Page 167 - CAPE Financial Services Syllabus Macmillan_Neat

-6-

22. According to the client classification rules of the Authorized Persons Regulations, which
of the following is considered as a "counterparty"?

(A) An authorized person
(B) A registered person
(C) A protected party
(D) An accepted party

23. The relationship between an authorized person and its client may be described as a
fiduciary relation. Which of the following BEST describes a fiduciary relation?

(A) The responsibility to look after someone else's money
(B) A relation in which a vulnerable person depends on another person
(C) A relation in which one acts at all times for the sole benefit and interests of

another
(D) A legal or ethical relationship of confidence and trust regarding the management

of money

24. Money ceases to be client money for which the authorized person is responsible, if it is
paid to the

(A) client
(B) Auditor
(C) authorized person
(D) Compliance Officer

25. How often must an authorized person provide each client, in writing, with a statement of
assets on the client's account?

(A) Monthly
(B) Annually
(C) Quarterly
(D) Semi-annually

26. It is necessary for an authorized person to make periodic evaluation of the compliance
function. The MOST important focus of this evaluation is to

(A) update the existing policies and procedures on regulation change
(B) determine the trend and focus of customer complaints
(C) assess the adequacy of resources available to investigators
(D) review the effectiveness of current compliance function

02269010/SPEC2016

GO ON TO THE NEXT PAGE