CISI_ UK
Regulation & Professional Integrity
2025/2026
Exam Prep Material
with
Verified Questions and Answers
A+ Grades Guarantee
, 2 years and/or unlimited fine
What is the punishment of
breaching the general
prohibition?
Rather than allowing the FCA's enforcement team to make the
Who is the Regulatory Decisions decisions which are implemented in the statutory notices, these
Committee? decisions are made by a relatively independent committee
Who sets UK interest rates? The MPC
Who sets monetary policy in the The Monetary Policy Committee of the BoE
UK?
used to describe the total sum of all financial assets which are
What is Narrow money liquid and available
describes the total sum of a wide range of assets, including money
What is Broad money in savings account which was not instant access
The BoE
Who is in charge of keeping
inflation within a certain range?
National income
Three measures of economic Gross national product
activity are Gross domestic product
Government policy on taxation, public borrowing and public
What is fiscal policy? spending
What is a debtors petition? Voluntary bankruptcy to put debts behind you
Holds cash reserves of depository institutions and makes loans to
What is the role of The Federal
them
Reserve?
Regulates and supervises the national banks of the US
What does the The Office of
Comptroller of the Currency
(OCC) do?
Largest independent regulator for all securities firms doing
The Financial Industry Regulatory business in US
authority (FINRA) do?
Aim to move the regulatory approach towards a better focus on
What is the aim of COBS outcomes rather than prescriptive rules
Whichever is longer:
For five years
How long must firms hold records The duration of the relationship with the client
of term agreements? For pension records, indefinitely
Market maker acting in the normal course of business
When is dealing as principal not a
regulated activity?
, Limited, Core, Enhanced
In applying the SM&CR to FCA
solo-regulated firms, what are the
three categories of firms?
1. Receipt and transmission of orders
2. Execution of orders
3. Investment advice
What are the 6 core activities 4. Managing investments
under MiFID? 5. Underwriting and placing
6. Operating an MTF
the Bank of England
the central bank of an EEA state
the European Central Bank (ECB)
the European Investment Bank (EIB)
Who are the main organisations the International Bank for Reconstruction and Development (IBRD)
that are exempt in respect of any the International Monetary Fund (IMF)
regulated activity other than the European Bank for Reconstruction and Development (EBRD).
insurance business
members of Lloyd's insurance market and certain designated
Which persons are exempted
professional bodies (DPBs)
from the General Prohibition
A CEO, CFO, Chairperson and a head of key business area and
Under SM&CR, the PRA requires
group entity senior manager
banks to have what roles filled?
1. CASS oversight
2. Benchmark submission and administration
3. Proprietary trader
4. Significant management
What are the significant harm 5. Functions requiring qualifications
functions? (7) 6. Managers of certification employees
7. Material risk-takers.
1. affects any individuals who are deemed to be 'material risk
How does the Certification takers', no matter where they are located.
regime impact overseas 2. affects where an individual overseas is dealing with, has contact
employees of UK firms? with, UK clients.
For FCA: All UK staff, except ancillary roles
Who does the Conduct rules For PRA: to senior managers and individuals who fall within the
apply to? PRA Certification Regime (aka material risk takers)
FCA and PRA:
What are the First Tier - Rule 1: You must act with integrity.
Individual Conduct Rules and Rule 2: You must act with due skill, care and diligence.
which regulator do they apply? Rule 3: You must be open with the regulators.
Regulation & Professional Integrity
2025/2026
Exam Prep Material
with
Verified Questions and Answers
A+ Grades Guarantee
, 2 years and/or unlimited fine
What is the punishment of
breaching the general
prohibition?
Rather than allowing the FCA's enforcement team to make the
Who is the Regulatory Decisions decisions which are implemented in the statutory notices, these
Committee? decisions are made by a relatively independent committee
Who sets UK interest rates? The MPC
Who sets monetary policy in the The Monetary Policy Committee of the BoE
UK?
used to describe the total sum of all financial assets which are
What is Narrow money liquid and available
describes the total sum of a wide range of assets, including money
What is Broad money in savings account which was not instant access
The BoE
Who is in charge of keeping
inflation within a certain range?
National income
Three measures of economic Gross national product
activity are Gross domestic product
Government policy on taxation, public borrowing and public
What is fiscal policy? spending
What is a debtors petition? Voluntary bankruptcy to put debts behind you
Holds cash reserves of depository institutions and makes loans to
What is the role of The Federal
them
Reserve?
Regulates and supervises the national banks of the US
What does the The Office of
Comptroller of the Currency
(OCC) do?
Largest independent regulator for all securities firms doing
The Financial Industry Regulatory business in US
authority (FINRA) do?
Aim to move the regulatory approach towards a better focus on
What is the aim of COBS outcomes rather than prescriptive rules
Whichever is longer:
For five years
How long must firms hold records The duration of the relationship with the client
of term agreements? For pension records, indefinitely
Market maker acting in the normal course of business
When is dealing as principal not a
regulated activity?
, Limited, Core, Enhanced
In applying the SM&CR to FCA
solo-regulated firms, what are the
three categories of firms?
1. Receipt and transmission of orders
2. Execution of orders
3. Investment advice
What are the 6 core activities 4. Managing investments
under MiFID? 5. Underwriting and placing
6. Operating an MTF
the Bank of England
the central bank of an EEA state
the European Central Bank (ECB)
the European Investment Bank (EIB)
Who are the main organisations the International Bank for Reconstruction and Development (IBRD)
that are exempt in respect of any the International Monetary Fund (IMF)
regulated activity other than the European Bank for Reconstruction and Development (EBRD).
insurance business
members of Lloyd's insurance market and certain designated
Which persons are exempted
professional bodies (DPBs)
from the General Prohibition
A CEO, CFO, Chairperson and a head of key business area and
Under SM&CR, the PRA requires
group entity senior manager
banks to have what roles filled?
1. CASS oversight
2. Benchmark submission and administration
3. Proprietary trader
4. Significant management
What are the significant harm 5. Functions requiring qualifications
functions? (7) 6. Managers of certification employees
7. Material risk-takers.
1. affects any individuals who are deemed to be 'material risk
How does the Certification takers', no matter where they are located.
regime impact overseas 2. affects where an individual overseas is dealing with, has contact
employees of UK firms? with, UK clients.
For FCA: All UK staff, except ancillary roles
Who does the Conduct rules For PRA: to senior managers and individuals who fall within the
apply to? PRA Certification Regime (aka material risk takers)
FCA and PRA:
What are the First Tier - Rule 1: You must act with integrity.
Individual Conduct Rules and Rule 2: You must act with due skill, care and diligence.
which regulator do they apply? Rule 3: You must be open with the regulators.
