TUESDAY: 5 April 2022. Afternoon paper.                                                                                                   Time Allowed: 3 hours.

Answer ALL questions.  Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper.


1.        State six functions of the capital market regulator in your country.                                                                (6 marks)

2.       List four features of over the counter (OTC) Markets.                                                                                       (4 marks)

3.        Examine three main classifications of financial markets.                                                                                (6 marks)

4.        Illustrate four factors that could enhance the development of capital markets in your country.           (4 marks)

(Total: 20 marks)



1.          With reference to state controlled enterprises;

Explain the term “golden share”:                                                                                                           (2 marks)

Discuss two purposes of golden share to an institution.                                                                      (4 marks)

2.         Outline four advantages of exchange traded funds to an investor.                                                 (4 marks)

Financial system stability is the avoidance of financial institutions. failing in large .numbers and avoidance of serious disruptions of the intermediaries functions. of the financial system. With reference to the above, statement, assess four areas that would be covered during financial systems stability analysis and monitoring.                                         (4 Marks)

3.          Evaluate three strategies that an investment firm should adopt to address conflict of interest created by transactions-in which an investment analyst has beneficial ownership.                                                        (6 marks)

(Total: 20 marks)



1.         Explain five duties of trustees under a retirement benefits scheme.                                                               (5 marks)

2.        Discuss four challenges financial institutions face in enforcing collection of non performing loans.    (8 marks)

3.        Illustrate four circumstances where a securities exchange with the approval of the regulator might allow voluntary suspension of securities listed in the exchange.                                                                                                     (4 marks)

4.         Describe three advantages of dematerialisation of securities.                                                                         (3 marks)

(Total: 20 marks)



1.        Appraise six obstacles to funding home purchase through mortgage loans.                                                (6 marks)

2.       Highlight four documents required by Unclaimed Financial Assets Authority (UFAA) when lodging a claim. (4 marks)

3.       Analyse four roles of the Central Depository Settlement Corporation (CDSC) or equivalent body in your country. (4 marks)

4.       Crowdfunding is an emerging alternative form of financing that connects those who can invest money directly with those who need finance for a specific project or business.

With reference to the above definition of crowdfunding, summarise three advantages and three disadvantages of crowdfunding.              (6 marks)

(Total: 20 marks)



1.         Evaluate four internal control obligations of a reporting institution in respect to money laundering.                                  (8 marks)

2.         Analyse five benefits of financial intermediation.                                                                                                               (5 marks)

3.         Appraise five contemporary challenges facing financial regulators.                                                                                   (5 marks)

4.         Distinguish between “money market instruments” and “capital market instruments”.                                                        (2 marks)

(Total: 20 marks)

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