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The primary objec/ve of structural regula/on of financial services firms is to: A minimise risks to the financial system. B ensure financial services providers remain solvent at all /mes. 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. C 1.2. In rela/on 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 authorisa/on. C charge different levels of fees to different consumers, without requiring authorisa/on to do so. D provide financial services to consumers in another eu country on a cross border basis. D 1.2.
QFA REGS - SAMPLE PAPER 2
WITH 100% VERIFIED
QUESTIONS AND CORRECT
ANSWERS
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 occupa/onal pensions authority. D the european securi/es and markets authority. B 1.2. The prescrip/on of procedures which must be followed by financial services firms in their dealings with consumers is which type of regula/on? A structural. B systemic. C pruden/al. D conduct of business. D 1.2. The central bank shares its func/on to prohibit unfair, misleading or aggressive commercial prac/ces by financial services providers with the: a compe//on and consumer protec/on commission. B director of corporate enforcement. C european insurance and occupa/onal pensions authority. D european securi/es and markets authority. A 1.3.
B
The compe//on and consumer protec/on commission can impose a levy on: a insurance intermediaries. B banks. C credit intermediaries. D investment intermediaries. B 1.4. 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 collec/ve investment funds. A
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 collec/ve 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). B 2.3. Ace investment advisers ltd, an investment intermediary, is currently authorised under sec/on 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 collec/ve 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).
C no/fy the central bank in wri/ng. D submit a revised business plan to the central bank. C 2.3. Which one of the following is not subject to the central bank's consumer protec/on code when providing financial services to consumers? A authorised advisers. B cer/fied persons. C banks. D mortgage intermediaries. B 2.3. Delta partners is a firm of accountants and a cer/fied person. Its current total gross annual fee income from all ac/vi/es, including investment services, is € million. In order for delta partners to be able to con/nue providing investment services, what is the maximum amount of its gross annual fee income which can be derived from investment services? A €100, b €200, c €330, d €490, B 2.3.
An intermediary which wishes to provide advice to consumers on a prsa issued by a life assurance company must be authorised as a(n): (i) investment intermediary. (ii) insurance intermediary. (iii) deposit broker. A (i) only. B (ii) only. C (i) and (ii) only. D (i), (ii) and (iii). B
Ace insurance advisers ltd acts only as an insurance intermediary; the firm does not act as an investment intermediary. The firm must be authorised and registered under: (i) the european union (insurance distribu/on) regula/ons, 2018. (ii) the investment intermediaries act, 1995. (iii) mifid regula/ons. A (i) only. B (ii) only. C (i) and (ii) only. D (i) and (iii) only. A
a controlled func/on. B poli/cally exposed person. C pre-approval controlled func/on. D compliance func/on. A 2.10. Abc insurance services ltd, an insurance intermediary, wishes to appoint jack as its new chief execu/ve. Abc cannot offer jack this posi/on without ge\ng prior wri]en consent of the: a director of corporate enforcement. B central bank. C district court. D registrar of companies. B 2.10. Aoife is the head of compliance at abc bank plc. Aoife's posi/on is, for fitness and probity purposes, a: a controlled func/on. B poli/cally exposed person. C pre-approval controlled func/on. D compliance func/on. C 2.10.
Which of the following, who work for abc life co, are subject to the central bank's minimum competency standards? (i) a personal financial adviser. (ii) the claims manager. (iii) the complaints manager. A (ii) only. B (iii) only. C (i) and (iii) only. D (i), (ii) and (iii). D 2.10. An insurance intermediary has recruited fiona straight from college as a trainee personal financial adviser to advise its clients on life assurance and pension policies. Under the central bank's minimum competency code, the intermediary must ensure that: (i) all 'reason why' statements provided by fiona to clients are checked and signed off by another person who holds a recognised qualifica/on. (ii) fiona is accompanied for an ini/al period at client mee/ngs by another person who holds a recognised qualifica/on. (iii) fiona is not allowed to advise on pension products for at least 12 months a_er commencing employment. A (ii) only. B (i) and (ii) only.
C
The central bank's consumer protec/on code adver/sing requirements apply to: (i) flyers. (ii) product brochures. (iii) a firm's website. A (i) only. B (ii) only. C (ii) and (iii) only. D (i), (ii) and (iii). D 3.1. A financial services provider is adver/sing an investment product which can fluctuate in value and does not guarantee a return of capital. Under the consumer protec/on code which one of these warning statements must be included in the adver/sement? A if you invest in this product, you may lose some of the money you invest. B the value of your investment will fluctuate. C the value of your investment may go down as well as up. D the value of your investment may go up as well as down.
C
Def life ltd, an authorised insurance intermediary, cannot use the term 'insurance broker' unless it: (i) provides at least 75% of its regulated annual turnover on a fair analysis basis. (ii) has at least 20 agency appointments with different product producers. (iii) offers the client an op/on to pay for its services by means of a fee. A (i) only. B (i) and (ii) only. C (ii) and (iii) only. D (i), (ii) and (iii). A
Personal data for the purposes of data protec/on legisla/on includes personal data held: (i) on computers. (ii) in manual paper files. (iii) on usb s/cks. A (i) only. B (ii) only. C (i) and (iii) only. D (i), (ii) and (iii).
C (i) and (iii) only. D (ii) and (iii) only. B 3.5. Hwj ltd, an insurance intermediary, can make an unsolicited telephone call to the personal phone belonging to aoife who is not an exis/ng client of the firm, if: a the purpose of the call is limited to offering aoife a term assurance policy. B aoife is a solicitor. C aoife is classified as a professional experienced investor. D aoife is contacted on a landline, and not on a mobile number. A 3.5. Which one of the following items of informa/on is not required to be included in a bank's terms of business? A trading name, if different to its legal name. B list of all its directors. C outline of ac/on the bank may take in the case of default by the consumer. D general statement of the charges imposed directly by the bank. B
Which one of the following is not a level of customer due diligence? A standard. B prime.
C simplified. D enhanced. B 4.3. A bank can apply standard customer due diligence requirements to a customer on a risk-based approach if the bank takes account of the: (i) profile of the customer. (ii) nature of the financial service to be provided to the customer. (iii) distribu/on channel used to sell the financial service to the customer. A (ii) only. B (iii) only. C (i) and (iii) only. D (i), (ii) and (iii). D 4.3. Oak investment advisers ltd has met a new client, olive, who wants to invest a large lo]o win she claims to have received recently. However, olive refuses to supply requested informa/on to oak to enable them to verify her iden/ty. She says she finds the request 'intrusive'. What must oak do now? A ask olive to nominate a friend of hers who is prepared to verify olive's iden/ty. B not provide any further service for olive and terminate the business rela/onship immediately. C send a final formal wri]en request to olive for the relevant informa/on, by
B
Abc bank plc can apply simplified customer due diligence to which one of its following customers? A ace enterprises ltd, which is listed on the main market of the irish stock exchange. B mary, who has less than €100,000 to invest. C new oil co. Ltd, a small unlisted oil explora/on company. D brown & co, a small two-person legal prac/ce. B 4.3.2. Jeremy has applied over the internet to open a bank account. Having established and verified jeremy's iden/ty by post, the bank can also do which one of the following, as an addi/onal customer due diligence measure? A ask jeremy for a wri]en reference. B ring jeremy on a home or business number which has been verified by the bank. C undertake a google search on jeremy to seek confirma/on of his iden/ty. D wait 30 days before ac/va/ng the account for jeremy. A 4.3.3. A bank cannot apply simplified customer due diligence where the customer is: (i) another bank. (ii) a poli/cally exposed person. (iii) a public body.
A (ii) only .b (iii) only. C (i) and (ii) only. D (i), (ii) and (iii). A 4.3.3. Mark, who works for ace investment advisers ltd, has met with a poten/al new investment customer, paul, who is a poli/cally exposed person (pep). Before star/ng a business rela/onship with paul, mark must: a run a police check on paul. B obtain wri]en permission from the department of jus/ce. C obtain ace senior management approval to take paul on as a client. D ask paul to confirm in wri/ng whether he is a pep. C 4.3. Abc life co can rely on top insurance brokers ltd, an insurance intermediary, to carry out which of the following customer due diligence requirements on behalf of the life company? (i) iden/fying a customer. (ii) verifying the iden/ty of the beneficial owner of a customer. (iii) obtaining informa/on on the purpose of the business rela/onship with a customer. A (i) only. B (iii) only.
