Exam QCM Flashcards by Matheus Rodrigues

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) Approximately 5,000,000 million EUR

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

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

a) The promoter/ initiator

or the management company

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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?

c) The Management Company

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4) Which investment fund industry player calculates the NAV?

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

a) The Fund Accounting (administrative agent)

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5) Which investment funds industry player collects tax payments?

a) The Supervisory Authority
b) The Paying Agent
c) The Tax Authority

c) The Tax Authority

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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) Ireland
e) Luxembourg

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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) Assess AML risk associated to each client through a review of the KYC
c) Review processes to identify deficiencies within controls

c) Review processes to identify deficiencies within controls

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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

) Fund Set-Up (Registration)

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9) What are KPI?

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

c) Key Performance Indicator

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10) What is the ultimate goal of money laundering?

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

c) Both

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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

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

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12) What is the objective of the KYC?

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

a) Identify the Investor (client)

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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

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

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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

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

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

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

b) Operational risk

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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) Yes

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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

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

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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

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

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

c) Ireland

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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) 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

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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) An Undertaking for Collective Investment in Transferable Securities

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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

b) Retail Investors, diversification, European passport

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

c) UCITS V

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

b) Alternative Investment Fund

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25) What is the 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

b) Create a fund label similar to UCITS for Alternative Investment Funds

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) 12 July 2013

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) Commission de Surveillance du Secteur Financier

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

b) AIFMD

29) A retail investor … invest…in a) Part I UCITS b) Part II UCI c) SIF d) SICAR

a) Part I UCITS b) Part II UCI

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

b) No The NAV publishing may vary

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

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

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

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

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

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) Located in Luxembourg

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) Depositary b) Sanctions c) Remuneration

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?

b) 2

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) Makes strategic decision and supervisors the management of the Management Company Supervises the management of the ManCo

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

b) Portfolio Management and Risk Management d) Internal Audit and Compliance (Internal audit and risk management)

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

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

c) Third level of control

Which team is in charge of maintaining investor satitic data updated within the TA system ? a)Registration b)Dealing C)Relationship management

a)Registration

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) Second level of control

Which Investment fund industry player applies the NAV to a subscription transaction? a) The Fund Accounting b) The Broker c) The Transfer Agent

c) The Transfer Agent

What does TER Stand for? a) Total expense ratio b) Transactions exceptions report c) Trailer evolution redemptions

a) Total expense ratio

The CSSF (Commission de Surveillance du Secteur Financier) supervises : a) Auditors only b) Management companies only c) All of the above (amongst other players providing services within the financial sector in Luxembourg) d) Banks only

c) All of the above (amongst other players providing services within the financial sector in Luxembourg)

Target investors of Specialized Investments Funds (SIF) are: a) Only retail investors b) Only well-informed investors c) All investor types

b) Only well-informed investors

Within a Luxembourg Management Company, what is the role of the conducting officers? a) The conducting officers are responsible for the day-to-day management of the Management Company b) The conducting officers are neither responsible of the strategy nor the day to day management of the Management Company c) The conducting officers decide on the strategy of the Management Company d) The conducting officers are not part of a Management Company

a) The conducting officers are responsible for the day-to-day management of the Management Company

Within a Management Company, the role of the Compliance officer (conformity) is to: a) Monitor the financial and operational risks of the funds b) Manage the portfolio of assets c) None of the above, however her/his role is key within a Management Company

c) None of the above, however her/his role is key within a Management Company

An FCP (Fond Commun de Placement) is : a) A contractual form b) Can be a corporate or a contractual form c) A corporate form d) None of the above

a) A contractual form

What are some of the key impacted areas of UCITS V? a) Sustainable investment b) Fund accounting c) Depositary d) Remuneration policy

c) Depositary d) Remuneration policy Also independance and sanctions

For a Management Company in Luxembourg, how many board members are required? (At minimum) a) 2 b) 3 c) 4 d) 1

b) 3

Compliance and Risk Management can be performed by the same Conducting Officer? a) No b) Yes

a) No

Which of those departments includes the team in charge of processing the dividends? Sales Dealing Fund events

Fund events

L'acteur en charge de maintenir le registre des actionnaires d'un fonds est The fund accounting The tranfers agent The broker

The transfer agent

Who creates the fund Initiator Management company Supervising authority

Initiator

Short sales UCITS UCI SIF SICAR

Forbidde Flexible Flexible Flexible

As an investor if i invest in the SICAV i become

Shareholder and have right to dividend and to vote

As an investor if i invest in the FCP i become

An unit holder, no voting rights but may receive income distribution

For which is mandatory to have a management company SICAV FCP

FCP

Minimun capital required UCITS UCI SIF

1250000 for all, within 6 months for UCITS and UCI and 12 for SIF

Well informed investors only : UCITS UCIs SIF SICAR

SIF SICAR

What belongs to AIF UCITS UCIs SIF SICAR

UCIs (in part belongs to both) SIF SICAR

For an FCP a management company needs to be appointed and managements regulations must be defined Yes No

Yes An FCP need a ManCo an SIcav does not

UCITS must publish a NAV

Twice a month

UCI must publish a NAV

Once a month

SIF must publish a NAV

Once a year

European Passport Part 1 UCITS Part 2 UCIs SIF SICAR

Part 1 UCITS

Rates UCI SIF

0,05% 0,01%

Exam QCM Flashcards

(68 cards)