QFA REGS - SAMPLE PAPER 1
QUESTIONS WITH COMPLETE
SOLUTIONS
The qprimary qobjective qof qstructural qregulation qof qfinancial qservices qfirms qis qto:
A qminimise qrisks qto qthe qfinancial qsystem. q
B qensure qfinancial qservices qproviders qremain qsolvent qat qall qtimes.
C qensure qonly qthose qwith qsufficient qfinancial qstanding qand qintegrity qcan qbecome
qfinancial qservices qfirms. q
D qenforce qcompliance qby qfinancial qservices qproviders qwith qconsumer qlaw. q- q✔✔C
1.2.1
In qrelation qto qa qfinancial qservices qfirm qestablished qin qan qEU qcountry, qthe qterm
q'freedom qof qservices' qmeans qbeing qable qto:
A qset qup qa qbranch qin qanother qEU qcountry.
B qprovide qany qtype qof qfinancial qservice qthe qfirm qwishes qto qprovide, qwithout
qrequiring qany qfresh qauthorisation.
C qcharge qdifferent qlevels qof qfees qto qdifferent qconsumers, qwithout qrequiring
qauthorisation qto qdo qso.
D qprovide qfinancial qservices qto qconsumers qin qanother qEU qcountry qon qa qcross
qborder qbasis. q- q✔✔D
1.2.1
A qlife qassurance qcompany qestablished qin qGermany qsells qpolicies qto qresidents qof
qthe qRepublic qof qIreland. qWho qregulates qthe qsolvency qof qthis qlife qcompany?
A qThe qIrish qCentral qBank. q
B qThe qGerman qRegulatory qAuthority, qBaFin. q
C qThe qEuropean qInsurance qand qOccupational qPensions qAuthority. q
D qThe qEuropean qSecurities qand qMarkets qAuthority. q- q✔✔B
1.2.4
The qprescription qof qprocedures qwhich qmust qbe qfollowed qby qfinancial qservices qfirms
qin qtheir qdealings qwith qconsumers qis qwhich qtype qof qregulation?
A qStructural.
,B qSystemic.
C qPrudential.
D qConduct qof qBusiness. q- q✔✔D
1.2.4
The qCentral qBank qshares qits qfunction qto qprohibit qunfair, qmisleading qor qaggressive
qcommercial qpractices qby qfinancial qservices qproviders qwith qthe:
A qCompetition qand qConsumer qProtection qCommission. q
B qDirector qof qCorporate qEnforcement. q
C qEuropean qInsurance qand qOccupational qPensions qAuthority.
D qEuropean qSecurities qand qMarkets qAuthority. q- q✔✔A
1.3.1
The qMAXIMUM qfine qwhich qthe qCentral qBank qcan qimpose qpersonally qon qMary, qthe
qCEO qof qa qbank, qfor qnon-compliance qby qthe qbank qwith qfinancial qservices
qregulations qis:
A q€0.5 qmillion.
B q€1 qmillion.
C q€2 qmillion.
D q€5 qmillion. q- q✔✔B
1.3.3
The qCentral qBank qshares qits qpower qto qundertake qsurveys qof qthe qprovision qof
qfinancial qservices qto qconsumers qwith qthe:
A qConsumers' qAssociation qof qIreland. q
B qCompetition qand qConsumer qProtection qCommission. q
C qEuropean qInsurance qand qOccupational qPensions qAuthority. q
D qEuropean qSecurities qand qMarkets qAuthority. q- q✔✔B
1.4.3
The qCentral qBank qdoes qNOT qauthorise qand qregulate qwhich qone qof qthe qfollowing
qentities qestablished qin qthe qState?
A qLife qassurance qcompanies.
B qCredit qintermediaries.
C qHome qreversion qfirms.
D qReinsurance qcompanies. q- q✔✔B
1.4.4
The qCompetition qand qConsumer qProtection qCommission qcan qimpose qa qlevy qon:
A qinsurance qintermediaries. q
B qbanks. q
, C qcredit qintermediaries. q
D qinvestment qintermediaries. q- q✔✔B
1.4.5
An qinvestment qintermediary qCANNOT qprovide qinvestment qadvice qon qwhich qone qof
qthe qfollowing?
A qContracts qfor qDifference.
B qBonds qlisted qon qa qStock qExchange.
C qNon-insurance qtracker qbonds.
D qCollective qinvestment qfunds. q- q✔✔A
2.3
XYZ qInvestment qAdvisers qLtd qis qa qdeemed qauthorised qinvestment qintermediary,
qcurrently qproviding qadvice qon qbonds qlisted qon qa qStock qExchange qand qnon-
insurance qtracker qbonds.
The qfirm qnow qwants qto qprovide qadvice qto qits qclients qon qUCITS qfunds qprovided qby
qTOP qInvestment qManagers qLtd. qIn qorder qto qdo qso, qXYZ qmust:
(i) qget qpermission qfrom qthe qCentral qBank qto qgive qadvice qon qcollective qinvestment
qfunds.
(ii) qget qan qagency qappointment qwith qTOP qInvestment qManagers qLtd.
(iii) qhave qminimum qshareholder qfunds qof q€50,000.
A q(i) qonly. q
B q(ii) qonly. q
C q(ii) qand q(iii) qonly. q
D q(i), q(ii) qand q(iii). q- q✔✔B
2.3.1
ACE qInvestment qAdvisers qLtd, qan qinvestment qintermediary, qis qcurrently qauthorised
qunder qSection q10 qof qthe qInvestment qIntermediaries qAct, q1995, qto qprovide qadvice
qon qshares qlisted qon qa qStock qExchange qand qnon-insurance qtracker qbonds.
The qfirm qnow qwants qto qprovide qadvice qto qits qclients qon qUCITS qfunds qprovided qby
qTOP qInvestment qManagers qLtd. qIn qorder qto qdo qso, qACE qmust:
(i) qget qpermission qfrom qthe qCentral qBank qto qgive qadvice qon qcollective qinvestment
qfunds.
(ii) qget qan qagency qappointment qwith qTOP qInvestment qManagers qLtd.
(iii) qhave qminimum qnet qshareholder qfunds qof q€50,000.
A q(i) qonly.
B q(iii) qonly.
C q(i) qand q(ii) qonly.
D q(i), q(ii) qand q(iii). q- q✔✔C
QUESTIONS WITH COMPLETE
SOLUTIONS
The qprimary qobjective qof qstructural qregulation qof qfinancial qservices qfirms qis qto:
A qminimise qrisks qto qthe qfinancial qsystem. q
B qensure qfinancial qservices qproviders qremain qsolvent qat qall qtimes.
C qensure qonly qthose qwith qsufficient qfinancial qstanding qand qintegrity qcan qbecome
qfinancial qservices qfirms. q
D qenforce qcompliance qby qfinancial qservices qproviders qwith qconsumer qlaw. q- q✔✔C
1.2.1
In qrelation qto qa qfinancial qservices qfirm qestablished qin qan qEU qcountry, qthe qterm
q'freedom qof qservices' qmeans qbeing qable qto:
A qset qup qa qbranch qin qanother qEU qcountry.
B qprovide qany qtype qof qfinancial qservice qthe qfirm qwishes qto qprovide, qwithout
qrequiring qany qfresh qauthorisation.
C qcharge qdifferent qlevels qof qfees qto qdifferent qconsumers, qwithout qrequiring
qauthorisation qto qdo qso.
D qprovide qfinancial qservices qto qconsumers qin qanother qEU qcountry qon qa qcross
qborder qbasis. q- q✔✔D
1.2.1
A qlife qassurance qcompany qestablished qin qGermany qsells qpolicies qto qresidents qof
qthe qRepublic qof qIreland. qWho qregulates qthe qsolvency qof qthis qlife qcompany?
A qThe qIrish qCentral qBank. q
B qThe qGerman qRegulatory qAuthority, qBaFin. q
C qThe qEuropean qInsurance qand qOccupational qPensions qAuthority. q
D qThe qEuropean qSecurities qand qMarkets qAuthority. q- q✔✔B
1.2.4
The qprescription qof qprocedures qwhich qmust qbe qfollowed qby qfinancial qservices qfirms
qin qtheir qdealings qwith qconsumers qis qwhich qtype qof qregulation?
A qStructural.
,B qSystemic.
C qPrudential.
D qConduct qof qBusiness. q- q✔✔D
1.2.4
The qCentral qBank qshares qits qfunction qto qprohibit qunfair, qmisleading qor qaggressive
qcommercial qpractices qby qfinancial qservices qproviders qwith qthe:
A qCompetition qand qConsumer qProtection qCommission. q
B qDirector qof qCorporate qEnforcement. q
C qEuropean qInsurance qand qOccupational qPensions qAuthority.
D qEuropean qSecurities qand qMarkets qAuthority. q- q✔✔A
1.3.1
The qMAXIMUM qfine qwhich qthe qCentral qBank qcan qimpose qpersonally qon qMary, qthe
qCEO qof qa qbank, qfor qnon-compliance qby qthe qbank qwith qfinancial qservices
qregulations qis:
A q€0.5 qmillion.
B q€1 qmillion.
C q€2 qmillion.
D q€5 qmillion. q- q✔✔B
1.3.3
The qCentral qBank qshares qits qpower qto qundertake qsurveys qof qthe qprovision qof
qfinancial qservices qto qconsumers qwith qthe:
A qConsumers' qAssociation qof qIreland. q
B qCompetition qand qConsumer qProtection qCommission. q
C qEuropean qInsurance qand qOccupational qPensions qAuthority. q
D qEuropean qSecurities qand qMarkets qAuthority. q- q✔✔B
1.4.3
The qCentral qBank qdoes qNOT qauthorise qand qregulate qwhich qone qof qthe qfollowing
qentities qestablished qin qthe qState?
A qLife qassurance qcompanies.
B qCredit qintermediaries.
C qHome qreversion qfirms.
D qReinsurance qcompanies. q- q✔✔B
1.4.4
The qCompetition qand qConsumer qProtection qCommission qcan qimpose qa qlevy qon:
A qinsurance qintermediaries. q
B qbanks. q
, C qcredit qintermediaries. q
D qinvestment qintermediaries. q- q✔✔B
1.4.5
An qinvestment qintermediary qCANNOT qprovide qinvestment qadvice qon qwhich qone qof
qthe qfollowing?
A qContracts qfor qDifference.
B qBonds qlisted qon qa qStock qExchange.
C qNon-insurance qtracker qbonds.
D qCollective qinvestment qfunds. q- q✔✔A
2.3
XYZ qInvestment qAdvisers qLtd qis qa qdeemed qauthorised qinvestment qintermediary,
qcurrently qproviding qadvice qon qbonds qlisted qon qa qStock qExchange qand qnon-
insurance qtracker qbonds.
The qfirm qnow qwants qto qprovide qadvice qto qits qclients qon qUCITS qfunds qprovided qby
qTOP qInvestment qManagers qLtd. qIn qorder qto qdo qso, qXYZ qmust:
(i) qget qpermission qfrom qthe qCentral qBank qto qgive qadvice qon qcollective qinvestment
qfunds.
(ii) qget qan qagency qappointment qwith qTOP qInvestment qManagers qLtd.
(iii) qhave qminimum qshareholder qfunds qof q€50,000.
A q(i) qonly. q
B q(ii) qonly. q
C q(ii) qand q(iii) qonly. q
D q(i), q(ii) qand q(iii). q- q✔✔B
2.3.1
ACE qInvestment qAdvisers qLtd, qan qinvestment qintermediary, qis qcurrently qauthorised
qunder qSection q10 qof qthe qInvestment qIntermediaries qAct, q1995, qto qprovide qadvice
qon qshares qlisted qon qa qStock qExchange qand qnon-insurance qtracker qbonds.
The qfirm qnow qwants qto qprovide qadvice qto qits qclients qon qUCITS qfunds qprovided qby
qTOP qInvestment qManagers qLtd. qIn qorder qto qdo qso, qACE qmust:
(i) qget qpermission qfrom qthe qCentral qBank qto qgive qadvice qon qcollective qinvestment
qfunds.
(ii) qget qan qagency qappointment qwith qTOP qInvestment qManagers qLtd.
(iii) qhave qminimum qnet qshareholder qfunds qof q€50,000.
A q(i) qonly.
B q(iii) qonly.
C q(i) qand q(ii) qonly.
D q(i), q(ii) qand q(iii). q- q✔✔C
