QFA - Regs (Chapter 5) Test Questions
All Solved.
In what situations does the Central Bank's Consumer Protection Code apply? - Answer Applies
to all intermediaries, including banks, credit unions and MiFID investment firms, when providing
advice to consumers on:
Insurance policies (which includes life assurance, non-life insurance and pension policies)
PRSAs
Deposits
Tracker Bonds (deposit and life assurance)
Mortgages
The Code also applies to investment intermediaries (but not MiFID investment firms) when
providing advice to consumers on: Shares and bonds listed on a stock exchange collective
investment funds, such as Exchange Traded Funds and UCITS.
What is an MiFID investment firm? - Answer MiFID stands for "Markets in Financial
Instruments Directive". It applies to any investment firm. An investment firm = "any legal person
whose regular occupation or business is the provision of one of more investment services to
third parties and/or the performance of one or more investment activities on a professional
basis."
In what situations does the MiFID conduct of business rules apply? - Answer Applies when a
MiFID investment firm is providing investment advice or a discretionary portfolio management
service to a consumer in relation to
shares, whether listed on a stock exchange or not.
bonds, whether listed on a stock exchange or not.
Contracts for Difference (CFDs).
options, swaps, and other derivatives.
collective investment funds such as Exchange Traded Funds and UCITS
In what situations does Distance Marketing Regulations apply? - Answer Applies to any firm
which supplies a financial service or contract to a consumer exclusively by means of phone,
post, fax, email, internet etc . . . where there is no face-to-face contact with the consumer at any
time during the process.
12 General Principles of the Consumer Protection Code - Answer 1." . . . act honestly, fairly
and professionally in the best interests of its customers and the integrity of the market;
2. act with due skill, care and diligence in the best interests of its customers;
All Solved.
In what situations does the Central Bank's Consumer Protection Code apply? - Answer Applies
to all intermediaries, including banks, credit unions and MiFID investment firms, when providing
advice to consumers on:
Insurance policies (which includes life assurance, non-life insurance and pension policies)
PRSAs
Deposits
Tracker Bonds (deposit and life assurance)
Mortgages
The Code also applies to investment intermediaries (but not MiFID investment firms) when
providing advice to consumers on: Shares and bonds listed on a stock exchange collective
investment funds, such as Exchange Traded Funds and UCITS.
What is an MiFID investment firm? - Answer MiFID stands for "Markets in Financial
Instruments Directive". It applies to any investment firm. An investment firm = "any legal person
whose regular occupation or business is the provision of one of more investment services to
third parties and/or the performance of one or more investment activities on a professional
basis."
In what situations does the MiFID conduct of business rules apply? - Answer Applies when a
MiFID investment firm is providing investment advice or a discretionary portfolio management
service to a consumer in relation to
shares, whether listed on a stock exchange or not.
bonds, whether listed on a stock exchange or not.
Contracts for Difference (CFDs).
options, swaps, and other derivatives.
collective investment funds such as Exchange Traded Funds and UCITS
In what situations does Distance Marketing Regulations apply? - Answer Applies to any firm
which supplies a financial service or contract to a consumer exclusively by means of phone,
post, fax, email, internet etc . . . where there is no face-to-face contact with the consumer at any
time during the process.
12 General Principles of the Consumer Protection Code - Answer 1." . . . act honestly, fairly
and professionally in the best interests of its customers and the integrity of the market;
2. act with due skill, care and diligence in the best interests of its customers;
