Certified Regulatory Compliance Manager (CRCM)

FREE Certified Regulatory Compliance Manager Trivia Questions and Answers

Which of the following marketing initiatives would NOT imply that a bank would be free from SEC registration requirements?

A listing of the bank's wide trust service's securities services for trust accounts

Along with other IRA perks, the bank should list its securities transfer services as a service it offers for IRA accounts.

Stating in a commercial for services related to employee benefit plans that the bank offers stocks brokerage services for accounts related to employee benefit plans

Mentioning in a print advertisement that the bank provides accommodation securities trades for its regular custodial accounts

Correct! Wrong!

In the United States, banks are exempt from registration with the Securities and Exchange Commission (SEC) under certain conditions when engaging in certain securities-related activities. However, the exemption does not apply to activities that go beyond traditional banking activities.

Which bank products are NOT governed by the Interagency Statement on Retail Sales of Nondeposit Investment Products' disclosure requirements?

Mutual funds

Fixed-rate annuities

Variable-rate annuities

Variable-rate savings accounts

Correct! Wrong!

Variable-rate savings accounts are NOT subject to the disclosure provisions of the Interagency Statement on Retail Sales of Nondeposit Investment Products.

A contract to ship goods to Country M, a nation that is being boycotted, was signed by PTestGeeks Co. A letter of credit approved by First National Bank will be used for payment. Before being paid, PTestGeeks Co. must attest by the terms of the letter of credit that none of its directors is a citizen of any country that Country M has chosen to boycott. After confirming all the paperwork is in place, First National Bank issues the letter of credit to PTestGeeks. Does First National Bank need to notify the IRS about its involvement in a boycott?

Yes, but no reporting requirements were triggered.

Yes. The action was participation in a boycott and the bank must report the action to the IRS.

No. Only ABC Co. is required to report to the IRS.

No. The bank’s action was only ministerial.

Correct! Wrong!

A principal in municipal securities must directly supervise municipal securities activities. This entails going through all but one of the items below. What activity DOES NOT directly entail the direct supervision of municipal securities operations?

Opening the customer’s account

Providing quotations to customers

Handling customer complaints

Handling a municipal securities transaction

Correct! Wrong!

Which one of the following bank policies is in violation of the Interagency Policy Statement on the Retail Sales of Nondeposit Investments?

Before a customer buys a nondeposit investment product, all bank personnel who are involved in the sale of nondeposit investments must give the consumer the bank's mandatory disclosures.

The amount of revenue that each department generates and how well each department can help clients identify suitable investments will determine how much supervisors and sales staff are paid.

Tellers and new accounts personnel will receive a $25 fee for all customers referred to the nondeposit investment department on the customer's purchase of an investment product.

The incorrectteller will talk to a bank customer about nondeposit investment options.

Correct! Wrong!

The policy stating that tellers and new accounts personnel will receive a $25 fee for all customers referred to the nondeposit investment department on the customer's purchase of an investment product does NOT comply with the Interagency Policy Statement on the Retail Sales of Nondeposit Investments.

What disclosures must the bank's investment sales representative give the client by the Interagency Statement on Retail Sales of Nondeposit Investment Products?

The arbitration procedure for resolving disputes over investment advice

The bank's regulatory agency

The sales commission resulting from the investment purchase

That the investment product is not guaranteed by the bank

Correct! Wrong!

Under the Interagency Statement on Retail Sales of Nondeposit Investment Products, the bank's investment sales representative must disclose to the customer that the investment product is not guaranteed by the bank.

Tellers at ACME Bank are encouraged to assist in the sale of insurance products to both potential and current clients.

Tellers should not be rewarded only when the referral results in a sale.

It is hard for tellers to handle so many types of products.

It is difficult for many people to get an insurance license.

It is hard to physically separate insured deposit products from insurance products.

Correct! Wrong!

While it may be challenging for tellers to handle multiple types of products, ACME Bank's decision to have tellers help sell insurance products to new and existing customers raises potential concerns.

FREE Certified Regulatory Compliance Manager Trivia Questions and Answers

Which of the following marketing initiatives would NOT imply that a bank would be free from SEC registration requirements?

Which bank products are NOT governed by the Interagency Statement on Retail Sales of Nondeposit Investment Products' disclosure requirements?

A principal in municipal securities must directly supervise municipal securities activities. This entails going through all but one of the items below. What activity DOES NOT directly entail the direct supervision of municipal securities operations?

Which one of the following bank policies is in violation of the Interagency Policy Statement on the Retail Sales of Nondeposit Investments?

What disclosures must the bank's investment sales representative give the client by the Interagency Statement on Retail Sales of Nondeposit Investment Products?

Tellers at ACME Bank are encouraged to assist in the sale of insurance products to both potential and current clients.

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