QFA REGS - SAMPLE PAPER 1 QUESTIONS AND ANSWERS

QFA REGS - SAMPLE PAPER 1
QUESTIONS AND ANSWERS



The primary objective of structural regulation of financial services firms is to:
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A minimise risks to the financial system.
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B ensure financial services providers remain solvent at all times.
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C ensure only those with sufficient financial standing and integrity can become financial
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services firms. - -


D enforce compliance by financial services providers with consumer law. - ans-✔✔C
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1.2.1

In relation to a financial services firm established in an EU country, the term 'freedom of
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services' means being able to:
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A set up a branch in another EU country.
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B provide any type of financial service the firm wishes to provide, without requiring any fresh
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authorisation.
C charge different levels of fees to different consumers, without requiring authorisation to do
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so.
D provide financial services to consumers in another EU country on a cross border basis. -
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ans-✔✔D

1.2.1

A life assurance company established in Germany sells policies to residents of the Republic
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of Ireland. Who regulates the solvency of this life company?
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A The Irish Central Bank.
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B The German Regulatory Authority, BaFin.
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C The European Insurance and Occupational Pensions Authority.
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D The European Securities and Markets Authority. - ans-✔✔B
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1.2.4

The prescription of procedures which must be followed by financial services firms in their
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dealings with consumers is which type of regulation?
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A Structural.
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B Systemic.
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C Prudential.
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D Conduct of Business. - ans-✔✔D
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,1.2.4

The Central Bank shares its function to prohibit unfair, misleading or aggressive commercial
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practices by financial services providers with the:
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A Competition and Consumer Protection Commission.
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B Director of Corporate Enforcement.
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C European Insurance and Occupational Pensions Authority.
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D European Securities and Markets Authority. - ans-✔✔A
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1.3.1

The MAXIMUM fine which the Central Bank can impose personally on Mary, the CEO of a
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bank, for non-compliance by the bank with financial services regulations is:
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A €0.5 million.
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B €1 million.
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C €2 million.
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D €5 million. - ans-✔✔B
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1.3.3

The Central Bank shares its power to undertake surveys of the provision of financial services
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to consumers with the:
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A Consumers' Association of Ireland.
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B Competition and Consumer Protection Commission.
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C European Insurance and Occupational Pensions Authority.
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D European Securities and Markets Authority. - ans-✔✔B
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1.4.3

The Central Bank does NOT authorise and regulate which one of the following entities
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established in the State? - - -


A Life assurance companies.
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B Credit intermediaries.
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C Home reversion firms.
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D Reinsurance companies. - ans-✔✔B
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1.4.4

The Competition and Consumer Protection Commission can impose a levy on:
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A insurance intermediaries.
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B banks.
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C credit intermediaries.
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D investment intermediaries. - ans-✔✔B
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1.4.5

, An investment intermediary CANNOT provide investment advice on which one of the
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following?
A Contracts for Difference.
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B Bonds listed on a Stock Exchange.
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C Non-insurance tracker bonds.
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D Collective investment funds. - ans-✔✔A
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2.3

XYZ Investment Advisers Ltd is a deemed authorised investment intermediary, currently
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providing advice on bonds listed on a Stock Exchange and non-insurance tracker bonds.
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The firm now wants to provide advice to its clients on UCITS funds provided by TOP
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Investment Managers Ltd. In order to do so, XYZ must: - - - - - - - - -


(i) get permission from the Central Bank to give advice on collective investment funds.
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(ii) get an agency appointment with TOP Investment Managers Ltd.
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(iii) have minimum shareholder funds of €50,000.
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A (i) only.
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B (ii) only.
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C (ii) and (iii) only.
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D (i), (ii) and (iii). - ans-✔✔B
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2.3.1

ACE Investment Advisers Ltd, an investment intermediary, is currently authorised under
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Section 10 of the Investment Intermediaries Act, 1995, to provide advice on shares listed on
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a Stock Exchange and non-insurance tracker bonds.
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The firm now wants to provide advice to its clients on UCITS funds provided by TOP
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Investment Managers Ltd. In order to do so, ACE must: - - - - - - - - -


(i) get permission from the Central Bank to give advice on collective investment funds.
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(ii) get an agency appointment with TOP Investment Managers Ltd.
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(iii) have minimum net shareholder funds of €50,000.
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A (i) only.
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B (iii) only.
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C (i) and (ii) only.
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D (i), (ii) and (iii). - ans-✔✔C
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2.3.1

An investment intermediary which can legally act for only one bank in receiving deposits is
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called a deposit: - -


A arranger.
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B broker.
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C agent.
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