Final Questionnaire | Directors Academy

Who controls the so-called "significant" institutions?

Financial Stability Board (FSB)

Basel Committee on Banking Supervision

Federal Financial Supervisory Authority (BaFin)

European Central Bank (ECB)

Correct! Wrong!

How does the Supervisory Board behave in a compliant manner?

Each member is reviewed once a year by the Compliance Department.

Each member should view the Compliance Report and form his or her own opinion.

Only the Chairman of the Supervisory Board is informed about compliance violations.

Correct! Wrong!

At what level of shareholding in a credit institution is a company subject to control by BaFin?

from 30% upwards

from 20% upwards

from 10% upwards

at every investment

Correct! Wrong!

What applies to the purchase of insurance against the personal liability of supervisory board members?

Please select 2 correct answers

The conclusion of such insurance by the Company is not permitted.

With a D&O insurance policy I no longer have to worry about my liability.

Such insurance often does not cover cases of gross negligence.

A deductible is often agreed.

Correct! Wrong!

What does compliance at credit institutions involve? Which statements are correct?

Please select 3 correct answers

Also refers to the requirements of the regulatory authorities.

Is essentially limited to traditional issues such as the prevention of money laundering, terrorist financing and other criminal activities.

Has an important function in the new product process (NPP) and in the settlement of transactions.

Means compliance with all laws, regulations, guidelines, contractual obligations and voluntary commitments.

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Which of these committees must be formed by the supervisory board of a CRR institute of "considerable importance"?

Please select 3 correct answers

Personnel Committee

Remuneration Control Committee

Nominations Committee

Risk Committee

Correct! Wrong!

A derivative is a financial instrument...

Please select 2 correct answers

A derivative is a financial instrument whose fair value generally reacts to changes in the value of a market-related reference value accounting (underlying).

which is generally recognised in the balance sheet under the German Trading Act.

where the acquisition costs are not incurred or are incurred only to a very limited extent.

which will be fulfilled only in the future.

Correct! Wrong!

What requirements must a member of the supervisory board of a CRR institute of "significant importance" meet according to Section 25d KWG?

Please select 3 correct answers

He must, in cooperation with other members of the supervisory body, have the necessary expertise to carry out the supervisory function and to assess and monitor the business conducted by the company concerned.

He must devote sufficient time to the performance of his duties.

Unless he is otherwise a director, he may not, in principle, be a member of the supervisory body of more than four companies.

He may not be a director in another company.

Correct! Wrong!

What is evaluated in the Supervisory Review and Evaluation Process (SREP)?

Please select 4 correct answers

Cashflow Analysis

Governance

Liquidity and refinancing risk

Personal relations with BaFin

Risk culture as part of the corporate culture

Business model

Correct! Wrong!

How does the Compliance Department fulfill its tasks?

Please select 2 correct answers

Is independent.

It´s closely linked to the internal audit department.

Monitors and supports the other departments in complying with regulations and laws.

Submits the compliance report directly to the Supervisory Board

Correct! Wrong!

How do the special accounting rules for financial institutions come about?

Please select 3 correct answers

From strong regulation.

From the special economic significance of the banks.

From EU enlargement.

From the special transactions of credit institutions.

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BaFin requires an SREP surcharge of 0.25-0.5% additional equity because the minimum requirements for corporate governance are not met. What can you do in the supervisory board to prevent or reverse an SREP surcharge?

I suggest we take legal action against BaFin because the SREP surcharge is a chicanery.

Nothing at all. BaFin can decide whatever it wants.

I'll leave the reaction to the management board. It's up to them!

I demand that my Chairman of the Supervisory Board contact BaFin and clarify the reasons for the SREP surcharge.

Correct! Wrong!