CISI UK Regulations || A+ Graded Already.
General Prohibition correct answers No person may carry out regulated activity in the UK unless
he is AUTHORISED or EXEMPT
Authorised persons hold correct answers Part 4A authorisarion
Passport (MiFID)
Exempt Persons correct answers BoE, RCH, RIE, ROIE
Excluded Investments correct answers Property/Tangible assets
Currencies
Premium bonds
National Savings Certificate
PERG correct answers Perimeter Guidance Manual
- sets out guidance on when authorisation may be needed and any exclusions available
- Non-binding - check regulated legislation
COND meaning correct answers - threshold requirements
- influence - 20% shareholder requires a background check
Ancillary Activities and Passport Types correct answers Ancillary - supports Mifid business
- custodian
- loans
- fx dealing
- investment research and analysis
- underwriting/bookmaking
Passports - Mifid or Mifid+Ancillary
EMIR correct answers European Markets Infrastructure Regulator
- regulation of OTC derivatives
Provisions:
- trades reported to a trade deposit
- adequate mgmt of reconciliation and collateral
- requirement to use central counterparties when mandatory clearing is in effect
Fit & Proper Test correct answers - Honesty, Integrity, & Reputation
- Competence & Capability
- Financial Soundness
T&C Sourcebook correct answers 1. All staff must be T&C1
2. If approved, then must be T&C2
Exam necessary for certain actions, dealing, broker fund advisor, lloyds syndicate, pension
transfer specialist. Must be under 30 months
, Professionalism (CISI Definition) correct answers Knowledge
Skills
Behavior
MiFID correct answers Markets in Financial Instruments Directive
Harmonisation of rules for financial industry
Allow EEA firms to open branches in other member states and cross-border sell through the
EEA ("passporting")
FCA Threshold Conditions correct answers - location of offices (UK)
- effective supervision
- appropriate resources
- be suitable and appropriate business model
Qualitative & Quantitative Test correct answers Qual - assessing expertise of elective
professional clients
Quant - any 2 of the following
- 10 big transactions on relevant mkt in each of past 4 quarters
- portfolio exceeds 500,000
- work in finance for at least a year
If a large investment firm becomes insolvent, the regulator will... correct answers Impose special
administration regime and with the treasury, resolve the situation
Max penalty for tipping off correct answers 2 years
Max penalty for bribery correct answers 10 years
Financial institutions covered in GENPRU but NOT BIPRU correct answers Insurance
companies
Countries in EEA correct answers EU + Norway + Iceland + Lichtenstein
NOT switzerland
KIDDs (and what they contain) correct answers Key Investor Information Documents that go
with UCITS funds
- id of scheme
- investment objectives/policy
- past performance
- costs/charges
- risk/reward, risk warning
30 calendar day cancellation
General Prohibition correct answers No person may carry out regulated activity in the UK unless
he is AUTHORISED or EXEMPT
Authorised persons hold correct answers Part 4A authorisarion
Passport (MiFID)
Exempt Persons correct answers BoE, RCH, RIE, ROIE
Excluded Investments correct answers Property/Tangible assets
Currencies
Premium bonds
National Savings Certificate
PERG correct answers Perimeter Guidance Manual
- sets out guidance on when authorisation may be needed and any exclusions available
- Non-binding - check regulated legislation
COND meaning correct answers - threshold requirements
- influence - 20% shareholder requires a background check
Ancillary Activities and Passport Types correct answers Ancillary - supports Mifid business
- custodian
- loans
- fx dealing
- investment research and analysis
- underwriting/bookmaking
Passports - Mifid or Mifid+Ancillary
EMIR correct answers European Markets Infrastructure Regulator
- regulation of OTC derivatives
Provisions:
- trades reported to a trade deposit
- adequate mgmt of reconciliation and collateral
- requirement to use central counterparties when mandatory clearing is in effect
Fit & Proper Test correct answers - Honesty, Integrity, & Reputation
- Competence & Capability
- Financial Soundness
T&C Sourcebook correct answers 1. All staff must be T&C1
2. If approved, then must be T&C2
Exam necessary for certain actions, dealing, broker fund advisor, lloyds syndicate, pension
transfer specialist. Must be under 30 months
, Professionalism (CISI Definition) correct answers Knowledge
Skills
Behavior
MiFID correct answers Markets in Financial Instruments Directive
Harmonisation of rules for financial industry
Allow EEA firms to open branches in other member states and cross-border sell through the
EEA ("passporting")
FCA Threshold Conditions correct answers - location of offices (UK)
- effective supervision
- appropriate resources
- be suitable and appropriate business model
Qualitative & Quantitative Test correct answers Qual - assessing expertise of elective
professional clients
Quant - any 2 of the following
- 10 big transactions on relevant mkt in each of past 4 quarters
- portfolio exceeds 500,000
- work in finance for at least a year
If a large investment firm becomes insolvent, the regulator will... correct answers Impose special
administration regime and with the treasury, resolve the situation
Max penalty for tipping off correct answers 2 years
Max penalty for bribery correct answers 10 years
Financial institutions covered in GENPRU but NOT BIPRU correct answers Insurance
companies
Countries in EEA correct answers EU + Norway + Iceland + Lichtenstein
NOT switzerland
KIDDs (and what they contain) correct answers Key Investor Information Documents that go
with UCITS funds
- id of scheme
- investment objectives/policy
- past performance
- costs/charges
- risk/reward, risk warning
30 calendar day cancellation
