1|Page
CISI UK Financial Regulations (Regs) Mock Exam(Verified
Questions And Verified Answers)||Best Edition||Quick Pass!!!
How quickly must a firm correct a discrepancy following an
external client money reconciliation?
Within 25 business days
Within 5 business days
As soon as possible
No later than the next day - ANSWER-The correct answer is as
soon as possible.
Which piece of statute gives the FCA the power to issue fines
for money laundering offences?
Companies Act 2006
Criminal Justice Act 1993
Proceeds of Crime Act 2002
Financial Services and Markets Act 2000 - ANSWER-Although
the Proceeds of Crime Act 2002 defines the offence of money
laundering, it is FSMA 2000 that grants the FCA powers in the
UK market place, including the power to issue fines.
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Which of the following instrument is outside the scope of
insider dealing, as defined by the Criminal Justice Act 1993?
Commodity option
Warrant
Equity option
Gilt future - ANSWER-The insider dealing legislation covers
exchange traded securities (equities and bonds), and 'hybrids'
on exchange traded securities (equity derivatives and warrants,
bond derivatives).
In which of the following situations would a firm need to assess
appropriateness?
Where a firm manages a retail client's portfolio on a
discretionary basis.
Where a firm engages in eligible counterparty business only.
Where a firm arranges a deal in a warrant where the client has
responded to a direct offer financial promotion.
Where a firm provides advice on investments to a client. -
ANSWER-Appropriateness needs to be assessed when a firm
arranges or deals in warrants or derivatives where the client has
responded to a direct offer financial promotion.
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Which of the following describes the relationship between the
FCA and the Financial Services Compensation Scheme (FSCS)?
The Board of the FSCS is appointed by the Treasury.
The Board of the FSCS is appointed by the FCA.
The Board of the FSCS is appointed by the FCA but acts
independently.
There is no relationship between the FCA and the FSCS. -
ANSWER-The FSCS acts independently of (but is still
accountable to) the FCA.
The Board of the FSCS is appointed by the FCA but acts
independently. (1 Mark)
Which of the following is not an exempt person?
A member of a DPB
Lloyds of London
An appointed representative
An RIE - ANSWER-Feedback:
, 4|Page
Lloyds of London is an authorised person. Syndicate members
of Lloyds are exempt.
When does the RDC issue a final notice?
No later than 28 days after a warning notice.
No sooner than 28 days after a decision notice.
No sooner than 14 days after a decision notice.
Immediately after a second supervisory notice. - ANSWER-The
recipient of a decision notice has a 28 day appeal period, after
which a final notice is issued.
Which of the following is a governing function?
Head of global equities
Business oversight
MLRO
Partner - ANSWER-A partner in a partnership agreement is a
governing function.
CISI UK Financial Regulations (Regs) Mock Exam(Verified
Questions And Verified Answers)||Best Edition||Quick Pass!!!
How quickly must a firm correct a discrepancy following an
external client money reconciliation?
Within 25 business days
Within 5 business days
As soon as possible
No later than the next day - ANSWER-The correct answer is as
soon as possible.
Which piece of statute gives the FCA the power to issue fines
for money laundering offences?
Companies Act 2006
Criminal Justice Act 1993
Proceeds of Crime Act 2002
Financial Services and Markets Act 2000 - ANSWER-Although
the Proceeds of Crime Act 2002 defines the offence of money
laundering, it is FSMA 2000 that grants the FCA powers in the
UK market place, including the power to issue fines.
,2|Page
Which of the following instrument is outside the scope of
insider dealing, as defined by the Criminal Justice Act 1993?
Commodity option
Warrant
Equity option
Gilt future - ANSWER-The insider dealing legislation covers
exchange traded securities (equities and bonds), and 'hybrids'
on exchange traded securities (equity derivatives and warrants,
bond derivatives).
In which of the following situations would a firm need to assess
appropriateness?
Where a firm manages a retail client's portfolio on a
discretionary basis.
Where a firm engages in eligible counterparty business only.
Where a firm arranges a deal in a warrant where the client has
responded to a direct offer financial promotion.
Where a firm provides advice on investments to a client. -
ANSWER-Appropriateness needs to be assessed when a firm
arranges or deals in warrants or derivatives where the client has
responded to a direct offer financial promotion.
,3|Page
Which of the following describes the relationship between the
FCA and the Financial Services Compensation Scheme (FSCS)?
The Board of the FSCS is appointed by the Treasury.
The Board of the FSCS is appointed by the FCA.
The Board of the FSCS is appointed by the FCA but acts
independently.
There is no relationship between the FCA and the FSCS. -
ANSWER-The FSCS acts independently of (but is still
accountable to) the FCA.
The Board of the FSCS is appointed by the FCA but acts
independently. (1 Mark)
Which of the following is not an exempt person?
A member of a DPB
Lloyds of London
An appointed representative
An RIE - ANSWER-Feedback:
, 4|Page
Lloyds of London is an authorised person. Syndicate members
of Lloyds are exempt.
When does the RDC issue a final notice?
No later than 28 days after a warning notice.
No sooner than 28 days after a decision notice.
No sooner than 14 days after a decision notice.
Immediately after a second supervisory notice. - ANSWER-The
recipient of a decision notice has a 28 day appeal period, after
which a final notice is issued.
Which of the following is a governing function?
Head of global equities
Business oversight
MLRO
Partner - ANSWER-A partner in a partnership agreement is a
governing function.
