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CISI SAMPLE PAPER 3 EXAM LATEST UPDATES
-2025/2026- ACTUAL QUESTIONS AND CORRECT
ANSWERS ALREADY GRADED A+
GUARANTEED SUCCESS
Where funds are to be set aside to provide for the future financial maintenance of a
disabled child, this can normally be achieved through the establishment of a legal
document called a
A: codicil
B: trust
C: grant of representation
D: power of attorney
B: trust
Which mix of investments is most appropriate for a risk averse investor?
A: 50% commodities and 50% equities
B: 50% cash and 50% gilts
, 2
C: 50% foreign exchange and 50% CFD`s
D: 50% property and 50% PIBS
B: 50% cash and 50% gilts
Which of the following is a factor that must be considered when constructing a
portfolio?
A: Verification of the clients identity
B: The clients risk tolerance
C: The category of investment service required
D: Performance measurement
B: The clients risk tolerance
Which of the following is a feature in Arbitrage Pricing Theory (APT)?
A: APT relies on identified factors being correlated
B: The variables of APT include real economic factors
C: The principal component of APT is the return on an index of all shares
D: APT is equivalent to a single factor Capital Asset Pricing Model
, 3
B: The variables of APT include real economic factors
The basis on which one person would look after the financial affairs of another
person who does not have the mental capacity to do so themselves, would be set
out in which document?
A: Client agreement
B: Power of attorney
C: Terms and conditions
D: Trust deed
B: Power of attorney
Which of the following is an offence under the market abuse legislation?
A: A stockbroker dealing in a stock in which they have received price sensitive
information
B: A stockbroker fuelling rumours of outstanding results for a small oil company
to its clients
C: A private client buying outside normal market size with one broker and not
telling their usual stockbroker about it
D: A private client telling their friends about a company that they think is going to
be taken over
, 4
B: A stockbroker fuelling rumours of outstanding results for a small oil company
to its clients
Which of the following rules applying to financial intermediaries is directly
underpinned by the principle of fiduciary responsibility?
A: Commission disclosure
B: Money laundering
C: Professional indemnity
D: Best execution
D: Best execution
What is the MAIN purpose of a power of attorney document?
A: It appoints someone to distribute the assets of a deceased person
B: It enables ownership of property to transfer from one person to another person
C: It allows one person to conduct specific transactions on behalf of another person
D: It entitles one trustee to override the demands of another trustee
C: It allows one person to conduct specific transactions on behalf of another person
If a client wanted to make additional contributions to an occupational pension
scheme, which of the following options would give him the greatest choice of
provider and a say in how the funds are invested?
CISI SAMPLE PAPER 3 EXAM LATEST UPDATES
-2025/2026- ACTUAL QUESTIONS AND CORRECT
ANSWERS ALREADY GRADED A+
GUARANTEED SUCCESS
Where funds are to be set aside to provide for the future financial maintenance of a
disabled child, this can normally be achieved through the establishment of a legal
document called a
A: codicil
B: trust
C: grant of representation
D: power of attorney
B: trust
Which mix of investments is most appropriate for a risk averse investor?
A: 50% commodities and 50% equities
B: 50% cash and 50% gilts
, 2
C: 50% foreign exchange and 50% CFD`s
D: 50% property and 50% PIBS
B: 50% cash and 50% gilts
Which of the following is a factor that must be considered when constructing a
portfolio?
A: Verification of the clients identity
B: The clients risk tolerance
C: The category of investment service required
D: Performance measurement
B: The clients risk tolerance
Which of the following is a feature in Arbitrage Pricing Theory (APT)?
A: APT relies on identified factors being correlated
B: The variables of APT include real economic factors
C: The principal component of APT is the return on an index of all shares
D: APT is equivalent to a single factor Capital Asset Pricing Model
, 3
B: The variables of APT include real economic factors
The basis on which one person would look after the financial affairs of another
person who does not have the mental capacity to do so themselves, would be set
out in which document?
A: Client agreement
B: Power of attorney
C: Terms and conditions
D: Trust deed
B: Power of attorney
Which of the following is an offence under the market abuse legislation?
A: A stockbroker dealing in a stock in which they have received price sensitive
information
B: A stockbroker fuelling rumours of outstanding results for a small oil company
to its clients
C: A private client buying outside normal market size with one broker and not
telling their usual stockbroker about it
D: A private client telling their friends about a company that they think is going to
be taken over
, 4
B: A stockbroker fuelling rumours of outstanding results for a small oil company
to its clients
Which of the following rules applying to financial intermediaries is directly
underpinned by the principle of fiduciary responsibility?
A: Commission disclosure
B: Money laundering
C: Professional indemnity
D: Best execution
D: Best execution
What is the MAIN purpose of a power of attorney document?
A: It appoints someone to distribute the assets of a deceased person
B: It enables ownership of property to transfer from one person to another person
C: It allows one person to conduct specific transactions on behalf of another person
D: It entitles one trustee to override the demands of another trustee
C: It allows one person to conduct specific transactions on behalf of another person
If a client wanted to make additional contributions to an occupational pension
scheme, which of the following options would give him the greatest choice of
provider and a say in how the funds are invested?
