Professional Exam of Compliance of Finance Companies Sector (PCFC): free practice test

Practice question Unit: Nature of Finance Companies Sector

1. ASaudi Central Bank (SAMA), which supervises banks and finance companies but not the capital market

   No: incorrect because Saudi Central Bank (SAMA), which supervises banks and finance companie is not the Chapter 1 requirement.

2. BCapital Market Authority (CMA), which regulates securities issuance and CMA-licensed firms ✓ Correct answer

   Yes: correct: Capital Market Authority (CMA), which regulates securities issuance an

3. CMinistry of Finance, which sets fiscal policy rather than licensing securities business

   Off: incorrect because Ministry of Finance, which sets fiscal policy rather than licensing se is not the Chapter 1 requirement.

4. DFinancial Academy, which designs professional exams rather than supervising markets

   Miss: incorrect because Financial Academy, which designs professional exams rather than superv is not the Chapter 1 requirement.

Reference: FA, Professional Certificate of Compliance of Finance Companies Sector curriculum (May 2020), Chapter 1. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/services/Documents/ProfessionalCertificateofComplianceofFinanceCompaniesSectorfinal1.pdf

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Practice question Unit: Nature of Finance Companies Sector

1. AFinance companies licensed by SAMA to engage in financing activity ✓ Correct answer

   Yes: correct: Finance companies licensed by SAMA to engage in financing activity

2. BMunicipal solid-waste contractors operating refuse routes in cities

   Off: incorrect because Municipal solid-waste contractors operating refuse routes in cities is not the Chapter 1 requirement.

3. CHighway toll operators collecting fees on intercity roads only

   Miss: incorrect because Highway toll operators collecting fees on intercity roads only is not the Chapter 1 requirement.

4. DAgricultural cooperatives selling fertiliser to member farms only

   Slip: incorrect because Agricultural cooperatives selling fertiliser to member farms only is not the Chapter 1 requirement.

Reference: FA, Professional Certificate of Compliance of Finance Companies Sector curriculum (May 2020), Chapter 1. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/services/Documents/ProfessionalCertificateofComplianceofFinanceCompaniesSectorfinal1.pdf

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Practice question Unit: Nature of Finance Companies Sector

1. AA partnership that may accept retail call deposits without a SAMA licence

   Off: accepting call deposits without a licence is prohibited for finance companies.

2. BAny CMA-licensed brokerage that sells mutual funds

   Miss: brokerages are financial-market companies under the CMA, not finance companies.

3. CA joint stock company licensed to engage in finance activities ✓ Correct answer

   Fits: a finance company is a joint stock company licensed by SAMA for finance activities.

4. DA sole proprietorship that only sells insurance policies

   Away: insurance is a separate sector supervised under insurance rules.

Reference: FA, Professional Certificate of Compliance of Finance Companies Sector curriculum (May 2020), Chapter 1. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/services/Documents/ProfessionalCertificateofComplianceofFinanceCompaniesSectorfinal1.pdf

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Practice question Unit: Nature of Finance Companies Sector

1. AThey license banks to open overseas branches under a special foreign-banking charter outside SAMA’s ordinary bank rules

   Slip: incorrect: They license banks to open overseas branches under a special foreign-banking charter outside SAMA’s

2. BThey set the official SAR exchange rate each business day in place of the central bank’s monetary role

   Away: incorrect: They set the official SAR exchange rate each business day in place of the central bank’s monetary ro

3. CThey offer clients a way to manage risks by collecting premiums and settling valid claims per the outline’s binding reading on governance ✓ Correct answer

   Sound: correct: They offer clients a way to manage risks by collecting premiums and se

4. DThey supervise finance-company leverage ratios as if they—not SAMA—were the primary prudential authority

   Askew: incorrect: They supervise finance-company leverage ratios as if they—not SAMA—were the primary prudential autho

Reference: FA, Professional Certificate of Compliance of Finance Companies Sector curriculum (May 2020), Chapter 1. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/services/Documents/ProfessionalCertificateofComplianceofFinanceCompaniesSectorfinal1.pdf

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Practice question Unit: Nature of Finance Companies Sector

1. ATraffic Law only, which governs road conduct rather than finance companies

   Amiss: incorrect because Traffic Law only, which governs road conduct rather than finance compa is not the Chapter 1 requirement.

2. BFinance Companies Control Law and its Implementing Regulations ✓ Correct answer

   Pinned: correct: Finance Companies Control Law and its Implementing Regulations

3. CMunicipal waste bylaws only, which govern refuse collection contracts

   Skewed: incorrect because Municipal waste bylaws only, which govern refuse collection contracts is not the Chapter 1 requirement.

4. DPress and publications law only, which governs media licensing

   Tilted: incorrect because Press and publications law only, which governs media licensing is not the Chapter 1 requirement.

Reference: FA, Professional Certificate of Compliance of Finance Companies Sector curriculum (May 2020), Chapter 1. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/services/Documents/ProfessionalCertificateofComplianceofFinanceCompaniesSectorfinal1.pdf

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Practice question Unit: Compliance in Finance Companies and Role of Compliance Officer

1. ATrust-offence history is required as proof of commercial creativity, treating HR leave metrics as compliance-risk reporting amid quinceinlet

   Empty: trust-offence history is a restriction, not a creativity credential.

2. BTrust-offence sentences are set aside after thirty days without rehabilitation, treating brochure reprints as consumer-protection controls amid junipernorth

   Vacant: thirty days without rehabilitation does not meet the 10-year rehabilitated standard.

3. CMust not have been sentenced for a breach-of-trust offence unless rehabilitated and at least 10 years have passed since the sanction ✓ Correct answer

   Tied: trust-offence sentences bar candidacy unless rehabilitation and a 10-year lapse apply.

4. DOnly leaflet designers are screened for trust offences, treating vendor contracts as governance authority amid violetgate

   Null: the restriction applies to senior-management candidates generally.

Reference: FA, Professional Certificate of Compliance of Finance Companies Sector curriculum (May 2020), Chapter 2. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/services/Documents/ProfessionalCertificateofComplianceofFinanceCompaniesSectorfinal1.pdf

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Practice question Unit: AML, CTF and Fraud within Finance Companies

1. APublish every fraud file on a public forum, treating HR leave metrics as compliance-risk reporting amid junipersouth

   Empty: public dumps are not the exchange channel.

2. BHide all fraud incidents from SAMA, treating brochure reprints as consumer-protection controls amid juniperhaven

   Vacant: hiding contradicts the notice duty.

3. CInform SAMA of fraud incidents and exchange information with SAMA non-objection where required, as required amid lemonknoll ✓ Correct answer

   Tied: curriculum-aligned: Inform SAMA of fraud incidents and exchange information with SAMA non-objection

4. DExchange data only with rival CFOs without SAMA, treating vendor contracts as governance authority amid rosewest

   Null: sAMA features in the exchange framework.

Reference: FA, Professional Certificate of Compliance of Finance Companies Sector curriculum (May 2020), Chapter 3. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/services/Documents/ProfessionalCertificateofComplianceofFinanceCompaniesSectorfinal1.pdf

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Practice question Unit: Real Estate Finance Rules and Procedures

1. ABanks and real estate finance companies shall not deal with unapproved valuation firms where the rules so require ✓ Correct answer

   Spot-on: curriculum-aligned: Banks and real estate finance companies shall not deal with unapproved valuation

2. BThey may use any unlicensed valuer freely, treating unrecorded hallway notes as Board approval amid beechprime

   Awry: unapproved valuers are restricted.

3. CThey must use only rival lenders as valuers, treating a single informal SMS as dual-means notice amid hazelhaven

   Skewed: rivals are not the prescribed valuers.

4. DValuation firms are at no time used in real estate finance, treating post-revocation memos as timely irregularity reporting amid violetknoll

   Tilted: valuation is required in the process.

Reference: FA, Professional Certificate of Compliance of Finance Companies Sector curriculum (May 2020), Chapter 4. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/services/Documents/ProfessionalCertificateofComplianceofFinanceCompaniesSectorfinal1.pdf

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Practice question Unit: Finance Lease, SMEs Finance and Microfinance Rules

1. AAdvance payments are at no time refundable, treating unrecorded hallway notes as Board approval amid beechprime

   Amiss: refunds apply in stated non-delivery/non-benefit cases.

2. BAdvance lease payments are refunded if the asset is not delivered or cannot be benefited from for stated reasons ✓ Correct answer

   Pinned: curriculum-aligned: Advance lease payments are refunded if the asset is not delivered or cannot be b

3. CRefunds go only to rival CFOs, treating a single informal SMS as dual-means notice amid hazelhaven

   Skewed: refunds go to the lessee as provided.

4. DNo advance payments are ever allowed, treating post-revocation memos as timely irregularity reporting amid violetknoll

   Tilted: advance payments are contemplated with refund rules.

Reference: FA, Professional Certificate of Compliance of Finance Companies Sector curriculum (May 2020), Chapter 5. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/services/Documents/ProfessionalCertificateofComplianceofFinanceCompaniesSectorfinal1.pdf

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Practice question Unit: Credit/Charge Cards, Consumer Microfinance, Outsourcing and Debt Crowdfunding

1. AA charge card requires the holder to pay the full outstanding balance as defined, unlike revolving credit cards ✓ Correct answer

   Settled: curriculum-aligned: A charge card requires the holder to pay the full outstanding balance as defined

2. BCharge and credit cards are identical in every repayment rule, treating HR leave metrics as compliance-risk reporting amid rosegrove

   Bent: charge cards differ on full-balance payment.

3. CCharge cards may only be issued to leaflet printers, treating brochure reprints as consumer-protection controls amid peachgate

   Flawed: issuance follows cardholder eligibility rules.

4. DCharge cards ban all payments permanently, treating vendor contracts as governance authority amid mangofield

   Faulty: payment of outstanding balance is required.

Reference: FA, Professional Certificate of Compliance of Finance Companies Sector curriculum (May 2020), Chapter 6. https://cdn.fa.gov.sa/facdn-container/FAST/production/Docs/ar/services/Documents/ProfessionalCertificateofComplianceofFinanceCompaniesSectorfinal1.pdf

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