Chapter 2 - CISI IT

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1. What does the liquidity coverage ratio (LCR) require banks to hold under Basel III?

  • sufficient high quality liquid asses to cover total cash outflows over 30 days
  • sufficient high quality liquid asses to cover total cash outflows over 60 days
  • enough illiquid asses to cover total cash outflows over 30 days
  • sufficient high quality liquid asses to cover total cash outflows over 90 days
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Other questions in this quiz

2. What is ESMA's mission?

  • enhance the protection of investors and build a single rule book for EU financial markets ("watch dog")
  • enhance the protection of investors and build a single rule book for UK financial markets
  • Regulate market abuse

3. Who does the APPROVED PERSON'S REGIME apply to?

  • An individual who is approved to do one or more activities or "controlled functions" for an authorized firm
  • Material risk takers (staff who are subject to dual-regulated firms remuneration code and pose sig risk of harm)
  • Most senior individuals
  • All staff

4. Under FCA rules, what is the purpose of CASS?

  • How assets (including cash & securities) that belong to clients must be managed by segregating them from the asset's of the firm.
  • To ensure senior managers are responsible for segregating client's assets
  • To ensure firms always act fairly, honestly and professionally
  • To ensure senior managers and directors are responsible for their firm's arrangements (eg effective risk management systems).

5. Under MiFID II "post-trade transparency" reporting, where does PUBLICATION REPORTING need to be performed?

  • APA (approved publication arrangement)
  • ARM (approved reporting mechanism)

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