Valid UAE Financial Rules and Regulations Exam Dumps are Your best Choice to Pass

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1. If in-kind shares are provided when the fund is founded; if the subscription fails and there is no special agreement, who would bear the expenses?

Share providers

Founders

Auditors

Evaluators

2. Which of the following is a sanction available to the Authority in the event of a violation of its provisions?

Impose a financial fine of not more than AED 100,000

Impose a financial fine of not less than AED 100,000

Suspend the licensed body for a period of two years

Suspend any financial activity practised during an investigation

3. A licensed person who conducts financial activities related to security tokens is required to carry out a suitability check only if:

the token falls into the high risk category

the amount being invested exceeds AED 100,000

the client is not a qualified investor

the licensed person has less than 3 years' relevant experience

4. The last trading day for an India Gold Quanto Futures contract is:

one business day prior to the last business day of the delivery month

two business days prior to the last business day of the delivery month

the 25th calendar day of the delivery month

four business days prior to the 25th calendar day of the delivery month

5. Which of the following is one of the prescribed financial activities for which the Authority can issue a license?

Analysis

Promotion

Corporate planning

Risk management

6. When updating their money laundering compliance framework, firms involved in crypto assets are required to take into account the recommendations of which body?

Bank for International Settlements

Financial Action Task Force

World Bank

United Nations Office on Drugs and Crime

7. If the two evaluators for an in-kind share transfer produce different fair value figures, what figure must be used?

The highest one

The lowest one

The average of the two amounts

The one produced by the most experienced evaluator

8. When a company applies to become a Special Purpose Acquisition Company, its sponsors must prepare proposals to:

manage conflicts of interest

identify potential money laundering

reduce the risk to investors

deal with succession planning

9. What is the maximum term of imprisonment that can be imposed on a person who attempts to commit the crime of money laundering?

Three years

Five years

Seven years

Ten years

10. Which of the following financial activities comes under the fifth category licence?

Arrangement and advice

Credit rating agencies

Dealing in securities

Dealing in investments

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11. During an investigation, what should a licensed body do if it discovers that any of the submitted documents or information are incorrect, misleading or have been changed?

The Chair and Board of Directors should notify the Authority and tender their resignations

Notify the concerned entity at the Authority or any of the capital market institutions within 5 working days

Call an emergency Board meeting and thereafter notify the concerned entity at the Authority

Notify the concerned entity at the Authority or any of the capital market institutions immediately

12. Where self-fund founders intend to accept in-kind shares, the fund prospectus must state whether these shares:

are to be valued subjectively

may subsequently be disposed of

will be held as capital assets of the fund

are consistent with the fund’s investment strategy

13. Establishing a local investment fund requires the approval of the Authority, for a public fund this will either be granted or rejected within:

5 working days

10 working days

20 working days

30 working days

14. An error was made by a broker which led to a trade being conducted using the wrong trading account number. If the trader submitted a request to have the number amended 40 minutes after the end of the trading session, the amendment would only be made if:

an alteration fee is paid at the same time

the correction is within a 5% error margin

an impact assessment gives acceptable results

the circumstances are considered to be exceptional

15. Where a brokerage firm on the DFM has a client with a debit balance, the regulations prevent the firm from:

accepting new orders from the client

providing investment advice to the client

paying any cash to the client

selling securities on the client’s behalf

16. The approved job for conducting securities dealing is:

Trading Manager

Operations Manager

Broker Representative

Category Manager

17. Unless otherwise agreed, a broker must submit to the client a statement of account that outlines the client’s balance of securities and cash, and all transactions executed every:

month

3 months

6 months

12 months

18. The Authority will only grant a licence to operate a crypto fundraising platform in the UAE if the applicant is a legal person in the form of:

an exchange licensed by the Authority in the UAE

a sophisticated trader or a qualified investor

a company incorporated under Shariah law

an exchange licensed by a market in the UAE

19. In what circumstances can the requirement for licensed bodies to disclose their legal status be waived?

An emergency has been notified to the Authority

A court case against the licensed body is in progress

A significant market correction is taking place

A takeover bid for the licensed body has been launched

20. The effectiveness of a financial institution’s internal policies, controls and procedures to combat money laundering must be tested by:

an independent audit function

regular operational resilience exercises

external consultants

the audit committee

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21. If a listed company faces accumulated losses of 50% or more of capital, what is required to happen?

It is moved from a second category listing to a first category of listing

It is moved from a first category listing to a second category of listing

Its shares are suspended for at least six months

It is required to be audited more frequently

22. If an error in the final cash settlement price of an equity index comes to the attention of the Exchange more than 30 minutes after the publication of the final cash settlement price, what happens?

No correction will be made

The provider will correct it

It will be re-determined

Liability is apportioned

23. Which of the following is an administrative penalty that can be imposed on financial institutions that violate the law and regulations in relation to money laundering and terrorism financing?

A penalty of no less than AED 5,000 and no more than AED 1,000,000 for each violation

A penalty of no less than AED 15,000 and no more than AED 5,000,000 for each violation

A penalty of no less than AED 50,000 and no more than AED 5,000,000 for each violation

A penalty of no less than AED 100,000 and no more than AED 10,000,000 for each violation

24. The watch list, which is monitored by an Authority-established committee, consists of which group of companies?

Companies in the first category

Companies in the second category

All private companies which have declared losses in the last 12 months

All public companies which have declared losses in the last 12 months

25. When establishing a local investment fund, how much are the founders required to subscribe?

At least 1 million dirhams

At least 5 million dirhams

At least 10 million dirhams

At least 20 million dirhams

26. Firms providing investment management services must provide periodic statements to retail clients, in normal circumstances at least every:

month

3 months

6 months

12 months

27. The contract size for an MSCI India Index Futures (INR) contract is:

5 index points x price

20 index points x price

25 index points x price

50 index points x price

28. Anyone who notifies or warns a person in relation to suspicions, or reveals any transaction under review in relation to suspicions, is guilty of:

money laundering

collusion

layering

tipping off

29. The conciliation process allows the Authority to impose what alternative to criminal prosecution?

Suspension of activities for a specified period

Payment of a prescribed amount of money

Referral to the Central Bank

Negotiated out-of-court settlement

30. If a discrepancy comes to light when conducting an external reconciliation, what must the firm do?

Immediately inform the regulator verbally and follow this up in writing

Immediately suspend operations with the third party

Investigate and correct it as soon as possible

Close the client's account by close of business on the same day

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