CQIB END OF COURSE 2025/2026 QUESTIONS WITH
ANSWERS RATED A+
✔✔Moral responsibility - 3 rules - ✔✔- We are casually responsible for the effects or
lack of effects
of our actions or inactions.
- We intentionally brought about the effects or could have foreseen them; and
- The effects are morally important
✔✔Two things to build an algorithm - ✔✔1. Data
2. Definition of success
✔✔9 Features of a Profession (group who adhere to ethical standards) - ✔✔- Specialist
knowledge and skills
- barriers to entry
- professional body may stipulate requirement with different levels of membership
- adhere to code of values and conduct
- activities are overseen by professional body
- body sets min standard of behaviour
- acceptance of a duty to society
- high levels of integrity
- apply skills in interest of others
✔✔6 Aspects of Professional Code - ✔✔- Trustworthiness
- Respect for human rights and dignity
- Responsibility
- Fairness
- Caring and doing no harm
- Citizenship
✔✔Code of Conduct: Rules approach vs Principles approach (usually mix) - ✔✔Rules:
clear what you can and can't do, no room for misunderstanding
Principles: 'high-level' principles to comply with no set rules
✔✔5 threats to professionalism/ethics - ✔✔Self Interest: duh
Self review: auditing or evaluating work of others
Advocacy: promote so objectivity is compromised
Familiarity: close relationships
Intimidation: pressures influence how you act
✔✔6 Safeguards within Professions - ✔✔- new entrants must have min training and
education
- should complete ongoing continuing professional development (CPD)
- adherence to corporate governance regulations
,- abide by professional standards
- disciplinary for non-conformance
- external review
✔✔Corporate Social Responsibility (CSR) - ✔✔how a bank manages its business in
order to have an overall positive impact on society, obligations beyond the law, and long
term goals
✔✔Pyramid of Social Responsibility - ✔✔Top: Philanthropic
Ethical
Legal
Base: Economic
✔✔ISO 26000 - Social Responsibility - 7 core subjects - ✔✔Provides guidance on how
businesses and organisations can operate in a socially responsible way
core subjects:
- organisational governance
- human rights
- labour practices
- the environment
- fair operating practises
- consumer issues
- community involvement and development
✔✔Reserve Bank of Australia (RBA) - ✔✔- monetary policy
- overall stability of the financial system
- regulation of the payments systems
- bank for the commonwealth, some overseas central banks
- note printing
✔✔Australian Securities and Investment Commission (ASIC) - ✔✔- market integrity
- consumer protection across financial system
✔✔Australian Prudential Regulation Authority (APRA) - ✔✔- prudential supervision of:
banks,etc
- responsible for ensuring financial institutions remain financially sound and able to meet
obligations
- acts in the interest of depositors, policyholders and superannuation fund members
✔✔Monetary Policy - ✔✔- stability of the currency
- maintenance of full employment
- economic prosperity and welfare of the people
- commitment to keeping consumer price inflation 2-3% over time on average
, ✔✔Regulatory Influences on Banks - 10 - ✔✔- Maintaining customer accounts
- Providing payment services eg BPAY
- Lending to borrowers and collecting from depositors
- Providing efficient customer service
- Managing risk
- Marketing products and services
- Managing customer information and maintaining confidentiality
- Disclosing and reporting financial information
- Dealing with customer complaints
- business operations, eg policies and procedures
✔✔Reserve Bank Act 1959 - 2 boards - ✔✔reserve bank board:
- stability of currency, full employment and prosperity
Payment systems board:
- controlling risk, payment systems, promoting competition
✔✔Payment System: Consumer payment methods - ✔✔- cash
- non-cash
- cheques
- electronic credit transfer and direct debits
- credit and debt cards
- ATM
- 3rd party bill payments
- internet payment systems eg PayPal
✔✔Payment System: High Value Clearing System (HVCS) - ✔✔- manages the
exchange of high value payments
- SWIFT is the mechanism / payment delivery system (PDS)
- each payment is settled individually using Reserve Bank Information Transfer System
(RITS)
✔✔Clearing and Settlement Systems - ✔✔- ASX clear - central counterpart service for
ASX
- Austraclear - settlement for OTC debt market
- CHESS - settlement system for Australian equities operated by ASX settlement
✔✔5 Classifications of Wholesale Clients - ✔✔Product value: >$500,000
Individual Wealth: net assets > 2.5M or +250K salary last 2 years
Professional Investors: AFSL holder, >10M assets, other regulations or registrations
Large Business: not small business >20 employees or >100 for goods manufacturing
ANSWERS RATED A+
✔✔Moral responsibility - 3 rules - ✔✔- We are casually responsible for the effects or
lack of effects
of our actions or inactions.
- We intentionally brought about the effects or could have foreseen them; and
- The effects are morally important
✔✔Two things to build an algorithm - ✔✔1. Data
2. Definition of success
✔✔9 Features of a Profession (group who adhere to ethical standards) - ✔✔- Specialist
knowledge and skills
- barriers to entry
- professional body may stipulate requirement with different levels of membership
- adhere to code of values and conduct
- activities are overseen by professional body
- body sets min standard of behaviour
- acceptance of a duty to society
- high levels of integrity
- apply skills in interest of others
✔✔6 Aspects of Professional Code - ✔✔- Trustworthiness
- Respect for human rights and dignity
- Responsibility
- Fairness
- Caring and doing no harm
- Citizenship
✔✔Code of Conduct: Rules approach vs Principles approach (usually mix) - ✔✔Rules:
clear what you can and can't do, no room for misunderstanding
Principles: 'high-level' principles to comply with no set rules
✔✔5 threats to professionalism/ethics - ✔✔Self Interest: duh
Self review: auditing or evaluating work of others
Advocacy: promote so objectivity is compromised
Familiarity: close relationships
Intimidation: pressures influence how you act
✔✔6 Safeguards within Professions - ✔✔- new entrants must have min training and
education
- should complete ongoing continuing professional development (CPD)
- adherence to corporate governance regulations
,- abide by professional standards
- disciplinary for non-conformance
- external review
✔✔Corporate Social Responsibility (CSR) - ✔✔how a bank manages its business in
order to have an overall positive impact on society, obligations beyond the law, and long
term goals
✔✔Pyramid of Social Responsibility - ✔✔Top: Philanthropic
Ethical
Legal
Base: Economic
✔✔ISO 26000 - Social Responsibility - 7 core subjects - ✔✔Provides guidance on how
businesses and organisations can operate in a socially responsible way
core subjects:
- organisational governance
- human rights
- labour practices
- the environment
- fair operating practises
- consumer issues
- community involvement and development
✔✔Reserve Bank of Australia (RBA) - ✔✔- monetary policy
- overall stability of the financial system
- regulation of the payments systems
- bank for the commonwealth, some overseas central banks
- note printing
✔✔Australian Securities and Investment Commission (ASIC) - ✔✔- market integrity
- consumer protection across financial system
✔✔Australian Prudential Regulation Authority (APRA) - ✔✔- prudential supervision of:
banks,etc
- responsible for ensuring financial institutions remain financially sound and able to meet
obligations
- acts in the interest of depositors, policyholders and superannuation fund members
✔✔Monetary Policy - ✔✔- stability of the currency
- maintenance of full employment
- economic prosperity and welfare of the people
- commitment to keeping consumer price inflation 2-3% over time on average
, ✔✔Regulatory Influences on Banks - 10 - ✔✔- Maintaining customer accounts
- Providing payment services eg BPAY
- Lending to borrowers and collecting from depositors
- Providing efficient customer service
- Managing risk
- Marketing products and services
- Managing customer information and maintaining confidentiality
- Disclosing and reporting financial information
- Dealing with customer complaints
- business operations, eg policies and procedures
✔✔Reserve Bank Act 1959 - 2 boards - ✔✔reserve bank board:
- stability of currency, full employment and prosperity
Payment systems board:
- controlling risk, payment systems, promoting competition
✔✔Payment System: Consumer payment methods - ✔✔- cash
- non-cash
- cheques
- electronic credit transfer and direct debits
- credit and debt cards
- ATM
- 3rd party bill payments
- internet payment systems eg PayPal
✔✔Payment System: High Value Clearing System (HVCS) - ✔✔- manages the
exchange of high value payments
- SWIFT is the mechanism / payment delivery system (PDS)
- each payment is settled individually using Reserve Bank Information Transfer System
(RITS)
✔✔Clearing and Settlement Systems - ✔✔- ASX clear - central counterpart service for
ASX
- Austraclear - settlement for OTC debt market
- CHESS - settlement system for Australian equities operated by ASX settlement
✔✔5 Classifications of Wholesale Clients - ✔✔Product value: >$500,000
Individual Wealth: net assets > 2.5M or +250K salary last 2 years
Professional Investors: AFSL holder, >10M assets, other regulations or registrations
Large Business: not small business >20 employees or >100 for goods manufacturing
