timed conditions from week one. Do not study without a timer. Speed on the formulas comes from repetition, not understanding alone.

CM-SIP: The Case Study Problem

Six case studies. Twenty-two and a half percent of your total score. Candidates who treat CM-SIP as just another MCQ paper walk into the case studies unprepared and drop a significant chunk of marks in the final section.

Case studies in CM-SIP are multi-step reasoning problems — they present a client scenario and ask you to evaluate suitability, calculate payoffs, identify risks, and recommend appropriately. Each one requires you to synthesise knowledge across multiple chapters simultaneously.

The fix: dedicate an entire study week exclusively to case study practice. Read the scenarios slowly. Map out what is being asked before you calculate anything.

Prepare for Both with the Dealer Licence Prep Bundle

The RealisedGains Dealer Licence Prep Bundle covers both CM-EIP and CM-SIP in one package — built around the exact question formats, calculation types, and case study structures that appear in the actual IBF exams.

What's inside:

📋 CM-EIP question bank — calculation-focused practice sets covering bond pricing, DCF, warrant mechanics, and FX, with timed drill modes to build speed
🔢 CM-SIP question bank — MCQ and case study practice covering options payoff structures, CFD mechanics, barrier products, and investment risk analysis
📝 Formula cheat sheets — the essential calculations for both papers distilled into a format built for last-minute revision
📊 Chapter-by-chapter tracking — identify your weak spots before they cost you on exam day
⏱ Timed mock exams — full-length simulations for both papers under real exam time conditions

CM-EIP and CM-SIP together unlock the full scope of a Dealer's practice in Singapore — from retail shares and bonds all the way to complex derivatives and structured products.

Neither exam is easy. CM-EIP demands calculation speed. CM-SIP demands conceptual depth and case study stamina.

But both are very passable with the right preparation and the right sequencing.

Start with CM-EIP. Build your product knowledge foundations. Then take on CM-SIP with a clear understanding of what you're being asked to do and why.

Start Preparing with the Dealer Licence Bundle →

Check out our CMFAS Prep Courses

Shaun

Founder

RealisedGains is committed to empowering retail investors to achieve lasting financial well-being. By delivering meticulously curated investment insights and educational programs, RealisedGains equips individuals with the knowledge and tools to make sophisticated, informed financial decisions.

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Shaun

Founder, Analyst

With over a decade of expertise spanning investment advisory, investment banking analysis, oil trading, and financial advisory roles, RealisedGains is committed to empowering retail investors to achieve lasting financial well-being. By delivering meticulously curated investment insights and educational programs, RealisedGains equips individuals with the knowledge and tools to make sophisticated, informed financial decisions.

Start Learning Today!