CISI UAE FRR CBUAE & FSRA Regulations 1

Question 1

The Financial Services Regulatory Authority (FSRA) is the regulator for which UAE jurisdiction?

Accepted Answer

Abu Dhabi Global Market (ADGM)

Answer

The FSRA is the independent financial services regulator of the Abu Dhabi Global Market (ADGM), regulating financial institutions, markets, and professionals operating within ADGM.

Question 2

Which CBUAE regulation governs the licensing and supervision of finance companies in the UAE?

Accepted Answer

Finance Companies Regulation (2018)

Answer

The Finance Companies Regulation (2018) issued by the CBUAE sets out the requirements for licensing, capital, governance, and conduct of finance companies providing credit and leasing services.

Question 3

The FSRA's regulatory framework for ADGM is based on which legal system?

Accepted Answer

English common law

Answer

ADGM adopted English common law as its legal foundation, providing legal certainty and familiarity for international financial institutions and investors accustomed to common law jurisdictions.

Question 4

Which CBUAE requirement sets limits on large exposures to single counterparties?

Accepted Answer

Large Exposure Regulations (LER)

Answer

The Large Exposure Regulations limit the maximum exposure a bank can have to a single counterparty or group of connected counterparties, reducing concentration risk and systemic contagion.

Question 5

Under CBUAE regulations, what is the maximum loan-to-value ratio for a UAE national purchasing a first home valued above AED 5 million?

Accepted Answer

70%

Answer

CBUAE mortgage regulations set a maximum LTV of 70% for UAE nationals purchasing a first home valued above AED 5 million, requiring a minimum 30% down payment to limit systemic mortgage risk.

CISI UAE FRR Practice Test

CISI UAE FRR Practice Test

CISI UAE FRR CBUAE & FSRA Regulations 1