CISI: Uk regulation and professional integrity &
Financial Crime Practice Verified Multiple Choice and
Conceptual Actual Emended Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
Q1. What is the maximum prison sentence for insider dealing?
A. 2 years
B. 5 years
C. 7 years
D. 14 years
Q2. What is the maximum punishment for money laundering?
A. 5 years
B. 7 years
C. 10 years
D. 14 years
Q3. What is the maximum punishment for market abuse?
A. £1 million fine cap
B. Unlimited fine
C. 7 years imprisonment
D. 10 years imprisonment
Q4. What is the maximum punishment for breaching the general prohibition (s.19
FSMA)?
A. Fine only
B. 2 years imprisonment
C. 5 years imprisonment
D. Unlimited imprisonment
,Q5. What is the maximum punishment for providing funding to terrorists?
A. 2 years
B. 3 years
C. 5 years
D. 10 years
Q6. CISI Principle 8 (P8) requires members to:
A. Put the firm’s interests above all else
B. Uphold the highest personal and professional standards
C. Ensure regulator communications are constructive
D. Manage conflicts of interest
Q7. CISI Principle 1 (P1) requires members to:
A. Act in the best interests of each client
B. Prioritise market stability over clients
C. Maintain adequate systems and controls
D. Ensure personal competence
Q8. CISI Principle 3 (P3) requires members to:
A. Ensure the firm remains profitable
B. Observe laws, regulations, and professional standards
C. Place firm above client
D. Maintain strong relationships with counterparties
Q9. CISI Principle 6 (P6) requires members to:
A. Promote development of others
B. Focus only on CPD
C. Avoid conflict of interest
D. Act fairly with regulators
Q10. CISI Principle 4 (P4) requires members to:
A. Observe standards of market integrity and good practice
B. Maximise shareholder returns
C. Treat regulators fairly
D. Ensure firm profitability
,Q11. CISI Principle 2 (P2) requires members to:
A. Act with integrity in fulfilling responsibilities and avoid damage to industry
B. Act solely in firm’s interests
C. Focus only on regulator relations
D. Prioritise CPD
Q12. CISI Principle 5 (P5) requires members to:
A. Be alert to and manage conflicts of interest
B. Act honestly with counterparties only
C. Uphold regulators’ trust
D. Prioritise profitability
Q13. Chattels are defined as:
A. Land and buildings
B. Securities and shares
C. Movable personal property
D. Intangible assets
Q14. The Tax & Chancery Chamber is set up by:
A. FCA
B. Treasury
C. Ministry of Justice
D. Bank of England
Q15. A Key Features Document (KFD) must include:
A. Prescribed info on investment complexity
B. Only cancellation rights
C. Market abuse defences
D. A client suitability test
Q. Under Money Laundering Regulations, a firm does NOT need to verify a client’s
identity when:
A. The client is a retail customer only
B. The cheque is in the client’s own name and drawn on a UK bank
, C. The client is a new professional client
D. The client invests in derivatives
Q22. Which of the following is also exempt from ID verification under ML rules?
A. FATF-listed financial institutions
B. UCITS schemes only
C. All high-net-worth individuals
D. All pension funds
Q23. Which FCA Principle (PRIN 1) refers to acting with honesty and fairness?
A. Skill, care and diligence
B. Integrity
C. Financial prudence
D. Conflicts of interest
Q24. Which FCA Principle (PRIN 2) requires firms to conduct business with care?
A. Customers’ interests
B. Market conduct
C. Skill, care and diligence
D. Conflicts of interest
Q25. PRIN 3 – “Management and Control” requires firms to:
A. Communicate clearly with clients
B. Maintain adequate risk management systems
C. Hold enough capital
D. Avoid conflicts
Q26. PRIN 4 – “Financial Prudence” means firms must:
A. Ensure financial resources are adequate
B. Always prioritise clients
C. Communicate openly with regulators
D. Protect clients’ assets
Q27. PRIN 5 – “Market Conduct” requires firms to:
A. Observe proper standards of market behaviour
Financial Crime Practice Verified Multiple Choice and
Conceptual Actual Emended Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
Q1. What is the maximum prison sentence for insider dealing?
A. 2 years
B. 5 years
C. 7 years
D. 14 years
Q2. What is the maximum punishment for money laundering?
A. 5 years
B. 7 years
C. 10 years
D. 14 years
Q3. What is the maximum punishment for market abuse?
A. £1 million fine cap
B. Unlimited fine
C. 7 years imprisonment
D. 10 years imprisonment
Q4. What is the maximum punishment for breaching the general prohibition (s.19
FSMA)?
A. Fine only
B. 2 years imprisonment
C. 5 years imprisonment
D. Unlimited imprisonment
,Q5. What is the maximum punishment for providing funding to terrorists?
A. 2 years
B. 3 years
C. 5 years
D. 10 years
Q6. CISI Principle 8 (P8) requires members to:
A. Put the firm’s interests above all else
B. Uphold the highest personal and professional standards
C. Ensure regulator communications are constructive
D. Manage conflicts of interest
Q7. CISI Principle 1 (P1) requires members to:
A. Act in the best interests of each client
B. Prioritise market stability over clients
C. Maintain adequate systems and controls
D. Ensure personal competence
Q8. CISI Principle 3 (P3) requires members to:
A. Ensure the firm remains profitable
B. Observe laws, regulations, and professional standards
C. Place firm above client
D. Maintain strong relationships with counterparties
Q9. CISI Principle 6 (P6) requires members to:
A. Promote development of others
B. Focus only on CPD
C. Avoid conflict of interest
D. Act fairly with regulators
Q10. CISI Principle 4 (P4) requires members to:
A. Observe standards of market integrity and good practice
B. Maximise shareholder returns
C. Treat regulators fairly
D. Ensure firm profitability
,Q11. CISI Principle 2 (P2) requires members to:
A. Act with integrity in fulfilling responsibilities and avoid damage to industry
B. Act solely in firm’s interests
C. Focus only on regulator relations
D. Prioritise CPD
Q12. CISI Principle 5 (P5) requires members to:
A. Be alert to and manage conflicts of interest
B. Act honestly with counterparties only
C. Uphold regulators’ trust
D. Prioritise profitability
Q13. Chattels are defined as:
A. Land and buildings
B. Securities and shares
C. Movable personal property
D. Intangible assets
Q14. The Tax & Chancery Chamber is set up by:
A. FCA
B. Treasury
C. Ministry of Justice
D. Bank of England
Q15. A Key Features Document (KFD) must include:
A. Prescribed info on investment complexity
B. Only cancellation rights
C. Market abuse defences
D. A client suitability test
Q. Under Money Laundering Regulations, a firm does NOT need to verify a client’s
identity when:
A. The client is a retail customer only
B. The cheque is in the client’s own name and drawn on a UK bank
, C. The client is a new professional client
D. The client invests in derivatives
Q22. Which of the following is also exempt from ID verification under ML rules?
A. FATF-listed financial institutions
B. UCITS schemes only
C. All high-net-worth individuals
D. All pension funds
Q23. Which FCA Principle (PRIN 1) refers to acting with honesty and fairness?
A. Skill, care and diligence
B. Integrity
C. Financial prudence
D. Conflicts of interest
Q24. Which FCA Principle (PRIN 2) requires firms to conduct business with care?
A. Customers’ interests
B. Market conduct
C. Skill, care and diligence
D. Conflicts of interest
Q25. PRIN 3 – “Management and Control” requires firms to:
A. Communicate clearly with clients
B. Maintain adequate risk management systems
C. Hold enough capital
D. Avoid conflicts
Q26. PRIN 4 – “Financial Prudence” means firms must:
A. Ensure financial resources are adequate
B. Always prioritise clients
C. Communicate openly with regulators
D. Protect clients’ assets
Q27. PRIN 5 – “Market Conduct” requires firms to:
A. Observe proper standards of market behaviour
