CISI UK Financial Regulations (certs) Verified Multiple
Choice and Conceptual Actual Emended Exam Questions
With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. Define COBS - ANSWER Conduct of business soucrbook (COBS), are set
of rules which investment firms should follow that are subject to MiFID and
those that are not
2. What firms are subject to COBS - ANSWER Firms that operate in the UK,
or have an appointment representative who are domiciled in the UK. Also
applied to firms that deals with UK based clients
3. What firms are exempt from COBS - ANSWER Investment research and
personal account dealing firms, where the rules only apply to home state
basis only
4. What activities are subject to COBS - ANSWER 1) Designated investment
business
2) long term insurance business in relation to life policies
3) accepting deposits
5. Do COBS rules apply to appointment representatives? - ANSWER No,
COBS rules apply to firms (approved persons) in relation to the relevant
activities carried carried out by their appointed representatives. Appointed
representatives are exempt, and the firm are responsible for their activity.
,6. What's rules are stated around electronic media under COBS - ANSWER
FCA have rules on electronic media, this is to keep information updated, e.g
through website as well as ask for consent in order to be contacted.
Information must be up to date, and easily accessible, new information
must be notified asap.
7. What are the rules under recording telephone conversations and electronic
communications - ANSWER The rules apply to firms which carry out the
following activities
- Receiving client orders
- Executing client orders
-Arranging for client orders to be executed
-Carrying our transaction on behalf of firms
-Executing orders that result from decisions of firms
Recordings should be retained for 5 years
8. What are the three client categorisations? - ANSWER - retail
- professional
- eligible counterparty (ECP)
9. Define client - ANSWER COBS define client as someone to whom a firms
provides, tend to provide or has proved regulated activity services. This
includes potential clients as well as a person acting as an agent.
10.What does per se mean - ANSWER Automatic default
,11.Retail client characteristics - ANSWER - low knowledge
- high protection
12.Professional client characteristics - ANSWER - mid level knowledge
- mid level protection
13.ECP characteristics - ANSWER - high knowledge
- low protection
14.Examples of per se professional clients - ANSWER - banks
- investment firms
- assets mangers
- pension funds
- central bank
- national government
15.What does elective client mean - ANSWER When a client, opts up from
retail to professional, or professional to ECP
16.Characteristics of large undertakings for MiFID firm - ANSWER
Companies who's balance sheet, turnover or own funds meet certain levels
17.Meet following two size requirements
- balance sheet of €20 million
- net turnover of €40 million
- own funds of €2 million
, 18.Characteristics of large undertakings for non-MiFID firm - ANSWER
Called up share capital or net assets in the last 2 years has been at least
£5million
Or
- balance sheet total of €12.5m
- a net turn over of €25m
- an average of 250 employers during the year
19.Characteristics of large undertakings for a partnership of an unincorporated
association - ANSWER Net assets past two years has at least £5m
20.Characteristics of large undertakings for a trustee or a trust - ANSWER
Net assets of the past two years of at least £10m
Characteristics of large undertakings for a trustee of an occupational pension -
ANSWER In the past two years had at least 50 members and has at least £10m
in AUM
What business can be categorised as an ECP - ANSWER - executing orders
- dealing on own account
- receiving and transmitting orders
- ancillary services relating to dealing
- Arranging
Choice and Conceptual Actual Emended Exam Questions
With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. Define COBS - ANSWER Conduct of business soucrbook (COBS), are set
of rules which investment firms should follow that are subject to MiFID and
those that are not
2. What firms are subject to COBS - ANSWER Firms that operate in the UK,
or have an appointment representative who are domiciled in the UK. Also
applied to firms that deals with UK based clients
3. What firms are exempt from COBS - ANSWER Investment research and
personal account dealing firms, where the rules only apply to home state
basis only
4. What activities are subject to COBS - ANSWER 1) Designated investment
business
2) long term insurance business in relation to life policies
3) accepting deposits
5. Do COBS rules apply to appointment representatives? - ANSWER No,
COBS rules apply to firms (approved persons) in relation to the relevant
activities carried carried out by their appointed representatives. Appointed
representatives are exempt, and the firm are responsible for their activity.
,6. What's rules are stated around electronic media under COBS - ANSWER
FCA have rules on electronic media, this is to keep information updated, e.g
through website as well as ask for consent in order to be contacted.
Information must be up to date, and easily accessible, new information
must be notified asap.
7. What are the rules under recording telephone conversations and electronic
communications - ANSWER The rules apply to firms which carry out the
following activities
- Receiving client orders
- Executing client orders
-Arranging for client orders to be executed
-Carrying our transaction on behalf of firms
-Executing orders that result from decisions of firms
Recordings should be retained for 5 years
8. What are the three client categorisations? - ANSWER - retail
- professional
- eligible counterparty (ECP)
9. Define client - ANSWER COBS define client as someone to whom a firms
provides, tend to provide or has proved regulated activity services. This
includes potential clients as well as a person acting as an agent.
10.What does per se mean - ANSWER Automatic default
,11.Retail client characteristics - ANSWER - low knowledge
- high protection
12.Professional client characteristics - ANSWER - mid level knowledge
- mid level protection
13.ECP characteristics - ANSWER - high knowledge
- low protection
14.Examples of per se professional clients - ANSWER - banks
- investment firms
- assets mangers
- pension funds
- central bank
- national government
15.What does elective client mean - ANSWER When a client, opts up from
retail to professional, or professional to ECP
16.Characteristics of large undertakings for MiFID firm - ANSWER
Companies who's balance sheet, turnover or own funds meet certain levels
17.Meet following two size requirements
- balance sheet of €20 million
- net turnover of €40 million
- own funds of €2 million
, 18.Characteristics of large undertakings for non-MiFID firm - ANSWER
Called up share capital or net assets in the last 2 years has been at least
£5million
Or
- balance sheet total of €12.5m
- a net turn over of €25m
- an average of 250 employers during the year
19.Characteristics of large undertakings for a partnership of an unincorporated
association - ANSWER Net assets past two years has at least £5m
20.Characteristics of large undertakings for a trustee or a trust - ANSWER
Net assets of the past two years of at least £10m
Characteristics of large undertakings for a trustee of an occupational pension -
ANSWER In the past two years had at least 50 members and has at least £10m
in AUM
What business can be categorised as an ECP - ANSWER - executing orders
- dealing on own account
- receiving and transmitting orders
- ancillary services relating to dealing
- Arranging
