Investors Europe (Mauritius) Limited - Training Module I

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| By Bertrand Boulle
Bertrand Boulle, Stockbroker
Bertrand is a Catholic stockbroker and devoted conservationist, skillfully balancing financial endeavors with a strong commitment to preserving our natural world.
Quizzes Created: 1 | Total Attempts: 94
| Attempts: 94
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  • 1/143 Questions

    At Investors Europe Stock Brokers, an investor can trade with many different currencies on his online trading platform but must normally choose a base currency.

    • True
    • False
    • False
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About This Quiz


Module I : Gauges the staff's basic comprehension of Financial Markets and of the firm's basic rules, regulations and obligations as a Mauritius FSC regulated entity.

Investors Europe (Mauritius) Limited - Training Module I - Quiz

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  • 2. 

    Investors Europe an execution-only broker which means it never takes positions in the markets

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Investors Europe is an execution-only broker, meaning that it solely executes trades on behalf of its clients and does not engage in any trading for its own account. This means that the broker does not take positions in the markets, as stated in the given statement. Therefore, the correct answer is true.

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  • 3. 

    Investors Europe was originally set up in 2001 in Gibraltar as an Execution-only stock broker?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Investors Europe was indeed originally established in 2001 in Gibraltar as an Execution-only stock broker. This means that the company's primary function is to execute trades on behalf of clients without providing any investment advice or recommendations.

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  • 4. 

    The company cannot reveal the names of its clients to any third parties unless they specifically approve this  as it would be a serious breach of client privacy and the Company could be sued under Mauritius and EU privacy laws.?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because the company is legally bound to protect the privacy of its clients. Revealing their names to third parties without their explicit approval would violate privacy laws in Mauritius and the European Union. Such a breach could result in legal consequences, including potential lawsuits against the company.

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  • 5. 

    Stock markets indices are watched closely by traders as they can give the overall future direction of the market/economy

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Stock market indices are a reflection of the performance of a group of stocks that represent a particular market or sector. Traders closely monitor these indices because they provide valuable insights into the overall market or economy. By analyzing the movement and trends of these indices, traders can make informed decisions about buying or selling stocks. Therefore, the statement that stock market indices are watched closely by traders as they can give the overall future direction of the market/economy is true.

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  • 6. 

    Mauritius Due Diligence :  Investors Europe Stock Brokers MiFID designated clients can open an account by sending an uncertified passport?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because MiFID (Markets in Financial Instruments Directive) regulations require investors to provide certified identification documents, such as a certified passport, when opening an account with Investors Europe Stock Brokers. Sending an uncertified passport would not meet the due diligence requirements set by MiFID.

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  • 7. 

    Mauritius Due diligence : New clients can use a utility bill (water,electricity, telephone but not mobile) as proof of residence?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    New clients in Mauritius can use a utility bill (such as water, electricity, or telephone bill) as proof of residence. However, mobile phone bills are not accepted as proof of residence.

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  • 8. 

    AML stands for Anti Money Laundering which is the 'washing' or hiding of criminally obtained monies.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement is true. AML stands for Anti Money Laundering, which refers to the process of preventing and detecting activities that involve the concealment or conversion of illegally obtained funds to make them appear legitimate. Money laundering is a criminal offense and AML measures are put in place to combat this illegal activity.

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  • 9. 

    DD stands for Due Diligence in general meaning the Passport and Utility bill of a beneficial owner to show he exists.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because DD commonly stands for Due Diligence, which refers to the process of investigating and verifying information about a person or entity before entering into a business transaction. In this context, DD involves obtaining and reviewing documents such as a passport and utility bill of a beneficial owner to confirm their identity and existence. These documents serve as evidence to ensure transparency and mitigate risks associated with money laundering, fraud, or other illegal activities.

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  • 10. 

    Investors Europe's Financial Accounts are Audited every year by EY Mauritius in Keeping with FSC Regulations

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement is true because it states that Investors Europe's financial accounts are audited every year by EY Mauritius in compliance with FSC regulations. This indicates that the company follows proper financial practices and undergoes regular audits to ensure transparency and accountability in their financial statements. The involvement of a reputable auditing firm like EY Mauritius further reinforces the credibility of their financial accounts.

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  • 11. 

    We can pass on clients' trading positions to help other clients be more profitable

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement suggests that passing on clients' trading positions can help other clients be more profitable. However, this is not true. Passing on clients' trading positions does not guarantee profitability for other clients as it depends on various factors such as market conditions, individual trading strategies, and risk management. Therefore, the correct answer is False.

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  • 12. 

    Third Party transfers are not permitted unless specifically authorised by the Head of Compliance or the Managing Director.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement states that third-party transfers are only allowed if they are authorized by the Head of Compliance or the Managing Director. Therefore, the correct answer is True, indicating that third-party transfers are not permitted unless specifically authorized by the mentioned individuals.

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  • 13. 

    You must not carry out any transaction for customer whom you know or suspect to be in possession of inside information

    • True

    • False

    Correct Answer
    A. True
    Explanation
    It is important to not carry out any transactions for customers who are known or suspected to be in possession of inside information. This is because trading based on insider information is illegal and unethical. By refusing to engage in such transactions, you are adhering to regulatory requirements and ensuring fair and transparent trading practices.

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  • 14. 

    The law on money laundering legally obliges the Company to report its suspicions of money laundering.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The law on money laundering imposes a legal obligation on the Company to report any suspicions of money laundering. This means that if the Company has any reason to believe that its financial transactions involve the proceeds of criminal activities, it is required to report these suspicions to the relevant authorities. Failure to comply with this obligation may result in legal consequences for the Company. Therefore, the statement is true.

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  • 15. 

    Coupon or Bond washing is the practice of selling a bond just before it pays a coupon payment and then buying it back once the coupon has been paid.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Coupon or Bond washing is a strategy used by investors to minimize tax liabilities by selling a bond right before it pays a coupon payment, which would generate taxable income. The investor then repurchases the bond after the coupon payment has been made, effectively "washing" the coupon payment and avoiding taxes on it. This practice is considered legal but may be subject to regulations and restrictions in some jurisdictions. Therefore, the given statement that coupon or bond washing is the practice of selling a bond just before it pays a coupon payment and then buying it back once the coupon has been paid is true.

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  • 16. 

    In the EU, an ISIN number is an indispensable reference to identify a security in order to transfer it out and/ or receive it.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    An ISIN number is a unique identifier used to identify a security in the EU. It is necessary for transferring or receiving the security. Therefore, the statement that an ISIN number is an indispensable reference to identify a security in order to transfer it out and/or receive it is true.

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  • 17. 

    Spot Forex Traders generally find it difficult to make money consistently and for the long term

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Spot Forex trading involves buying and selling currencies at the current market price. It requires a deep understanding of the forex market, economic factors, and technical analysis. However, the forex market is highly volatile and unpredictable, making it challenging for traders to consistently make profitable trades. Factors such as sudden market fluctuations, economic events, and geopolitical risks can significantly impact currency prices. Additionally, traders often face high transaction costs, leverage risks, and emotional biases that can hinder their long-term profitability. Therefore, it is generally true that spot forex traders find it difficult to make money consistently and for the long term.

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  • 18. 

    Pairs trading is a market neutral strategy where two similar stocks are traded in a 'mirror' action

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Pairs Trading is a market neutral strategy and is based on the historical correlation of two securities. The securities in a pairs trade must have a high positive correlation, which is the primary driver behind the strategy’s profits. A pairs trade strategy is best deployed when a trader identifies a correlation discrepancy. Relying on the historical notion that the two securities will maintain a specified correlation, the pairs trade can be deployed when this correlation falters.

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  • 19. 

    FATCA : Investors Europe is a Reporting Model 1 FFI

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Under US FATCA Law, An FFI (Foreign Financial Institution) in a Model 1 IGA jurisdiction like Mauritius reports to the Mauritius government and is referred to as a 'reporting Model 1 FFI'.

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  • 20. 

    The SEC (Securities and Exchange Commission) is the US Regulator for financial Markets

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The SEC, also known as the Securities and Exchange Commission, is indeed the US regulator for financial markets. This government agency is responsible for enforcing federal securities laws, regulating the securities industry, and protecting investors. The SEC's main objective is to ensure fair and transparent markets, promote capital formation, and maintain the integrity of the securities market. Therefore, the statement "The SEC is the US Regulator for financial Markets" is true.

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  • 21. 

    'I cannot make any guarantee or promise any return on capital to any investor as the choice and risk of investment is always the client's'

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because as a financial advisor or investment professional, it is not possible to guarantee any specific return on investment or promise any specific outcome. The choice and risk of investment always lie with the client, as they are the ones making the decisions about where to invest their capital. The advisor can provide guidance and recommendations based on their expertise, but ultimately it is up to the client to make the investment choices and bear the associated risks.

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  • 22. 

    A W-8BEN or W8BENE FORM is required for clients or institutions to certify that they are neither American nor have a Green Card.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The correct answer is true. A W-8BEN or W8BENE form is indeed required for clients or institutions to certify that they are neither American nor have a Green Card. This form is used to establish the foreign status of the individual or entity for tax purposes. By completing this form, the client or institution confirms that they are not subject to certain tax withholding requirements that apply to U.S. citizens or Green Card holders.

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  • 23. 

    The kind of trading accounts Investors Europe offers give (i) access to credit cards and (ii) provides interest on cash.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Company Account Opening Forms confirm that no interest is paid and we do not issue or offer credit cards.

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  • 24. 

    I can promise an execution price below or above stock market rates without checking with Management

    • True

    • False

    Correct Answer
    A. False
    Explanation
    YOU SHOULD NEVER DO THIS AS THE COMPANY MIGHT BE HELD LIABLE IF THE PRICE DID NOT MATERIALISE FOR THE CLIENT. ONLY EVER GIVE A CONFIRMATION (VERBAL OR OTHERWISE) OF PRICE AND/ OR EXCUTION DETAILS WHEN YOU ARE 100% CERTAIN AND CAN SEE IT WITH YOUR OWN EYES AND CAN VOUCH FOR IT. PROTECT THE COMPANY.

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  • 25. 

    Investors Europe works mainly with cheques and credit cards which fund its client trading accounts

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Only Bank Transfers. We accept no cheques as our banks no longer accept cheques.

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  • 26. 

    The maximum leverage on CFDs on Rocktrader is 400:1

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The maximum leverage on CFDs on Rocktrader is not 400:1.

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  • 27. 

    When a client phones and gives a verbal instruction for an order to be placed, I should always reconfirm the order with the client at least once  and get him to ok the instruction I am repeating to him before executing it?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    It is important to always reconfirm the order with the client and get their confirmation before executing it to ensure accuracy and avoid any misunderstandings or mistakes. Verbal instructions can sometimes be misheard or misinterpreted, so confirming the order with the client helps to ensure that their needs and requirements are met correctly.

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  • 28. 

    Account Opening : The documents needed to open a corporate account are the same as the ones needed to open an Individual account or  a personal account.

    • True

    • False

    • False

    • False

    Correct Answer
    A. False
    Explanation
    The explanation for the correct answer (False) is that the question states that the documents needed to open a corporate account are the same as the ones needed to open an individual or personal account. This statement is incorrect because corporate accounts typically require additional documentation such as proof of business registration, company financial statements, and identification of authorized signatories, which are not needed for individual or personal accounts. Therefore, the answer is false.

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  • 29. 

    Investors Europe informs and assists the client in choosing which platform to use, but it is always the client's choice

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Investors Europe provides information and guidance to clients regarding platform selection but ultimately leaves the decision up to the client. This suggests that the client has the autonomy and freedom to choose the platform that best suits their needs and preferences. Thus, the statement "Investors Europe informs and assists the client in choosing which platform to use, but it is always the client's choice" is true.

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  • 30. 

    MT4 is a platform which clients are able to use to trade on the foreign exchange market or Spot Forex Market

    • True

    • False

    • False

    Correct Answer
    A. True
    Explanation
    MT4 is a widely used platform that allows clients to trade on the foreign exchange market or Spot Forex Market. This platform provides various tools and features that enable users to analyze market trends, execute trades, and manage their trading accounts. Therefore, the statement "MT4 is a platform which clients are able to use to trade on the foreign exchange market or Spot Forex Market" is true.

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  • 31. 

    Clients can place orders over company's recorded phone (recorded Skype) and they will not be charged extra

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Clients can place orders over the company's recorded phone (recorded Skype) without being charged extra. This means that the company allows its clients to make orders through recorded phone calls or Skype calls, and there are no additional charges for using these methods.

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  • 32. 

    There are clearly potential conflicts of interest when a stock broker or bank manages its own assets alongside client assets

    • True

    • False

    Correct Answer
    A. True
    Explanation
    When a stock broker or bank manages its own assets alongside client assets, there is a possibility of conflicts of interest. This means that the broker or bank may prioritize their own interests over the interests of their clients. For example, they may be tempted to make decisions that benefit their own investments at the expense of their clients' investments. This can lead to unfair treatment and disadvantageous outcomes for the clients. Therefore, it is true that potential conflicts of interest exist in such situations.

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  • 33. 

    TIEA stands for Tax Information Exchange Agreement, an agreement between two states to share tax information

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The explanation for the given correct answer is that TIEA stands for Tax Information Exchange Agreement, which is indeed an agreement between two states to share tax information. This agreement is aimed at preventing tax evasion and promoting transparency in the global tax system. Through TIEAs, countries can exchange relevant tax information to ensure that individuals and entities are fulfilling their tax obligations. Therefore, the statement "True" is correct.

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  • 34. 

    Futures market : originally used by farmers to reduce their exposure to risk inherent in the quality/price of their harvest

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The explanation for the given correct answer is that the futures market was indeed originally used by farmers to mitigate the risk associated with the quality and price of their harvest. By entering into futures contracts, farmers could lock in a predetermined price for their produce, thereby protecting themselves from potential price fluctuations in the market. This allowed them to plan their finances more effectively and reduce their exposure to risk.

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  • 35. 

    An STP Forex broker takes no positions and ensures that client executions go 'straight through' to markets

    • True

    • False

    Correct Answer
    A. True
    Explanation
    An STP (Straight Through Processing) Forex broker acts as an intermediary between the traders and the market. They do not take any positions themselves but instead, facilitate the direct execution of client orders to the market. This means that when a client places an order, it is sent directly to the market without any intervention or manipulation from the broker. This ensures transparency and fairness in the execution process. Therefore, the statement "An STP Forex broker takes no positions and ensures that client executions go 'straight through' to markets" is true.

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  • 36. 

    Investors Europe Mauritius Stock Brokers client trading accounts are segregated and individually margined so that they do not cross contaminate each other with accounting errors and/ or losses

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because Investors Europe Mauritius Stock Brokers have segregated and individually margined client trading accounts. This means that each client's account is kept separate from others, preventing any mixing of funds or errors that could lead to losses. This segregation ensures that clients' investments are protected and that any losses incurred do not affect other clients' accounts.

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  • 37. 

    A Top Down approach to the Markets means looking from a macro economic perspective down into the micro economic make-up of a country's economy

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A top-down approach to the markets involves analyzing the overall macroeconomic factors that influence a country's economy and then narrowing down to the microeconomic aspects. This approach starts with understanding the broader economic conditions, such as GDP growth, inflation rates, and interest rates, and then delves into specific industries, sectors, and individual companies. By taking a top-down approach, investors can gain a comprehensive understanding of the market and make informed investment decisions based on the macroeconomic outlook.

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  • 38. 

    The Company's agents (consultants, collaborators, interns, trainees) can accept gifts from clients so long as the value involved is less than 50.000 USD

    • True

    • False

    Correct Answer
    A. False
    Explanation
    NO! Read Compliance Manual.

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  • 39. 

    Company staff have obligation at all times to be able to satisfy the Compliance that they are, and remain, 'fit and proper'.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Company staff have an obligation to be able to satisfy the Compliance that they are 'fit and proper' at all times. This means that they must consistently demonstrate that they possess the necessary qualifications, skills, and ethical standards required for their role within the company. By doing so, they ensure that they are capable of fulfilling their responsibilities and complying with relevant regulations and industry standards. Therefore, the statement "True" is correct.

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  • 40. 

    FATCA : two married persons (one non US) owning 50% each of a trading account is treated as a U.S. account

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Under the Foreign Account Tax Compliance Act (FATCA), if two married persons jointly own a trading account and one of them is a non-US citizen, the account is still considered a US account. This means that the account is subject to reporting requirements and regulations imposed by the US government. FATCA aims to prevent tax evasion by US citizens and residents through offshore accounts, and it treats jointly owned accounts in this manner to ensure transparency and compliance with tax laws. Therefore, the statement is true.

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  • 41. 

    AML – You are not required to report your suspicions to the police but to the Head of Compliance/ Money Laundering Reporting Officer who would then have the responsibility for investigating it and taking it further (making a STR to the FIU under FIAMLA) or not.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    In Mauritius, the requirement to report suspicious transactions, established under Section 14 of the FIAMLA (FINANCIAL INTELLIGENCE AND ANTI-MONEY LAUNDERING ACT) states that banks, financial institutions, cash dealers or members of relevant professions shall make a report to the FIU (Financial Intelligence Unit) on any transaction which they have re​ason to believe may be a suspicious transaction.

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  • 42. 

    The FSC is the integrated regulator in Mauritius for the financial services sector other than banking, and global business.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    As per the Securities Act 2005 , the FSC is the regulator of the non-bank financial markets in Mauritius which comprises Securities Exchanges, clearing and settlement facilities and securities trading systems on the one hand and Collective Investment Schemes and intermediaries on the other.

    Therefore, as the regular of the securities markets, the FSC strives to:

    foster fair, efficient, transparent and informed markets for securities in Mauritius; monitor and regulate the operations of securities exchanges and the activities of persons providing clearing and settlement services and trading systems for securities; suppress and prevent financial crimes and illegal practices; regulate the disclosure of information by persons issuing securities and by reporting issuers to securities holders and to the public; cooperate and collaborate with domestic and international organisations, law enforcement, supervisory and regulatory bodies and reinforce the protection of investors in Mauritius from unfair, improper and fraudulent practices.

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  • 43. 

    I should always give Advice to the client on what he should trade

    • True

    • False

    Correct Answer
    A. False
    Explanation
    NEVER GIVE ADVICE.

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  • 44. 

    After speaking with a potential client on the phone, I should immediately transcribe what has been discussed onto Salesforce

    • True

    • False

    Correct Answer
    A. True
    Explanation
    It is important to immediately transcribe what has been discussed with a potential client onto Salesforce after speaking with them on the phone. This ensures that all important details and information are accurately recorded and can be easily accessed and referred to in the future. Transcribing the conversation onto Salesforce helps maintain clear communication and allows for effective follow-up and tracking of client interactions.

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  • 45. 

    Investors Europe Stock Brokers executes trades on behalf of clients as their agent or their intermediary.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Investors Europe Stock Brokers acts as an agent or intermediary for clients when executing trades. This means that they carry out trades on behalf of their clients, rather than trading on their own account. As an agent, they have a fiduciary duty to act in the best interests of their clients and to execute trades in accordance with their instructions. As an intermediary, they facilitate the trading process by connecting buyers and sellers in the market. Therefore, the statement is true.

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  • 46. 

    The only kind of accounts Investors Europe offers are nominee trading accounts (i.e. without  a name)?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    If a client wants, we can open an account in his name or his company's a name at our end broker e.g. Saxo Bank.

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  • 47. 

    Investors Europe Stock Brokers has a Euro 1.2 million Professional Indemnity Insurance with AIG of Belgium

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement is true. Investors Europe Stock Brokers has a Euro 1.2 million Professional Indemnity Insurance with AIG of Belgium. This insurance provides coverage for any potential errors, omissions, or negligence that may occur during the brokerage services provided by Investors Europe Stock Brokers. Having this insurance is important as it protects both the company and its clients from financial losses that may arise from any mistakes made during the course of business operations.

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  • 48. 

    By Law, Investors Europe Stock Brokers has to have two resident directors in Mauritius

    • True

    • False

    Correct Answer
    A. True
    Explanation
    According to the given information, Investors Europe Stock Brokers is required by law to have two resident directors in Mauritius. This suggests that it is mandatory for the company to appoint two directors who are residents of Mauritius in order to comply with legal regulations. Therefore, the answer is true.

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  • 49. 

    Clients must formally make a complaint to company, if they are not satisfied, before making a complaint to the Regulator

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Clients must formally make a complaint to the company before making a complaint to the Regulator if they are not satisfied. This implies that the company should be given an opportunity to address the complaint and resolve the issue internally before involving the Regulator. By doing so, the company can have a chance to rectify the problem and potentially avoid any regulatory intervention. It also promotes a more efficient and effective resolution process, as the company can directly address the client's concerns without the need for external involvement.

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Quiz Review Timeline (Updated): Jan 29, 2024 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Jan 29, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Mar 24, 2015
    Quiz Created by
    Bertrand Boulle
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