CFP Regulatory Compliance & Risk Management 3

Question 1

The CFPB's Dodd-Frank Section 1033 rule primarily concerns which fintech activity?

Accepted Answer

Consumer right to access and share their own financial data

Answer

Section 1033 establishes a consumer's right to access their own financial data and share it with third parties like fintech apps.

Question 2

What is 'regulatory arbitrage' in the fintech industry?

Accepted Answer

Exploiting differences in regulations across jurisdictions to reduce compliance burden

Answer

Regulatory arbitrage occurs when companies structure operations or choose jurisdictions to take advantage of less stringent regulatory requirements.

Question 3

Under GDPR, a fintech company experiences a data breach. Within how many hours must it notify the supervisory authority?

Accepted Answer

72 hours

Answer

GDPR Article 33 requires data controllers to notify the relevant supervisory authority within 72 hours of becoming aware of a personal data breach.

Question 4

Which principle of operational risk management requires fintech firms to identify single points of failure in their technology infrastructure?

Accepted Answer

Business Continuity Planning (BCP)

Answer

Business Continuity Planning requires identifying all critical systems and single points of failure to ensure operations can continue during disruptions.

Question 5

A crypto exchange in the US that facilitates trading of tokens deemed securities must register with which regulator?

Accepted Answer

SEC

Answer

If tokens are classified as securities under the Howey Test, the platforms trading them must register as a national securities exchange or broker-dealer with the SEC.

(CFP) Certified Fintech Practitioner Practice Test

(CFP) Certified Fintech Practitioner Practice Test

CFP Regulatory Compliance & Risk Management 3