CISI UK FINANCIAL REGULATIONS
(REGS) MOCK EXAM 2025 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY
TESTED QUESTIONS AND SOLUTIONS
|ALREADY GRADED A+|NEWEST|LATEST
UPDATE |GUARANTEED PASS
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.
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
Feedback:
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.
1|Page
,No sooner than 28 days after a decision notice.
No sooner than 14 days after a decision notice.
Immediately after a second supervisory notice.
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
A partner in a partnership agreement is a governing function.
When an appointed representative is communicating with a retail client via an unwritten
promotion, which of the following is not required?
The name of the representative, the firm and the purpose for the call.
The identity of the FCA as the agent's and firms regulator.
Clarification of whether the client would like to continue.
A contact point (if an appointment is arranged).
The identity of the FCA as the agent's and firms regulator.
Under the best execution rule, which of the following is not an acceptable execution venue?
Any regulated market
Any multilateral trading facility
Any systematic internaliser
Any over the counter arrangement
Some OTC venues may be acceptable, but ALL OTC venues are not.
Available Answers
The closed period ahead of the publication of half-yearly report is:
The period from the end of half-year to the publication of the half-year report.
30 days
60 days
90 days
60 days
2|Page
, The main purpose of the personal dealing rules is to:
Encourage personal investment by employees of authorised firms.
Avoid employees dealing on investment research before they release to the client.
Stop an employee buying the same stock as a client.
Limit the number of employees buying a particular company's stock.
Avoid employees dealing on investment research before they release to the client.
Which of the following is a requirement for a prospectus advertisement?
It must contain the level of disclosure required in an abbreviated prospectus.
It must as far as possible mirror the original prospectus.
It must make specific reference to the date of the issue and the type of issue method.
It must state that a prospectus has been (or will be) published, and where investors can obtain
it.
Any written advertisement falling under these rules must also contain a bold and prominent
statement to the effect that it is not itself a prospectus. It must state that a prospectus has been
(or will be) published, and where investors can obtain it.
If the FCA investigates an RCH and an RIE, which (if any) would be required to provide
information to the FCA?
Only the RCH
Only the RIE
Neither the RCH or the RIE
Both the RCH or the RIE
Recognised bodies must provide information requested by the regulator. Hence the answer is
Both.
A firm uses two execution venues.
Under the best execution rule, the firm may charge a different commission to clients for each
venue if:
The difference reflects actual differences in the cost to the firm of executing on those venues.
The spread quoted to clients also differs between the venues.
Disclosure of charges is made to clients.
The more expensive venue always provides a better execution outcome.
3|Page
(REGS) MOCK EXAM 2025 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY
TESTED QUESTIONS AND SOLUTIONS
|ALREADY GRADED A+|NEWEST|LATEST
UPDATE |GUARANTEED PASS
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.
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
Feedback:
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.
1|Page
,No sooner than 28 days after a decision notice.
No sooner than 14 days after a decision notice.
Immediately after a second supervisory notice.
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
A partner in a partnership agreement is a governing function.
When an appointed representative is communicating with a retail client via an unwritten
promotion, which of the following is not required?
The name of the representative, the firm and the purpose for the call.
The identity of the FCA as the agent's and firms regulator.
Clarification of whether the client would like to continue.
A contact point (if an appointment is arranged).
The identity of the FCA as the agent's and firms regulator.
Under the best execution rule, which of the following is not an acceptable execution venue?
Any regulated market
Any multilateral trading facility
Any systematic internaliser
Any over the counter arrangement
Some OTC venues may be acceptable, but ALL OTC venues are not.
Available Answers
The closed period ahead of the publication of half-yearly report is:
The period from the end of half-year to the publication of the half-year report.
30 days
60 days
90 days
60 days
2|Page
, The main purpose of the personal dealing rules is to:
Encourage personal investment by employees of authorised firms.
Avoid employees dealing on investment research before they release to the client.
Stop an employee buying the same stock as a client.
Limit the number of employees buying a particular company's stock.
Avoid employees dealing on investment research before they release to the client.
Which of the following is a requirement for a prospectus advertisement?
It must contain the level of disclosure required in an abbreviated prospectus.
It must as far as possible mirror the original prospectus.
It must make specific reference to the date of the issue and the type of issue method.
It must state that a prospectus has been (or will be) published, and where investors can obtain
it.
Any written advertisement falling under these rules must also contain a bold and prominent
statement to the effect that it is not itself a prospectus. It must state that a prospectus has been
(or will be) published, and where investors can obtain it.
If the FCA investigates an RCH and an RIE, which (if any) would be required to provide
information to the FCA?
Only the RCH
Only the RIE
Neither the RCH or the RIE
Both the RCH or the RIE
Recognised bodies must provide information requested by the regulator. Hence the answer is
Both.
A firm uses two execution venues.
Under the best execution rule, the firm may charge a different commission to clients for each
venue if:
The difference reflects actual differences in the cost to the firm of executing on those venues.
The spread quoted to clients also differs between the venues.
Disclosure of charges is made to clients.
The more expensive venue always provides a better execution outcome.
3|Page
