QFA REGS - SAMPLE PAPER 1 EXAM QUESTIONS AND
ANSWERS
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.
ANSWERS
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.
