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| Section | Weight | Objectives |
|---|---|---|
| Markets | 10% | - Trading and settlement rules - UAE exchanges: DFM, ADX, NASDAQ Dubai - Listing and admission requirements |
| Market Conduct Legislation and Regulation | 28% | - Financial crime, AML and CFT regulations - Disclosure and transparency obligations - Insider dealing and market abuse |
| The Regulatory Infrastructure | 10% | - Roles and powers of regulators - Legislative framework and regulatory objectives - Regulatory bodies: SCA, CBUAE, DFSA, FSRA |
| Associated Market and Securities Legislation and Practice | 6% | - Market operation rules - Legal obligations of market participants - Securities laws and regulations |
| Client Protection | 20% | - Communications, reporting and complaints handling - Client assets and money protection - Client identification and classification |
| Authorised Persons | 6% | - Licensing and authorization requirements - Conduct of business rules - Obligations of authorized firms and individuals |
| Trading | 20% | - Reporting and compliance requirements - Trading rules and mechanisms - Market integrity and surveillance |
1. The minimum price movement for an MSCI India Index Futures (INR) contract is:
A) 0.5 index points
B) 0.25 index points
C) US$1.00
D) US$0.01
2. During a trading session, if an order is not fully executed, then:
A) the remaining unexecuted volume is cancelled and a new order is placed, at the last executed price
B) the transaction is executed at the price set on the other side of the transaction
C) the remaining unexecuted volume stays on the trading system, at the last executed price
D) the order will be dealt with at the next trading session
3. Each licence applicant must provide a guide regulating the internal audit processes that includes:
A) The mechanisms required to enable the responsible officer to have access to sufficient resources in order to perform the tasks and work independently
B) The responsible officer shall have access to most records and to the board of directors and senior management with only limited restrictions
C) The mechanism for informing the financial auditor immediately of any matter that may affect the financial position of the licensed body
D) Development and implementation of policies and procedures for managing risk so that advice can be provided to the board of directors and senior management
4. Financial institutions must retain all records, documents, data and statistics for all financial transactions and local or international commercial and cash transactions for a period of no less than:
A) Three years from the date of completion of the transaction or five years from the termination of the relationship with the customer
B) Five years from the date of completion of the transaction or ten years from the termination of the relationship with the customer
C) Ten years from the date of completion of the transaction or termination of the business relationship with the customer
D) Five years from the date of completion of the transaction or termination of the business relationship with the customer
5. If an existing company wants to offer shares after conversion into a public joint-stock company, it must have released audited financial statements for what minimum number of fiscal years prior to the request to offer shares?
A) Three
B) Four
C) Five
D) Two
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: A |
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