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[General] CISI UAE-Financial-Rules-and-Regulations the latest certification exam training

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【General】 CISI UAE-Financial-Rules-and-Regulations the latest certification exam training

Posted at yesterday 00:41      View:10 | Replies:1        Print      Only Author   [Copy Link] 1#
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CISI UAE Financial Rules and Regulations Exam Sample Questions (Q66-Q71):NEW QUESTION # 66
A real estate investment fund may borrow no more than what percentage of its total assets value?
  • A. 75%
  • B. 25%
  • C. 10%
  • D. 50%
Answer: D
Explanation:
According to the CISI UAE Financial Rules and Regulations, real estate investment funds are subject to borrowing limits to ensure financial stability and prevent excessive leverage. A real estate investment fund may borrow no more than 50% of its total assets value. This limit helps mitigate the risks associated with high levels of debt and ensures that the fund remains adequately capitalized to handle fluctuations in the real estate market. By restricting the borrowing capacity, the regulations aim to protect investors and ensure the fund's long-term sustainability.
Reference: CISI UAE Financial Rules and Regulations - Borrowing Limits for Real Estate Investment Funds, Section 6.1.5 (2023).

NEW QUESTION # 67
What is the maximum term of imprisonment that can be imposed on a person who attempts to commit the crime of money laundering?
  • A. Five years
  • B. Three years
  • C. Seven years
  • D. Ten years
Answer: A
Explanation:
Under Federal Law No. 20 of 2018 and relevant CISI UAE Financial Rules and Regulations, the maximum term of imprisonment for a person who attempts to commit the crime of money laundering is five years. The law imposes stringent penalties to deter money laundering activities and ensure the integrity of the UAE's financial system. In addition to imprisonment, offenders may also face fines and asset confiscation. This punitive framework is designed to align with international AML standards, emphasizing the seriousness with which the UAE treats attempts to launder money, whether successful or not.
Reference: CISI UAE Financial Rules and Regulations - AML Criminal Sanctions, Section 8.4.3 (2023).

NEW QUESTION # 68
Why might employees in one part of a regulated business be permitted to withhold information from employees in another part of the business?
  • A. To comply with a Chinese wall
  • B. At the request of the audit function
  • C. Strict privacy of client information
  • D. Prevention of insider trading
Answer: A
Explanation:
CISI UAE Financial Rules and Regulations recognize the concept of a Chinese wall, which permits employees in one part of a regulated business to withhold certain information from employees in other parts.
This internal information barrier is designed to prevent conflicts of interest and insider trading by restricting the flow of sensitive or non-public information between departments. By implementing Chinese walls, firms ensure compliance with legal and regulatory requirements, uphold market integrity, and protect client interests. While audit requests and privacy concerns are valid, the primary regulatory rationale for withholding information internally is to maintain effective Chinese walls.
Reference: CISI UAE Financial Rules and Regulations - Regulatory Infrastructure and Information Barriers, Section 3.4.10 (2023).

NEW QUESTION # 69
On the Dubai Gold & Commodities Exchange, how many delivery months are available for trading in Dubai India Quanto Crude Oil futures?
  • A. 0
  • B. 1
  • C. 2
  • D. 3
Answer: C
Explanation:
The Dubai Gold & Commodities Exchange (DGCX) provides trading for Dubai India Quanto Crude Oil futures with a contract tenor that includes 12 delivery months available for trading at any given time. This rolling 12-month schedule allows market participants to hedge or speculate on crude oil prices across the upcoming year, providing liquidity and flexibility. The availability of 12 delivery months is a standard practice for energy futures contracts, facilitating continuous market engagement and risk management over a full annual cycle. This structure is detailed in the DGCX contract specifications and is consistent with the UAE's commodity trading regulations aimed at market efficiency and transparency.
Reference: CISI UAE Financial Rules and Regulations - Commodity Markets and Futures Trading, DGCX Specifications, Section 7.4.1 (2023).

NEW QUESTION # 70
During a trading session, if an order is not fully executed, then:
  • A. the transaction is executed at the price set on the other side of the transaction
  • B. the remaining unexecuted volume stays on the trading system, at the last executed price
  • C. the order will be dealt with at the next trading session
  • D. the remaining unexecuted volume is cancelled and a new order is placed, at the last executed price
Answer: B
Explanation:
In the Dubai Financial Market (DFM) and other UAE exchanges, if an order is not fully executed during a trading session, the remaining unexecuted volume remains on the trading system at the last executed price, subject to the order's validity instructions (e.g., good-till-cancelled). This approach allows the unfilled portion to remain active in the market for potential matching with future opposing orders, supporting liquidity and order continuity. Orders are not automatically cancelled or deferred to the next session unless specified. This process ensures transparency and orderly execution consistent with regulatory trading rules.
Reference: CISI UAE Financial Rules and Regulations - Trading Order Execution Rules, Section 7.2.8 (2023).

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Posted at yesterday 01:45        Only Author  2#
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