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CISI UK Financial Regulations (Regs) Mock Exam||
COMPLETE EXAM WITH QUESTIONS AND
ANSWERS||VERIFIED EXAM|| NEWEST EXAM
In terms of conduct risk, which of the following is NOT one
of the FCA's three areas of focus for consumer-facing
work?
Reducing and preventing serious harm
Setting and testing higher standards
Delivering profitability in a digital age
Promoting competition and positive change - ANSWER-
Delivering profitability in a digital age is NOT one of the
FCA's areas of focus.
If a per se professional client requests to be categorised
as a retail client for extra protection, the firm:
Must allow the recategorisation of the client, but only once
the client has signed a risk warning.
Must allow recategorisation, but only once the client has
entered into a written recategorisation agreement.
May recategorise without notifying the client.
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May refuse to recategorise. - ANSWER-Must allow
recategorisation, but only once the client has entered into
a written recategorisation agreement.
If the criteria for a concert party are met under the UKLA's
Disclosure and Transparency rules, an obligation to notify
the company occurs at a collective holding of?
1%
3%
15%
30% - ANSWER-3% is deemed to be a significant stake.
Which of the following is a key difference between terrorist
funds and other money laundering activities?
Unusual trading pattern
Involves a transaction
Large sum
Legitimate source - ANSWER-By definition, money
laundering involves the proceeds of crime. Legitimate
funds may be used to fund terrorist activities.
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Legitimate Source
When the RDC issues a final notice, it will not contain:
Other information deemed to be relevant
Notice of the recipient's right to appeal
The date the notice becomes effective
Details of any sanctions imposed by the FCA - ANSWER-
The right to appeal ceases upon the issue of a final notice.
Which of the following may be issued by the RDC instead
of a warning notice?
Disciplinary notice
Notice of discontinuance
Final decision notice
Decision notice - ANSWER-The most obvious answer
would have been a supervisory notice, but it is not an
available choice. The only other sensible option is
therefore a notice of discontinuance, which can be issued
at any point during the investigatory process if the RDC
feels there is no need to continue an investigation.
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How long is a MiFID firm required to keep records of
employee's training and competence?
Seven years
Five years
Three years
One year - ANSWER-The basic record keeping
requirement for MiFID business is five years.
For an authorised firm to assess the suitability of a
transaction for an elective professional client, the firm
must consider:
Investment knowledge and experience, financial situation
and investment objectives.
Investment objectives and investment knowledge and
experience.
Investment objectives and financial situation.
Investment objectives only. - ANSWER-For an elective
professional client, the firm must ascertain the investment
objectives and financial standing of the client.
How quickly must a firm correct a discrepancy following an
external client money reconciliation?
CISI UK Financial Regulations (Regs) Mock Exam||
COMPLETE EXAM WITH QUESTIONS AND
ANSWERS||VERIFIED EXAM|| NEWEST EXAM
In terms of conduct risk, which of the following is NOT one
of the FCA's three areas of focus for consumer-facing
work?
Reducing and preventing serious harm
Setting and testing higher standards
Delivering profitability in a digital age
Promoting competition and positive change - ANSWER-
Delivering profitability in a digital age is NOT one of the
FCA's areas of focus.
If a per se professional client requests to be categorised
as a retail client for extra protection, the firm:
Must allow the recategorisation of the client, but only once
the client has signed a risk warning.
Must allow recategorisation, but only once the client has
entered into a written recategorisation agreement.
May recategorise without notifying the client.
,2|Page
May refuse to recategorise. - ANSWER-Must allow
recategorisation, but only once the client has entered into
a written recategorisation agreement.
If the criteria for a concert party are met under the UKLA's
Disclosure and Transparency rules, an obligation to notify
the company occurs at a collective holding of?
1%
3%
15%
30% - ANSWER-3% is deemed to be a significant stake.
Which of the following is a key difference between terrorist
funds and other money laundering activities?
Unusual trading pattern
Involves a transaction
Large sum
Legitimate source - ANSWER-By definition, money
laundering involves the proceeds of crime. Legitimate
funds may be used to fund terrorist activities.
,3|Page
Legitimate Source
When the RDC issues a final notice, it will not contain:
Other information deemed to be relevant
Notice of the recipient's right to appeal
The date the notice becomes effective
Details of any sanctions imposed by the FCA - ANSWER-
The right to appeal ceases upon the issue of a final notice.
Which of the following may be issued by the RDC instead
of a warning notice?
Disciplinary notice
Notice of discontinuance
Final decision notice
Decision notice - ANSWER-The most obvious answer
would have been a supervisory notice, but it is not an
available choice. The only other sensible option is
therefore a notice of discontinuance, which can be issued
at any point during the investigatory process if the RDC
feels there is no need to continue an investigation.
, 4|Page
How long is a MiFID firm required to keep records of
employee's training and competence?
Seven years
Five years
Three years
One year - ANSWER-The basic record keeping
requirement for MiFID business is five years.
For an authorised firm to assess the suitability of a
transaction for an elective professional client, the firm
must consider:
Investment knowledge and experience, financial situation
and investment objectives.
Investment objectives and investment knowledge and
experience.
Investment objectives and financial situation.
Investment objectives only. - ANSWER-For an elective
professional client, the firm must ascertain the investment
objectives and financial standing of the client.
How quickly must a firm correct a discrepancy following an
external client money reconciliation?
