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CISI UK FINANCIAL REGULATION EXAM
UPDATED QUESTIONS AND 100% CORRECT
ANSWERS WITH A GUARANTEED A+|| 2025-2026
LATEST AND COMPLETE UPDATE WITH
VERIFIED SOLUTIONS|| GUARANTEED PASS!!
In the course of MiFID business, in which one of these situations does the rule of
appropriateness apply to a firm?
A - Giving a personal recommendation to a client
B - Acting as investment manager for a client
C - Arranging a swap transaction for a client without giving any advice
D - Appropriateness has been assessed on behalf of the firm by another MiFID
investment firm
C (Arranging a swap transaction for a client without giving any advice)
[If a firm is an investment manager or is providing recommendations, the firm
needs to consider if the investment is SUITABLE. This question tests
appropriateness, which is for non-advisory services.]
Which of the following is true of exempt persons under the Financial Services and
Markets Act 2000?
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A - They can be exempt from and authorised for the same activities
B - They can be exempt from certain activities and authorised for others
C - They cannot be both authorised and exempt regardless of activities
D - There is no distinction between exempt status and authorised status
C (They cannot be both authorised and exempt regardless of activities)
[A person cannot be both authorised and exempt at the same time. For example, a
firm cannot conduct some regulated activities as an authorised person and others in
the capacity of an appointed representative of another firm.]
To whom is the PRA directly accountable?
A - HM Treasury
B - Court of the Bank of England
C - UK Government
D - FCA
B (Court of the Bank of England)
CISI UK FINANCIAL REGULATION EXAM
UPDATED QUESTIONS AND 100% CORRECT
ANSWERS WITH A GUARANTEED A+|| 2025-2026
LATEST AND COMPLETE UPDATE WITH
VERIFIED SOLUTIONS|| GUARANTEED PASS!!
In the course of MiFID business, in which one of these situations does the rule of
appropriateness apply to a firm?
A - Giving a personal recommendation to a client
B - Acting as investment manager for a client
C - Arranging a swap transaction for a client without giving any advice
D - Appropriateness has been assessed on behalf of the firm by another MiFID
investment firm
C (Arranging a swap transaction for a client without giving any advice)
[If a firm is an investment manager or is providing recommendations, the firm
needs to consider if the investment is SUITABLE. This question tests
appropriateness, which is for non-advisory services.]
Which of the following is true of exempt persons under the Financial Services and
Markets Act 2000?
, 2|Page
A - They can be exempt from and authorised for the same activities
B - They can be exempt from certain activities and authorised for others
C - They cannot be both authorised and exempt regardless of activities
D - There is no distinction between exempt status and authorised status
C (They cannot be both authorised and exempt regardless of activities)
[A person cannot be both authorised and exempt at the same time. For example, a
firm cannot conduct some regulated activities as an authorised person and others in
the capacity of an appointed representative of another firm.]
To whom is the PRA directly accountable?
A - HM Treasury
B - Court of the Bank of England
C - UK Government
D - FCA
B (Court of the Bank of England)
