QFA REGULATIONS (REGS) EXAM LATEST
UPDATES 2026|2027| A COMPREHENSIVE
REVIEW OF 350 PRACTICE QUESTIONS
WITH ANSWERS AND RATIONALES |PASS
QUARANTEED
SECTION 1: REGULATORY STRUCTURE AND AUTHORISATION
1. The primary objective of structural regulation of financial services firms is
to:
A) Minimize 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
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 authorization
C) Charge different fees to different consumers
D) Provide financial services to consumers in another EU country on a cross-
border basis
Answer: D
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
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
Rationale: Conduct of Business regulation governs how firms interact with
consumers, including disclosure, fair treatment, and complaint handling.
5. Regulation of the continuing solvency and liquidity of established financial
services firms is known as which type of regulation?
A) Conduct of Business
B) Structural
C) Prudential
D) Systemic
Answer: C
Rationale: Prudential regulation focuses on the financial soundness, solvency, and
liquidity of regulated firms to ensure they can meet their obligations.
6. The Central Bank does NOT authorize 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
Rationale: Reinsurance companies are not directly authorized by the Central Bank;
they operate under a different regulatory framework.
7. The Competition and Consumer Protection Commission can impose a levy
on:
A) Insurance intermediaries
B) Banks
C) Credit intermediaries
D) Investment intermediaries
Answer: C
Rationale: The CCPC can levy credit intermediaries in addition to the Central
Bank's regulatory oversight.
8. An investment intermediary CANNOT provide investment advice on which
one of the following?
A) Contracts for Difference
B) Bonds listed on a Stock Exchange
C) UCITS funds
D) Non-insurance tracker bonds
Answer: A
Rationale: Investment intermediaries authorized 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.
9. XYZ Investment Advisers Ltd is a deemed authorized 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
B) (I) and (ii) only
C) (ii) and (iii) only
D) (I), (ii) and (iii)
Answer: B
Rationale: To advise on UCITS funds, the intermediary needs both Central Bank
permission to expand its authorization and an agency appointment with the product
producer. Minimum shareholder funds of €50,000 is not a specific requirement for
this expansion.
10. A MiFID investment firm can provide investment advice on which of the
following? (i) Shares listed on a Stock Exchange. (ii) Contracts for Difference.
(iii) Options.
A) (I) only
B) (I) and (ii) only
C) (I) and (iii) only
D) (I), (ii) and (iii)
Answer: D
Rationale: MiFID investment firms are authorized to provide advice on a broad
range of financial instruments including shares, CFDs, and options.
11. An investment intermediary authorized under Section 10 of the Investment
Intermediaries Act, 1995, is an intermediary which:
A) is automatically authorized to arrange and/or give advice on any of the retail
financial products covered by the Investment Intermediaries Act, 1995
B) must seek authorization for each type of retail financial product it wishes to
arrange and/or provide advice on
C) can only provide advice on insurance-based products
D) is exempt from the Minimum Competency Code
Answer: B
Rationale: A Section 10 authorized investment intermediary must seek specific
UPDATES 2026|2027| A COMPREHENSIVE
REVIEW OF 350 PRACTICE QUESTIONS
WITH ANSWERS AND RATIONALES |PASS
QUARANTEED
SECTION 1: REGULATORY STRUCTURE AND AUTHORISATION
1. The primary objective of structural regulation of financial services firms is
to:
A) Minimize 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
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 authorization
C) Charge different fees to different consumers
D) Provide financial services to consumers in another EU country on a cross-
border basis
Answer: D
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
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
Rationale: Conduct of Business regulation governs how firms interact with
consumers, including disclosure, fair treatment, and complaint handling.
5. Regulation of the continuing solvency and liquidity of established financial
services firms is known as which type of regulation?
A) Conduct of Business
B) Structural
C) Prudential
D) Systemic
Answer: C
Rationale: Prudential regulation focuses on the financial soundness, solvency, and
liquidity of regulated firms to ensure they can meet their obligations.
6. The Central Bank does NOT authorize 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
Rationale: Reinsurance companies are not directly authorized by the Central Bank;
they operate under a different regulatory framework.
7. The Competition and Consumer Protection Commission can impose a levy
on:
A) Insurance intermediaries
B) Banks
C) Credit intermediaries
D) Investment intermediaries
Answer: C
Rationale: The CCPC can levy credit intermediaries in addition to the Central
Bank's regulatory oversight.
8. An investment intermediary CANNOT provide investment advice on which
one of the following?
A) Contracts for Difference
B) Bonds listed on a Stock Exchange
C) UCITS funds
D) Non-insurance tracker bonds
Answer: A
Rationale: Investment intermediaries authorized 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.
9. XYZ Investment Advisers Ltd is a deemed authorized 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
B) (I) and (ii) only
C) (ii) and (iii) only
D) (I), (ii) and (iii)
Answer: B
Rationale: To advise on UCITS funds, the intermediary needs both Central Bank
permission to expand its authorization and an agency appointment with the product
producer. Minimum shareholder funds of €50,000 is not a specific requirement for
this expansion.
10. A MiFID investment firm can provide investment advice on which of the
following? (i) Shares listed on a Stock Exchange. (ii) Contracts for Difference.
(iii) Options.
A) (I) only
B) (I) and (ii) only
C) (I) and (iii) only
D) (I), (ii) and (iii)
Answer: D
Rationale: MiFID investment firms are authorized to provide advice on a broad
range of financial instruments including shares, CFDs, and options.
11. An investment intermediary authorized under Section 10 of the Investment
Intermediaries Act, 1995, is an intermediary which:
A) is automatically authorized to arrange and/or give advice on any of the retail
financial products covered by the Investment Intermediaries Act, 1995
B) must seek authorization for each type of retail financial product it wishes to
arrange and/or provide advice on
C) can only provide advice on insurance-based products
D) is exempt from the Minimum Competency Code
Answer: B
Rationale: A Section 10 authorized investment intermediary must seek specific
