A Financial Company Has Decided to Move Its Main Business

question 274

Multiple Choice

A financial company has decided to move its main business application to the Cloud. The legal department objects, arguing that the move of the platform should comply with several regulatory obligations such as the General Data Protection (GDPR) and ensure data confidentiality. The Chief Information Security Officer (CISO) says that the cloud provider has met all regulations requirements and even provides its own encryption solution with internally-managed encryption keys to address data confidentiality. Did the CISO address all the legal requirements in this situation?

• A) No, because the encryption solution is internal to the cloud provider.
• B) Yes, because the cloud provider meets all regulations requirements.
• C) Yes, because the cloud provider is GDPR compliant.
• D) No, because the cloud provider is not certified to host government data.

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Definitions:

Mutual Fund Prospectus

A legal document provided by mutual funds to potential investors, detailing the fund's objectives, risks, performance, and expenses.

Front-end Loads

Charges paid by investors at the time of purchasing a mutual fund.

Back-end Loads

Fees paid by investors when selling mutual fund shares, typically decreasing over time the longer the shares are held.

Hedge Fund

A private investment fund that employs a variety of strategies to earn active return, or alpha, for their investors, often involving leverage, derivatives, and short selling.