The following updates have been made to the workbook edition.
The end of chapter questions of chapters 1-5 have been amended as follows:
Chapter 1- End of Chapter Questions
2. State the main differences between rules-based and principles-based approaches to regulation.
Answer reference: Sections 1.3
6. State the key policy goals of MiFID II.
Answer reference: Section 1.5.2
7. List how the Market Abuse Regulation (MAR) applies to financial instruments to increase market integrity and investor protection.
Answer reference: Section 1.5.2
8. What does Section 404 of the Sarbanes-Oxley (SOX) Act require publicly registered US companies to do?
Answer reference: Section 1.5.2
9. What is the definition of payment services?
Answer reference: Section 1.5.2
10. What is the punishment for defrauding securities investors?
Answer reference: Section 1.5.2
11. How is AMLD best described?
Answer reference: Section 1.5.2
3. What is counterparty risk?
Answer reference: Section 1.7.2
14. How do regulators approach Fintech?
Answer reference: Section 1.8.1
Additionally, the question numbering has been changed from Question 10-24.
Chapter 2- End of Chapter Questions
2. Who is responsible for establishing a written compliance policy containing the basic principles followed by management and staff?
Answer reference: Section 1.1.2
3. What is the purpose of the compliance manual?
Answer reference: Section 1.2.1
4. What are the three key stages involved in a risk-based approach to a monitoring programme?
Answer reference: Section 1.4
Additionally, the question numbering has been changed from Question 3-10.
Chapter 3- End of Chapter Questions
2. What is the purpose of the Financial Action Task Force (FATF)?
Answer reference: Section 1.3.3
3. Give two examples of predicate offences in financial crime.
Answer reference: Section 1.3.4
4. How does a Ponzi scheme work?
Answer reference: Section 1.3.5
5. What are typical cybercrime activities?
Answer reference: Section 1.3.5
6. Describe how a material misstatement of financial statements may arise.
Answer reference: Section 1.3.6
7. What is the difference between tax avoidance and tax evasion?
Answer reference: Section 1.3.7
8. Explain the concept of dual criminality.
Answer reference: Section 1.3.8
17. In applying a risk-based approach to identifying money laundering, what factors should a firm consider?
Answer reference: Section 2.5
Additionally, the question numbering has been changed from Question 9-20.
Chapter 4- End of Chapter Questions
2. Name three Chartered Institute for Securities & Investment (CISI) Code of Conduct Principles.
Answer reference: Section 1.3.2
5. What are the components to create an ethical culture?
Answer reference: Section 1.5.7
Chapter 5- End of Chapter Questions
11. Name three of the Bank for International Settlements (BIS) principles for enhancing corporate governance.
Answer reference: Section 1.9
20. How do you calculate a risk score?
Answer reference: Section 2.5.1
Additionally, the question numbering has been changed from Question 11-31.
A new section, 2.4.6 on ‘whistleblowing’ has been added after section 2.4.5 of the workbook. (Page 150-151)