Exam QCM Flashcards

1
Q

1) What is the current value of the Luxembourg net assets?

a) Approximately 5,000,000 million EUR
b) Approximately 9,000,000 million EUR
c) Approximately 2,000,000 million EUR

A

a) Approximately 5,000,000 million EUR

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2
Q

2) Which investment fund industry play is the creator of the fund?

a) The promoter
b) The Management Company
c) The Supervisory Authority

A

a) The promoter

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3
Q

3) Which player of the Fund industry is mandatory for a FCP, optional for SICAV/F and most of the time
connected to the promoter?

a) The C… stodian (kreien net ganz gelies)
b) The Auditor
c) The Management Company

A

c) The Management Company

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4
Q

4) Which investment fund industry player calculates the NAV?

a) The Fund Accounting
b) The Transfer Agent
c) The Broker

A

a) The Fund Accounting

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5
Q

5) Which investment funds industry player collects tax payments?

a) The (N… supervisory) oder Supervisory Authority
b) The Paying Agent
c) The Tax Authority

A

c) The Tax Authority

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6
Q

6) Which countries recognize the Transfer Agent as a specific function of the investment fund industry?

a) Ireland
b) Switzerland
c) USA
d) France
e) Luxembourg

A

a) Ireland
e) Luxembourg

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7
Q

7) What is the role of the risk management department with regards in asset servicing (back office)
processes?

a) Review implementation of the applicable regulatory framework
b) A… AML risk associated to each client through a review of the KYC
c) Review processes to identity deficiencies within controls

A

c) Review processes to identity deficiencies within controls

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8
Q

8) Which team is in charge of maintaining client static data updated within the TA system?

a) Relationship Management
b) Account Operating Maintenance
c) Fund Set-Up

A

c) Fund Set-Up

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9
Q

9) What are KPI?

a) Key to Performed Innovator
b) Key (Processes?) of Investments
c) Key Performance Indicator

A

c) Key Performance Indicator

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10
Q

10) What is the ultimate goal of money laundering?

a) Legitimize profits earned from criminal activities.
b) Protect the … of income of a criminal organization.
c) Both

A

c) Both

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11
Q

11) What should a TA operating agent do if they suspected money laundering case?

a) Process the transaction and then inform the TA management
b) Call the Luxembourgish CRF (Cellule de Renseignement Financier)
c) Inform the TA management

A

b) Call the Luxembourgish CRF (Cellule de Renseignement Financier)

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12
Q

12) What is the objective of the KYC?

a) Identify the Investor (client)
b) Identify the Distributor
c) Identify the Management Company

A

a) Identify the Investor (client)

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13
Q

13) Which of the following is impossible?

a) Management fees – 100 EUR and trader fees – 90 EUR
b) Management fees – 30 EUR and trader fees – 50 EUR
c) Management fees – 60 EUR and trader fees – 20 EUR

A

b) Management fees – 30 EUR and trader fees – 50 EUR

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14
Q

14) How is the NAV per unit calculated?

a) (fund asset – fund liability)
b) (fund asset – fund liability) / Number of units in circulations
c) (Number of units in circulations – fund asset) / fund liability

A

b) (fund asset – fund liability) / Number of units in circulations

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15
Q

15) What is the biggest risk for asset servicing (back office) agents?

a) Market risk
b) Operational risk
c) (IF?) risk

A

b) Operational risk

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16
Q

16) Can a TA operating agent accept concept a subscription order received at 18h00 and (record?)
while the cut-off time is set at 18h00?
a) Yes
b) No

A

a) Yes

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17
Q

17) How can the 4-eyes check be the best described?
a) The task is performed by tax-operating working together
b) The task is performed by a first operator and then reviewed by a second operative
c) The task is performed by an operator when, after a while, performs a check on his own work to
identify

A

b) The task is performed by a first operator and then reviewed by a second operative

18
Q

18) Which sentence(s) is (are) correct?
a) American and European fund distributors markets are both homogenous markets very
differently
b) European market is heterogenous while American market is homogenous
c) Fund distribution is more complex in Europe than in the USA

A

b) European market is heterogenous while American market is homogenous
c) Fund distribution is more complex in Europe than in the USA

19
Q

19) After Luxembourg, which European country is the top European domicile of UCITS funds?
a) France
b) United Kingdom
c) Ireland

A

c) Ireland

20
Q

20) What is correct?
a) The UCITS regulations makes it easier to distribute UCITS funds in Europe than non-UCITS
funds
b) UCITS funds are highly regulated an offer more protection to retail Investors than non-UCITS
funds
c) The UCITS passport is valid to distributor funds on the American market

A

a) The UCITS regulations makes it easier to distribute UCITS funds in Europe than non-UCITS
funds
b) UCITS funds are highly regulated an offer more protection to retail Investors than non-UCITS
funds

21
Q

21) What is UCITS?
a) An Undertaking for Collective Investment in Transferable Securities
b) An Unique Company for Investment in Transport Services
c) An Undertaking for Collective Investment in Transport Services

A

a) An Undertaking for Collective Investment in Transferable Securities

22
Q

22) What are the main characteristics of a UCITS?
a) European passport, diversification, open-ended
b) Retail Investors, diversification, European passport
c) Diversifications, closed-ended or open-ended, European passport
d) Open-ended, institutional Investors, diversifications

A

a) European passport, diversification, open-ended

23
Q

23) Currently, under which directive are UCITS regulated?
a) UCITS III
b) UCITS IV
c) UCITS V
d) UCITS VI

A

c) UCITS V

24
Q

24) What is an AIF?
a) Absolute Investment Fund
b) Alternative Investment Fund
c) Alpha Investment Fund

A

b) Alternative Investment Fund

25
Q

25) What is the (main?) objective of AIFMD?
a) Fight against tax … and money laundering
b) Create a fund label similar to UCITS for Alternative Investment Funds
c) Set new diversifications rules for Alternative Investment funds

A

c) Set new diversifications rules for Alternative Investment funds

26
Q

26) AIFM European Directive has been transposed in Luxembourg on
a) 12 July 2013
b) 12 July 2017
c) 12 July 2005
d) Non yet Transposed in Luxembourg

A

a) 12 July 2013

27
Q

27) Which regulatory body… supervise the financial center in Luxembourg?
a) Commission de Surveillance du Secteur Financier
b) Central Bank of Luxembourg
c) Ministry of Finance
d) Administration de l’Enregistrement et des Directives

A

a) Commission de Surveillance du Secteur Financier

28
Q

28) Specialised Investment Funds (SIF) are registered under:
a) UCITS
b) AIFMD
c) None of the above

A

b) AIFMD

29
Q

29) A retail investor … invest…in all correct (assumers?) if applicable:
a) Part I UCITS
b) Part II UCI
c) SIF
d) SICAR

A

a) Part I UCITS
b) Part II UCI

30
Q

30) Is the following statement correct?.. SIF are more risky than Part I UCITS and more regulated to
publish NAV at least twice a month”
a) Yes
b) No

A

b) No

31
Q

31) An FCP (Fonds Commum de Placement) is :
a) A separate legal entity in its own right
b) Not a separate legal entity limits own right and Investors of FCP hold units
c) Not a separate legal entity limits own right and Investors of FCP hold shares

A

b) Not a separate legal entity limits own right and Investors of FCP hold units

32
Q

32) When submitting a new fund set up application to the CSSF, which of the following documents must
be provided? (Select all correct answers)

a) Prospectus
b) Risk Management Process (RMP)
c) KIID
d) Articles of associations of the SICAV/Management regulations for a FCP

A

a) Prospectus
b) Risk Management Process (RMP)
c) KIID
d) Articles of associations of the SICAV/Management regulations for a FCP

33
Q

33) A SICAR must publish a NAV at least:

a) Twice a month
b) Once a month
c) Once a year
d) There is no requirements on NAV publications frequency for UCITS/AIF

A

d) There is no requirements on NAV publications frequency for UCITS/AIF

34
Q

34) Under UCITS and in the case of a fund domiciled in Luxembourg, the depositary must be:

a) Located in Luxembourg
b) Located in the European Union
c) May be located in Luxembourg or everywhere in the world
d) There is no requirement on Depositary domiciliation under UCITS 5?

A

a) Located in Luxembourg

35
Q

35) Within UCITS 5, which of the following area has been further…forced and clarified? (Select all the
correct answers)

a) Depositary
b) Sanctions
c) Remuneration
d) Portfolio Management

A

a) Depositary
b) Sanctions
c) Remuneration

36
Q

36) Within a Luxembourg Management Company, how many Conducting Officers must be appointed
at least?

a) 1
b) 2
c) 4
d) There is no requirements at all on the governance of a Management Company?

A

b) 2

37
Q

37) What is the role of the board of directors of a Management Company?

a) Makes strategic decision and supervisors the management of the Management Company
b) Actively manages daily all the operations of the Management Company
c) Provides high level advices to the Management Company

A

a) Makes strategic decision and supervisors the management of the Management Company

38
Q

38) Which of the following activities CANNOT be performed by the same conducting officer? Select all
correct answers

a) Internal Audit and Portfolio Management
b) Portfolio Management and Risk Management
c) Compliance and Portfolio Management
d) Internal Audit and Compliance

A

b) Portfolio Management and Risk Management
d) Internal Audit and Compliance

39
Q

39) Which of the following activities can be delegated by a Lux Management Company? Select all
correct answers:

a) Risk Management
b) Fund Administration
c) Portfolio Management
d) Distribution

A

a)Risk management
b) Fund Administration
c) Portfolio Management
d) Distribution

40
Q

40) Within a Management Company, the internal audit is considered to be:

a) First level of control
b) Second level of control
c) Third level of control
d) Internal audit is a not control function

A

c) Third level of control

41
Q

Which team is in charge of maintaining investor satitic data updated within the TA system ?

a)Registration
b)Dealing
C)Relationship management

A

a)Registration

42
Q

Within a Management company, the risk management is considered to be

A) Second level of control
B)Risk management is not a control function
C)First level of control
D)Third level of control

A

A) Second level of control