1|Page
CISI UK REGULATIONS EXAM 1 UPDATED
QUESTIONS AND 100% CORRECT ANSWERS
WITH A GUARANTEED A+|| 2025-2026 LATEST
AND COMPLETE UPDATE WITH VERIFIED
SOLUTIONS|| GUARANTEED PASS!!
What/where is the Financial policy committee (FPC) ? - ANSWER: Panel of
economists within Bank of England
Who is the FCA accountable to? - ANSWER: HM Treasury & Parliament
Which 'organisation' does the PRA sit within? - ANSWER: Bank of England
Purposes of Bank of England - ANSWER: Monetary stability - stable prices and
confidence in the currency
Financial stability - stability of the financial systems in the UK (systemic risk
management)
How often does the financial policy committee (FPC) of the BoE meet? How often
does it produce its financial stability report? - ANSWER: Meet 4 times a year,
biannual report
What does the financial policy committee (FPC) do? - ANSWER: Identify,
monitor and take action to remove or reduce systematic risk.
,2|Page
Issues directions/commands to the PRA and FCA
Legislation that lays out PRA and objectives - ANSWER: FSA 2012
PRA firms are... - ANSWER: 1. Deposit takers
2. Insurers
3. Significant investment firms
General PRA objective - ANSWER: Promote the safety and soundness of PRA
authorised firms
PRA insurance objective - ANSWER: Contributing to the securing of an
appropriate degree of protection for those who are or may become policyholders
(sufficient capital to risk manage what they're taking on when underwriting)
PRA Strategic objective - ANSWER: Long term - Ensuring that relevant markets
function well (the financial services the FCA oversees)
PRA operational objectives - ANSWER: Day - to -Day
1. Consumer protection (retail clients/individuals)
2. Protecting Integrity of the UK financial system
3. Promoting affection competition in the interests of consumers
,3|Page
FCAs 3 pillar model for their risk-based approach to supervision - ANSWER: 1.
Proactive - pre-emptive and includes business model analysis and drives of
conduct
2. Reactive - emerging or actual harm
3. Sector based thematic review of potential or actual harm
FCAs tools of supervision - ANSWER: 1. Identify - where harm or potential harm
is present
2. Diagnose - cause, extent, potential development of harm
3. Remedy - through a range of FCA actions that can be take
4. Evaluate - FCA assesses how effective these actions were
FCA approach to Conduct Risk Supervision - ANSWER: 1. Reducing and
preventing serious harm - dealing with problem firms, improving redress process
2. Setting and testing higher standard - put consumer needs first, ESG
3. Promoting competition and positive change - preparing financial services for the
future, shaping digital market
What does Part 9A of the Financial services and markets act 2000 (FSMA 2000)
set out? - ANSWER: Sets out general powers of the FCA and gave FCA legal
power to act
, 4|Page
What are the 4 general powers of the FCA - ANSWER: 1. Grant/vary/withdraw
part 4A authorisation of firms, approval of individuals, recognition of other
(exempt persons)
2. Regulations for point number 1
3. Supervision, enforcement, sanctions and disciplinary action
4. Prosecutes for financial crime e.g. Insider dealing under CSA 1993
What is passporting and what are UK firms passporting rights? - ANSWER:
Passporting means if you're authorised by 1 EU country, then you can passport that
authorisation to other countries in the EEA
UK firms currently have no passporting rights into the EEA
What did FMSA 2000 do for regulators? - ANSWER: FSMA 2000 gives legal
effect to the rules and guidance of the regulators, set out in their handbooks
What does R mean in the FCA handbook? - ANSWER: R - Rules - Rules are
binding on authorised persons
What does E mean in the FCA handbook? - ANSWER: Evidential provisions -
non-binding but required to show evidence to demonstrate compliance with a rule.
List of suggestions for records.
CISI UK REGULATIONS EXAM 1 UPDATED
QUESTIONS AND 100% CORRECT ANSWERS
WITH A GUARANTEED A+|| 2025-2026 LATEST
AND COMPLETE UPDATE WITH VERIFIED
SOLUTIONS|| GUARANTEED PASS!!
What/where is the Financial policy committee (FPC) ? - ANSWER: Panel of
economists within Bank of England
Who is the FCA accountable to? - ANSWER: HM Treasury & Parliament
Which 'organisation' does the PRA sit within? - ANSWER: Bank of England
Purposes of Bank of England - ANSWER: Monetary stability - stable prices and
confidence in the currency
Financial stability - stability of the financial systems in the UK (systemic risk
management)
How often does the financial policy committee (FPC) of the BoE meet? How often
does it produce its financial stability report? - ANSWER: Meet 4 times a year,
biannual report
What does the financial policy committee (FPC) do? - ANSWER: Identify,
monitor and take action to remove or reduce systematic risk.
,2|Page
Issues directions/commands to the PRA and FCA
Legislation that lays out PRA and objectives - ANSWER: FSA 2012
PRA firms are... - ANSWER: 1. Deposit takers
2. Insurers
3. Significant investment firms
General PRA objective - ANSWER: Promote the safety and soundness of PRA
authorised firms
PRA insurance objective - ANSWER: Contributing to the securing of an
appropriate degree of protection for those who are or may become policyholders
(sufficient capital to risk manage what they're taking on when underwriting)
PRA Strategic objective - ANSWER: Long term - Ensuring that relevant markets
function well (the financial services the FCA oversees)
PRA operational objectives - ANSWER: Day - to -Day
1. Consumer protection (retail clients/individuals)
2. Protecting Integrity of the UK financial system
3. Promoting affection competition in the interests of consumers
,3|Page
FCAs 3 pillar model for their risk-based approach to supervision - ANSWER: 1.
Proactive - pre-emptive and includes business model analysis and drives of
conduct
2. Reactive - emerging or actual harm
3. Sector based thematic review of potential or actual harm
FCAs tools of supervision - ANSWER: 1. Identify - where harm or potential harm
is present
2. Diagnose - cause, extent, potential development of harm
3. Remedy - through a range of FCA actions that can be take
4. Evaluate - FCA assesses how effective these actions were
FCA approach to Conduct Risk Supervision - ANSWER: 1. Reducing and
preventing serious harm - dealing with problem firms, improving redress process
2. Setting and testing higher standard - put consumer needs first, ESG
3. Promoting competition and positive change - preparing financial services for the
future, shaping digital market
What does Part 9A of the Financial services and markets act 2000 (FSMA 2000)
set out? - ANSWER: Sets out general powers of the FCA and gave FCA legal
power to act
, 4|Page
What are the 4 general powers of the FCA - ANSWER: 1. Grant/vary/withdraw
part 4A authorisation of firms, approval of individuals, recognition of other
(exempt persons)
2. Regulations for point number 1
3. Supervision, enforcement, sanctions and disciplinary action
4. Prosecutes for financial crime e.g. Insider dealing under CSA 1993
What is passporting and what are UK firms passporting rights? - ANSWER:
Passporting means if you're authorised by 1 EU country, then you can passport that
authorisation to other countries in the EEA
UK firms currently have no passporting rights into the EEA
What did FMSA 2000 do for regulators? - ANSWER: FSMA 2000 gives legal
effect to the rules and guidance of the regulators, set out in their handbooks
What does R mean in the FCA handbook? - ANSWER: R - Rules - Rules are
binding on authorised persons
What does E mean in the FCA handbook? - ANSWER: Evidential provisions -
non-binding but required to show evidence to demonstrate compliance with a rule.
List of suggestions for records.
