CH3-The Regulatory and Legal Environment

Question 1

in which year did the RBA become the Australian central bank?

Answer 1

14 January 1960

Question 2

In which year was the Better Banking program launched?

Answer 2

January 2017

Question 3

In which year was the New Payments Platform launched?

Answer 3

February 2018

Question 4

What are the three objectives of regulation in the financial services?

Answer 4

1) RIGHTS-Protect the rights of the customer
2) INTEGRITY-Maintain confidence in the integrity of the financial system
3) RISK-Reduce the risk of systemic failure

Question 5

Australia’s framework for financial regulation is determine by which two groups? Who makes up each of these two groups?

Answer 5

1) Treasury
2) Council of Financial Regulators - Composed of the RBA, ASIC and APRA.

Question 6

What are Australia’s five financial services regulators? What are their functions?

Answer 6

1) Reserve Bank of Australia - Responsible for monetary policy, overall stability of the financial system and regulation of the payments system
2) Australian Securities and Investments Commission (ASIC) - Responsible for market integrity and consumer protection across financial systems
3) Australian Prudential Regulation Authority (APRA) - Responsible for the prudential supervision of banks, building societies, life and general insurance companies and superannuation funds
4) Australian Competition and Consumer Commission (ACCC) - Responsible for promoting competition and fair trading and regulating the national infrastructure.
5) Australian Transaction Reports and Analysis Centre (AUSTRAC) - Responsible for administering the Anti-money laundering and Counter terrorism financing act and Australia’s financial intelligence agency.

Question 7

What are other regulators who play a support role in the governance of the financial services industry?

Answer 7

1) ATO - Principal revenue collection agency
2) Foreign Investment Review Board (FIRB) - Examines when foreign interests undertake direct investments in Australia
3) Office of the Australian Information Commissioner (OAIC) - Protection of personal information, including credit information.

Question 8

What five activities that the RBA does to give currency stability, maintain full employment and promote prosperity?

Answer 8

1) Financial Stability - Setting cash rate to meet inflation targets
2) Payments and Infrastructure - Maintain a strong financial system and efficient payments system
3) Banknotes - Issue bank notes
4) Banking - Provide banking services for the Government
5) Financial Market Operations - Manage Australia’s overnight cash rate, gold and foreign currency reserves.

Question 9

What legislation is predominantly administered by ASIC?
A) Reserve Bank Act 1959
B) Corporations Act 2001, FSR Act 2001
C) Australian Prudential Regulation Authority Act 1998
D) Competition and Consumer Act 2010
E) Anti-Money Laundering and Counter Terrorism Financing Act 2006

Answer 9

B) Corporations Act 2001, FSR Act 2001

Question 10

Under the Reserve Bank Act 1959, what are the two boards defined?

Answer 10

1) The Reserve Bank Board (nine members) - Currency stability, full employment and economic prosperity.
2) The Payments System Board - Control risk to the financial system, efficient payment systems and promoting competition.

Question 11

Why is the RBA the “lender of last resort”?

Answer 11

RBA is able to lend to eligible financial institutions that are experiencing liquidity issues and unable to make payments. Aim is to avoid failure of these financial institutions causing a significant impact to financial systems. This helps give depositors confidence that their funds are save and discourages bank runs from draining a banks liquidity causing it to become insolvent.

Question 12

What is a payments system?

Answer 12

Arrangements that allow consumers, businesses and other organizations to transfer funds to one another.

Question 13

What legislation is predominantly administered by ASIC?
A) Reserve Bank Act 1959
B) Corporations Act 2001, FSR Act 2001
C) Australian Prudential Regulation Authority Act 1998
D) Competition and Consumer Act 2010
E) Anti-Money Laundering and Counter Terrorism Financing Act 2006

Answer 13

B) Corporations Act 2001, FSR Act 2001

ASIC is Australia’s corporate and financial services regulator and is, responsible for promoting investor and financial consumer trust and confidence as well as insuring fair, orderly and transparent markets.

Question 14

What are the in scope the regulation responsibilities for the Corporations Act 2001, FSR Act 2001?

Answer 14

Financial markets, intermediaries and products licensing, disclosure and conduct, consumer protection

Question 15

What are Product Design and Distribution Obligations (DDO) as part of the ASIC Regulatory Guide 274?t

Answer 15

DDO imposes the obligation on financial product issuers to develop a Target Market Determination (TMD) to ensure products are “getting it right for customers” by putting the customers at the production design and distribution. There is also the requirement that it be maintained over the lifecycle of the product, not just at creation to avoid outdated products.

Question 16

What is TMD or Target Market Determination?

Answer 16

Essentially a design document for a financial production that defines the target customer and how that product will meet the needs of the customer. Product issues and distributors must maintain governance to ensure outcomes are maintained or improved for customers through out the product lifecycle.

Question 17

What is a product issuer?

Answer 17

A product issuer is like a bank or insurance company who must prepare a Target Market Determination for each financial product that requires a Product Disclosure Statement (PDS)

Question 18

What is organisational competance?

Answer 18

Term used to refer to the cumulative employee skills that a company must have in order to achieve their plans.

Question 19

What is a Fee Disclosure statement?

Answer 19

Obligation that requires advisers to provide clients with annual fee disclosure statement and the requirement for their client to ‘opt in’ or renew their ongoing fee arrangement every two years.

Question 20

What is a statement of advice (SOA)?

Answer 20

Written explanation of the adviser’s advice to a client, reasons for the advice and how the advice is to be implemented.

Question 21

What is wholesale banking?

Answer 21

Refers to banking services between merchant banks and other financial instituitions.

Question 22

How are retail and wholesale clients differentiated?

Answer 22

All clients are considered retail unless they fall into one of the following five categories:
1) Product being invested in or advised has a value exceeding $500,000
2) Individual wealth exceeds $2.5 million net assets or gross income over the last two financial years is at least $250K
3) Large business with more than 20 employees or 100 manufacturing employees.
4) Professional Investor
5) Sophisticated Investor

Question 23

There are two investor wholesale client categories, what are they?

Answer 23

1) Professional investor - Core business is a professional investor
2) Sophisticated investor - AFSL holder has determined entity is experienced with financial services.

Question 24

What are eight key obligations for AFSL Licensees?

Answer 24

1) Licensing obligations
2) Financial product advice and dealing
3) Disclosure documents
4) Training of financial product advisers
5) Organisational competence
6) Dispute resolution
7) Breach reporting
8) Design and Distribution Obligations

Question 25

What are the four members of the Council of Financial Regulators (CFR)?

Answer 25

Treasury, RBA, ASIC and APRA

Question 26

What legislation is predominantly administered by ACCC? A) Reserve Bank Act 1959 B) Corporations Act 2001, FSR Act 2001 C) Australian Prudential Regulation Authority Act 1998 D) Competition and Consumer Act 2010 E) Anti-Money Laundering and Counter Terrorism Financing Act 2006

Answer 26

D) Competition and Consumer Act 2010 ACCC is responsible for competition, fair trading and consumer protection

Question 27

What is AUSTRAC and which legislation does it administer?

Answer 27

Financial intelligence agency responsible for administering the Anti-Money Laundering and Couter-Terrorism Financing Act 2006. Current legislation are required to report transactions that are $10K or more in value.

Question 28

Which sectors does AUSTRAC cover?

Answer 28

Financial, gambling, bullion dealers

Question 29

If an entity is required to report to AUSTRAC what are 5 obligations must it fulfil?

Answer 29

1) Enrolling themselves with AUSTRAC 2) Ensure customer identification and verification 3) Accurate record keeping 4) Maintain an AML/CTF program ensure AUSTRAC obligations are met 5) Monitoring of customer transactions and reporting on eligible/suspicious events

Question 30

What is money laundering?

Answer 30

Process of disguising illegal profits obtained from criminal activities and making it appear legitimate and therefore able to be used by criminals for personal gain and further criminal activity.

Question 31

Money laundering is a three stage process, what are the three stages?

Answer 31

1) Placement - Getting the illegal monies into the formal financial system 2) Layering - Moving or dispersing the illegal funds to make it hard to identify their try origin 3) Integration - Invest and use funds now that they are well distanced from their illegal source.

Question 32

Why are there lower dollar amounts involved with terrorism financing? What is an SMR, and why is it useful for detecting terrorism financing?

Answer 32

1) Smaller amounts are required to fund and support terrorist activities 2) Limited access to funds or assets looking to support terrorism 3) Improved awareness in terrorism financing SMR are Suspicious Matter Reports

Question 33

What are some examples of potential methods that could be employed to misuse the Australian financial system?

Answer 33

1) Opening accounts in a false name 2) Transact using name of others or groups 3) Providing access to accounts of others or groups 4) Providing access to bank accounts other than yourself 5) Obtain loans through fraudulent applications, where the funds are used for illegal activities with no intention to repay those funds. 6) Performing funds transfers with false identification

Question 34

AML and CTF program provides two components of their program to help reporting entities. What are these two components?

Answer 34

Part A - Identifying, managing and reducing the money laundering and terrorism financing risk Part B - Customer identification and customer due diligence.

Question 35

What is the Australian Privacy Principles (APPs)? Which legislation does it administer?

Answer 35

APP administers the Privacy Act 1988, and outlines how organizations such as financial services providers must handle, use and manage personal information.

Question 36

What are some of the principles of the privacy act?

Answer 36

- Privacy policy that provides transparency in the handling of personal information - I appropriate ability to off anonymous or pseudonym capabilities - Collection of solicited personal information - Describe how personal information can be used and disclosed - Maintaining data quality - How data is kept secure - Rights of the individual to access and correct their personal information

Question 37

What are key obligations on reporting entities on the different classifications of information and their privacy?

Answer 37

- Sensitive information such as health, race, religion, etc - Personal information - Credit reporting - Tax file numbers

Question 38

What is AFCA and what does it do?

Answer 38

AFCA = Australian Financial Complaints Authority for independent dispute resolution

Question 39

What is BEAR and what does it do?

Answer 39

BEAR = Banking Accountability Executive Regime. Its to ensure that senior executives and directors recognise their responsibilities to drive cultural change in their organization. Making sure that senior management are clear on their individual accountabilities. Example of making sure those in leadership positions do as they say.

Question 40

What is FAR and what does it do?

Answer 40

FAR = Financial Accountability Regime. Purpose is to extend the BEAR to all financial entities regulated under APRA rather than just banks. Over it will increase transparency and accountability to improve risk culture and governance across all of financial services.

Question 41

Thinking about the FIVE key regulators, RBA, ASIC, APRA, ACCC and AUSTRAC what legislation does each administer and what are their responsibilities?

Answer 41

See attached summary.

Question 42

What is BREACH reporting and when do we need to do it?

Answer 42

A breach happens when: - We did not do WHAT we said we would do. Like charging a higher fee than quoted. - We did not do something WHEN we had to. Like not closing an account when we were required. - We did not do something HOW we were meant to. Like not providing a product in accordance with regulatory requirements.

Question 43

What is Cartel conduct?

Answer 43

Its where businesses agree to act together instead of competing with each other, through price fixing, sharing markets, rigging bids, etc.

Question 44

What is Concerted Practises?

Answer 44

Its when a competitor divulges internal information to you prior to it being public AND if you were to then share that information internally in your organization impacting business decisions. To avoid Concerted Practises, you need to state to the competitor that they should not be sharing that information AND you must not share that knowledge internally.

Question 45

What is Misuse of Market Power?

Answer 45

When a company uses its market power to eliminate competition unfairly.

Question 46

Do international regulatory bodies have legal powers of enforcement in Australia?

Answer 46

No, but Australia can receive diplomatic pressure to comply.

Question 47

What are examples if international regulatory bodies?

Answer 47

- BIS, Bank for International Settlements - BCBS, Committee of the BIS, Basel Committee on Bank Supervision - CPMI, Committee of the BIS, Committee on Payments and Market Infrastructure - G20 - FSB, Financial Stability Board - UNEP, United Nations Environment Program

Question 48

What is the Basel 2 Accord and what are the three pillars?

Answer 48

Basel 2 Accord was established in 2007. It has three pillars: Pillar 1) Minimum capital requirements for credit and operational risk Pillar 2) Governance Pillar 3) Improve market discipline by making participants publish certain details.

Question 49

Why was Basel 3 created and in which year?

Answer 49

Basel 3 was introduced in 2010 in response to the 2008 financial crisis. It built upon Basel 2 by increasing the capital liquidity requirements from 8% to 10.5% and introduced the Liquidity Coverage Ratio (LCR), Net Stable Funding Ration (NSFR) and the Leverage Ratio.

Question 50

Why are there three iterations of Basel? How are they different?

Answer 50

Example of Basel evolving and becoming more comprehensive in the range of risks covered in response to financial circumstances. - Basel 1: Basic establishment of minimum capital requirements. Credit Risk. - Basel 2: Expanding scope to be a global risk management framework with three core pillars. Credit risk, market risk, operational risk - Basel 3: Further enhancements around bank liquidity regulation. Credit risk, operational risk, market risk, liquidity risk.

Question 51

What is Liquidity Coverage Ratio (LCR)? What duration of net cash outflows must be supported?

Answer 51

Ensures that Australian ADIs have sufficient liquid assets to meet 30-day net cash outflows.

Question 52

What is Net Stable Funding Ration (NSFR)? What duration must funding last?

Answer 52

Australian ADIs to have sufficient stable funding for their assets over a one year horizon.

Question 53

What is Leverage Ratio?

Answer 53

Percentage of Tier 1 capital to Total Assets. Or another way the ratio between debt to capital.

Question 54

What was the cause and impact of the GFC?

Answer 54

Banks in some countries were allowed to hold excessive levels of debt, with holding insufficient liquidity to meet payment obligations. In this situation the wholesale funding market became much more expensive as the risk associated with lending became too high.

Question 55

How did Australia's regulators respond to the GFC?

Answer 55

1) Government guarantees to support domestic depositors to maintain confidence and avoid a run on banks 2) Government supported institutions by providing wholesale borrowing to fill the gap 3) Maintain focus on prudential requirements via Basel 3 4) Focus on responsible credit/lending behaviours

Question 56

Why is UNEP (United Nations Environment Programme) relevant to financial systems? What are UNEP's four key objectives?

Answer 56

UN concern that financial systems must also be sustainable in the transition to low carbon, green economy. Principle 1: Align banks with society goals Principle 2: Set a global benchmark for what it means to be a responsible bank Principle 3: Continuous drive and challenge banking contribution Principle 4: Help banks identify opportunities to further the UNEP objective.

Question 57

What are the four part of Financial Crime domain at NAB to support various parts of the Bank?

Answer 57

- Customer Divisions (Personal Bank, UBank, Business and Private Bank and Corporate and Institutional Banking. - Financial Crime Operations (In Technology and Operations). - Financial Crime Risk. - Regulatory and Advisory.

Question 58

What is the Financial Crime Change Program (FCCP)?

Answer 58

NAB's financial crime change program with three objectives: 1) Strengthen the controls across the business 2) Continue progress to achieve an effective operating model to optimise and centralise capabilities 3) Develop and embed the necessary risk awareness and risk responsive culture top-down

Question 59

How do you report activity that doesn't look right and warrants further investigation?

Answer 59

UAR - Unusual Activity Report

Question 60

What are two key relationships between bank and customer?

Answer 60

1) Debtor and creditor 2) Principal and agent - As would happen when the bank is acting as an agent in making periodic payments on behalf of a customer (principal).

Question 61

A valid contract must have six elements, if one or more of these are missing then the contract is considered invalid.

Answer 61

1) offer and acceptance 2) Both parties to the contract should understand what offer is being accepted 3) Consideration to be paid for the promise made 4) Legal capacity of the parties to act 5) Genuine consent of the parties 6) Legality of the agreement

Question 62

Australia has two main sources of law, what are they?

Answer 62

1) Statute law - Legislation created by the government 2) Common law - Case law developed by precedent in legal cases based on judges decision

Question 63

How did common law come about? Why is Australia's common law different to its English origins?

Answer 63

Common law started in England in the 11th century. Australia initially derived from the English model, since then there have been changes due legislation so it is now different to its origins.

Question 64

What is fiduciary duty and what role at the NAB is considered a fiduciary service?

Answer 64

A fiduciary is someone who holds a legal or ethical relationship of trust for one or more parties. They are expected to act at all times for the sole benefit and interest of the one who trusts. Financial planners are a role that are considered fiduciary in the NAB.

Question 65

What are the four pillars in financial planning?

Answer 65

Fundamentally, its about putting the interests of the client before your own. Principles, Process, Prudence, Consistency -

Question 66

What are examples of Duties of the Bank?

Answer 66

Duty to honour cheques Duty to safeguard property Duty of confidentiality

Question 67

What are the four common types of business structures?

Answer 67

1) Sole trader 2) Partnership 3) Company 4) Trust

Question 68

What is a sole trader business structure and what are key features of this structure?

Answer 68

The sole trader individual is legally responsible for all aspects of the business. - Full control - Low cost as there are fewer reporting requirements - Individuals can use their own TFN - Unlimited liability meaning personal assets can be seized - Offset losses against other personal income - No requirement to have a separate bank account - Business owner has the discretion of how and when they pay themselves - No income splitting - Employee obligations remain - Easy to change business structure

Question 69

What is a partnership and what are its key features?

Answer 69

Involves a number of people who operate a business together. - Easy to setup - ABN may not be compulsory - Unlimited liability - Shared control between partners - Partnership does not pay tax, each partner must pay individually - A partnership tax return is required to be lodged annually -

Question 70

What is a company structure and what are its key features?

Answer 70

A company is a separate legal entity, shareholders and owners have limited liability. - Limited liability as it is a separate legal entity - Company must be registered with ASIC - Company officers and directors must comply with Corporations Act 2001 - Money the business earns belongs to the business

Question 71

What are the administrative needs for a company structure?

Answer 71

Business operations are controlled by directors, owned by the shareholders. Must be registered for GST if annual turnover is more that 75K, 150K for non-profit. Annual company tax return must be lodged.

Question 72

What is a trust and what are its key features?

Answer 72

Arrangement where a person/company (trustee) holds assets (trust property) in trust for the benefit of others (beneficiaries). - Expensive to setup and operate - Trustee administers assets on behalf of beneficiaries - Trustee required to complete yearly administrative and reporting tasks - Trustee is legally responsible for operations - Requires legal document on who can be a member and benefits

Question 73

What is a general definition for corporate governance?

Answer 73

Describes the ways organisations are directed and controlled and how their affairs are handled by the board, senior management and other employees. "Governance encompasses the system by which an organisation is controlled and operates, and the mechanisms by which it, and its people, are held to account. Ethics, risk management, compliance and administration are all elements of governance".

Question 74

What areas is corporate governance focussed?

Answer 74

- Effectiveness and efficiency of a company's operations - Reliability of financial reporting - Compliance with laws and regulations - Safeguarding of assets

Question 75

Which government agency is concerned with Corporate Governance?

Answer 75

ASIC

Question 76

Every bank has a compliance and risk management department, what are their monitoring and operational responsibilities?

Answer 76

- Risk appetite - Risk performance and control environment - Regulatory environment - Risk culture - Capability and capacity

Question 77

Which of the following clearing and settlement systems provides settlement services for the OTC debt market and for derivatives traded on the ASX and ASX 24 markets? a) ASX Clear b) ASX Clear (Futures) c) Austraclear d) CHESS (Clearing House Electronic Sub-register System)

Answer 77

c) Austraclear - Debt securities and cash settlement platform Why? a) ASX Clear - Clearing House for all shares, structured products, warrants and ASX Equity Derivatives. b) ASX Clear (Futures) - Clearing house does not provide settlement services d) CHESS (Clearing House Electronic Sub-register System) - Clearing house

Question 78

Which of the following sought to improve executive accountability in ADI’s? a) AFCA b) BEAR c) BCBS d) G20

Answer 78

b) BEAR

Question 79

Basel II Accord, established in 2007, addressed which of the following risks? a) Credit Risk b) Market Risk c) Operational Risk d) Liquidity Risk - (a), (b) and (c) - (a), (c) and (d) - (b), (c) and (d) - (a) and (c)

Answer 79

- (a), (b) and (c) Why not liquidity risk?

Question 80

Which of the following is NOT one of the principles of responsible banking put forward by UNEP? a) Alignment b) Impact and Target Setting c) Corporate Social Responsibility d) Governance and Culture

Answer 80

c) Corporate Social Responsibility

Question 81

Which of the following regulatory bodies is considered the “lender of last resort”? a) Reserve Bank of Australia b) Australian Tax Office c) Australian Prudential Regulation Authority d) Australian Securities Exchange

Answer 81

a) Reserve Bank of Australia

Question 82

What are the three stages of the money laundering cycle? a) Introduction, Folding, Investigation b) Placement, Layering, Integration c) Introduction, Layering, Investigation d) Placement, Folding, Integration

Answer 82

b) Placement, Layering, Integration

Question 83

What is NOT a characteristic of a Company? a) Separate Legal Entity b) Must be registered with ASIC c) Business Operations are controlled by Directors and owned by Shareholders d) Business losses can be offset against personal income

Answer 83

d) Business losses can be offset against personal income

Question 84

Which of the following would be considered ‘wholesale’ clients? a) An individual with gross income of $ 200,000 b) The product being invested in or advised on has a value of $ 800,000 c) A listed entity and its related body corporates d) A business that has 120 employees - (a) and (b) - (a), (c) and (d) - (b) and (d) - (b), (c) and (d)

Answer 84

- (b), (c) and (d)

Question 85

The Council of Financial Regulators (CFR) is the co-ordinating body for Australia’s main financial regulatory agencies and aims to: a) Enforce a range of legislative provisions primarily under the Corporations Act, 2001 b) Enforce a range of legislative provisions aimed to promote the overall stability of the financial system c) Advise government on the adequacy of Australia’s financial regulatory arrangements d) Facilitate sharing of information amongst members - (a), (c) and (d) - (b) and (c) - (c) and (d) - (b), (c) and (d)

Answer 85

- (c) and (d)

Question 86

Which Australian regulator might prohibit a merger or acquisition between two large banks? a) AUSTRAC b) ACCC c) ASIC d) OAIC

Answer 86

b) ACCC

Question 87

Which of the following is NOT one of the 4 pillars of fiduciary duty? a) Principles b) Planning c) Process d) Prudence

Answer 87

b) Planning

Question 88

There are six key elements to a valid contract. Which of the following are elements of a valid contract? a) Offer and acceptance b) Transfer of funds c) Legal capacity of the parties to act d) An intention between the two parties to create binding relations - (a) and (c) - (a), (b) and (c) - (a), (c) and (d) - (c) and (d)

Answer 88

- (a), (c) and (d)

Question 89

_________________ has licenced NAB to provide financial services and act as a consumer credit provider. a) Reserve Bank of Australia b) ASIC c) AUSTRAC d) APRA

Answer 89

b) ASIC

Question 90

Which of the following is a role of the RBA? a) Monetary policy b) Financial policy c) Fiscal policy d) Financial markets operations

Answer 90

a) Monetary policy

Question 91

Which of the following is not considered to be sensitive information under the Australian Privacy Principles? a) Marital status b) Religious affiliations or beliefs c) Criminal record d) Political opinions

Answer 91

a) Marital status

Question 92

What are the three primary elements of the payments system?

Answer 92

1) Consumer payment methods 2) High Value Clearing System (HVCS) - Uses SWIFT to exchange payments, and RITS (Reserve Bank Information Transfer System) for settlement. 3) Clearing and Settlement Systems - ASX Clear, ASX Clear (Futures), Austraclear, CHESS

Question 93

The ACCC aims to promote competition and fair trade, what are three main areas it does this?

Answer 93

1) Administer lays to protect consumers from unfair business practises 2) Prohibit anti-competitive behaviour and the monitoring of prices 3) Prohibit mergers and acquisitions that lessen market competition.

Question 94

What are some specific industries regulated by the ACCC?

Answer 94

Airports, electricity, gas and telecommunications.

Question 95

What is cuckoo smurfing in the context of money landering?

Answer 95

Targets international money transfers into Australia, where the account holders are unaware of the activity. Happens when the funds overseas are transferred to a money transfer business for deposit in Australia, however the transfer does not take place. Instead, the funds come from illegal activities and deposited into the Australian account. Legitimate funds were swapped for illegitimate behind the scenes.

Question 96

What are tipping off provisions as part of the AML/CTF?

Answer 96

When submitting a Suspicious Matter Report (SMR) it against the law to tell the customer or anyone else that you have formed a suspicion on submitted an SMR. Exceptions exist such as communicating within your designated business where the information relates to affairs or risks associated with that customer.

Question 97

In relation to data privacy what are examples of sensitive information categories?

Answer 97

Health, racial/ethnic origin, political opinions, membership to political/professional association or union, religious beliefs, philosophical beliefs, sexual orientation, criminal record.

Question 98

When is it appropriate to disclose personal information?

Answer 98

1) Individual has consented to secondary use or disclosure 2) Individual would reasonably expect the entity to use or disclose their personal information 3) Disclosure is required under law 4) Health situation exists in relation to disclosure 5) Disclosure required for one or more law enforcement-related activities

Question 99

What is the FSB?

Answer 99

Financial Stability Board that co-ordinates national financial authorities and international standards setting bodies.

Question 100

What is the relationship between bank and customer?

Answer 100

Contractual relationship which begins when an account is opened.