Special Regulatory Requirements Flashcards
The regulator of US derivatives exchanges is:
CFTC
Which of the following is the purpose of assessing the suitability of an investment or service before doing business with a client?
To ensure that the client understands the risks and is financially able to bear them
Which of the following is not true of the FCA’s treating customers fairly (TCF) initiative?
There are 11 outcomes that need to be achieved
A client moves into physically delivered OTC traded commodity derivatives. Which of the following statements is true in relation to the application of MiFID?
MiFID will always apply
Suitability needs to be applied in which of the following situations?
Advisory or discretionary management services
Which of the following is the main US regulator for the futures markets?
CFTC
In order to assess the suitability of a service or an investment a firm should first assess all of the following except:
The client’s success in previous trades
Which of the following would not be permitted under CFTC Part 30?
A UK firm trading on behalf of a US client on a non-US exchange
The SEC regulates which exchange?
CBOE
Which act in the USA increased transparency and mandatory clearing of OTC transactions?
Dodd Frank Act
What is the purpose of MiFID?
To cover passporting and outline the difference between home and host state regulations.
Which of the below body is responsible for the conduct of a deposit taking institution?
FCA
Who is the regulator of US stock indices?
SEC
The transparency directive has been implemented to achieve all of the following, except:
To increase disclosures of periodic information of private companies
Which of the below is false? EMIR introduced:
Clearing obligation for eligible exchange traded derivatives
How are principles-based regulation best defined?
Use of high-level objectives that are binding on the firm
What is the main purpose of the markets in financial instruments directive (MiFID)?
To bring EEA firms and markets under one regulatory process
Which of the following is NOT taken into account when assessing the suitability of an investment for a client?
Whether the client has been categorised as a retail or professional client
Which of the below is not a major role or aim of regulation?
Ensuring a financial firm is stable and does not go into liquidation
Who regulates Single Stock Futures in US?
CFTC and SEC
Who regulates the CBOE?
SEC
Under the Commodities Futures Modernization Act 2000, who has the responsibility to regulate single stock futures?
SEC and CFTC
Under CFTC Part 30, if a UK firm wishes to trade with a US client, it must:
Be accompanied by an NFA registered firm
Which statement about the NFA is false?
They regulate all US exchanges
The purpose of regulators around the world can be described by all of the following, except:
To impose high level standards on firms, but not prescriptive rules
What is the objective of the EU transparency directive?
To establish minimum requirements on periodic financial reporting
Which of the following describes the most important benefit of using a Trade Repository?
To provide a transparent record
Which piece of legislation states that regulation of single stock futures should be a joint effort between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC)?
Commodities Futures Modernisation Act
