RCMS Regulatory Frameworks & Standards 2

Question 1

Under the Dodd-Frank Act, which federal agency is primarily responsible for regulating systemically important financial institutions (SIFIs)?

Accepted Answer

Federal Reserve Board

Answer

The Federal Reserve Board oversees SIFIs designated under Dodd-Frank to reduce systemic risk to the financial system.

Question 2

Which regulatory standard establishes the three pillars of minimum capital requirements, supervisory review, and market discipline for banks?

Accepted Answer

Basel II

Answer

Basel II introduced the three-pillar framework covering minimum capital requirements, supervisory review process, and market discipline.

Question 3

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?

Accepted Answer

Federal preemption

Answer

The Supremacy Clause of the U.S. Constitution establishes federal preemption, meaning federal law supersedes conflicting state law.

Question 4

ISO 37301 specifically addresses which area of organizational compliance?

Accepted Answer

Compliance management systems

Answer

ISO 37301 (replacing ISO 19600) provides requirements and guidance for establishing and maintaining compliance management systems.

Question 5

Which provision of the Foreign Corrupt Practices Act (FCPA) prohibits falsifying books and records to conceal bribery payments?

Accepted Answer

Accounting provision

Answer

The FCPA's accounting provisions require accurate books and records and adequate internal controls to prevent concealment of improper payments.

(RCMS) Registered Compliance Management Specialist Certification Practice Test

(RCMS) Registered Compliance Management Specialist Certification Practice Test

RCMS Regulatory Frameworks & Standards 2