CISI REGULATIONS TEST BANK EXAM \NEWEST VERSION WITH
COMPLETE QUESTIONS AND ACCURATE DETAILED ANSWERS
\VERIFIED ANSWERS \ALREADY GRADED A+ \ACTUAL EXAM
2025-2026
Can't passport services.
What is the status of EU
UK MiFIR togehter with MiFID ensure UK firms are
regulation and EU directive
complying with the same legislation as EU firms
in the UK? (Chapter 1)
What is the consequence Criminal offence:
of carrying out regulated 1) Max 2 years prison
activities when not 2) Unlimited fine
authorised? (Chapter 1)
Part 26: Company makes a compromise arrangement
with its shareholders and/or creditors, allowing it to
restructure itself.
What is a Scheme of
Part 26A: Same but can have a dissenting class of
Arrangement? (Chapter 1)
creditors or members Part 26A procedure:
1) Explanatory statement
2) Members' and creditors' meetings
3) Court approval
Squeeze-out: If a bidder has acquired 90% of shares and votes,
the bidder may
compel shareholders to sell any remaining shares. Must
notify shareholders within 3 months of the last date the
What are a sell-out and a
offer is valid, or within 6 months of the offer date
squeeze-out? (Chapter 1)
Sell-out: Shareholders who have not accepted the offer
can make the bidder acquire all shares. Shareholders
have to exercise their sell-out rights within three
months
from either a) the end of the period within which the offer can be
accepted, or b)
date of the notice to shareholders informing them of
their right to exercise their sell- out rights, whichever
is later
Whenever a company issues new equity shares wholly in
What are pre-emption rights? exchange for cash, it must offer shares to existing
(Chapter 1)
, shareholders. To disapply pre-emption rights, a special
resolution must be passed (75%)
AGMs: must be held within 6 months of FY end. Notice
period: 21 calendar days for public companies, 14
calendar days for private companies
GM (EGM): 21 days notice for listed companies on regulated
markets. Can be
reduced to 14 if they pass a resolution at their AGM each
What are the main
year, and that they can vote electronically. Most
statuatory rights of a
companies have adopted this approach.
shareholder? (Chapter 1)
Shareholders owning more than 5% may require
directors to convene a GM. If this happens, they must do
so within 21 days, and the meeting must be held no later
than 28 days thereafter
Ordinary resolution: 50%
Special resolution: 75% (e.g. company name, buy-
backs, AoA changes, liquidation. Also shareholders >100
in number and at least 100 pound in paid up shares can
call a meeting
The company's external rulebook, governing its
relationship with the outside world. Nowadays, not as
important as AoA, which is the internal rulebook, which
What is a memorandum of
includes:
association and what is its
- Company name and form
main purpose? (Chapter 1) - Details of each class of shares
- Provisions for GMs
- Directors' requirements
- Actionspermitted or prohibited for the company and its
directors
MiFID = a firm whose regular business involves MiFID services
What is the difference Non-MiFID = a firm who carry on out-of-scope business, such as
between a MiFID firm and a insurance,
employee schemes, individuals managing own assets,
non-MiFID firm? (Chapter 1)
and firms that do not provide investment services or
activities
What financial instruments are covered by
MiFID? (Chapter 1)
, - Authorisation
- Supervision
FCA powers (Chapter 1)
- Discipline
and sanctions
- Enforcement
FCA strategic objective Ensuring that the relevant markets function well
(Chapter 1)
1) Consumer = Secure an appropriate degree of protection for
consumers
FCA operational objectives 2) Integrity = Protect and enhance the integrity of the UK financial
(Chapter 1) system
3) Competition = Promote effective competition
protecting the interests of consumers
Facilitate the international competitiveness of the UK
FCA additional objective
(Chapter 1) economy and its medium to long-term growth
(subject to international standards)
FPC (Financial Policy Official committee within BoE, which identifies, monitors
Committee) (Chapter 1) and takes action to remove or reduce systemic risks
1) Receipt and transmission of orders in relation to one
or more specified financial instruments
2) Execution of orders on behalf of clients
3) Dealing on own account
4) Portfolio management
5) Investment advice
MiFID core activities (Chapter
1) 6) Underwriting of financial instruments and/or placing
of financial instruments on a firm commitment basis
7) Placing of financial instruments without a firm commitment basis
8) Operations of MTFs
9) Operations of OTFs
Genereal application is modified depending on the firm's location
When are some of COBS rules and activities. E.g.:
- COBS rules from MiFID II apply to UK MiFID firms
modified or disapplied for
specific circumstances? carrying on MiFID business from a UK establishment
(Chapter 2) - COBS rules from MiFID apply to a non-UK investment
firms doing business in the UK
COMPLETE QUESTIONS AND ACCURATE DETAILED ANSWERS
\VERIFIED ANSWERS \ALREADY GRADED A+ \ACTUAL EXAM
2025-2026
Can't passport services.
What is the status of EU
UK MiFIR togehter with MiFID ensure UK firms are
regulation and EU directive
complying with the same legislation as EU firms
in the UK? (Chapter 1)
What is the consequence Criminal offence:
of carrying out regulated 1) Max 2 years prison
activities when not 2) Unlimited fine
authorised? (Chapter 1)
Part 26: Company makes a compromise arrangement
with its shareholders and/or creditors, allowing it to
restructure itself.
What is a Scheme of
Part 26A: Same but can have a dissenting class of
Arrangement? (Chapter 1)
creditors or members Part 26A procedure:
1) Explanatory statement
2) Members' and creditors' meetings
3) Court approval
Squeeze-out: If a bidder has acquired 90% of shares and votes,
the bidder may
compel shareholders to sell any remaining shares. Must
notify shareholders within 3 months of the last date the
What are a sell-out and a
offer is valid, or within 6 months of the offer date
squeeze-out? (Chapter 1)
Sell-out: Shareholders who have not accepted the offer
can make the bidder acquire all shares. Shareholders
have to exercise their sell-out rights within three
months
from either a) the end of the period within which the offer can be
accepted, or b)
date of the notice to shareholders informing them of
their right to exercise their sell- out rights, whichever
is later
Whenever a company issues new equity shares wholly in
What are pre-emption rights? exchange for cash, it must offer shares to existing
(Chapter 1)
, shareholders. To disapply pre-emption rights, a special
resolution must be passed (75%)
AGMs: must be held within 6 months of FY end. Notice
period: 21 calendar days for public companies, 14
calendar days for private companies
GM (EGM): 21 days notice for listed companies on regulated
markets. Can be
reduced to 14 if they pass a resolution at their AGM each
What are the main
year, and that they can vote electronically. Most
statuatory rights of a
companies have adopted this approach.
shareholder? (Chapter 1)
Shareholders owning more than 5% may require
directors to convene a GM. If this happens, they must do
so within 21 days, and the meeting must be held no later
than 28 days thereafter
Ordinary resolution: 50%
Special resolution: 75% (e.g. company name, buy-
backs, AoA changes, liquidation. Also shareholders >100
in number and at least 100 pound in paid up shares can
call a meeting
The company's external rulebook, governing its
relationship with the outside world. Nowadays, not as
important as AoA, which is the internal rulebook, which
What is a memorandum of
includes:
association and what is its
- Company name and form
main purpose? (Chapter 1) - Details of each class of shares
- Provisions for GMs
- Directors' requirements
- Actionspermitted or prohibited for the company and its
directors
MiFID = a firm whose regular business involves MiFID services
What is the difference Non-MiFID = a firm who carry on out-of-scope business, such as
between a MiFID firm and a insurance,
employee schemes, individuals managing own assets,
non-MiFID firm? (Chapter 1)
and firms that do not provide investment services or
activities
What financial instruments are covered by
MiFID? (Chapter 1)
, - Authorisation
- Supervision
FCA powers (Chapter 1)
- Discipline
and sanctions
- Enforcement
FCA strategic objective Ensuring that the relevant markets function well
(Chapter 1)
1) Consumer = Secure an appropriate degree of protection for
consumers
FCA operational objectives 2) Integrity = Protect and enhance the integrity of the UK financial
(Chapter 1) system
3) Competition = Promote effective competition
protecting the interests of consumers
Facilitate the international competitiveness of the UK
FCA additional objective
(Chapter 1) economy and its medium to long-term growth
(subject to international standards)
FPC (Financial Policy Official committee within BoE, which identifies, monitors
Committee) (Chapter 1) and takes action to remove or reduce systemic risks
1) Receipt and transmission of orders in relation to one
or more specified financial instruments
2) Execution of orders on behalf of clients
3) Dealing on own account
4) Portfolio management
5) Investment advice
MiFID core activities (Chapter
1) 6) Underwriting of financial instruments and/or placing
of financial instruments on a firm commitment basis
7) Placing of financial instruments without a firm commitment basis
8) Operations of MTFs
9) Operations of OTFs
Genereal application is modified depending on the firm's location
When are some of COBS rules and activities. E.g.:
- COBS rules from MiFID II apply to UK MiFID firms
modified or disapplied for
specific circumstances? carrying on MiFID business from a UK establishment
(Chapter 2) - COBS rules from MiFID apply to a non-UK investment
firms doing business in the UK
