QFA Regs - Sample Paper 3 Exam
Questions And Answers
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 - ANS C
Ensure only those with sufficient financial standing and integrity can become financial services
firms
In relation to a financial services firm established in an EU country, the term 'freedom of
services' means being able to:
A set up a branch in another EU country.
B provide any type of financial service the firm wishes to provide, without requiring any fresh
authorisation.
C charge different levels of fees to different consumers, without requiring authorisation to do so.
D provide financial services to consumers in another EU County on a cross Border Basis - ANS
D
Provide financial services to consumers in another EU County on a cross Border Basis
A life assurance company established in Germany sells policies to residents of the Republic of
Ireland. Who regulates the solvency of this life company?
A The Central Bank of Ireland.
B The German Regulatory Authority, BaFin.
C The European Insurance and Occupational Pensions Authority.
D The European Securities and Markets Authority - ANS B
The German Regulatory Authority, BaFin
The Central Bank's Consumer Protection Code is an example of which type of regulation?
A Prudential.
B Systemic.
C Conduct of Business.
,D Structural. - ANS C
Conduct of Business
The MAXIMUM fine which the Central Bank can impose personally on Mary, the CEO of a bank,
for non-compliance by the bank with financial services regulations is:
A €0.5 million.
B €1 million.
C €2 million.
D €5 million - ANS B
€1 million
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. - ANS D
The Competition and Consumer Protection Commission and the Central Bank
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. - ANS B
Credit intermediaries
The Competition and Consumer Protection Commission can impose a levy on:
A insurance intermediaries.
B banks.
C credit intermediaries.
D investment intermediaries - ANS B
Banks
An intermediary who wishes to provide advice to consumers on a Tracker Bond, which is also a
deposit, must be authorised as a(n):
(i) investment intermediary.
(ii) deposit broker.
(iii) credit intermediary.
, A (i) only.
B (ii) only.
C (i) and (ii) only.
D (i), (ii) and (iii). - ANS C
(i) and (ii) only.
A deemed authorised investment intermediary is one which:
A is exempt from authorisation under the Investment Intermediaries Act, 1995.
B is automatically authorised to arrange and/or give advice on any of the retail financial products
covered by the Investment Intermediaries Act, 1995.
C has applied for authorisation as an investment intermediary but has not yet obtained it.
D is restricted to advising only on noninsurance tracker bonds. - ANS B
Is automatically authorised to arrange and/or give advice on any of the retail financial products
covered by the Investment Intermediaries Act, 1995
An investment intermediary authorised under Section 10 of the Investment Intermediaries Act,
1995, is an intermediary which:
A is exempt from authorisation under the Investment Intermediaries Act, 1995.
B must seek authorisation for each type of retail financial product it wishes to arrange and/or
provide advice on.
C has applied for authorisation as an investment intermediary but has not yet obtained it.
D is restricted to advising only on insurance policies and tracker bonds. - ANS B
Must seek authorisation for each type of retail financial product it wishes to arrange and/or
provide advice on
An investment intermediary which can legally act for only one bank in receiving deposits is
called a deposit:
A arranger.
B broker.
C agent.
D restricted agent. - ANS C
Agent
ACE Investment Brokers Ltd is an investment intermediary and proposes to change its trading
name to 'ACE Investments'. BEFORE it does this, ACE must first:
A seek the prior agreement of the Central Bank to the new trading name.
B submit a revised business plan to the Central Bank.
C register the new trading name with the Competition and Consumer Protection Commission.
D notify the Central Bank in writing - ANS D
Questions And Answers
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 - ANS C
Ensure only those with sufficient financial standing and integrity can become financial services
firms
In relation to a financial services firm established in an EU country, the term 'freedom of
services' means being able to:
A set up a branch in another EU country.
B provide any type of financial service the firm wishes to provide, without requiring any fresh
authorisation.
C charge different levels of fees to different consumers, without requiring authorisation to do so.
D provide financial services to consumers in another EU County on a cross Border Basis - ANS
D
Provide financial services to consumers in another EU County on a cross Border Basis
A life assurance company established in Germany sells policies to residents of the Republic of
Ireland. Who regulates the solvency of this life company?
A The Central Bank of Ireland.
B The German Regulatory Authority, BaFin.
C The European Insurance and Occupational Pensions Authority.
D The European Securities and Markets Authority - ANS B
The German Regulatory Authority, BaFin
The Central Bank's Consumer Protection Code is an example of which type of regulation?
A Prudential.
B Systemic.
C Conduct of Business.
,D Structural. - ANS C
Conduct of Business
The MAXIMUM fine which the Central Bank can impose personally on Mary, the CEO of a bank,
for non-compliance by the bank with financial services regulations is:
A €0.5 million.
B €1 million.
C €2 million.
D €5 million - ANS B
€1 million
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. - ANS D
The Competition and Consumer Protection Commission and the Central Bank
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. - ANS B
Credit intermediaries
The Competition and Consumer Protection Commission can impose a levy on:
A insurance intermediaries.
B banks.
C credit intermediaries.
D investment intermediaries - ANS B
Banks
An intermediary who wishes to provide advice to consumers on a Tracker Bond, which is also a
deposit, must be authorised as a(n):
(i) investment intermediary.
(ii) deposit broker.
(iii) credit intermediary.
, A (i) only.
B (ii) only.
C (i) and (ii) only.
D (i), (ii) and (iii). - ANS C
(i) and (ii) only.
A deemed authorised investment intermediary is one which:
A is exempt from authorisation under the Investment Intermediaries Act, 1995.
B is automatically authorised to arrange and/or give advice on any of the retail financial products
covered by the Investment Intermediaries Act, 1995.
C has applied for authorisation as an investment intermediary but has not yet obtained it.
D is restricted to advising only on noninsurance tracker bonds. - ANS B
Is automatically authorised to arrange and/or give advice on any of the retail financial products
covered by the Investment Intermediaries Act, 1995
An investment intermediary authorised under Section 10 of the Investment Intermediaries Act,
1995, is an intermediary which:
A is exempt from authorisation under the Investment Intermediaries Act, 1995.
B must seek authorisation for each type of retail financial product it wishes to arrange and/or
provide advice on.
C has applied for authorisation as an investment intermediary but has not yet obtained it.
D is restricted to advising only on insurance policies and tracker bonds. - ANS B
Must seek authorisation for each type of retail financial product it wishes to arrange and/or
provide advice on
An investment intermediary which can legally act for only one bank in receiving deposits is
called a deposit:
A arranger.
B broker.
C agent.
D restricted agent. - ANS C
Agent
ACE Investment Brokers Ltd is an investment intermediary and proposes to change its trading
name to 'ACE Investments'. BEFORE it does this, ACE must first:
A seek the prior agreement of the Central Bank to the new trading name.
B submit a revised business plan to the Central Bank.
C register the new trading name with the Competition and Consumer Protection Commission.
D notify the Central Bank in writing - ANS D
