Free QFA Regulation Exam Flashcards

It merged the Central Bank and the separate Financial Regulator into one unitary Central Bank of Ireland governed by the Central Bank Commission, ending the previous dual structure.

Because consumers face information asymmetry, products are long-term and hard to judge, and firm failures spread. Regulation aims at consumer protection, financial stability and confidence in the market.

Prudential regulation targets a firm's solvency, capital and risk management so it can meet its obligations. Conduct-of-business regulation targets how the firm treats customers: advice, disclosure, selling and complaints.

Under section 33AQ of the Central Bank Act 1942, as amended by the Central Bank (Supervision and Enforcement) Act 2013, a firm can be fined up to the greater of 10 million euro and 10% of turnover, and an individual up to 1 million euro.

Nine obligations set by the Central Bank Reform Act 2010 (Section 17A) (Standards for Business) Regulations 2025 (S.I. No. 80 of 2025), effective 24 March 2026. The first is that a firm must secure its customers' interests.

S.I. No. 80 of 2025 (Standards for Business) and S.I. No. 81 of 2025 (Consumer Protection Regulations), both applying from 24 March 2026. They replaced the Consumer Protection Code 2012.

The Investment Intermediaries Act 1995. It is an offence to carry on investment business services without Central Bank authorisation, and authorised firms appear on the Central Bank's public registers.

The European Union (Insurance Distribution) Regulations 2018 (S.I. No. 229 of 2018), applying from 1 October 2018. Insurance and reinsurance intermediaries must be registered with the Central Bank before distributing insurance.

The European Union (Markets in Financial Instruments) Regulations 2017 (S.I. No. 375 of 2017), which took effect on 3 January 2018 alongside the directly applicable MiFIR regime.

Retail client, professional client and eligible counterparty. Retail clients get the highest level of protection and eligible counterparties the least; clients can move between categories in defined circumstances.

The client must meet at least two of three tests: an average of 10 significant transactions per quarter over the past four quarters, a portfolio above 500,000 euro, or a year in a relevant professional role. A written request, warning and acknowledgement are also needed.

Only where the regulated activity is provided on a fair analysis of the market and the intermediary does not accept and retain any fee, commission or other reward for advising on it, apart from a minor non-monetary benefit or a fee paid by the consumer (Regulation 54).

Regulation 56 lets an intermediary use 'broker' only where its principal regulated activities are provided on the basis of a fair analysis of the market. Unlike 'independent', it does not require the intermediary to refuse commission.

It must name the product producers whose services it intends to consider (Regulation 57). An intermediary tied to one product producer for a service must disclose that tie in every communication about it (Regulation 58).

Information on regulated activities must sit on a separate webpage from unregulated activities, and the firm must flag to consumers which regulatory protections do not apply to the unregulated side (Regulations 72-73).

By passporting under MiFID II or the Insurance Distribution Directive, using freedom of establishment (a branch) or freedom of services. The home regulator keeps prudential supervision while the Central Bank oversees conduct here.

Yes. Regulation 79 requires every advertisement to identify itself as one. Publication in a television or radio commercial break is taken to satisfy that requirement.

Regulation 45 requires warning statements to be prominent and, in text, placed in a box, in bold, in a font size at least equal to the predominant font size used in the document or advertisement.

The prescribed line stating that the named firm is regulated by the Central Bank of Ireland. Regulation 71 requires it on business stationery, on webpages about regulated activities and in electronic communications about them, and it must not be presented as a Central Bank endorsement.

Natural persons, unincorporated groups such as clubs or partnerships, and incorporated bodies whose turnover did not exceed 5 million euro in the previous financial year (or whose group turnover did not).

Regulation 16 requires the firm to gather and record sufficient information on the consumer's needs and objectives, personal circumstances, financial situation, attitude to risk and sustainability preferences before offering, recommending, arranging or providing the service.

Before the financial service is provided or arranged. Regulation 18 requires it to be prepared, signed and dated, to explain why the product is suitable, and to open with the prescribed 'Important Notice - Statement of Suitability' wording.

A natural person whose personal circumstances, permanent or temporary, make them especially susceptible to harm where a firm does not act with appropriate care. Regulations 34 and 35 require ongoing reasonable assistance for such consumers and training for relevant staff.

Regulation 90 bans making the sale of one financial service conditional on buying another. Regulation 91 allows bundling only where the firm can show an overall cost saving for the consumer.

Regulation 43 requires the firm to contact the consumer at least 3 but no more than 7 working days before the withdrawal right expires, restating the right, the expiry date and how to exercise it.

Section 11 of the Consumer Insurance Contracts Act 2019 gives 14 working days from being told the contract is concluded (not for contracts under one month). Individual life policies get 30 days under Regulation 194 of the European Union (Insurance and Reinsurance) Regulations 2015.

Six years after the transaction is completed or discontinued, and six years from the date the firm stopped providing any service to that consumer for other records (Regulation 117).

Twelve months, and only with the consumer's consent, under Regulation 117(2). If the consumer refuses or withdraws consent, the firm is not required to keep the record at all (Regulation 117(3)).

The GDPR together with the Data Protection Act 2018, supervised by the Data Protection Commission. Both apply in addition to, not instead of, the Central Bank's record-keeping rules.

Notify the Data Protection Commission within 72 hours of becoming aware of the breach where it poses a risk to individuals. Affected individuals must be told without undue delay where the risk to them is high.

Within one month of receipt. The controller may extend by up to two further months for complex or numerous requests, but must tell the data subject about the extension and why.

A controller, because it decides the purposes and means of processing its clients' data. A processor only acts on a controller's documented instructions, such as an outsourced administration provider.

Acknowledge in writing within 5 working days, update the consumer at intervals no greater than 20 working days, try to resolve within 40 working days, and give the decision within 5 working days of finishing the investigation.

Compensation of up to 500,000 euro, or up to 52,000 euro a year where the complaint concerns an annuity, plus rectification of the conduct with no monetary ceiling. Decisions bind both sides and can be appealed only to the High Court, normally within 35 days.

Consumers, including companies, sole traders and clubs with turnover of no more than 3 million euro. The limit is 6 years from the conduct; for long-term financial services it is the later of 6 years from the conduct or 3 years from when the complainant became, or ought to have become, aware of it.

90% of the investor's net loss, capped at 20,000 euro per eligible investor. The scheme, run by the Investor Compensation Company DAC under the Investor Compensation Act 1998, is a fund of last resort after a firm fails.

Eligible deposits up to 100,000 euro per depositor per credit institution, administered by the Central Bank of Ireland. It protects against the institution failing, not against poor investment returns.

Under the Insurance Act 1964 as amended, 65% of the sum due or 825,000 euro, whichever is less. Third-party motor claims are met in full since the Insurance (Amendment) Act 2018.

Part 6 of the Consumer Rights Act 2022, in force from 29 November 2022. It revoked and replaced the European Communities (Unfair Terms in Consumer Contracts) Regulations 1995.

A term is unfair if, contrary to good faith, it causes a significant imbalance in the parties' rights to the consumer's detriment. An unfair term does not bind the consumer, but the rest of the contract continues if it can stand without it.

Schedule 5 sets out an indicative, non-exhaustive list of terms presumed to be unfair, such as terms letting the trader alter the contract unilaterally. The trader can rebut the presumption; separately listed terms are always unfair.

A pre-approval controlled function (PCF). A firm cannot appoint someone to a PCF without the Central Bank's prior approval in writing, while for other controlled functions the firm itself must satisfy the Fitness and Probity Standards 2025.

Conduct Standards for individuals have applied since 29 December 2023 and the requirement for firms to certify controlled function holders since 8 January 2024. The Senior Executive Accountability Regime applied to executive PCFs in in-scope firms from 1 July 2024.

Under the Protected Disclosures Act 2014 as amended in 2022, firms subject to EU financial services or anti-money laundering law must run internal reporting channels whatever their size, acknowledge a report within 7 days and give feedback within 3 months.

It sets the competence standards for people dealing with retail financial products or MiFID services, issued under section 50 of the Central Bank Reform Act 2010 and backed by regulations under section 48 of the Central Bank (Supervision and Enforcement) Act 2013.

15 hours, including at least one hour of ethics and at least one hour for each function performed. Surplus hours cannot be carried forward, and a shortfall can only be made up the following year if none occurred in the past five years.

Four years in total. During that time the new entrant must work under the immediate direction and supervision of a qualified person and be working towards the relevant recognised qualification.

Section 33 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 requires it before establishing a business relationship or carrying out an occasional transaction, with limited scope to finish verification during onboarding where risk is low.

Senior management approval to start or continue the relationship, steps to establish the source of wealth and funds, and enhanced ongoing monitoring. Because the Act defines a PEP as someone holding a prominent public function now or in the preceding 12 months, the measures run for at least a year after they leave office.

Section 42 requires a report to both FIU Ireland and the Revenue Commissioners as soon as practicable after the suspicion arises. Section 55 requires AML records to be kept for five years after the relationship ends.