CQIB Professional Banking Fundamentals – Topic 2 Comprehensive: Banking Operations,
Ethics, and Financial Systems Study Guide
What are the 3 regulatory objectives? - correct answer ✔✔1. protect consumer rights
2. maintain confidence in the financial system
3. reduce risk in systemic failure
What is an Act - correct answer ✔✔is legislation (or law) passed by parliament which sets out
the broad legal/policy principles
what are regulations, rules or codes - correct answer ✔✔guidelines to indicate how the
provisions of the act are implied
what are the 3 main regulators in Australia - correct answer ✔✔RBA
ASIC
APRA
what is the RBA responsibilities - correct answer ✔✔responsible for the monetary policy, overall
stability of the financial system and regulation of the payments system.
what are ASIC's responsibilities - correct answer ✔✔responsibility for market integrity or
consumer protection across the financial system
what are APRA's responsibilities - correct answer ✔✔responsibility for prudential supervision of
banks, building societies, life & general insurance, companies and superannuation funds
what are the ways to stay up to date with regulatory changes in banking - correct answer
✔✔review financial press
, staff training
websites - RBA, ASIC, APRA, ACC & Austrac
what are the 4 clearing and settlement systems - correct answer ✔✔ASX Clear
ASX clear (futures)
Austraclear
CHESS
what year are the Acts that each of the 3 regulators comply to? (APRA, ASIC & RBA) - correct
answer ✔✔RBA - 1959
APRA - 1959 & 1998
ASIC - 2001
when was the new payments platform formed? - correct answer ✔✔December 2014
what are the main functions of the RBA and how does it promote financial stability? - correct
answer ✔✔manage monetary policy in Aus
stabilise currency
manage unemployment
Economic prosperity and welfare of Aus people
responsible for the payment systems
what does the AFSL stand for? - correct answer ✔✔Australian financial services license
what are the 6 reasons someone is classes as a wholesale client - correct answer ✔✔product
value > $500K
income over $250K for 2 financial years
Ethics, and Financial Systems Study Guide
What are the 3 regulatory objectives? - correct answer ✔✔1. protect consumer rights
2. maintain confidence in the financial system
3. reduce risk in systemic failure
What is an Act - correct answer ✔✔is legislation (or law) passed by parliament which sets out
the broad legal/policy principles
what are regulations, rules or codes - correct answer ✔✔guidelines to indicate how the
provisions of the act are implied
what are the 3 main regulators in Australia - correct answer ✔✔RBA
ASIC
APRA
what is the RBA responsibilities - correct answer ✔✔responsible for the monetary policy, overall
stability of the financial system and regulation of the payments system.
what are ASIC's responsibilities - correct answer ✔✔responsibility for market integrity or
consumer protection across the financial system
what are APRA's responsibilities - correct answer ✔✔responsibility for prudential supervision of
banks, building societies, life & general insurance, companies and superannuation funds
what are the ways to stay up to date with regulatory changes in banking - correct answer
✔✔review financial press
, staff training
websites - RBA, ASIC, APRA, ACC & Austrac
what are the 4 clearing and settlement systems - correct answer ✔✔ASX Clear
ASX clear (futures)
Austraclear
CHESS
what year are the Acts that each of the 3 regulators comply to? (APRA, ASIC & RBA) - correct
answer ✔✔RBA - 1959
APRA - 1959 & 1998
ASIC - 2001
when was the new payments platform formed? - correct answer ✔✔December 2014
what are the main functions of the RBA and how does it promote financial stability? - correct
answer ✔✔manage monetary policy in Aus
stabilise currency
manage unemployment
Economic prosperity and welfare of Aus people
responsible for the payment systems
what does the AFSL stand for? - correct answer ✔✔Australian financial services license
what are the 6 reasons someone is classes as a wholesale client - correct answer ✔✔product
value > $500K
income over $250K for 2 financial years
