CISA Practice Exam
2025/2026
Exam Prep Material
with
Verified Questions and Answers
A+ Grades Guarantee
, Financial services action plan - creates and implements directives
on an EU level. Aims to harmonise financial services rules across
FSAP EU. Includes EU directives (to be implemented into national law)
and EU regulations (binding on member states)
Market Abuse Directive
Prospectus Directive
FSAP directives MiFID
Money Laundering Directive
Directives must be implemented and transposed into national law.
What must EU members do with
Regulation is immediately binding in member states.
FSAP directives
What is an act and order Law
European level regulations that oversee national regulators
ESMA (European securities and markets agency) - financial
markets
EBA (European banking agency) - banks
EIOPA - insurance and pensions
EU Regulatory bodies (ESAs) [ESRB works with ESAs to promote financial stability and avoid a
financial market collapse at the European level and ESAs
implement capital standards for banks]
Benchmark submission and administration
What must firms do in relation to
LIBOR
Making rules; preparing and issuing codes; giving general
guidance (firms may choose not to follow this); determining
general policy and principles by which the FCA performs its
What are the general duties of functions. However, the board cannot delegate its statutory
the FCA objectives to another body.
Legislative acts (EC proposes directives or regs)
Implementing measures (specialist committees draft legislation,
committees include EBC, ESC, EIOPC, EFCC)
Facilitating Regulatory Convergence (ESAs implement legislation
and liaise with national regulators to ensure things are done on
Lamfalussy Process (4 levels) time)
Enforcement (EU commission enforces new rulings)
FSMA 2000
Where do UK regulators get their
power
April 2013
When did FSMA 2012 become
law
FCA Private limited company with powers to regulate the city.
, The treasury, which is headed by the chancellor of the ex-chequer
Who is the FCA accountable to?
Treasury
Who appoints the board of the
FCA
The financial industry - every firm must pay a fee to the FCA and
Who funds the FCA some firms have to pay a fine
An independent body set up by Parliament that settles customer
Financial Ombudsman Service and small firm complaints about providers of missold financial
(FOS) products at no charge to consumers.
Who oversees the financial FCA
ombudsman service
Pays consumers if a bank becomes insolvent and isn't able to pay
Financial service compensation
consumer deposits
scheme
FCA
Who funds the financial service
compensation scheme
Committee of the BoE. In charge of identifying monitoring and
taking action to remove or reduce systemic risks.
FPC Can give directions to PRA and FCA
COnduct regulator for dual-regulated firms and all other regulated
firms e.g. brokers and advisors. The FCA also monitors the
resources of non dual-regulated firms to ensure they're adequate
Role of the FCA to run. This means the day-to-day conduct of all regulated firms
incl how financial products are sold
Part of the bank of England. They're a financial regulator of dual-
Roles of the PRA regulated firms and monitor capital standards.
Receive prudential regulation from the PRA and conduct regulation
from the FCA. Include deposit-takers (banks and building
Dual-regulated firms societies) and investment banks and large institutional funds that
are systemically important.
Who is the PRA accountable to? Bank of England
Other regulated firms Receive conduct and prudential regulation with the FCA only
CoE appoints chair, HMT appoints board
Who appoints the FCA chair and
board?
Financial policy committee (includes the governer of the BofE,
Who are the PRA and FCA
answerable to
publish a semi-annual financial stability report. The committee
monitors macro prudential standards in the UK and instructs
Financial policy committee regulators to do more if so required
, Strategic - ensure the relevant markets work well (incl
transparency)
Operational - consumer protection to ensure appropriate degree of
protection depending on knowledge and experience
Protect and enhance the integrity of the UK financial system, e.g.
FCA/ Regulator objectives reducing financial crime
Promote effective competition in the interests of consumers, i.e.
ensure sufficient product choice
Promote safety and soundness of PRA-authorised firms to avoid
instability and ensure continuity of services (minimise the adverse
PRA general objective effect that the failure of a PRA authorised firm would have on the
stability of the UK financial systems)
Temporary product intervention FCA power from FSA to prohibit or ban products up to 12 months
Secure appropriate protection for policy holders (ensure insurers
PRA specific objective can meet claims
PRA secondary objective Facilitate effective competition
Judgment based
Forward looking
Characteristics of PRA regulation Focused
Making rules
Preparing and issuing codes
Giving general guidance
FCA Duties
Determining general policy and principles by which it performs its
function
Well-regulated overseas exchanges that don't have direct access
Designation ivnestment
to UK clients and are excluded from UK activities
exchanges
Professions working alongside the financial activities e.g. lawyers
and accountants. Are able to carry on certain activities if incidental
Designated professional body to their main service, without FCA authorisation
What power does HMT have over Appoints/dismisses the board, assesses annual reports, oversees
FCA the FCA, amends the nature of the role of the FCA
S19 of FSMA 2000 - states that no person may carry on a
General prohibition regulated activity in the UK unless they are authorised or exempt
2025/2026
Exam Prep Material
with
Verified Questions and Answers
A+ Grades Guarantee
, Financial services action plan - creates and implements directives
on an EU level. Aims to harmonise financial services rules across
FSAP EU. Includes EU directives (to be implemented into national law)
and EU regulations (binding on member states)
Market Abuse Directive
Prospectus Directive
FSAP directives MiFID
Money Laundering Directive
Directives must be implemented and transposed into national law.
What must EU members do with
Regulation is immediately binding in member states.
FSAP directives
What is an act and order Law
European level regulations that oversee national regulators
ESMA (European securities and markets agency) - financial
markets
EBA (European banking agency) - banks
EIOPA - insurance and pensions
EU Regulatory bodies (ESAs) [ESRB works with ESAs to promote financial stability and avoid a
financial market collapse at the European level and ESAs
implement capital standards for banks]
Benchmark submission and administration
What must firms do in relation to
LIBOR
Making rules; preparing and issuing codes; giving general
guidance (firms may choose not to follow this); determining
general policy and principles by which the FCA performs its
What are the general duties of functions. However, the board cannot delegate its statutory
the FCA objectives to another body.
Legislative acts (EC proposes directives or regs)
Implementing measures (specialist committees draft legislation,
committees include EBC, ESC, EIOPC, EFCC)
Facilitating Regulatory Convergence (ESAs implement legislation
and liaise with national regulators to ensure things are done on
Lamfalussy Process (4 levels) time)
Enforcement (EU commission enforces new rulings)
FSMA 2000
Where do UK regulators get their
power
April 2013
When did FSMA 2012 become
law
FCA Private limited company with powers to regulate the city.
, The treasury, which is headed by the chancellor of the ex-chequer
Who is the FCA accountable to?
Treasury
Who appoints the board of the
FCA
The financial industry - every firm must pay a fee to the FCA and
Who funds the FCA some firms have to pay a fine
An independent body set up by Parliament that settles customer
Financial Ombudsman Service and small firm complaints about providers of missold financial
(FOS) products at no charge to consumers.
Who oversees the financial FCA
ombudsman service
Pays consumers if a bank becomes insolvent and isn't able to pay
Financial service compensation
consumer deposits
scheme
FCA
Who funds the financial service
compensation scheme
Committee of the BoE. In charge of identifying monitoring and
taking action to remove or reduce systemic risks.
FPC Can give directions to PRA and FCA
COnduct regulator for dual-regulated firms and all other regulated
firms e.g. brokers and advisors. The FCA also monitors the
resources of non dual-regulated firms to ensure they're adequate
Role of the FCA to run. This means the day-to-day conduct of all regulated firms
incl how financial products are sold
Part of the bank of England. They're a financial regulator of dual-
Roles of the PRA regulated firms and monitor capital standards.
Receive prudential regulation from the PRA and conduct regulation
from the FCA. Include deposit-takers (banks and building
Dual-regulated firms societies) and investment banks and large institutional funds that
are systemically important.
Who is the PRA accountable to? Bank of England
Other regulated firms Receive conduct and prudential regulation with the FCA only
CoE appoints chair, HMT appoints board
Who appoints the FCA chair and
board?
Financial policy committee (includes the governer of the BofE,
Who are the PRA and FCA
answerable to
publish a semi-annual financial stability report. The committee
monitors macro prudential standards in the UK and instructs
Financial policy committee regulators to do more if so required
, Strategic - ensure the relevant markets work well (incl
transparency)
Operational - consumer protection to ensure appropriate degree of
protection depending on knowledge and experience
Protect and enhance the integrity of the UK financial system, e.g.
FCA/ Regulator objectives reducing financial crime
Promote effective competition in the interests of consumers, i.e.
ensure sufficient product choice
Promote safety and soundness of PRA-authorised firms to avoid
instability and ensure continuity of services (minimise the adverse
PRA general objective effect that the failure of a PRA authorised firm would have on the
stability of the UK financial systems)
Temporary product intervention FCA power from FSA to prohibit or ban products up to 12 months
Secure appropriate protection for policy holders (ensure insurers
PRA specific objective can meet claims
PRA secondary objective Facilitate effective competition
Judgment based
Forward looking
Characteristics of PRA regulation Focused
Making rules
Preparing and issuing codes
Giving general guidance
FCA Duties
Determining general policy and principles by which it performs its
function
Well-regulated overseas exchanges that don't have direct access
Designation ivnestment
to UK clients and are excluded from UK activities
exchanges
Professions working alongside the financial activities e.g. lawyers
and accountants. Are able to carry on certain activities if incidental
Designated professional body to their main service, without FCA authorisation
What power does HMT have over Appoints/dismisses the board, assesses annual reports, oversees
FCA the FCA, amends the nature of the role of the FCA
S19 of FSMA 2000 - states that no person may carry on a
General prohibition regulated activity in the UK unless they are authorised or exempt
