CISI Regulations EXAM ACTUAL
QUESTIONS AND CORRECT ANSWERS
How many days do clients get to cancel an OEIC investment (when they receive a
cancellation notice)? (Chapter 4) - CORRECT ANSWERS✅✅14
How long should MiFID client confirmation copies be kept? (Chapter 4) - CORRECT
ANSWERS✅✅5 years
How long should non-MiFID client confirmation copies be kept? (Chapter 4) - CORRECT
ANSWERS✅✅3 years
How long should pension transfer cancellation records be kept? (Chapter 4) - CORRECT
ANSWERS✅✅Indefinitely
How frequently should valuation statements be provided to retail clients? (Chapter 4) -
CORRECT ANSWERS✅✅Semi-annually
Who has established the standard method of client reconciliation? (Chapter 4) - CORRECT
ANSWERS✅✅FCA
If A is an agent for B but A is your client, who do you consider your client? (Chapter 4) -
CORRECT ANSWERS✅✅A
Does MiFID or non-MiFID client categorisation take precedence? (Chapter 4) - CORRECT
ANSWERS✅✅MiFID
When would Eligible Counterparties be reclassified as per se professional clients? (Chapter
4) - CORRECT ANSWERS✅✅When they take (provide) investment advice
What do non-advised sales relate to? (Chapter 4) - CORRECT ANSWERS✅✅Discretionary
portfolio management
,What should financial promotions with quoted yields avoid doing? (Chapter 4) - CORRECT
ANSWERS✅✅Emphasising short-term prospects
What do 'basic advice rules' relate to? (Chapter 4) - CORRECT ANSWERS✅✅Stakeholder
pension recommendations
What is client money which includes fees classed as? (Chapter 4) - CORRECT
ANSWERS✅✅Client money (even though the fees are not client money)
What's the maximum FSCS compensation for deposits? (Chapter 5) - CORRECT
ANSWERS✅✅£75000 per person (or £85000 in CISI Mock and real life)
What's the maximum FSCS compensation for home finance? (Chapter 5) - CORRECT
ANSWERS✅✅£50000
What's the maximum FSCS compensation for insurance? (Chapter 5) - CORRECT
ANSWERS✅✅90% of a claim
What's the maximum FSCS compensation for investments? (Chapter 5) - CORRECT
ANSWERS✅✅£50000
Which charities are eligible FSCS claimants? (Chapter 5) - CORRECT
ANSWERS✅✅Those with income under £1 million
Which trustees are eligible FSCS claimants? (Chapter 5) - CORRECT ANSWERS✅✅Those
with assets under £1 million
Which companies or private individuals are eligible FSCS claimants? (Chapter 5) -
CORRECT ANSWERS✅✅Those with a balance sheet (or turnover) under EUR 2 million
(and fewer than 10 employees)
What's the maximum compensation from FOS? (Chapter 5) - CORRECT
ANSWERS✅✅£150000
, What 2 factors are COBS applied based on? (Chapter 1) - CORRECT ANSWERS✅✅The
location and nature of a firm's activities
What does the FCA have for customers? (Chapter 1) - CORRECT ANSWERS✅✅6 TCF
(Treating Customers Fairly) consumer outcomes
What do CISI principles recommend to avoid jeopardising reputations? (Chapter 1) -
CORRECT ANSWERS✅✅Rejecting short-term profits
How do the FCA SYSC rules apply to 'non-common platforms'? (Chapter 1) - CORRECT
ANSWERS✅✅They operate as guidance
Does a firm's MiFID status impact the application of COBS rules? (Chapter 1) - CORRECT
ANSWERS✅✅No
SYSC - CORRECT ANSWERS✅✅Senior Management Arrangements, Systems and
Controls
CRD - CORRECT ANSWERS✅✅Capital Requirements Directive
FCA - CORRECT ANSWERS✅✅Financial Conduct Authority
PRA - CORRECT ANSWERS✅✅Prudential Regulatory Authority
FOS - CORRECT ANSWERS✅✅Financial Ombudsman Service
UKLA - CORRECT ANSWERS✅✅UK Listing Authority
FSCS - CORRECT ANSWERS✅✅Financial Services Compensation Scheme
QUESTIONS AND CORRECT ANSWERS
How many days do clients get to cancel an OEIC investment (when they receive a
cancellation notice)? (Chapter 4) - CORRECT ANSWERS✅✅14
How long should MiFID client confirmation copies be kept? (Chapter 4) - CORRECT
ANSWERS✅✅5 years
How long should non-MiFID client confirmation copies be kept? (Chapter 4) - CORRECT
ANSWERS✅✅3 years
How long should pension transfer cancellation records be kept? (Chapter 4) - CORRECT
ANSWERS✅✅Indefinitely
How frequently should valuation statements be provided to retail clients? (Chapter 4) -
CORRECT ANSWERS✅✅Semi-annually
Who has established the standard method of client reconciliation? (Chapter 4) - CORRECT
ANSWERS✅✅FCA
If A is an agent for B but A is your client, who do you consider your client? (Chapter 4) -
CORRECT ANSWERS✅✅A
Does MiFID or non-MiFID client categorisation take precedence? (Chapter 4) - CORRECT
ANSWERS✅✅MiFID
When would Eligible Counterparties be reclassified as per se professional clients? (Chapter
4) - CORRECT ANSWERS✅✅When they take (provide) investment advice
What do non-advised sales relate to? (Chapter 4) - CORRECT ANSWERS✅✅Discretionary
portfolio management
,What should financial promotions with quoted yields avoid doing? (Chapter 4) - CORRECT
ANSWERS✅✅Emphasising short-term prospects
What do 'basic advice rules' relate to? (Chapter 4) - CORRECT ANSWERS✅✅Stakeholder
pension recommendations
What is client money which includes fees classed as? (Chapter 4) - CORRECT
ANSWERS✅✅Client money (even though the fees are not client money)
What's the maximum FSCS compensation for deposits? (Chapter 5) - CORRECT
ANSWERS✅✅£75000 per person (or £85000 in CISI Mock and real life)
What's the maximum FSCS compensation for home finance? (Chapter 5) - CORRECT
ANSWERS✅✅£50000
What's the maximum FSCS compensation for insurance? (Chapter 5) - CORRECT
ANSWERS✅✅90% of a claim
What's the maximum FSCS compensation for investments? (Chapter 5) - CORRECT
ANSWERS✅✅£50000
Which charities are eligible FSCS claimants? (Chapter 5) - CORRECT
ANSWERS✅✅Those with income under £1 million
Which trustees are eligible FSCS claimants? (Chapter 5) - CORRECT ANSWERS✅✅Those
with assets under £1 million
Which companies or private individuals are eligible FSCS claimants? (Chapter 5) -
CORRECT ANSWERS✅✅Those with a balance sheet (or turnover) under EUR 2 million
(and fewer than 10 employees)
What's the maximum compensation from FOS? (Chapter 5) - CORRECT
ANSWERS✅✅£150000
, What 2 factors are COBS applied based on? (Chapter 1) - CORRECT ANSWERS✅✅The
location and nature of a firm's activities
What does the FCA have for customers? (Chapter 1) - CORRECT ANSWERS✅✅6 TCF
(Treating Customers Fairly) consumer outcomes
What do CISI principles recommend to avoid jeopardising reputations? (Chapter 1) -
CORRECT ANSWERS✅✅Rejecting short-term profits
How do the FCA SYSC rules apply to 'non-common platforms'? (Chapter 1) - CORRECT
ANSWERS✅✅They operate as guidance
Does a firm's MiFID status impact the application of COBS rules? (Chapter 1) - CORRECT
ANSWERS✅✅No
SYSC - CORRECT ANSWERS✅✅Senior Management Arrangements, Systems and
Controls
CRD - CORRECT ANSWERS✅✅Capital Requirements Directive
FCA - CORRECT ANSWERS✅✅Financial Conduct Authority
PRA - CORRECT ANSWERS✅✅Prudential Regulatory Authority
FOS - CORRECT ANSWERS✅✅Financial Ombudsman Service
UKLA - CORRECT ANSWERS✅✅UK Listing Authority
FSCS - CORRECT ANSWERS✅✅Financial Services Compensation Scheme
