CySEC Basic Mock 2

A master UCITS in the republic is trying to decide whether to merge and grow larger or split to better handle risk exposure. Regardless of the outcome of the decision, how much notice must be given to CySEC and or Unit holders of the UCIT with regards to the decision?

CySEC has found an MC authorized in the republic to manage a UCITS of another member state to be performing illicit activities which may lead to fraud, hence they have decided to withdraw their license. In order to do so they must ?

Which of the following reports would be the most important to be published by an AIFM for public view and to satisfy regulatory authorities?

An AIFM needs to have sound and prudent risk management. Which of the following must be implemented in the risk management procedures?

Conflicts of interest is a main concern of all companies offering financial services with regards to AIFMS, in which situation should they take reasonable steps to identify conflicts of interest?

An AIFM with third country owners is planning to open in Cyprus in order to offer services freely to member states. In order to be granted authorization by CySEC which of the following criteria must be satisfied?

Customer X and Customer Y are both customers of the same CIF and both invest in the same financial product however Customer X requires enhanced due diligence, why would this occur?

Invicta trading ltd has been lucky to gain clients of all size and their profits are soaring, they employ simplified due diligence measures mainly because their clients are?

A newly established UCITS in the republic is preparing its reports, procedures and policies. It is also accountable for Synthetic risk and reward indicators, these are calculated in order to?

A CIF in the republic is planning to expand its operations to include portfolio management. In order to employ efficient portfolio management techniques these techniques shall:

Customer X of Investa Trading Ltd has taken various trades over his history however recently he took some trades that caused Investa to block and cancel some of these trades automatically, why did this occur?

A CIF is obligated to conduct suitability test for all its prospective clients, how often must this information be updated?

A CIF is entering into an agreement with a legal entity, the firm needs to assess suitability of the most appropriate person. If there is no agreement on the most appropriate person, the most relevant person in this respect is the person with?

The compliance function within his duties of working for a CIF must also support staff with any required trainings. These trainings and support should:

A CIF is trying to decide whether to hire an internal compliance officer or to outsource one, In the event the compliance function is outsourced, what is the main requirement of the compliance ?

It is well known that CIFs must conduct suitability tests for their clients, information regarding the suitability assessment should be included in the information provided for clients for which of the following financial services?

An the capital of an SME who shares have been trading for 16 month, is calculated taking into account

An SME growth market can lose it status if the number of issuers admitted falls below

What is the MAXIMUM percentage limit a UCITS can invest in an OTC derivative transaction in which the counterparty is a credit institution?

Which of the following methods can normally be used by a Variable Capital Investment Company (VCIC) to decrease its capital?

In the event that the company has not used its authorization for ____ from the date of receiving the license, then the autorization will be deemed lapsed.

Each year, a CIF must inform CySEC about all persons possessing shares in the company during the previous year, equal or in excess of?

A qualifying holding is defined as having voting rights of?

A CIF that had its license withdrawn has:

A company in Hungary wants to become a tied agent of a CIF, in order to do so, the CIF needs to inform?

Broker X operates as a systematic internalizer. The broker serves retail and professional clients. For professional clients the broker can execute orders at?

Bank XYZ in Cyprus, wants to delegate portfolio management to a company MM in Canada. Which of the below sentences in true?

Bank XYZ has delegated safekeeping of its clients funds to Barclays. In order for this delegation to comply with the law and guidelines, which of the below statements should NOT be true:

A newly authorized CIF needs to subscribe to the investment compensation fund within ______ of its authorization?

In order to publish inside information in terms of making the information public an order of actions must occur. Which sequence is correct?

1. Publish it on issuers website 2. Inform the CSE 3. publish it on CSE website 4. Inform CySEC

Mrs Marlon is a director of a company called Marlon & Marlon. Marlon & Marlon LTD decided to buy 1000 shares in CISCO, a listed company, based on market analysis. The husband of Mrs Marlon is a director in CISCO. Choose the most correct statement from below:

One of the below is not a characteristic of UCITS?

When an approved depositary of a UCITS resigns, it needs to give at least how much notice?

In case that a depositary violates its obligations, CySEC can:

Where sales of units of a UCIT is required, the purchaser has to:

A regulated market is also known as:

Units in Collective Investment Undertaking are classified as?

A qualifying holding can be defined as?

The management company of a UCITS is not allowed to?

The own funds of the management company of the UCITS cannot be less than ____% of the overhead of the preceding year.

An internally managed AIFM will need a capital of?

How much percentage of variable renumeration may consist of shares for AIFMS?

Should an AIFM obtain a cover for professional liability?

With regards to reporting obligations to CySEC for an AIFM. Should their reports include the main instruments they are trading in?

Which of the below is correct: A company officer who is in possession of inside information can:

The practice of Front Running is?

Training and maintenance of staff competence falls on the shoulders of the?

The four eyes are also part of ?

1. Placement 2. Integration 3. Layering Please put the above in order, in regards to Money Laundering.