OFA REGS - SAMPLE PAPER 1
QUESTIONS AND VERIFIED
ANSWERS SOLVED
100%CORRECT.
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. - <<<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. - <<<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. -
<<<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. - <<<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. -
<<<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. - <<<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. -
<<<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. - <<<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. - <<<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. - <<<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.
QUESTIONS AND VERIFIED
ANSWERS SOLVED
100%CORRECT.
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. - <<<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. - <<<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. -
<<<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. - <<<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. -
<<<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. - <<<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. -
<<<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. - <<<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. - <<<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. - <<<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.
