TUESDAY: 5 December 2023. Morning Paper. Time Allowed: 3 hours.

This paper has seven (7) questions. Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.


1. Outline FOUR areas that are covered by the Capital Market Authority model code of conduct. (4 marks)

2. In relation to financial market intermediaries, highlight FOUR requirements for licensing the market
intermediaries. (4 marks)

3. In relation to Corporate Governance and Conduct of Business of Market Intermediaries, describe THREE objectives of the corporate governance regulations. (6 marks)

4. Examine THREE remedies of breach of a business contract. (6 marks)




1. State FIVE duties of a Foreign Exchange Bureau. (5 marks)

2. Highlight SIX instances in which the Securities Exchange in your country must report to the Capital Markets Authority. (6 marks)

3. In relation the Central Depository Agent:

List THREE entities that might qualify to be appointed as agents. (3 marks)

Discuss THREE other functions that an agent is authorised to perform upon fulfilling the Central
Depository’s ongoing obligations. (6 marks)



1. State FOUR features of an employee share ownership plan (ESOP). (4 marks)

2. Enumerate FOUR benefits of demutualisation of a securities exchange. (4 marks)

3. In relation to agency theory, analyse THREE types of agent authority. (6 marks)

4. Explain THREE ways of classifying law based on their nature, scope and purpose. (6 marks)



1. In relation to client risk attitude:

Outline FOUR objective factors that affect a client’s risk attitude. (4 marks)

Highlight FOUR subjective factors that affect a client’s risk attitude. (4 marks)

2. Enumerate SIX regulatory functions of the Insurance Regulatory Authority of your country. (6 marks)

3. Describe THREE stages of Money Laundering. (6 marks)



1. In the foreign investor regulations, a company registrar must ensure that the percentage held by the local investors should not fall below the minimum required level.

Explain FOUR rules that have been put in place to ensure adherence to this regulation. (4 marks)

2. Outline SIX objectives of the Capital Market Authority of your country. (6 marks)

3. In relation to suitability of advice:

List FIVE components of a good client suitability report. (5 marks)

Highlight FIVE steps that will ensure that a suitable and appropriate investment recommendation would
be given to a client. (5 marks)



1. In relation to Central Securities Depository:

Explain the term “authorised depository”. (2 marks)

Highlight FOUR scenarios when an authorised depository is required. (4 marks)

2. Discuss THREE objectives of the Central Depository and Settlement Corporation or its equivalent in your country. (6 marks)

3. Analyse FOUR ways in which the Competition Authority or its equivalent in your country protects, strengthens and supplements markets and industries’ competition. (8 marks)



1. List FOUR market segments under which companies may be listed at a securities exchange. (4 marks)

2. Explain TWO contractual duties of a principal in an agency relationship. (4 marks)

3. Describe THREE constraints to an investment strategy that an investment advisor should put into consideration. (6 marks)

4. Examine THREE mandates of the United Nations Office on Drugs and Crime. (6 marks)


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