CISI REGULATIONS EXAM QUESIONS WIH
VERIFIED SOLUIONS CURRENTLY TESTED AND
APPROVED GRADED A+ NEW MODIFIED
Which of the following statements is false, regarding FCA rules on apportionment of
significant responsibilities?
A The authorised firm must make clear how particular responsibilities are allocated within
the firm
B There should be well defined and clear lines of responsibility
C Non-executive directors must be directly involved in the apportionment of significant
responsibilities
D Records of apportionment and allocation of responsibilities must be kept for 6 years --
CORRECT ANSWER--C Non-executive directors must be directly involved in the
apportionment of significant responsibilities
- All other choices are part of the FCA rules on appointment of responsibilities
What is the best description of the first principle of the Chartered Institute for Securities and
Investment (CISI) Code of Conduct?
A To managed fairly and effectively conflicts of interest
B To strive to uphold the highest personal standards
C To observe applicable law, regulation and professional conduct standards
D To act honestly and fairly at all times --CORRECT ANSWER--B To strive to uphold the
highest personal standards
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,- "Personal Accountability"
In September 2012, the FRC revised editions of the UK Corporate Governance Code. Which
of the following was not one of the revisions?
A Boards to confirm that annual reports are fair and balanced
B Audit committees to report more fully on their activities
C FTSE 250 companies to put their external audit contract out to tender at least every five
years
D FTSE 350 companies to put their external audit contract out to tender at least every ten
years --CORRECT ANSWER--C FTSE 250 companies to put their external audit contract
out to tender at least every five years
- Companies must also report on their boardroom diversity policies.
FTSE 350 is an index made of up the constituents of the FTSE 100 and FTSE 250 indices
The City Panel on Takeovers and Mergers is:
A A body set up by the BEIS
B A body set up by the Stock Exchange
C A body set up by FCA
D An independent body --CORRECT ANSWER--D An independent body
Which of the following situations would necessitate the preparation and submission of a
prospectus?
A Listed company planning a bonus issue
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,B AIM company planning a bonus issue
C AIM company planning a placing
D Introduction of an AIM company to the Official List. --CORRECT ANSWER--D
Introduction of an AIM company to the Official List.
- According to the Prospectus Directive issued by the European Commission, a prospectus
must be published whenever securities are being offered to the public and/or admitted to a
regulated market. These rules have been on-shored in the UK via the Prospectus Regulation
Rules (PRR)
Under what circumstances may a firm challenge the decision of the Upper Tribunal
(TCCUT)?
A With Tribunal permission, only regarding a point of law
B With or without Tribunal permission, only regarding fines
C With Tribunal permission, only regarding fines
D It is not possible for a firm to challenge the Tribunal --CORRECT ANSWER--A With
Tribunal permission, only regarding a point of law
- If the permission of the tribunal or the court of appeal is obtained, then it is possible for a
firm or individual to appeal a tribunal decision, but only on a point of law
What aspect of an individual's behaviour constitutes a potential abuse of the market?
A The behaviour by itself
B The intent of the behaviour
C The motivation behind the behaviour
D The effect of the behaviour --CORRECT ANSWER--D The effect of the behaviour
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, - Market abuse (EU MAR) is based on the effect of the behaviour
When the UK regulator allows a firm to undertake regulated activities, it grants which of the
following?
A Authorisation
B Financial Services and Markets Act 2000 prohibition
C Regulatory exemption
D Part 4A Permission --CORRECT ANSWER--D Part 4A Permission
- Activities must be permitted by the Part 4A Permission (status would be permitted with
authorization)
According to the UK Prospectus Rules (PRR), in which of the following ways can the
approved prospectus be made public?
A It is circulated by insertion in UK newspapers
B It is made available in printed form at the registered offices of the issuer
C It is made available in printed form at the offices of the regulated market on which the
securities are being admitted
D It is made available on the issuer's website --CORRECT ANSWER--D It is made available
on the issuer's website
If a financial analyst is providing investment research for dissemination to its clients in
particular financial investments, when would they be permitted to deal on that information?
A The financial analyst, as a relevant person, would never be able to deal on that information
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VERIFIED SOLUIONS CURRENTLY TESTED AND
APPROVED GRADED A+ NEW MODIFIED
Which of the following statements is false, regarding FCA rules on apportionment of
significant responsibilities?
A The authorised firm must make clear how particular responsibilities are allocated within
the firm
B There should be well defined and clear lines of responsibility
C Non-executive directors must be directly involved in the apportionment of significant
responsibilities
D Records of apportionment and allocation of responsibilities must be kept for 6 years --
CORRECT ANSWER--C Non-executive directors must be directly involved in the
apportionment of significant responsibilities
- All other choices are part of the FCA rules on appointment of responsibilities
What is the best description of the first principle of the Chartered Institute for Securities and
Investment (CISI) Code of Conduct?
A To managed fairly and effectively conflicts of interest
B To strive to uphold the highest personal standards
C To observe applicable law, regulation and professional conduct standards
D To act honestly and fairly at all times --CORRECT ANSWER--B To strive to uphold the
highest personal standards
Page 1 of 325
,- "Personal Accountability"
In September 2012, the FRC revised editions of the UK Corporate Governance Code. Which
of the following was not one of the revisions?
A Boards to confirm that annual reports are fair and balanced
B Audit committees to report more fully on their activities
C FTSE 250 companies to put their external audit contract out to tender at least every five
years
D FTSE 350 companies to put their external audit contract out to tender at least every ten
years --CORRECT ANSWER--C FTSE 250 companies to put their external audit contract
out to tender at least every five years
- Companies must also report on their boardroom diversity policies.
FTSE 350 is an index made of up the constituents of the FTSE 100 and FTSE 250 indices
The City Panel on Takeovers and Mergers is:
A A body set up by the BEIS
B A body set up by the Stock Exchange
C A body set up by FCA
D An independent body --CORRECT ANSWER--D An independent body
Which of the following situations would necessitate the preparation and submission of a
prospectus?
A Listed company planning a bonus issue
Page 2 of 325
,B AIM company planning a bonus issue
C AIM company planning a placing
D Introduction of an AIM company to the Official List. --CORRECT ANSWER--D
Introduction of an AIM company to the Official List.
- According to the Prospectus Directive issued by the European Commission, a prospectus
must be published whenever securities are being offered to the public and/or admitted to a
regulated market. These rules have been on-shored in the UK via the Prospectus Regulation
Rules (PRR)
Under what circumstances may a firm challenge the decision of the Upper Tribunal
(TCCUT)?
A With Tribunal permission, only regarding a point of law
B With or without Tribunal permission, only regarding fines
C With Tribunal permission, only regarding fines
D It is not possible for a firm to challenge the Tribunal --CORRECT ANSWER--A With
Tribunal permission, only regarding a point of law
- If the permission of the tribunal or the court of appeal is obtained, then it is possible for a
firm or individual to appeal a tribunal decision, but only on a point of law
What aspect of an individual's behaviour constitutes a potential abuse of the market?
A The behaviour by itself
B The intent of the behaviour
C The motivation behind the behaviour
D The effect of the behaviour --CORRECT ANSWER--D The effect of the behaviour
Page 3 of 325
, - Market abuse (EU MAR) is based on the effect of the behaviour
When the UK regulator allows a firm to undertake regulated activities, it grants which of the
following?
A Authorisation
B Financial Services and Markets Act 2000 prohibition
C Regulatory exemption
D Part 4A Permission --CORRECT ANSWER--D Part 4A Permission
- Activities must be permitted by the Part 4A Permission (status would be permitted with
authorization)
According to the UK Prospectus Rules (PRR), in which of the following ways can the
approved prospectus be made public?
A It is circulated by insertion in UK newspapers
B It is made available in printed form at the registered offices of the issuer
C It is made available in printed form at the offices of the regulated market on which the
securities are being admitted
D It is made available on the issuer's website --CORRECT ANSWER--D It is made available
on the issuer's website
If a financial analyst is providing investment research for dissemination to its clients in
particular financial investments, when would they be permitted to deal on that information?
A The financial analyst, as a relevant person, would never be able to deal on that information
Page 4 of 325
