QFA - REGS (CHAPTER 5) QUESTIONS
AND ANSWERS
In what situations does the Central Bank's Consumer Protection Code apply? - ans-
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✔✔Applies to all intermediaries, including banks, credit unions and MiFID investment firms,
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when providing advice to consumers on:
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Insurance policies (which includes life assurance, non-life insurance and pension policies)
- - - - - - - - - -
PRSAs
Deposits
Tracker Bonds (deposit and life assurance)
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Mortgages
The Code also applies to investment intermediaries (but not MiFID investment firms) when
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providing advice to consumers on: Shares and bonds listed on a stock exchange collective
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investment funds, such as Exchange Traded Funds and UCITS. - - - - - - - -
What is an MiFID investment firm? - ans-✔✔MiFID stands for "Markets in Financial
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Instruments Directive". It applies to any investment firm. An investment firm = "any legal
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person whose regular occupation or business is the provision of one of more investment
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services to third parties and/or the performance of one or more investment activities on a
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professional basis." -
In what situations does the MiFID conduct of business rules apply? - ans-✔✔Applies when a
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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.
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collective investment funds such as Exchange Traded Funds and UCITS
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In what situations does Distance Marketing Regulations apply? - ans-✔✔Applies to any firm
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which supplies a financial service or contract to a consumer exclusively by means of phone,
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post, fax, email, internet etc . . . where there is no face-to-face contact with the consumer at
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any time during the process.
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AND ANSWERS
In what situations does the Central Bank's Consumer Protection Code apply? - ans-
- - - - - - - - - - - -
✔✔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? - ans-✔✔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? - ans-✔✔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? - ans-✔✔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.
- - - -
