Certified Regulatory Compliance Manager (CRCM) — Question 197

Consumers are not considered to be the customers if they do not have continuing relationship with the financial institution. A relationship is considered NOT to be a continuing relationship if:

Answer options

• A. The consumer obtains financial services only in isolated transactions, such as using an ATM
• B. The consumer's loan is sold and servicing rights are retained
• C. The consumer purchases airline tickets or travel insurance in an isolated transaction
• D. The consumer is a beneficiary or grantor of a trust not administrated by the bank

Correct answer: A, C

Explanation

Option A is correct because isolated transactions indicate a lack of ongoing engagement with the institution. Option C is also correct for similar reasons, as it describes a one-time purchase without a continuous relationship. Options B and D involve ongoing connections through loans and trust management, which do not fit the criteria for a lack of continuing relationship.