QUESTION 6

Which best describes the uses to which a short form prospectus may be put?

a.It is a less onerous form of disclosure document than a prospectus, which can only be used with prior approval by ASIC. ASIC has currently not approved a short form prospectus for any purposes.

b.It is a less onerous form of disclosure document than a prospectus, which can only be used with prior approval by ASIC. ASIC has currently only approved a short form prospectus in a few unique circumstances.

c.It is used in addition to a traditional prospectus by allowing certain investors to read a prospectus in abbreviated form, but it does not replace the need for the prospectus.

d.It may be used as an alternative to a prospectus where the capital raised does not exceed 10 million dollars.

QUESTION 7

What is a small-scale offering of securities?

a.An offer of securities that is subject to the lowest form of disclosure, the profile statement. It is defined as an offering that does not exceed either threshold of 20 investors or $2 million raised in any 12-month period.

b.An offer of securities that is exempt from the requirement to produce a disclosure document. It is defined as an offering that is only allowed to breach one of the caps of 20 investors or $2 million raised in any 12 month period.

c.An offer of securities that is exempt from the requirement to produce a disclosure document. It is defined as an offering that does exceed either threshold of 20 investors or $2.5 million raised in any 12-month period.

d.An offer of securities that is exempt from the requirement to produce a disclosure document. It is defined as an offering that does not exceed either threshold of 20 investors or $2 million raised in any 12-month period.

QUESTION 8

What isnotan example of a positive loan covenant?

a.The requirement to provide audited financial statements to the bank

b.A prohibition on paying dividends for the next 3 years.

c.A requirement to properly maintain or insure any property that has been usedas security under the terms of the loan.

d.A requirement to maintain a debt:equity ratio of 1.5

QUESTION 9

From the list below, which isnota legal obligation under the anti-money laundering/ anti-terrorism financing legislation.

a.Developing protocols to ensure that customers can be accurately identified and are who they say they are.

b.A program or policy that includes matters such as training employees on AML/ATF matters and screening staff to ensure they are themselves not involved in organised crime or of questionable character.

c.Reporting obligations such as reporting threshold transactions.

d.Confiscating any money believed to be in breach of AML/ATF rules

QUESTION 10

Consider the process of complaint handling for AFCA. Which is the correct sequence of events in a standard complaint?

a.Internal complaints handling> AFCA assesses complaint > AFCA makes determination > the institution that is subject to the complaint is free to reject the determination and proceed to court action to defend their reputation.

b.Internal complaints handling > AFCA assesses complaint> AFCA makes determination> Independent assessment as complainant is unhappy with AFCA

c.Internal Complaints handing> complaint to ASIC> ASIC will refer complaint to AFCA> AFCA makes a determination.

d.Internal complaints handling> AFCA assesses complaint > AFCA makes determination > the complainant is free to reject the determination and proceed to court action.