QFA REGS - SAMPLE PAPER 2 QUESTIONS WITH COMPLETE SOLUTIONS

QFA REGS - SAMPLE PAPER 2
QUESTIONS WITH COMPLETE
SOLUTIONS




ABC Bank plc is established in Germany. It transacts banking business in the Republic of
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Ireland on a cross-border basis. Being able to provide financial services in this manner to
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consumers in other EU countries is referred to as:
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A passporting.
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B subrogation.
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C migration.
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D the common good. - ans-✔✔A
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1.2.1

In relation to a financial services firm established in an EU country, the term 'freedom of
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establishment' means being able to: - - - -


A set up a branch in another EU country.
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B provide any type of financial service the firm wishes to provide, without requiring any fresh
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authorisation.
C charge different levels of charges to different consumers, without requiring authorisation
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to do so.
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D provide financial services to consumers in another EU country on a cross-border basis. -
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ans-✔✔A

1.2.1

Regulation of the continuing solvency and liquidity of established financial services firms is
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known as which type of regulation?
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A Structural.
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B Systemic.
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C Prudential.
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D Conduct of Business. - ans-✔✔C
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1.2.3

The Central Bank's Consumer Protection Code is an example of which type of regulation?
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,A Prudential.
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B Systemic.
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C Conduct of Business.
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D Structural. - ans-✔✔C
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1.2.4

The Central Bank does NOT authorise and regulate which one of the following established in
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the State?
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A Credit institutions.
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B Debt management firms.
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C Credit intermediaries.
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D Retail credit firms. - ans-✔✔C
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1.3.1

The MAXIMUM fine which the Central Bank can impose on ABC Investment Advisers Ltd, an
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investment intermediary, for non- compliance with financial services regulations, is:
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A €1 million.
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B the greater of €2 million and 5% of annual
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turnover.
C the greater of €5 million and 10% of annual turnover.
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D the greater of €10 million and 10% of annual turnover. - ans-✔✔D
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1.3.3

Most authorised credit intermediaries are
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A mortgage intermediaries.
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B garages offering loans and leasing.
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C insurance intermediaries.
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D credit card providers. - ans-✔✔B
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1.4.4

The regulation of unfair, misleading or aggressive commercial practices by financial
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services firms is shared between which two institutions?
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A The Competition and Consumer Protection Commission and the Director of Corporate
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Enforcement.
B The Central Bank and the Department of Finance.
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C The Director of Corporate Enforcement and the Central Bank.
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D The Competition and Consumer Protection Commission and the Central Bank. - ans-✔✔D
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1.4.1

Credit intermediaries are authorised by the:
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A Competition and Consumer Protection
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, Commission.
B Central Bank.
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C Irish Banking Federation.
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D Irish Credit Bureau - ans-✔✔A
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1.4.4

A deemed authorised investment intermediary is one which:
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A is exempt from authorisation under the Investment Intermediaries Act, 1995.
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B is automatically authorised to arrange and/or give advice on any of the retail financial
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products covered by the Investment Intermediaries Act, 1995.
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C has applied for authorisation as an investment intermediary but has not yet obtained it.
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D is restricted to advising only on non- insurance tracker bonds. - ans-✔✔B
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2.3.1

A deemed authorised investment intermediary is automatically authorised to provide
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investment advice on: - -


(i) shares listed on a Stock Exchange.
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(ii) UCITS.
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(iii) deposits.
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A (ii) only.
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B (iii) only.
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C (i) and (ii) only.
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D (i), (ii) and (iii). - ans-✔✔D
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2.3.1

An investment intermediary authorised under Section 10 of the Investment Intermediaries
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Act, 1995, is an intermediary which:
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A is exempt from authorisation under the Investment Intermediaries Act, 1995.
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B must seek authorisation for each type of retail financial product it wishes to arrange and/or
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provide advice on. - -


C has applied for authorisation as an investment intermediary but has not yet obtained it.
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D is restricted to advising only on insurance policies and tracker bonds. - ans-✔✔B
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2.3.1

An investment intermediary who can arrange deposits for consumers with a range of
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different banks is called a deposit: - - - - -


A intermediary.
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B broker.
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C agent.
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D producer. - ans-✔✔B
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