Regulatory Frameworks & Standards Flashcards
7 cards from real RCMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Frameworks & Standards flashcards as text
Under the Dodd-Frank Act, which federal agency is primarily responsible for regulating systemically important financial institutions (SIFIs)?
Answer: Federal Reserve Board
The Federal Reserve Board oversees SIFIs designated under Dodd-Frank to reduce systemic risk to the financial system.
Which regulatory standard establishes the three pillars of minimum capital requirements, supervisory review, and market discipline for banks?
Answer: Basel II
Basel II introduced the three-pillar framework covering minimum capital requirements, supervisory review process, and market discipline.
A compliance officer discovers that an employee's activity may violate both state and federal regulations that conflict with each other. What legal doctrine generally resolves this conflict?
Answer: Federal preemption
The Supremacy Clause of the U.S. Constitution establishes federal preemption, meaning federal law supersedes conflicting state law.
ISO 37301 specifically addresses which area of organizational compliance?
Answer: Compliance management systems
ISO 37301 (replacing ISO 19600) provides requirements and guidance for establishing and maintaining compliance management systems.
Which provision of the Foreign Corrupt Practices Act (FCPA) prohibits falsifying books and records to conceal bribery payments?
Answer: Accounting provision
The FCPA's accounting provisions require accurate books and records and adequate internal controls to prevent concealment of improper payments.
Under GDPR, what is the maximum fine for the most serious violations?
Answer: €20 million or 4% of global annual turnover
GDPR's highest tier penalty is €20 million or 4% of total worldwide annual turnover of the preceding fiscal year, whichever is higher.
The COSO ERM framework's 2017 revision integrated enterprise risk management with which organizational function?
Answer: Strategy and performance
The 2017 COSO ERM update integrated risk management with strategy and performance to reflect how risk influences an organization's direction.