112+ Free QFA Regulation Practice Questions

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2026 Statistics

Key Facts: QFA Regulation Exam

100

Exam Questions

LIA / IOB Exam Regulations

40%

Passing Score

LIA / IOB Syllabus

2 hours

Time Limit

LIA / IOB Regulations

€360

Module Fee

LIA Enrollment Info

15 hours

Annual CPD Requirement

Central Bank MCC Code

€20,000

Investor Compensation Cap

Investor Compensation Act 1998

The QFA Regulation exam is a 2-hour, 100-question multiple-choice assessment with a passing score of 40% (no negative marking). Registration costs €360 per module, which includes the exam entry and the official textbook. The curriculum is heavily weighted toward the Consumer Protection Code (25%), the Minimum Competency Code (20%), and Anti-Money Laundering (20%), while also testing general regulatory structures (15%), Data Protection (10%), and Investor Compensation/FSPO (10%). All designation holders must maintain 15 hours of CPD annually to keep their credentials active.

Sample QFA Regulation Practice Questions

Try these sample questions to test your QFA Regulation exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 112+ question experience with AI tutoring.

1Which Irish legislation formally established the single unitary regulatory structure for financial services under the Central Bank of Ireland?

A.The Central Bank Reform Act 2010

B.The Central Bank Act 1942

C.The Central Bank Act 1989

D.The Central Bank and Financial Services Authority of Ireland Act 2003

Explanation: The Central Bank Reform Act 2010 created the single unitary structure, dismantling the dual-structure of the Central Bank and the Financial Regulator (IFSRA). This reform integrated the regulatory and supervisory functions under the Central Bank of Ireland commission. It also established the statutory Fitness and Probity regime.

2Which of the following best describes the dual mandate of the Central Bank of Ireland under its unitary structure?

A.Financial regulation and supervision, alongside safeguarding monetary and financial stability.

B.Commercial banking services for the state and retail lending to consumers.

C.Consumer arbitration services and prosecution of criminal financial offenses.

D.Setting government fiscal policy and managing the national debt of Ireland.

Explanation: The Central Bank of Ireland operates with a dual mandate: regulating and supervising financial service providers to protect consumers, while simultaneously safeguarding monetary and financial stability. This structure ensures that both micro-prudential supervision and macro-prudential stability are coordinated under one regulator.

3Under the Central Bank's Fitness and Probity standards, what are the two main classifications of functions subject to these requirements?

A.Controlled Functions (CFs) and Pre-Approval Controlled Functions (PCFs)

B.Key Functions (KFs) and Auxiliary Functions (AFs)

C.Executive Functions (EFs) and Advisory Functions (AFs)

D.Designated Functions (DFs) and Certified Functions (CFs)

Explanation: The Fitness and Probity regime divides regulated roles into Controlled Functions (CFs) and Pre-Approval Controlled Functions (PCFs). CF roles require the firm to be satisfied that the individual meets the Standards, while PCF roles require the prior written approval of the Central Bank of Ireland before the individual can take up the position.

4An individual is being appointed as the Head of Compliance (a Pre-Approval Controlled Function, or PCF) at an Irish retail intermediary. What must happen before this individual can formally take up the role?

A.The firm must submit an Individual Questionnaire (IQ) to the Central Bank, and the Central Bank must grant written approval.

B.The firm can appoint the individual immediately but must notify the Central Bank within 14 business days.

C.The individual must complete a 12-month probationary period before being submitted for approval.

D.The individual must pass a written examination administered directly by the Central Bank of Ireland.

Explanation: For any Pre-Approval Controlled Function (PCF) role, such as Head of Compliance (PCF-12) or Director (PCF-1), the firm must submit an online Individual Questionnaire (IQ). The individual cannot perform the PCF role until the Central Bank of Ireland has formally granted written approval for their appointment.

5How frequently must a regulated financial service provider in Ireland formally confirm that all individuals performing Controlled Functions (CFs) continue to comply with the Fitness and Probity standards?

A.On an annual basis

B.Every two years

C.Only upon initial recruitment or a change in role

D.Every five years

Explanation: Regulated firms must perform an annual review and obtain an annual confirmation from individuals performing Controlled Functions (CFs) and Pre-Approval Controlled Functions (PCFs) that they remain compliant with the Fitness and Probity Standards. The firm must also submit an annual compliance return to the Central Bank confirming this process has been completed.

6Under the Single Supervisory Mechanism (SSM) of the European Banking Union, which institution has direct supervisory authority over significant credit institutions operating in Ireland?

A.The European Central Bank (ECB)

B.The Central Bank of Ireland

C.The European Banking Authority (EBA)

D.The Irish Financial Services Appeals Tribunal (IFSAT)

Explanation: Significant credit institutions (banks) in Ireland are directly supervised by the European Central Bank (ECB) in collaboration with the Central Bank of Ireland under the Single Supervisory Mechanism (SSM). Less significant institutions remain under the direct supervision of the Central Bank of Ireland.

7Under the Fitness and Probity standards, which of the following is evaluated to assess an individual's 'probity'?

A.The individual's honesty, integrity, and ethical standard.

B.The individual's academic qualifications and technical expertise.

C.The individual's physical fitness and medical health records.

D.The individual's total asset net worth and investment portfolio size.

Explanation: Probity is concerned with an individual's character, honesty, integrity, and adherence to ethical standards. It assesses whether they have a criminal record, are subject to regulatory disciplinary proceedings, or have demonstrated a lack of candor in dealings with regulators.

8What is the primary mechanism through which the Central Bank of Ireland investigates and sanctions breaches of financial services legislation by regulated firms and individuals?

A.The Administrative Sanctions Procedure (ASP)

B.The High Court Criminal Division

C.The Financial Services Ombudsperson Investigation Protocol

D.The Revenue Commissioners Audit Procedure

Explanation: The Administrative Sanctions Procedure (ASP) is the Central Bank's statutory mechanism for investigating suspected breaches of financial services law by regulated firms and individuals. Under the ASP, the Central Bank can impose significant monetary penalties, reprimands, or bans on individuals performing controlled functions.

9Which of the following regulatory instruments issued by the Central Bank of Ireland has statutory backing and contains binding rules that firms must follow?

A.Codes of Conduct (e.g., Consumer Protection Code)

B.Press releases and public speeches

C.Discussion papers and consultation documents

D.Industry newsletters and advice articles

Explanation: Codes of Conduct issued by the Central Bank of Ireland (such as the Consumer Protection Code 2012) are statutory instruments that carry binding legal weight. Regulated entities are legally required to comply with these codes, and breaches can lead to enforcement action under the Administrative Sanctions Procedure.

10A newly established firm intends to act as a retail financial intermediary in Ireland, advising clients on life policies and pensions. What must the firm obtain before commencing business?

A.Authorisation from the Central Bank of Ireland

B.A commercial license from the local County Council

C.Registration with the Companies Registration Office (CRO) only

D.A charter from the Insurance Institute of Ireland

Explanation: Any firm wishing to provide financial advice or intermediate retail financial products in Ireland must be authorised by the Central Bank of Ireland under relevant legislation (e.g., the Investment Intermediaries Act 1995 or the European Union (Insurance Distribution) Regulations 2018). Advising or selling without this authorisation is a criminal offense.

About the QFA Regulation Exam

The QFA Regulation module is a core requirement for obtaining the Professional Diploma in Financial Advice (QFA) in Ireland. The curriculum covers the regulatory structures governing financial services providers, the Central Bank's Fitness and Probity standards, the Consumer Protection Code (CPC), the Minimum Competency Code (MCC), data protection regulations (GDPR), anti-money laundering (AML) laws, and investor compensation and redress mechanisms.

Assessment

100 multiple-choice questions (no negative marking)

Time Limit

2 hours

Passing Score

40%

Exam Fee

€360 per module (LIA / IOB (Ireland))

QFA Regulation Exam Content Outline

15%

Regulation of Financial Services Providers

Role of the Central Bank of Ireland, regulatory structures, administrative sanctions, and fitness and probity standards.

25%

Consumer Protection Code

Rules on knowing the consumer, suitability, disclosures, complaint handling, advertising, and cancellation rights under the CPC 2012.

20%

Minimum Competency Code

MCC 2017 standards for professional qualifications, grandfathered status, supervised new entrants, and CPD requirements.

10%

Data Protection

Compliance with GDPR and the Data Protection Act 2018, data subject rights, data controllers vs processors, and breach reporting.

20%

Money Laundering & Terrorist Financing

Anti-money laundering legislation, customer due diligence, Politically Exposed Persons (PEPs), MLRO duties, and suspicious transaction reporting.

10%

Investor Compensation & Ombudsman (FSPO)

The Investor Compensation Scheme, the Financial Services and Pensions Ombudsman, consumer dispute resolution, and redress frameworks.

How to Pass the QFA Regulation Exam

What You Need to Know

Passing score: 40%
Assessment: 100 multiple-choice questions (no negative marking)
Time limit: 2 hours
Exam fee: €360 per module

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

QFA Regulation Study Tips from Top Performers

1Focus heavily on the Consumer Protection Code (CPC) and the Minimum Competency Code (MCC), as these two areas combined represent nearly half of all exam questions.

2Understand the difference between Controlled Functions (CFs) and Pre-Approval Controlled Functions (PCFs) under the Central Bank's Fitness and Probity standards.

3Learn the specific timeframes for regulatory compliance, such as the 5-day complaint acknowledgment, the 40-day complaint resolution, and the 72-hour GDPR data breach notification.

4Know the difference between customer due diligence (CDD) and enhanced due diligence (EDD) for high-risk clients like PEPs under anti-money laundering law.

5Memorize the exact limits for compensation: up to €20,000 (at 90% of loss) for the Investor Compensation Scheme, and up to €500,000 for awards made by the FSPO.

Frequently Asked Questions

How many questions are on the QFA Regulation exam?

The official QFA Regulation exam is a 2-hour assessment consisting of 100 multiple-choice questions. Negative marking does not apply, meaning you are not penalized for incorrect answers.

What is the passing score for the QFA Regulation module?

The passing score is 40% (40 out of 100 questions correct). Achieving a score of 40% or higher earns a pass in the module, contributing toward the Professional Diploma in Financial Advice.

How much does it cost to register for the QFA Regulation exam?

The fee is €360 per module, which includes entry to the online exam and the official course textbook/study manual. If you are not already a member of LIA or IOB, an annual student membership fee (approximately €110) also applies.

What happens if I fail the QFA Regulation exam?

If you do not pass, you can register to retake the exam at the next available sitting. The re-registration fee for a retake is approximately €205.

How do I maintain my QFA status after passing all modules?

To keep your QFA designation active, you must remain a member of your professional body (LIA or IOB) and complete 16 hours (for older cycles) or 15 hours (current Central Bank MCC standard) of Continuous Professional Development (CPD) each calendar year, including at least 1 hour of ethics.