QFA REGS EXAM 2026 NEWEST EXAM– 350
PRACTICE QUESTIONS WITH DETAILED
RATIONALES
Section 1: Regulatory Framework and Structural Regulation (Q1–Q40)
1. The primary objective of structural regulation of financial services firms is to:
A) Minimise risks to the financial system.
B) Ensure financial services providers remain solvent at all times.
C) Ensure only those with sufficient financial standing and integrity can become
financial services firms.
D) Enforce compliance by financial services providers with consumer law.
Correct Answer: C
Rationale: Structural regulation focuses on entry criteria—ensuring that only fit
and proper firms with adequate financial standing can enter the market, rather
than ongoing solvency or systemic risk monitoring, which are covered by
prudential and systemic regulation respectively.
2. Regulation of the continuing solvency and liquidity of established financial
services firms is known as which type of regulation?
A) Structural.
B) Systemic.
C) Prudential.
,D) Conduct of Business.
Correct Answer: C
Rationale: Prudential regulation concerns the financial soundness, solvency, and
liquidity of firms on an ongoing basis, ensuring they can meet their obligations to
consumers and creditors.
3. The prescription of procedures which must be followed by financial services
firms in their dealings with consumers is which type of regulation?
A) Structural.
B) Systemic.
C) Prudential.
D) Conduct of Business.
Correct Answer: D
Rationale: Conduct of Business regulation governs how firms interact with
consumers, including disclosure, fair treatment, and complaint handling.
4. Which body is the single regulatory authority responsible for the regulation of
financial services firms in Ireland?
A) The Financial Services and Pensions Ombudsman
B) The Central Bank of Ireland
C) The Competition and Consumer Protection Commission
D) The Department of Finance
Correct Answer: B
,Rationale: The Central Bank of Ireland (CBI) is Ireland's integrated regulator,
combining central banking and financial regulation functions since 2010, and is
responsible for the authorisation and supervision of financial services firms
operating in the State.
5. The Central Bank shares its power to undertake surveys of the provision of
financial services to consumers with the:
A) Consumers' Association of Ireland.
B) Competition and Consumer Protection Commission.
C) European Insurance and Occupational Pensions Authority.
D) European Securities and Markets Authority.
Correct Answer: B
Rationale: The Central Bank shares certain consumer protection functions,
including the power to undertake surveys of financial services provision, with the
Competition and Consumer Protection Commission (CCPC).
6. The regulation of unfair, misleading or aggressive commercial practices by
financial services firms is shared between which two institutions?
A) The Competition and Consumer Protection Commission and the Director of
Corporate Enforcement.
B) The Central Bank and the Department of Finance.
C) The Director of Corporate Enforcement and the Central Bank.
D) The Competition and Consumer Protection Commission and the Central Bank.
Correct Answer: D
, Rationale: The CCPC and the Central Bank share responsibility for regulating
unfair, misleading, or aggressive commercial practices by financial services firms
under consumer protection law.
7. The Central Bank does NOT authorise and regulate which one of the following
entities established in the State?
A) Life assurance companies.
B) Credit intermediaries.
C) Home reversion firms.
D) Reinsurance companies.
Correct Answer: B
Rationale: Credit intermediaries are authorised and regulated by the Competition
and Consumer Protection Commission (CCPC), not the Central Bank.
8. The Competition and Consumer Protection Commission can impose a levy on:
A) Insurance intermediaries.
B) Banks.
C) Credit intermediaries.
D) Investment intermediaries.
Correct Answer: B
Rationale: The CCPC has the power to impose a levy on banks to fund its
consumer protection activities, among other functions.
PRACTICE QUESTIONS WITH DETAILED
RATIONALES
Section 1: Regulatory Framework and Structural Regulation (Q1–Q40)
1. The primary objective of structural regulation of financial services firms is to:
A) Minimise risks to the financial system.
B) Ensure financial services providers remain solvent at all times.
C) Ensure only those with sufficient financial standing and integrity can become
financial services firms.
D) Enforce compliance by financial services providers with consumer law.
Correct Answer: C
Rationale: Structural regulation focuses on entry criteria—ensuring that only fit
and proper firms with adequate financial standing can enter the market, rather
than ongoing solvency or systemic risk monitoring, which are covered by
prudential and systemic regulation respectively.
2. Regulation of the continuing solvency and liquidity of established financial
services firms is known as which type of regulation?
A) Structural.
B) Systemic.
C) Prudential.
,D) Conduct of Business.
Correct Answer: C
Rationale: Prudential regulation concerns the financial soundness, solvency, and
liquidity of firms on an ongoing basis, ensuring they can meet their obligations to
consumers and creditors.
3. The prescription of procedures which must be followed by financial services
firms in their dealings with consumers is which type of regulation?
A) Structural.
B) Systemic.
C) Prudential.
D) Conduct of Business.
Correct Answer: D
Rationale: Conduct of Business regulation governs how firms interact with
consumers, including disclosure, fair treatment, and complaint handling.
4. Which body is the single regulatory authority responsible for the regulation of
financial services firms in Ireland?
A) The Financial Services and Pensions Ombudsman
B) The Central Bank of Ireland
C) The Competition and Consumer Protection Commission
D) The Department of Finance
Correct Answer: B
,Rationale: The Central Bank of Ireland (CBI) is Ireland's integrated regulator,
combining central banking and financial regulation functions since 2010, and is
responsible for the authorisation and supervision of financial services firms
operating in the State.
5. The Central Bank shares its power to undertake surveys of the provision of
financial services to consumers with the:
A) Consumers' Association of Ireland.
B) Competition and Consumer Protection Commission.
C) European Insurance and Occupational Pensions Authority.
D) European Securities and Markets Authority.
Correct Answer: B
Rationale: The Central Bank shares certain consumer protection functions,
including the power to undertake surveys of financial services provision, with the
Competition and Consumer Protection Commission (CCPC).
6. The regulation of unfair, misleading or aggressive commercial practices by
financial services firms is shared between which two institutions?
A) The Competition and Consumer Protection Commission and the Director of
Corporate Enforcement.
B) The Central Bank and the Department of Finance.
C) The Director of Corporate Enforcement and the Central Bank.
D) The Competition and Consumer Protection Commission and the Central Bank.
Correct Answer: D
, Rationale: The CCPC and the Central Bank share responsibility for regulating
unfair, misleading, or aggressive commercial practices by financial services firms
under consumer protection law.
7. The Central Bank does NOT authorise and regulate which one of the following
entities established in the State?
A) Life assurance companies.
B) Credit intermediaries.
C) Home reversion firms.
D) Reinsurance companies.
Correct Answer: B
Rationale: Credit intermediaries are authorised and regulated by the Competition
and Consumer Protection Commission (CCPC), not the Central Bank.
8. The Competition and Consumer Protection Commission can impose a levy on:
A) Insurance intermediaries.
B) Banks.
C) Credit intermediaries.
D) Investment intermediaries.
Correct Answer: B
Rationale: The CCPC has the power to impose a levy on banks to fund its
consumer protection activities, among other functions.
