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Exam Review

Key Facts: QFA Regulation Exam

100

Exam Questions

LIA / IOB Exam Regulations

40%

Pass Mark

LIA Study with LIA FAQs

2 hours

Time Limit

LIA / IOB Regulations

€370

LIA Module Fee

LIA QFA course page

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 online assessment of 100 multiple-choice questions. LIA states a 40% pass mark and applies negative marking to its multiple-choice papers: 3 marks for a correct answer, minus 1 for an incorrect answer and 0 for 'I don't know'. LIA charges €370 per module; IOB charges €470 per module plus an €80 annual study fee. Neither body publishes topic weights. The syllabus spans financial services regulation, the Consumer Protection Code, the Minimum Competency Code, data protection, anti-money laundering, investor compensation and the FSPO, unfair contract terms and protected disclosures. QFA holders must complete 15 hours of CPD each year.

Sample QFA Regulation Practice Questions

Try these sample questions to review concepts for the QFA Regulation exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 172+ 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.Regulation and supervision, alongside 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 and obtain the Central Bank's written approval.
B.The firm may appoint the individual at once and notify the Central Bank within 14 business days.
C.The individual must serve a 12-month probationary period before any application is submitted.
D.The individual must pass a written examination set and marked by the Central Bank of Ireland.
Explanation: A Pre-Approval Controlled Function such as Head of Compliance cannot be taken up until the Central Bank has approved the appointment in writing. The firm submits an Individual Questionnaire through the Central Bank Portal, and the Central Bank assesses the candidate's fitness and probity before granting or refusing approval.
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: Firms must obtain an annual confirmation from individuals in Controlled Functions and Pre-Approval Controlled Functions that they continue to comply with the Fitness and Probity Standards. Since the Central Bank (Individual Accountability Framework) Act 2023 firms must also certify annually that in-scope individuals meet the Standards, and PCF appointments are confirmed to the Central Bank in an annual return.
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 and regulations issued by the Central Bank of Ireland under statutory powers are legally binding on regulated entities. The Consumer Protection Code 2025, made as the Standards for Business Regulations 2025 and the Consumer Protection Regulations 2025, is the leading example, and breaches can be pursued through 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.

Exam sponsor: LIA / IOB (Ireland). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

100 multiple-choice questions with negative marking (+3 for a correct answer, -1 for an incorrect answer, 0 for 'I don't know')

Time Limit

2 hours

Passing Score

40%

Exam / Certification Fees

€370 per module (LIA); €470 per module plus an €80 annual study fee (IOB)

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

Not published

Regulation of Financial Services Providers

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

Not published

Consumer Protection Code

Rules on knowing the consumer, suitability, disclosures, complaint handling, advertising, and cancellation rights under the revised Consumer Protection Code effective 24 March 2026.

Not published

Minimum Competency Code

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

Not published

Data Protection

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

Not published

Money Laundering & Terrorist Financing

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

Not published

Investor Compensation & Ombudsman (FSPO)

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

Not published

Unfair Contract Terms & Protected Disclosures

Unfair terms in consumer contracts and the legal obligations around whistleblowing (protected disclosures) in financial services.

Preparing for the QFA Regulation Exam

What You Need to Know

  • Passing score: 40%
  • Assessment: 100 multiple-choice questions with negative marking (+3 for a correct answer, -1 for an incorrect answer, 0 for 'I don't know')
  • Time limit: 2 hours
  • Exam / certification fees: €370 per module (LIA); €470 per module plus an €80 annual study fee (IOB) Official sources

Using Our Practice Resources

  • Work through all 172 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

QFA Regulation: Suggested Study Strategy

1Give the Consumer Protection Code (CPC) and the Minimum Competency Code (MCC) plenty of study time, but cover every syllabus area: LIA and IOB do not publish topic weights.
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 working-day complaint acknowledgment, the 40 working-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. LIA applies negative marking to its multiple-choice exams: 3 marks for a correct answer, minus 1 for an incorrect answer and 0 for 'I don't know'.

What is the passing score for the QFA Regulation module?

LIA states that all of its courses have a pass mark of 40%. Because LIA multiple-choice papers are negatively marked (3 marks for a correct answer, minus 1 for an incorrect answer, 0 for 'I don't know'), 40% is not the same as 40 correct answers. IOB candidates should confirm the pass standard in their IOB assessment regulations.

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

LIA charges €370 per module, and participants receive a textbook and online learning resources. IOB charges €470 per module plus an €80 annual study fee. Membership of LIA or IOB is also required.

What happens if I fail the QFA Regulation exam?

If you do not pass, you can re-register for a later exam term. LIA's re-registration fee is €205, reduced to €150 with a medical certificate if illness prevented you from sitting the exam.

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 15 hours of Continuous Professional Development (CPD) each calendar year, including at least 1 hour of ethics.