QFA Regs - Sample Paper 1 Exam Questions and Correct
Solutions.
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. - Correct
Answer C
1.2.1
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 the firm wishes to provide, without requiring any
fresh authorisation.
C charge different levels of fees to different consumers, without requiring authorisation to
do so.
D provide financial services to consumers in another EU country on a cross border basis. -
Correct Answer D
1.2.1
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. - Correct Answer B
1.2.4
,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. - Correct Answer D
1.2.4
The Central Bank shares its function to prohibit unfair, misleading or aggressive
commercial practices by financial services providers with the:
A Competition and Consumer Protection Commission.
B Director of Corporate Enforcement.
C European Insurance and Occupational Pensions Authority.
D European Securities and Markets Authority. - Correct Answer A
1.3.1
The MAXIMUM fine which the Central Bank can impose personally on Mary, the CEO of a
bank, for non-compliance by the bank with financial services regulations is:
A €0.5 million.
B €1 million.
C €2 million.
D €5 million. - Correct Answer B
1.3.3
The Central Bank shares its power to undertake surveys of the provision of financial
services to consumers with the:
A Consumers' Association of Ireland.
B Competition and Consumer Protection Commission.
C European Insurance and Occupational Pensions Authority.
D European Securities and Markets Authority. - Correct Answer B
,1.4.3
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. - Correct Answer B
1.4.4
The Competition and Consumer Protection Commission can impose a levy on:
A insurance intermediaries.
B banks.
C credit intermediaries.
D investment intermediaries. - Correct Answer B
1.4.5
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 Non-insurance tracker bonds.
D Collective investment funds. - Correct Answer A
2.3
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.
B (ii) only.
C (ii) and (iii) only.
D (i), (ii) and (iii). - Correct Answer B
2.3.1
ACE Investment Advisers Ltd, an investment intermediary, is currently authorised under
Section 10 of the Investment Intermediaries Act, 1995, to provide advice on shares 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, ACE 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 net shareholder funds of €50,000.
A (i) only.
B (iii) only.
C (i) and (ii) only.
D (i), (ii) and (iii). - Correct Answer C
2.3.1
An investment intermediary which can legally act for only one bank in receiving deposits is
called a deposit:
A arranger.
B broker.
C agent.
D restricted agent. - Correct Answer C
Solutions.
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. - Correct
Answer C
1.2.1
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 the firm wishes to provide, without requiring any
fresh authorisation.
C charge different levels of fees to different consumers, without requiring authorisation to
do so.
D provide financial services to consumers in another EU country on a cross border basis. -
Correct Answer D
1.2.1
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. - Correct Answer B
1.2.4
,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. - Correct Answer D
1.2.4
The Central Bank shares its function to prohibit unfair, misleading or aggressive
commercial practices by financial services providers with the:
A Competition and Consumer Protection Commission.
B Director of Corporate Enforcement.
C European Insurance and Occupational Pensions Authority.
D European Securities and Markets Authority. - Correct Answer A
1.3.1
The MAXIMUM fine which the Central Bank can impose personally on Mary, the CEO of a
bank, for non-compliance by the bank with financial services regulations is:
A €0.5 million.
B €1 million.
C €2 million.
D €5 million. - Correct Answer B
1.3.3
The Central Bank shares its power to undertake surveys of the provision of financial
services to consumers with the:
A Consumers' Association of Ireland.
B Competition and Consumer Protection Commission.
C European Insurance and Occupational Pensions Authority.
D European Securities and Markets Authority. - Correct Answer B
,1.4.3
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. - Correct Answer B
1.4.4
The Competition and Consumer Protection Commission can impose a levy on:
A insurance intermediaries.
B banks.
C credit intermediaries.
D investment intermediaries. - Correct Answer B
1.4.5
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 Non-insurance tracker bonds.
D Collective investment funds. - Correct Answer A
2.3
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.
B (ii) only.
C (ii) and (iii) only.
D (i), (ii) and (iii). - Correct Answer B
2.3.1
ACE Investment Advisers Ltd, an investment intermediary, is currently authorised under
Section 10 of the Investment Intermediaries Act, 1995, to provide advice on shares 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, ACE 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 net shareholder funds of €50,000.
A (i) only.
B (iii) only.
C (i) and (ii) only.
D (i), (ii) and (iii). - Correct Answer C
2.3.1
An investment intermediary which can legally act for only one bank in receiving deposits is
called a deposit:
A arranger.
B broker.
C agent.
D restricted agent. - Correct Answer C
