Preview Questions FinTech Specialist | Role Specific Skill

Question 1: What is the primary function of the Financial Conduct Authority (FCA) in the UK?

Which action should you take?

Choose only one option

To enforce tax policies on financial institutions

To set global banking regulations

To facilitate international banking transactions

To protect consumers and regulate financial markets

Question 2: What does the term "KYC" stand for in the context of financial services?

Which action should you take?

Choose only one option

Know Your Compliance

Know Your Counterparty

Know Your Creditworthiness

Know Your Customer

Question 3: For a trade finance use case on a distributed ledger, which cryptographic primitive ensures non-repudiation and integrity of documents (e.g., bills of lading) shared among multiple counterparties without revealing underlying data to unauthorized participants?

Which action should you take?

Choose only one option

Hashing documents with a single global hash accessible to all

Symmetric encryption using a shared secret key for all parties

Digital signatures combined with Merkle proofs to allow selective data disclosure while maintaining integrity

Fully homomorphic encryption of the entire document

Question 4: In the context of digital payments, what does "three-domain secure" (3DS) authentication provide?

Which action should you take?

Choose only one option

A secure method for storing digital wallets in cloud storage

An alternative to encryption for protecting cardholder data

Additional authentication for online credit card transactions to prevent fraud

A method for reducing transaction fees in payment processing

Question 5: What is the role of the Prudential Regulation Authority (PRA) in the UK's financial regulation?

Which action should you take?

Choose only one option

To supervise and regulate banks to ensure their stability

To protect investors from market manipulation

To manage cross-border payment systems

To issue regulatory guidance on tax planning for corporations

Question 6: For ensuring regulatory auditability of smart contracts used in insurance claims, which framework allows formal verification of contract logic and compliance checks against legal templates without exposing proprietary business logic to all participants?

Which action should you take?

Choose only one option

Relying on runtime assertions and hope they cover all edge cases

Just deploying the contract and trusting the developer's tests

Using domain-specific languages with formal verification tools (e.g., Solidity + Coq, DAML, or Scrypto) and privacy-preserving proofs of correctness

Manual code review by each participant's legal team