WorksheetsThe Financial Free Zone Law 2
Total questions: 25
Worksheet time: 13mins
Advising on insurance, acting as agent on behalf of another person that wants to buy or sell
Insurance is insurance intermediation. It includes:
advice is given in publications such as newspapers, journals,or other media, the purpose of
which is not that of giving advice.
Providing the means by which one party to a transaction is able to communicate with other
such parties
arranging to purchase insurance for another person either as a principal or agent
marketing.
Insurance management excludes:
Providing management services functions for an insurer.
Exercising managerial functions for an insurer.
Administration and underwriting for an insurer.
The person who is an employee of the insurer.
In an alternative trading system, which of the following is excluded.
over-the-counter (OTC) trading takes place
Order routing systems to handle orders happens.
offers to buy or sell investments are made or accepted
buyers and sellers can negotiate the purchase or sale of investments.
Providing trust services exclude:
generic advice on the desirability of using a trust
arranging for any person to act as a trustee
providing trust administration services
Creating, acting as trustee.
Providing fund administration excludes:
valuing of assets and performing net asset value calculations
performing anti-money laundering requirements
communicating with participants, the fund, the fund manager
acts as registrar to a market by recording details of matched trade
A person operate an ATS (alternative trading system ) if he as the operator of the facility:
Arranges contracts that can be entered into for the transfer of ownership
is a counterparty to every transaction effected on the facility
acts as a central counterparty accepting the risk of default
is an AMI
The marketing of one or more financial services or financial products which are offered in DIFC
excludes:
providing information on one or more financial products or services;
engaging in promotions in relation to these financial products or services;
receiving and transmitting orders in relation to a financial product
making introductions of referrals in connection with the offer of financial products or
services.
Chose the right combination for definition of financial product:
investment, training, PSIA, accountancy
investment, credit facility, deposit, training,
deposit, training, PSIA, accountancy
investment, credit facility, deposit, PSIA
Following Persons are not allowed to make financial promotions in or from the DIFC:
they are licensed and supervised by a financial services regulator in the UAE
a recognised body or external fund manager
are a reporting entity making a financial promotion to discharge their duties
Legal or accounting services firm.
A communication is not an exempt financial promotion if it is:
directed at professional clients;
made to a person in the DIFC as the result of a solicited request by this person;
made or issued by or on behalf of a government or non-commercial government entity; or
made in the DIFC by a person in the course of providing legal or accountancy services and is
part of the provision of these services.
Financial promotions which are directed at retail client from DIFC must have :
an endorsement on its licence permitting it to carry on a financial service with or for a
retail client.
License from ESCA
Authorization from DFSA.
Permission from central bank of UAE.
Of The 11 principles for authorised firms, find the odd one out:
Integrity, resources, market conduct
Management systems and controls.
Customer assets and money
Deposits and borrowings
Of The 6 principles for authorised individuals, find the odd one out:
Suitability and conflict of interest.
Market conduct, compliance and integrity
due skill, care and diligence
Relations with the DFSA
As part of systems and controls, all reporting lines within the firm must be:
suitable for the nature, scale and complexity of the business
need to be clearly defined, documented and communicated to all employees of the firm.
Only b.
Both a and b
Internal audit, business plan,, risk management are all part of
Senior management arrangements
Systems and controls
Fitness and propriety
Market conduct
How a firm has observed any resolutions or sanctions issued by the United Nations Security
Council is to be disclosed in :
Firm Annual report in Annual general meeting
Firms report to Board of Directors.
Annual return to registrar of companies.
in its annual MLRO report to the DFSA
The firm will need to be able to demonstrate that its employees are fit and proper. Following is not a
criteria to meet this:
governing body and senior management receive adequate and timely information
managing Potential conflicts of interest that could occur from other activities outside the firm
personal relationship with the clients
details of skills,knowledge and experience relevant to the job the employee has.
Key business documents does not include:
terms of business
business cards
compliment slips
written promotional materials
The DFSA considers that a firm should be able to acknowledge most complaints for retail clients
within :
One month
One day
48 hours
7 days
A firm provide an update to the complainant when resolution of the complaint is taking longer than:
7 days
15 days
One month
6months
DFSA considers _____ days from m the receipt of a complaint to be an appropriate
period in which an authorised firm should be able to resolve most complaints.
60 days
15 days
One month
7 days
External dispute resolution scheme, arbitration or the DIFC Court may be Other avenues for the
resolution of :
Conflict of interest
Complaint
Client classification
Inducements
The fact that the complaint has been referred, need to be informed to :
the other firm
the complainant
the other firm and the complainant
none of the above
A firm may classify a person as a professional client only if such a person has net assets of at least:
$1,000,000
$500,000
$100,000
$50,000
Three categories of professional clients are :
Deemed, assessed and service based.
Deemed, assessed and market counterparty
Deemed, retail and market counterparty
Assessed, retail and market counterparty
