QFA REGS - SAMPLE PAPER 1
QUESTIONS AND ANSWERS SOLVED
100% CORRECT
The bbprimary bbobjective bbof bbstructural bbregulation bbof bbfinancial bbservices bbfirms bbis
bbto:
A bbminimise bbrisks bbto bbthe bbfinancial bbsystem. bb
B bbensure bbfinancial bbservices bbproviders bbremain bbsolvent bbat bball bbtimes.
C bbensure bbonly bbthose bbwith bbsufficient bbfinancial bbstanding bband bbintegrity bbcan
bbbecome bbfinancial bbservices bbfirms. bb
D bbenforce bbcompliance bbby bbfinancial bbservices bbproviders bbwith bbconsumer bblaw.
bb- bbAnswerC
1.2.1
In bbrelation bbto bba bbfinancial bbservices bbfirm bbestablished bbin bban bbEU bbcountry, bbthe
bbterm bb'freedom bbof bbservices' bbmeans bbbeing bbable bbto:
A bbset bbup bba bbbranch bbin bbanother bbEU bbcountry.
B bbprovide bbany bbtype bbof bbfinancial bbservice bbthe bbfirm bbwishes bbto bbprovide,
bbwithout bbrequiring bbany bbfresh bbauthorisation.
C bbcharge bbdifferent bblevels bbof bbfees bbto bbdifferent bbconsumers, bbwithout bbrequiring
bbauthorisation bbto bbdo bbso.
D bbprovide bbfinancial bbservices bbto bbconsumers bbin bbanother bbEU bbcountry bbon bba
bbcross bbborder bbbasis. bb- bbAnswerD
1.2.1
A bblife bbassurance bbcompany bbestablished bbin bbGermany bbsells bbpolicies bbto
bbresidents bbof bbthe bbRepublic bbof bbIreland. bbWho bbregulates bbthe bbsolvency bbof
bbthis bblife bbcompany?
A bbThe bbIrish bbCentral bbBank. bb
B bbThe bbGerman bbRegulatory bbAuthority, bbBaFin. bb
C bbThe bbEuropean bbInsurance bband bbOccupational bbPensions bbAuthority. bb
D bbThe bbEuropean bbSecurities bband bbMarkets bbAuthority. bb- bbAnswerB
1.2.4
,The bbprescription bbof bbprocedures bbwhich bbmust bbbe bbfollowed bbby bbfinancial
bbservices bbfirms bbin bbtheir bbdealings bbwith bbconsumers bbis bbwhich bbtype bbof
bbregulation?
A bbStructural.
B bbSystemic.
C bbPrudential.
D bbConduct bbof bbBusiness. bb- bbAnswerD
1.2.4
The bbCentral bbBank bbshares bbits bbfunction bbto bbprohibit bbunfair, bbmisleading bbor
bbaggressive bbcommercial bbpractices bbby bbfinancial bbservices bbproviders bbwith bbthe:
A bbCompetition bband bbConsumer bbProtection bbCommission. bb
B bbDirector bbof bbCorporate bbEnforcement. bb
C bbEuropean bbInsurance bband bbOccupational bbPensions bbAuthority.
D bbEuropean bbSecurities bband bbMarkets bbAuthority. bb- bbAnswerA
1.3.1
The bbMAXIMUM bbfine bbwhich bbthe bbCentral bbBank bbcan bbimpose bbpersonally bbon
bbMary, bbthe bbCEO bbof bba bbbank, bbfor bbnon-compliance bbby bbthe bbbank bbwith
bbfinancial bbservices bbregulations bbis:
A bb€0.5 bbmillion.
B bb€1 bbmillion.
C bb€2 bbmillion.
D bb€5 bbmillion. bb- bbAnswerB
1.3.3
The bbCentral bbBank bbshares bbits bbpower bbto bbundertake bbsurveys bbof bbthe
bbprovision bbof bbfinancial bbservices bbto bbconsumers bbwith bbthe:
A bbConsumers' bbAssociation bbof bbIreland. bb
B bbCompetition bband bbConsumer bbProtection bbCommission. bb
C bbEuropean bbInsurance bband bbOccupational bbPensions bbAuthority. bb
D bbEuropean bbSecurities bband bbMarkets bbAuthority. bb- bbAnswerB
1.4.3
The bbCentral bbBank bbdoes bbNOT bbauthorise bband bbregulate bbwhich bbone bbof bbthe
bbfollowing bbentities bbestablished bbin bbthe bbState?
A bbLife bbassurance bbcompanies.
B bbCredit bbintermediaries.
C bbHome bbreversion bbfirms.
D bbReinsurance bbcompanies. bb- bbAnswerB
1.4.4
, The bbCompetition bband bbConsumer bbProtection bbCommission bbcan bbimpose bba bblevy
bbon:
A bbinsurance bbintermediaries. bb
B bbbanks. bb
C bbcredit bbintermediaries. bb
D bbinvestment bbintermediaries. bb- bbAnswerB
1.4.5
An bbinvestment bbintermediary bbCANNOT bbprovide bbinvestment bbadvice bbon bbwhich
bbone bbof bbthe bbfollowing?
A bbContracts bbfor bbDifference.
B bbBonds bblisted bbon bba bbStock bbExchange.
C bbNon-insurance bbtracker bbbonds.
D bbCollective bbinvestment bbfunds. bb- bbAnswerA
2.3
XYZ bbInvestment bbAdvisers bbLtd bbis bba bbdeemed bbauthorised bbinvestment
bbintermediary, bbcurrently bbproviding bbadvice bbon bbbonds bblisted bbon bba bbStock
bbExchange bband bbnon-insurance bbtracker bbbonds.
The bbfirm bbnow bbwants bbto bbprovide bbadvice bbto bbits bbclients bbon bbUCITS bbfunds
bbprovided bbby bbTOP bbInvestment bbManagers bbLtd. bbIn bborder bbto bbdo bbso, bbXYZ
bbmust:
(i) bbget bbpermission bbfrom bbthe bbCentral bbBank bbto bbgive bbadvice bbon bbcollective
bbinvestment bbfunds.
(ii) bbget bban bbagency bbappointment bbwith bbTOP bbInvestment bbManagers bbLtd.
(iii) bbhave bbminimum bbshareholder bbfunds bbof bb€50,000.
A bb(i) bbonly. bb
B bb(ii) bbonly. bb
C bb(ii) bband bb(iii) bbonly. bb
D bb(i), bb(ii) bband bb(iii). bb- bbAnswerB
2.3.1
ACE bbInvestment bbAdvisers bbLtd, bban bbinvestment bbintermediary, bbis bbcurrently
bbauthorised bbunder bbSection bb10 bbof bbthe bbInvestment bbIntermediaries bbAct, bb1995,
bbto bbprovide bbadvice bbon bbshares bblisted bbon bba bbStock bbExchange bband bbnon-
insurance bbtracker bbbonds.
The bbfirm bbnow bbwants bbto bbprovide bbadvice bbto bbits bbclients bbon bbUCITS bbfunds
bbprovided bbby bbTOP bbInvestment bbManagers bbLtd. bbIn bborder bbto bbdo bbso, bbACE
bbmust:
(i) bbget bbpermission bbfrom bbthe bbCentral bbBank bbto bbgive bbadvice bbon bbcollective
bbinvestment bbfunds.
QUESTIONS AND ANSWERS SOLVED
100% CORRECT
The bbprimary bbobjective bbof bbstructural bbregulation bbof bbfinancial bbservices bbfirms bbis
bbto:
A bbminimise bbrisks bbto bbthe bbfinancial bbsystem. bb
B bbensure bbfinancial bbservices bbproviders bbremain bbsolvent bbat bball bbtimes.
C bbensure bbonly bbthose bbwith bbsufficient bbfinancial bbstanding bband bbintegrity bbcan
bbbecome bbfinancial bbservices bbfirms. bb
D bbenforce bbcompliance bbby bbfinancial bbservices bbproviders bbwith bbconsumer bblaw.
bb- bbAnswerC
1.2.1
In bbrelation bbto bba bbfinancial bbservices bbfirm bbestablished bbin bban bbEU bbcountry, bbthe
bbterm bb'freedom bbof bbservices' bbmeans bbbeing bbable bbto:
A bbset bbup bba bbbranch bbin bbanother bbEU bbcountry.
B bbprovide bbany bbtype bbof bbfinancial bbservice bbthe bbfirm bbwishes bbto bbprovide,
bbwithout bbrequiring bbany bbfresh bbauthorisation.
C bbcharge bbdifferent bblevels bbof bbfees bbto bbdifferent bbconsumers, bbwithout bbrequiring
bbauthorisation bbto bbdo bbso.
D bbprovide bbfinancial bbservices bbto bbconsumers bbin bbanother bbEU bbcountry bbon bba
bbcross bbborder bbbasis. bb- bbAnswerD
1.2.1
A bblife bbassurance bbcompany bbestablished bbin bbGermany bbsells bbpolicies bbto
bbresidents bbof bbthe bbRepublic bbof bbIreland. bbWho bbregulates bbthe bbsolvency bbof
bbthis bblife bbcompany?
A bbThe bbIrish bbCentral bbBank. bb
B bbThe bbGerman bbRegulatory bbAuthority, bbBaFin. bb
C bbThe bbEuropean bbInsurance bband bbOccupational bbPensions bbAuthority. bb
D bbThe bbEuropean bbSecurities bband bbMarkets bbAuthority. bb- bbAnswerB
1.2.4
,The bbprescription bbof bbprocedures bbwhich bbmust bbbe bbfollowed bbby bbfinancial
bbservices bbfirms bbin bbtheir bbdealings bbwith bbconsumers bbis bbwhich bbtype bbof
bbregulation?
A bbStructural.
B bbSystemic.
C bbPrudential.
D bbConduct bbof bbBusiness. bb- bbAnswerD
1.2.4
The bbCentral bbBank bbshares bbits bbfunction bbto bbprohibit bbunfair, bbmisleading bbor
bbaggressive bbcommercial bbpractices bbby bbfinancial bbservices bbproviders bbwith bbthe:
A bbCompetition bband bbConsumer bbProtection bbCommission. bb
B bbDirector bbof bbCorporate bbEnforcement. bb
C bbEuropean bbInsurance bband bbOccupational bbPensions bbAuthority.
D bbEuropean bbSecurities bband bbMarkets bbAuthority. bb- bbAnswerA
1.3.1
The bbMAXIMUM bbfine bbwhich bbthe bbCentral bbBank bbcan bbimpose bbpersonally bbon
bbMary, bbthe bbCEO bbof bba bbbank, bbfor bbnon-compliance bbby bbthe bbbank bbwith
bbfinancial bbservices bbregulations bbis:
A bb€0.5 bbmillion.
B bb€1 bbmillion.
C bb€2 bbmillion.
D bb€5 bbmillion. bb- bbAnswerB
1.3.3
The bbCentral bbBank bbshares bbits bbpower bbto bbundertake bbsurveys bbof bbthe
bbprovision bbof bbfinancial bbservices bbto bbconsumers bbwith bbthe:
A bbConsumers' bbAssociation bbof bbIreland. bb
B bbCompetition bband bbConsumer bbProtection bbCommission. bb
C bbEuropean bbInsurance bband bbOccupational bbPensions bbAuthority. bb
D bbEuropean bbSecurities bband bbMarkets bbAuthority. bb- bbAnswerB
1.4.3
The bbCentral bbBank bbdoes bbNOT bbauthorise bband bbregulate bbwhich bbone bbof bbthe
bbfollowing bbentities bbestablished bbin bbthe bbState?
A bbLife bbassurance bbcompanies.
B bbCredit bbintermediaries.
C bbHome bbreversion bbfirms.
D bbReinsurance bbcompanies. bb- bbAnswerB
1.4.4
, The bbCompetition bband bbConsumer bbProtection bbCommission bbcan bbimpose bba bblevy
bbon:
A bbinsurance bbintermediaries. bb
B bbbanks. bb
C bbcredit bbintermediaries. bb
D bbinvestment bbintermediaries. bb- bbAnswerB
1.4.5
An bbinvestment bbintermediary bbCANNOT bbprovide bbinvestment bbadvice bbon bbwhich
bbone bbof bbthe bbfollowing?
A bbContracts bbfor bbDifference.
B bbBonds bblisted bbon bba bbStock bbExchange.
C bbNon-insurance bbtracker bbbonds.
D bbCollective bbinvestment bbfunds. bb- bbAnswerA
2.3
XYZ bbInvestment bbAdvisers bbLtd bbis bba bbdeemed bbauthorised bbinvestment
bbintermediary, bbcurrently bbproviding bbadvice bbon bbbonds bblisted bbon bba bbStock
bbExchange bband bbnon-insurance bbtracker bbbonds.
The bbfirm bbnow bbwants bbto bbprovide bbadvice bbto bbits bbclients bbon bbUCITS bbfunds
bbprovided bbby bbTOP bbInvestment bbManagers bbLtd. bbIn bborder bbto bbdo bbso, bbXYZ
bbmust:
(i) bbget bbpermission bbfrom bbthe bbCentral bbBank bbto bbgive bbadvice bbon bbcollective
bbinvestment bbfunds.
(ii) bbget bban bbagency bbappointment bbwith bbTOP bbInvestment bbManagers bbLtd.
(iii) bbhave bbminimum bbshareholder bbfunds bbof bb€50,000.
A bb(i) bbonly. bb
B bb(ii) bbonly. bb
C bb(ii) bband bb(iii) bbonly. bb
D bb(i), bb(ii) bband bb(iii). bb- bbAnswerB
2.3.1
ACE bbInvestment bbAdvisers bbLtd, bban bbinvestment bbintermediary, bbis bbcurrently
bbauthorised bbunder bbSection bb10 bbof bbthe bbInvestment bbIntermediaries bbAct, bb1995,
bbto bbprovide bbadvice bbon bbshares bblisted bbon bba bbStock bbExchange bband bbnon-
insurance bbtracker bbbonds.
The bbfirm bbnow bbwants bbto bbprovide bbadvice bbto bbits bbclients bbon bbUCITS bbfunds
bbprovided bbby bbTOP bbInvestment bbManagers bbLtd. bbIn bborder bbto bbdo bbso, bbACE
bbmust:
(i) bbget bbpermission bbfrom bbthe bbCentral bbBank bbto bbgive bbadvice bbon bbcollective
bbinvestment bbfunds.
