QFA REGS - SAMPLE PAPER 1
QUESTIONS WITH COMPLETE
ANSWERS
The nnprimary nnobjective nnof nnstructural nnregulation nnof nnfinancial nnservices nnfirms nnis
nnto:
A nnminimise nnrisks nnto nnthe nnfinancial nnsystem. nn
B nnensure nnfinancial nnservices nnproviders nnremain nnsolvent nnat nnall nntimes.
C nnensure nnonly nnthose nnwith nnsufficient nnfinancial nnstanding nnand nnintegrity nncan
nnbecome nnfinancial nnservices nnfirms. nn
D nnenforce nncompliance nnby nnfinancial nnservices nnproviders nnwith nnconsumer nnlaw.
nn- nnAnswer nnC
1.2.1
In nnrelation nnto nna nnfinancial nnservices nnfirm nnestablished nnin nnan nnEU nncountry, nnthe
nnterm nn'freedom nnof nnservices' nnmeans nnbeing nnable nnto:
A nnset nnup nna nnbranch nnin nnanother nnEU nncountry.
B nnprovide nnany nntype nnof nnfinancial nnservice nnthe nnfirm nnwishes nnto nnprovide,
nnwithout nnrequiring nnany nnfresh nnauthorisation.
C nncharge nndifferent nnlevels nnof nnfees nnto nndifferent nnconsumers, nnwithout nnrequiring
nnauthorisation nnto nndo nnso.
D nnprovide nnfinancial nnservices nnto nnconsumers nnin nnanother nnEU nncountry nnon nna
nncross nnborder nnbasis. nn- nnAnswer nnD
1.2.1
A nnlife nnassurance nncompany nnestablished nnin nnGermany nnsells nnpolicies nnto
nnresidents nnof nnthe nnRepublic nnof nnIreland. nnWho nnregulates nnthe nnsolvency nnof
nnthis nnlife nncompany?
A nnThe nnIrish nnCentral nnBank. nn
B nnThe nnGerman nnRegulatory nnAuthority, nnBaFin. nn
C nnThe nnEuropean nnInsurance nnand nnOccupational nnPensions nnAuthority. nn
D nnThe nnEuropean nnSecurities nnand nnMarkets nnAuthority. nn- nnAnswer nnB
1.2.4
,The nnprescription nnof nnprocedures nnwhich nnmust nnbe nnfollowed nnby nnfinancial
nnservices nnfirms nnin nntheir nndealings nnwith nnconsumers nnis nnwhich nntype nnof
nnregulation?
A nnStructural.
B nnSystemic.
C nnPrudential.
D nnConduct nnof nnBusiness. nn- nnAnswer nnD
1.2.4
The nnCentral nnBank nnshares nnits nnfunction nnto nnprohibit nnunfair, nnmisleading nnor
nnaggressive nncommercial nnpractices nnby nnfinancial nnservices nnproviders nnwith nnthe:
A nnCompetition nnand nnConsumer nnProtection nnCommission. nn
B nnDirector nnof nnCorporate nnEnforcement. nn
C nnEuropean nnInsurance nnand nnOccupational nnPensions nnAuthority.
D nnEuropean nnSecurities nnand nnMarkets nnAuthority. nn- nnAnswer nnA
1.3.1
The nnMAXIMUM nnfine nnwhich nnthe nnCentral nnBank nncan nnimpose nnpersonally nnon
nnMary, nnthe nnCEO nnof nna nnbank, nnfor nnnon-compliance nnby nnthe nnbank nnwith
nnfinancial nnservices nnregulations nnis:
A nn€0.5 nnmillion.
B nn€1 nnmillion.
C nn€2 nnmillion.
D nn€5 nnmillion. nn- nnAnswer nnB
1.3.3
The nnCentral nnBank nnshares nnits nnpower nnto nnundertake nnsurveys nnof nnthe
nnprovision nnof nnfinancial nnservices nnto nnconsumers nnwith nnthe:
A nnConsumers' nnAssociation nnof nnIreland. nn
B nnCompetition nnand nnConsumer nnProtection nnCommission. nn
C nnEuropean nnInsurance nnand nnOccupational nnPensions nnAuthority. nn
D nnEuropean nnSecurities nnand nnMarkets nnAuthority. nn- nnAnswer nnB
1.4.3
The nnCentral nnBank nndoes nnNOT nnauthorise nnand nnregulate nnwhich nnone nnof nnthe
nnfollowing nnentities nnestablished nnin nnthe nnState?
A nnLife nnassurance nncompanies.
B nnCredit nnintermediaries.
C nnHome nnreversion nnfirms.
D nnReinsurance nncompanies. nn- nnAnswer nnB
1.4.4
, The nnCompetition nnand nnConsumer nnProtection nnCommission nncan nnimpose nna nnlevy
nnon:
A nninsurance nnintermediaries. nn
B nnbanks. nn
C nncredit nnintermediaries. nn
D nninvestment nnintermediaries. nn- nnAnswer nnB
1.4.5
An nninvestment nnintermediary nnCANNOT nnprovide nninvestment nnadvice nnon nnwhich
nnone nnof nnthe nnfollowing?
A nnContracts nnfor nnDifference.
B nnBonds nnlisted nnon nna nnStock nnExchange.
C nnNon-insurance nntracker nnbonds.
D nnCollective nninvestment nnfunds. nn- nnAnswer nnA
2.3
XYZ nnInvestment nnAdvisers nnLtd nnis nna nndeemed nnauthorised nninvestment
nnintermediary, nncurrently nnproviding nnadvice nnon nnbonds nnlisted nnon nna nnStock
nnExchange nnand nnnon-insurance nntracker nnbonds.
The nnfirm nnnow nnwants nnto nnprovide nnadvice nnto nnits nnclients nnon nnUCITS nnfunds
nnprovided nnby nnTOP nnInvestment nnManagers nnLtd. nnIn nnorder nnto nndo nnso, nnXYZ
nnmust:
(i) nnget nnpermission nnfrom nnthe nnCentral nnBank nnto nngive nnadvice nnon nncollective
nninvestment nnfunds.
(ii) nnget nnan nnagency nnappointment nnwith nnTOP nnInvestment nnManagers nnLtd.
(iii) nnhave nnminimum nnshareholder nnfunds nnof nn€50,000.
A nn(i) nnonly. nn
B nn(ii) nnonly. nn
C nn(ii) nnand nn(iii) nnonly. nn
D nn(i), nn(ii) nnand nn(iii). nn- nnAnswer nnB
2.3.1
ACE nnInvestment nnAdvisers nnLtd, nnan nninvestment nnintermediary, nnis nncurrently
nnauthorised nnunder nnSection nn10 nnof nnthe nnInvestment nnIntermediaries nnAct, nn1995,
nnto nnprovide nnadvice nnon nnshares nnlisted nnon nna nnStock nnExchange nnand nnnon-
insurance nntracker nnbonds.
The nnfirm nnnow nnwants nnto nnprovide nnadvice nnto nnits nnclients nnon nnUCITS nnfunds
nnprovided nnby nnTOP nnInvestment nnManagers nnLtd. nnIn nnorder nnto nndo nnso, nnACE
nnmust:
(i) nnget nnpermission nnfrom nnthe nnCentral nnBank nnto nngive nnadvice nnon nncollective
nninvestment nnfunds.
QUESTIONS WITH COMPLETE
ANSWERS
The nnprimary nnobjective nnof nnstructural nnregulation nnof nnfinancial nnservices nnfirms nnis
nnto:
A nnminimise nnrisks nnto nnthe nnfinancial nnsystem. nn
B nnensure nnfinancial nnservices nnproviders nnremain nnsolvent nnat nnall nntimes.
C nnensure nnonly nnthose nnwith nnsufficient nnfinancial nnstanding nnand nnintegrity nncan
nnbecome nnfinancial nnservices nnfirms. nn
D nnenforce nncompliance nnby nnfinancial nnservices nnproviders nnwith nnconsumer nnlaw.
nn- nnAnswer nnC
1.2.1
In nnrelation nnto nna nnfinancial nnservices nnfirm nnestablished nnin nnan nnEU nncountry, nnthe
nnterm nn'freedom nnof nnservices' nnmeans nnbeing nnable nnto:
A nnset nnup nna nnbranch nnin nnanother nnEU nncountry.
B nnprovide nnany nntype nnof nnfinancial nnservice nnthe nnfirm nnwishes nnto nnprovide,
nnwithout nnrequiring nnany nnfresh nnauthorisation.
C nncharge nndifferent nnlevels nnof nnfees nnto nndifferent nnconsumers, nnwithout nnrequiring
nnauthorisation nnto nndo nnso.
D nnprovide nnfinancial nnservices nnto nnconsumers nnin nnanother nnEU nncountry nnon nna
nncross nnborder nnbasis. nn- nnAnswer nnD
1.2.1
A nnlife nnassurance nncompany nnestablished nnin nnGermany nnsells nnpolicies nnto
nnresidents nnof nnthe nnRepublic nnof nnIreland. nnWho nnregulates nnthe nnsolvency nnof
nnthis nnlife nncompany?
A nnThe nnIrish nnCentral nnBank. nn
B nnThe nnGerman nnRegulatory nnAuthority, nnBaFin. nn
C nnThe nnEuropean nnInsurance nnand nnOccupational nnPensions nnAuthority. nn
D nnThe nnEuropean nnSecurities nnand nnMarkets nnAuthority. nn- nnAnswer nnB
1.2.4
,The nnprescription nnof nnprocedures nnwhich nnmust nnbe nnfollowed nnby nnfinancial
nnservices nnfirms nnin nntheir nndealings nnwith nnconsumers nnis nnwhich nntype nnof
nnregulation?
A nnStructural.
B nnSystemic.
C nnPrudential.
D nnConduct nnof nnBusiness. nn- nnAnswer nnD
1.2.4
The nnCentral nnBank nnshares nnits nnfunction nnto nnprohibit nnunfair, nnmisleading nnor
nnaggressive nncommercial nnpractices nnby nnfinancial nnservices nnproviders nnwith nnthe:
A nnCompetition nnand nnConsumer nnProtection nnCommission. nn
B nnDirector nnof nnCorporate nnEnforcement. nn
C nnEuropean nnInsurance nnand nnOccupational nnPensions nnAuthority.
D nnEuropean nnSecurities nnand nnMarkets nnAuthority. nn- nnAnswer nnA
1.3.1
The nnMAXIMUM nnfine nnwhich nnthe nnCentral nnBank nncan nnimpose nnpersonally nnon
nnMary, nnthe nnCEO nnof nna nnbank, nnfor nnnon-compliance nnby nnthe nnbank nnwith
nnfinancial nnservices nnregulations nnis:
A nn€0.5 nnmillion.
B nn€1 nnmillion.
C nn€2 nnmillion.
D nn€5 nnmillion. nn- nnAnswer nnB
1.3.3
The nnCentral nnBank nnshares nnits nnpower nnto nnundertake nnsurveys nnof nnthe
nnprovision nnof nnfinancial nnservices nnto nnconsumers nnwith nnthe:
A nnConsumers' nnAssociation nnof nnIreland. nn
B nnCompetition nnand nnConsumer nnProtection nnCommission. nn
C nnEuropean nnInsurance nnand nnOccupational nnPensions nnAuthority. nn
D nnEuropean nnSecurities nnand nnMarkets nnAuthority. nn- nnAnswer nnB
1.4.3
The nnCentral nnBank nndoes nnNOT nnauthorise nnand nnregulate nnwhich nnone nnof nnthe
nnfollowing nnentities nnestablished nnin nnthe nnState?
A nnLife nnassurance nncompanies.
B nnCredit nnintermediaries.
C nnHome nnreversion nnfirms.
D nnReinsurance nncompanies. nn- nnAnswer nnB
1.4.4
, The nnCompetition nnand nnConsumer nnProtection nnCommission nncan nnimpose nna nnlevy
nnon:
A nninsurance nnintermediaries. nn
B nnbanks. nn
C nncredit nnintermediaries. nn
D nninvestment nnintermediaries. nn- nnAnswer nnB
1.4.5
An nninvestment nnintermediary nnCANNOT nnprovide nninvestment nnadvice nnon nnwhich
nnone nnof nnthe nnfollowing?
A nnContracts nnfor nnDifference.
B nnBonds nnlisted nnon nna nnStock nnExchange.
C nnNon-insurance nntracker nnbonds.
D nnCollective nninvestment nnfunds. nn- nnAnswer nnA
2.3
XYZ nnInvestment nnAdvisers nnLtd nnis nna nndeemed nnauthorised nninvestment
nnintermediary, nncurrently nnproviding nnadvice nnon nnbonds nnlisted nnon nna nnStock
nnExchange nnand nnnon-insurance nntracker nnbonds.
The nnfirm nnnow nnwants nnto nnprovide nnadvice nnto nnits nnclients nnon nnUCITS nnfunds
nnprovided nnby nnTOP nnInvestment nnManagers nnLtd. nnIn nnorder nnto nndo nnso, nnXYZ
nnmust:
(i) nnget nnpermission nnfrom nnthe nnCentral nnBank nnto nngive nnadvice nnon nncollective
nninvestment nnfunds.
(ii) nnget nnan nnagency nnappointment nnwith nnTOP nnInvestment nnManagers nnLtd.
(iii) nnhave nnminimum nnshareholder nnfunds nnof nn€50,000.
A nn(i) nnonly. nn
B nn(ii) nnonly. nn
C nn(ii) nnand nn(iii) nnonly. nn
D nn(i), nn(ii) nnand nn(iii). nn- nnAnswer nnB
2.3.1
ACE nnInvestment nnAdvisers nnLtd, nnan nninvestment nnintermediary, nnis nncurrently
nnauthorised nnunder nnSection nn10 nnof nnthe nnInvestment nnIntermediaries nnAct, nn1995,
nnto nnprovide nnadvice nnon nnshares nnlisted nnon nna nnStock nnExchange nnand nnnon-
insurance nntracker nnbonds.
The nnfirm nnnow nnwants nnto nnprovide nnadvice nnto nnits nnclients nnon nnUCITS nnfunds
nnprovided nnby nnTOP nnInvestment nnManagers nnLtd. nnIn nnorder nnto nndo nnso, nnACE
nnmust:
(i) nnget nnpermission nnfrom nnthe nnCentral nnBank nnto nngive nnadvice nnon nncollective
nninvestment nnfunds.
