Qualified Financial Adviser (QFA) Regulations Exam 2 Practice Test

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