Final Questionnaire | Directors Academy

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

at every investment

from 30% upwards

from 20% upwards

from 10% upwards

Correct! Wrong!

A derivative is a financial instrument...

Please select 2 correct answers

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

which will be fulfilled only in the future.

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

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

Correct! Wrong!

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

Nominations Committee

Risk Committee

Remuneration Control Committee

Correct! Wrong!

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?

Nothing at all. BaFin can decide whatever it wants.

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

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

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

Correct! Wrong!

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

Please select 4 correct answers

Governance

Liquidity and refinancing risk

Personal relations with BaFin

Cashflow Analysis

Business model

Risk culture as part of the corporate culture

Correct! Wrong!

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

Please select 3 correct answers

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

Also refers to the requirements of the regulatory authorities.

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

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

Correct! Wrong!

How does the Compliance Department fulfill its tasks?

Please select 2 correct answers

Is independent.

Submits the compliance report directly to the Supervisory Board

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

It´s closely linked to the internal audit department.

Correct! Wrong!

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

Please select 2 correct answers

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.

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

A deductible is often agreed.

Correct! Wrong!

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

Please select 3 correct answers

From EU enlargement.

From strong regulation.

From the special transactions of credit institutions.

From the special economic significance of the banks.

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 may not be a director in another company.

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

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.

Correct! Wrong!

How does the Supervisory Board behave in a compliant manner?

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

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

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

Correct! Wrong!

Who controls the so-called "significant" institutions?

Financial Stability Board (FSB)

Federal Financial Supervisory Authority (BaFin)

Basel Committee on Banking Supervision

European Central Bank (ECB)

Correct! Wrong!