QFA REGS EXAM BANK SAMPLE PAPER 1, 2, 3
AND 4 2026/2027 COMPLETE ACTUAL EXAM
|EACH PAPER HAS 100 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT)
/ BRAND NEW!! // ALREADY GRADED A+
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
Answer C: Ensure only those with sufficient financial standing and integrity
can become financial services firms
Rationale: Structural regulation sets entry requirements for firms, focusing on
financial standing and integrity. Solvency is a prudential matter.
2. 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 without requiring fresh authorisation
,C) Charge different fees to different consumers
D) Provide financial services to consumers in another EU country on a cross-border
basis
Answer D: Provide financial services to consumers in another EU country on a
cross-border basis
Rationale: Freedom of services allows firms to provide services across borders
without establishing a branch. Freedom of establishment covers branches.
3. 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 Irish Central Bank
B) The German Regulatory Authority, BaFin
C) The European Insurance and Occupational Pensions Authority
D) The European Securities and Markets Authority
Answer B: The German Regulatory Authority, BaFin
Rationale: Under EU passporting rules, the home state (Germany) regulates the
solvency and prudential affairs of the firm. The host state regulates conduct of
business.
4. 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
Answer D: Conduct of Business
Rationale: Conduct of Business regulation governs how firms interact with
consumers, including disclosure, fair treatment, and complaint handling.
5. 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
Answer D: Reinsurance companies
Rationale: Reinsurance companies are not directly authorised by the Central Bank;
they operate under a different regulatory framework.
6. The Competition and Consumer Protection Commission can impose a levy
on:
A) Insurance intermediaries
B) Banks
C) Credit intermediaries
D) Investment intermediaries
Answer C: Credit intermediaries
, Rationale: The CCPC can levy credit intermediaries in addition to the Central
Bank's regulatory oversight.
7. An investment intermediary CANNOT provide investment advice on which
one of the following?
A) Contracts for Difference
B) Bonds listed on a Stock Exchange (Wait: Investment intermediaries CAN advise
on bonds. The correct answer should be Contracts for Difference if that's the
restriction. Let me correct: Actually, investment intermediaries CAN advise on
bonds. The one they cannot advise on is Contracts for Difference. So answer A.)
Answer A: Contracts for Difference
Rationale: Investment intermediaries authorised under the Investment
Intermediaries Act, 1995 are generally not permitted to advise on Contracts for
Difference (CFDs), which are considered a high-risk derivative product.
8. XYZ Investment Advisers Ltd is a deemed authorised investment
intermediary, currently providing advice on bonds listed on a Stock Exchange
and non-insurance tracker bonds. The firm now wants to provide advice to its
clients on UCITS funds provided by TOP Investment Managers Ltd. In order
to do so, XYZ must: (i) get permission from the Central Bank to give advice
on collective investment funds. (ii) get an agency appointment with TOP
Investment Managers Ltd. (iii) have minimum shareholder funds of €50,000.
A) (i) only
AND 4 2026/2027 COMPLETE ACTUAL EXAM
|EACH PAPER HAS 100 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT)
/ BRAND NEW!! // ALREADY GRADED A+
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
Answer C: Ensure only those with sufficient financial standing and integrity
can become financial services firms
Rationale: Structural regulation sets entry requirements for firms, focusing on
financial standing and integrity. Solvency is a prudential matter.
2. 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 without requiring fresh authorisation
,C) Charge different fees to different consumers
D) Provide financial services to consumers in another EU country on a cross-border
basis
Answer D: Provide financial services to consumers in another EU country on a
cross-border basis
Rationale: Freedom of services allows firms to provide services across borders
without establishing a branch. Freedom of establishment covers branches.
3. 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 Irish Central Bank
B) The German Regulatory Authority, BaFin
C) The European Insurance and Occupational Pensions Authority
D) The European Securities and Markets Authority
Answer B: The German Regulatory Authority, BaFin
Rationale: Under EU passporting rules, the home state (Germany) regulates the
solvency and prudential affairs of the firm. The host state regulates conduct of
business.
4. 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
Answer D: Conduct of Business
Rationale: Conduct of Business regulation governs how firms interact with
consumers, including disclosure, fair treatment, and complaint handling.
5. 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
Answer D: Reinsurance companies
Rationale: Reinsurance companies are not directly authorised by the Central Bank;
they operate under a different regulatory framework.
6. The Competition and Consumer Protection Commission can impose a levy
on:
A) Insurance intermediaries
B) Banks
C) Credit intermediaries
D) Investment intermediaries
Answer C: Credit intermediaries
, Rationale: The CCPC can levy credit intermediaries in addition to the Central
Bank's regulatory oversight.
7. An investment intermediary CANNOT provide investment advice on which
one of the following?
A) Contracts for Difference
B) Bonds listed on a Stock Exchange (Wait: Investment intermediaries CAN advise
on bonds. The correct answer should be Contracts for Difference if that's the
restriction. Let me correct: Actually, investment intermediaries CAN advise on
bonds. The one they cannot advise on is Contracts for Difference. So answer A.)
Answer A: Contracts for Difference
Rationale: Investment intermediaries authorised under the Investment
Intermediaries Act, 1995 are generally not permitted to advise on Contracts for
Difference (CFDs), which are considered a high-risk derivative product.
8. XYZ Investment Advisers Ltd is a deemed authorised investment
intermediary, currently providing advice on bonds listed on a Stock Exchange
and non-insurance tracker bonds. The firm now wants to provide advice to its
clients on UCITS funds provided by TOP Investment Managers Ltd. In order
to do so, XYZ must: (i) get permission from the Central Bank to give advice
on collective investment funds. (ii) get an agency appointment with TOP
Investment Managers Ltd. (iii) have minimum shareholder funds of €50,000.
A) (i) only
