Qualified Financial Adviser (QFA) Regulations Exam 2 Practice Test

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• Which statement about the content of a SOA is correct?
• Which statement best describes the role of the FAIS Ombud?
• Which of the following is NOT a consumer for the Distance Marketing Regulations?
• 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 qualification. (ii) Fiona is accompanied for an initial period at client meetings by another person who holds a recognised qualification. (iii) Fiona is not allowed to advise on pension products for at least 12 months after commencing employment.
• Which body may bring enforcement actions under the European Communities (Unfair Terms in Consumer Contracts) Regulations, 1995?
• What action should be taken if a client complaint remains unresolved after internal processes?
• Fiona is a sole trader with €60,000 in a personal deposit account and €80,000 in a business deposit account at the same bank. What is the maximum total amount she could claim under the Deposit Guarantee Scheme for these two deposits?
• Are deposits held by trustees of large defined benefit occupational pension schemes covered by the Deposit Guarantee Scheme?
• Which body is the ombudsman for financial services and pensions in Ireland?
• What is the purpose of Know Your Client (KYC) procedures in FAIS?
• In determining measures to process personal data to ensure security, which factors can be taken into account?
• Which of the following can act as a product producer to investment intermediaries?
• What is the purpose of client risk profiling tools?
• The Central Bank does NOT authorise and regulate which one of the following entities established in the State?
• ABC Bank plc can apply Simplified Customer Due Diligence to which customer?
• What is the primary objective of structural regulation of financial services firms?
• Owen had €35,000 invested with ACE Investment Managers Ltd, which has gone into liquidation. What is the maximum amount he may recover from the Investor Compensation Scheme?
• Under the Consumer Protection Code, a life assurance company may charge a fee for an optional extra benefit only if the consumer has demonstrated what?
• The complaint to the Financial Services & Pensions Ombudsman cannot relate to a long‑term financial service if the conduct complained of occurred more than how many years before the complaint is made?
• Which item best describes the scope of ongoing client relationship reviews?
• Under the General Data Protection Regulation, a bank can process personal data if the processing is:
• Under MiFID, when a retail client requests CFDs and no investment advice is given, which obligation must the firm fulfill?
• The FSPO cannot investigate a complaint about a pension provider which relates to which of the following?
• The maximum financial redress the Financial Services & Pensions Ombudsman can award in respect of a complaint against a pension provider is:
• OAK Advisers Ltd identifies Catherine as a vulnerable customer. Under the Consumer Protection Code, what must the adviser do when dealing with her?
• How should risk disclosures be presented to clients?
• What is the scope of privacy and confidentiality obligations under FAIS and POPIA?
• ACE Investment Brokers Ltd wants to change its trading name; BEFORE it does this, ACE must first:
• 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 client specifies investment type, institution, and amount; know-your-consumer rules apply? Choose the correct statement.
• When a bank markets a property fund that will purchase property from its subsidiary, what is required before proceeding?
• Which practice best supports client privacy within an organization?
• Which document is used to record a financial adviser’s personal recommendations to a client?
• An intermediary which wishes to provide advice to consumers on a PRSA issued by a life assurance company must be authorised as which?
• Which combination of conditions is sufficient for the term 'insurance broker' to be used by a firm, by itself?
• Which action is required to ensure ongoing fitness before renewal?
• Which statement best describes how conflicts of interest should be documented under FAIS?
• In the context of retirement product payments, which option requires a receipt from the intermediary?
• What is the difference between "appropriateness" and "suitability" in investment advice?
• For a retail client, ACME can meet MiFID best execution by which action?
• A member of an occupational pension scheme who believes trustees are not complying with the Pensions Act should refer their complaint to which body?
• Which statement correctly describes the time window to send an unsolicited marketing email after a customer opts in?
• ABC Life & Pensions Ltd, an insurance intermediary, is required under the Consumer Protection Code to display a schedule of its fees and charges:
• Under the Consumer Protection Code, what is the maximum period for ABC Life Co. to investigate and resolve a complaint?
• ACE Insurance Advisers Ltd acts only as an insurance intermediary; the firm must be authorised and registered under which regulations?
• How should conflicts of interest be handled under FAIS?
• If a client's consent for data sharing is limited to certain purposes, what must the adviser do?
• Under data protection rights, which actions can Peter require ABC Bank plc to take regarding inaccurate personal data?
• What should happen if a product is deemed not appropriate for a retail client?
• Name three components of the 'General Code of Conduct' principle that affect advisers.
• Is a MiFID investment firm allowed to advertise that it is covered by the Investor Compensation Scheme?
• The Competition and Consumer Protection Commission can impose a levy on:
• The Central Bank's Consumer Protection Code does NOT apply to:
• Which regulation governs advice on PRSAs?
• Which option reflects the definition of the state of the art concept in GDPR security considerations?
• In relation to promoting a property fund to clients, the Consumer Protection Code requires the bank to do which of the following?
• Which approach is used initially by the FSPO to resolve a pension complaint?
• Which elements should be reassessed in a review of advice for an ongoing client relationship?
• Before starting a business relationship with Paul, a Politically Exposed Person, Mark must:
• Which statement best describes the allowed security measures for GDPR processing of personal data?
• What is a business continuity plan and why is it required?
• An insurance intermediary that also acts as an auctioneer must comply with which combination of regulatory requirements?
• Why is continuing education crucial for maintaining QFA status?
• When can a firm outsource its functions, and what must be ensured?
• What is the role of internal controls in preventing improper sales practices?
• Under the Consumer Protection Code, a life assurance company can charge a consumer a fee for an optional extra benefit under a new policy ONLY if the consumer:
• How should advertising by an FSP be managed to comply with FAIS?
• Which of the following best describes how to handle a conflict of interest when the recommended product is not best for the client?
• When a MiFID investment firm is providing advice to a client on investing in a deposit, it must comply with which Regulation?
• Disclosure of commission by an intermediary to a client is required when arranging which of the following?
• What is the relationship between FAIS compliance and professionalism in financial advice?
• What should be considered in due diligence when evaluating outsourced service providers?
• What must be done prior to renewing a licence or registration?
• What is the consequence of FAIS compliance for a financial adviser?
• Which records must be kept for each financial service transaction?
• ACE Life Assurance Co can issue a policy to Dermot before verifying his identity, provided that which condition is met?
• What is the purpose of maintaining comprehensive client records and data retention under FAIS and POPIA?
• Which of the following is true about the trainee adviser recruitment for life assurance and pension policies?
• What is the difference between a fiduciary duty and a duty of care in FAIS compliance?
• Delta Partners is a firm of accountants and a certified person. Its current total gross annual fee income from all activities, including investment services, is €1 million. What is the maximum amount of its gross annual fee income that can be derived from investment services?
• In relation to a financial services firm established in an EU country, the term 'freedom of services' means which of the following?
• A German life assurance company sells policies to residents of Ireland. Who regulates the solvency of this life company?
• What are the consequences if a firm fails to maintain required records?
• Which item is NOT part of the fit and proper requirements?
• When a life assurance company is providing advice to a client on PRSAs, it must comply with which Regulation?
• The Consumer Protection Code requires an insurance intermediary to keep records of a fact find for what minimum period after the date the fact find was completed?
• The Central Bank shares its power to undertake surveys of the provision of financial services to consumers with the:
• Which body handles unresolved complaints about a home reversion firm?
• What is the maximum compensation the Ombudsman can award for a mis-sold investment?
• Which item is NOT typically retained as part of FAIS transaction records?
• Which one of the following can initiate a prosecution under the European Communities (Unfair Terms in Consumer Contracts) Regulations, 1995?
• Which statement accurately describes intermediary services under FAIS?
• Which of the following can potentially claim on the Investor Compensation Scheme?
• Under Distance Marketing Regulations, which scenario would be considered a consumer?
• OAK Investment Advisers Ltd has a new client Olive who refuses to supply requested information to verify her identity. What must OAK do?
• Which combination of people is eligible to submit a complaint about a pension provider to the FSPO?
• ACME is NOT required to comply with the 'know the consumer' requirement in relation to Mary if she has specified all of the following:
• A trustee complaint about the conduct of an occupational pension scheme's trustees has been upheld. To which body can the trustees appeal the decision?
• Customer Due Diligence for the prevention and detection of money laundering and terrorist financing includes which of the following?
• What is the role of a Key Individual (KI) under FAIS?
• Which type of investor cannot be automatically treated as a professional client by a MiFID investment firm?
• What does 'best interest' obligation require in FAIS?
• Personal data for the purposes of Data Protection legislation includes personal data held on computers, in manual paper files, and on USB sticks. Which of the following sets correctly lists the sources?
• Which scenario describes a consumer for the Distance Marketing Regulations?
• Under the Central Bank's rules for agency cancellations, which statement is required?
• Which activities constitute 'financial services' under FAIS?
• A MiFID investment firm covered by the Investor Compensation Scheme is NOT allowed to do which of the following?
• If a client cannot verify identity, which action is appropriate?
• Who can submit a complaint about a pension provider to the Financial Services & Pensions Ombudsman?
• A financial services provider is advertising an investment product which can fluctuate in value and does not guarantee a return of capital. Under the Consumer Protection Code which one of these warning statements must be included in the advertisement?
• Which statement describes how the Investor Compensation Scheme is funded?
• After a Financial Services & Pensions Ombudsman ruling against trustees of a pension scheme, to which body can the trustees appeal?
• The European Communities (Unfair Terms in Consumer Contracts) Regulations apply to standard contracts taken out by which party?
• A unsolicited telephone call to Alison, who is NOT an existing client of the firm, is allowed if:
• Which of the following conditions is sufficient for a firm to use the term 'insurance broker'?
• What are the main categories of financial products regulated under FAIS?
• Which statement is correct regarding identity verification by post and subsequent CDD actions?
• Alpha Brokers Ltd plans to set up a subsidiary company to provide auctioneering services. BEFORE it establishes the subsidiary, Alpha must first:
• The Competition and Consumer Protection Commission can levy on which sector?
• A consumer can refer an unresolved complaint about which of the following to the FSPO?
• Which combination of Customer Due Diligence tasks can be carried out by Top Insurance Brokers Ltd on behalf of the life company?
• What is the difference between a 'retail client' and a 'professional client' for FAIS purposes?
• Alan arranged a Personal Pension Plan over the internet. What is the legal cooling-off period within which Alan can cancel the policy?
• Which of the following can claim on the Investor Compensation Scheme?
• When is a 'Record of Advice' (ROA) or 'Statement of Advice' (SOA) required?
• BASE Life Co has discovered a material error in unit pricing. The Central Bank must be informed if the error remains unresolved after what maximum period?
• How should a firm respond to a client complaint?
• Jeremy has applied over the internet to open a bank account. Having established and verified Jeremy's identity by post, the bank can also do which one of the following, as an additional Customer Due Diligence measure?
• Which outcomes can the Financial Services & Pensions Ombudsman exercise when investigating a complaint?
• What is the role of the FAIS Ombud?
• The FSPO can refuse to investigate a complaint on the grounds that all of the following apply except which?
• The National Data Base Opt Out Register is used to:
• Which statement best describes the role and responsibilities of a Key Individual (KI) under FAIS?
• Which statement best describes the purpose of data protection under FAIS and POPIA?
• Lawrence works as the manager of personal financial advisers for ABC Bank plc. For fitness and probity purposes, Lawrence's position is a:
• In the Deposit Guarantee Scheme example, what is guaranteed at maturity?
• Which statement best defines a 'financial product' under FAIS and provides suitable examples?
• Why is a term in a unit linked life policy that allows the life company to reset the unit price every day not deemed to be an unfair term?
• What types of remuneration disclosures are typically required to clients?
• Which statement best describes a protected whistleblower disclosure under financial services legislation?
• The Central Bank's Consumer Protection Code requires product producers launching a new investment product to provide details of which one of the following to any intermediary who will promote and sell that product to consumers?
• The Deposit Guarantee Scheme covers deposits held by which of the following?
• The regulation that prescribes procedures for dealing with consumers is which type of regulation?
• Joanne works for a bank. A whistleblowing disclosure is a protected disclosure provided if: (i) the disclosure is not made anonymously; (ii) she makes the disclosure in good faith; (iii) she has reasonable grounds for believing that the bank has committed an offence under financial services legislation.
• Matthew suspects money laundering at his investment firm. To whom should he first report his suspicions?
• Which statement about the Central Bank's Consumer Protection Code is true?
• What is AML/CTF and why is it part of QFA Regulations?
• An investment intermediary which can legally act for only one bank in receiving deposits is called a deposit:
• Which is considered a complex product for the MiFID appropriateness test?
• Which statement is true about the Distance Marketing Regulations?
• Which action must be taken if a registered investment intermediary changes its trading name?
• How should firms handle soft-dollar arrangements with product providers?
• When dealing with a vulnerable customer who is partially blind, what is the adviser’s obligation?
• Which of the following statements about FAIS advertising is most accurate?
• The objective of the European Communities (Unfair Terms in Consumer Contracts) Regulations, 1995 is to:
• Under FAIS, in what situations can a client be classified as a professional client?
• ABC Life Co can rely on Top Insurance Brokers Ltd, an insurance intermediary, to carry out which Customer Due Diligence requirements on behalf of the life company?
• What is required when dealing with insider information or non-public material information?
• The cost of the Investor Compensation Scheme is funded by which of the following?
• What is the typical retention period for FAIS records?
• Under GDPR, processing incidental to the service provided to the customer is allowed. This statement is:
• What is the significance of client consent in recording details and sharing information?
• Aoife is the head of compliance at ABC Bank plc. Aoife's position is, for fitness and probity purposes, a:
• A bank cannot apply Simplified Customer Due Diligence where the customer is which of the following?
• Which statement about data subject rights is true?
• Which records must accompany any client recommendation?
• What is the primary function of the FAIS Ombud?
• What should a client financial needs analysis include with respect to liquidity?
• Which statement best describes how data should be processed to protect personal information?
• In the example with Jacinta, who invested €80,000 in a deposit tracker bond, what amount is covered by the Deposit Guarantee Scheme?
• What does SOA stand for in this context?
• An investment intermediary cannot provide investment advice on which instrument?
• Which of the following is NOT one of the main GDPR obligations imposed on an investment intermediary?
• When is a product considered suitable for a client?
• A bank has cancelled the agency appointment of TOP Investment Advisers Ltd. The bank must: (i) inform the Central Bank immediately of the cancellation. (ii) place a notice of discontinuance in a national newspaper within seven working days. (iii) write to all customers affected by the cancellation informing them of the cancellation within 28 working days.
• What is the overarching objective of the FAIS Act in relation to financial advice and intermediary services?
• To apply Standard Customer Due Diligence on a risk-based approach, the bank must take account of which of the following?
• Harry, a client of a MiFID investment firm, has asked to be classified as a professional investor. The firm may classify him as a professional investor only if he:
• How should ongoing CPD be tracked for advisers?
• The Central Bank shares its function to prohibit unfair, misleading or aggressive commercial practices by financial services providers with the:
• Which practice best protects client privacy when disclosing information to third parties?
• Which arrangement for displaying the schedule of fees is correct under the Consumer Protection Code?
• Which statement best describes the requirement for soft-dollar disclosures?
• Brown and Co must provide a receipt to John when accepting from him a payment of which type?
• Under the Minimum Competency Code, which statement about trainee advisers' client meetings is true?
• Elaine cannot refer a complaint about an insurance intermediary to the FSPO until she gets what from the intermediary?
• The Central Bank does NOT authorise and regulate which of the following entities?
• 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:
• Which of the following is NOT subject to the Central Bank's Consumer Protection Code when providing financial services to consumers?
• What is the role of investor education in FAIS compliance?
• How should changes in a client's personal circumstances be handled?
• The FSPO's first step to resolve a complaint is to mediate.
• Which item of information is NOT required to be included in a bank's Terms of Business?
• ACE Investment Advisers Ltd must obtain which combination to provide UCITS advice?
• A bank can now send an unsolicited marketing email about other products and services the bank offers, if the bank:
• XYZ Investment Advisers Ltd wants to provide advice on UCITS funds provided by TOP Investment Managers Ltd. Which condition must be satisfied for this to be allowed?
• Which body shares the power to conduct surveys of consumer financial services with the Central Bank?
• An investment intermediary CANNOT provide investment advice on which of the following?
• What should be included in a client financial needs analysis?
• Under the Consumer Protection Code, which scenarios must be treated as a complaint by an insurance intermediary?
• Which factor is NOT typically part of due diligence when evaluating outsourced service providers?
• In the Deposit Guarantee Scheme, how is coverage determined for multiple deposits held at the same bank?
• Which of the following is NOT a level of Customer Due Diligence?
• What happens if a financial adviser fails the fit and proper test?
• Under the Deposit Guarantee Scheme, if a temporary large deposit is held for a limited period, what is the maximum coverage limit during that period?
• How should risk disclosures be presented to clients?
• Temporary large deposits are covered by the Deposit Guarantee Scheme up to what maximum limit for a temporary period?
• Which elements are included in Customer Due Diligence for money laundering and terrorist financing?
• The Central Bank's Consumer Protection Code advertising requirements apply to: (i) flyers. (ii) product brochures. (iii) a firm's website.
• What does 'fit and proper' require of a financial adviser?
• Simplified Customer Due Diligence cannot be applied to which category of customer?
• Which of the following can act as a product producer to investment intermediaries?
• What are the consequences of misrepresentation or false information in financial marketing?
• What are the key requirements for handling client money?
• HWJ Ltd can make an unsolicited telephone call to the personal phone belonging to Aoife who is NOT an existing client of the firm, if:
• Before establishing a subsidiary to provide auctioneering services, what must Alpha Brokers Ltd do?
• Which of the following roles is not subject to the Central Bank's Minimum Competency Standards?
• What is the purpose of disclosing fees and charges to a client?
• When an investment intermediary is providing advice to a client on shares listed on a Stock Exchange, it must comply with which Regulation?
• ABC Insurance Services Ltd, an insurance intermediary, wishes to appoint Jack as its new Chief Executive. ABC CANNOT offer Jack this position without getting prior written consent of the:
• What must be included in a SOA?
• The prescription of procedures which must be followed by financial services firms in their dealings with consumers is which type of regulation?
• Under the Minimum Competency Code, the intermediary must ensure that: (i) all 'Reason Why' statements provided to clients are checked and signed off by another person with a recognised qualification.