PA Dealing Knowledge Test PDF

Personal Account Dealing Knowledge Test Correct (appropriate) answers in bold 1. Can B2C2 employees use confidential information relating to, or obtained from, B2C2 or its clients as the basis for placing Personal Account trades? Choose one option. 1. No 2. Yes...

Personal Account Dealing Knowledge Test Correct (appropriate) answers in bold 1. Can B2C2 employees use confidential information relating to, or obtained from, B2C2 or its clients as the basis for placing Personal Account trades? Choose one option. 1. No 2. Yes 3. As long as approval is sought and received 2. Which employees are designated as ‘higher risk staff’? Choose one option. 1. All employees 2. None 3. EXCO members only 4. All revenue generating staff, i.e. sales, trading and quant devs, B2C2 Exco members and B2C2 legal entity directors 3. What products are designated as Relevant Financial Assets, as per the Personal Account Dealing Policy? Choose those that apply. 1. Crypto and fiat currencies 2. Deposits 3. Debt or equity securities and related products issued by companies that are a client,counterparty, investor, vendor or supplier to or for B2C2 4. What are the de-minimis thresholds for crypto currencies and fiat currencies, above which pre-approval must be sought? Choose one option. 1. USD 5,000 for crypto and USD 50,000 for fiat currencies 2. There are no de-minimis thresholds. 3. USD 5,000 for both crypto and for fiat currencies. 5. Who is required to get pre-approval for trades in relevant assets above the defined de-minimis thresholds. Choose one option. 1. All employees 2. Employees designated as ‘higher risk staff’ 3. No employees 6. Do employees not designated as ‘higher risk staff’ need to seek pre-approval for Personal Account trades? Choose one option. 1. No 2. Yes, but from their line manager only 3. Yes, from line manager and Compliance. 7. For ‘higher risk staff’, from whom should pre-approval for trades in relevant assets above the defined de-minimis thresholds be sought? Choose one or more options. 1. Finance 2. Line manager 3. HR 4. Head of Risk 5. B2C2 Limited Functional or Regional Head. 8. How long are approvals valid for? Choose one option. 1. One day 2. 36 hours 3. 72 hours 4. There is no time limit 9. What is the minimum holding period for assets purchased through Personal Account dealing? Choose one option. 1. 24 hours 2. There is no minimum holding period. 3. 30 days 10. Are close family members subject to the B2C2 Personal Account Dealing policy? Choose one option. 1. No 2. Yes 3. Only close family members of ‘higher risk staff’. 11. Are B2C2 employees allowed to use close family members accounts to conduct their own Personal Account dealing? Choose one option. 1. Yes 2. Only with Compliance approval 3. No 12. How do employees seek pre-approval for Personal Account trades? Choose one option. 1. Verbal agreement from line manager 2. Use the slack PAD workflow. 3. Verbal agreement from Compliance 13. Which of the following groups of risks might or are most likely to crystalize from Personal Account Dealing that was not conducted within regulations or internal policy? Choose those groups that you think have one or more of those risks. 1. Group A: Market Abuse, Conflicts, Money Laundering. 2. Group B: Terrorist financing, Proliferation financing, GDPR, 3. Group C: Privacy, Anti Bribery and Corruption, Financial Crime 4. Group D: Reputational, Operational 14. Which of the following Market Conduct risks / behaviours might or are most likely to result from Personal Account Dealing that was not conducted within regulations or internal policy? Choose those groups that you think have one or more of those risks / behaviours.. 1. Group A: Marking the Close, Layering, 2. Group B: Dissemination, Front Running 3. Group C: Spoofing, Dealing on the basis of Inside Information 15. (UK EMPLOYEES ONLY) In the UK, what are the possible or most likely punishments for Personal Account Dealing misbehaviours, such as Insider Dealing? Choose those that apply. 1. You have to wear a tag for six months 2. Community service 3. Unlimited fines 4. Order injunctions, or prohibition on regulated firms or approved persons 5. Custodial sentences of up to 10 years 6. Custodial sentences of up to 3 years 16. (US EMPLOYEES ONLY) In the US, what are the possible or most likely punishments for Personal Account Dealing misbehaviours, such as Insider Dealing? Choose those that apply. 1. Prison sentence up to 20 years 2. A fine of up to $20m for individual criminal violations 3. Prohibition on further investments 4. Forced liquidation of any legitimately held investments 5. A fine of up to 3 x the profit gained or loss avoided for civil violations 6. You cannot enter designated Financial Services districts or buildings in the US 17. If a fellow employee wishes to utilise your own Personal Dealing account, what course of action should you take? Choose one option. 1. Seek permission from a B2C2 Limited Functional or Regional Head. 2. Agree and go ahead with the transaction 3. Refuse 18. You become aware of a large client order and activity in a stock that you hold in your Personal Dealing Account. What course of action should you take? Choose one option. 1. Ask Sales to talk to the client to advise on their trading intentions 2. Take no action 3. Conduct a trade to protect your position 19. News breaks on the wires about a significant situation related to a particular crypto coin. You feel that there are further opportunities to make money on this news. What restrictions would be applicable to you in this situation? Choose one option. 1. None. Provided you follow the Personal Account Dealing Policy and trade for yourself, fulfilling all the obligations of the policy, there shouldn’t be any restriction as this is news in the public domain. 2. Total restriction. As this is Inside Information, you should not trade. 3. Some restrictions. You can only conduct the opposite trade to clients. 20. Occasional special situations may arise, whereby, for example, B2C2 is aware a coin is being admitted for trading on an exchange or B2C2 is aware of M&A activity related to a peer firm in the crypto sector. What are the risks in this type of situation? Choose one option. 1. B2C2 has or could be deemed to have confidential or inside information, in which case PA Dealing would be inappropriate for all employees or designated contracted party(ies) and expose both B2C2 and any employees to the risk of regulatory sanction. 2. There are no additional risks arising from such a situation. 3. Employees may miss out on significant profits if restricted from Personal Account trading in the related instruments. 21. To whom does the B2C2 Personal Dealing policy apply? Choose one option. 1. Only employees in Finance, Risk and Sales and Trading. 2. Only ‘higher risk staff’ 3. It applies to employees at B2C2 Limited and all subsidiaries globally. It may also apply to consultants and/or contractors depending on the nature of their engagement with B2C2 22. What best describes ‘material, non-public information’. Choose one option 1. Your waist size, written on the label inside your jeans. 2. Information that is not generally available to the public or investors, but could be important to a reasonable investor when making an investment decision. It is considered highly confidential and is subject to regulation under securities laws. 3. Orders placed on exchange.