CISI UK Financial Regulation — Information & Free Practice

About CISI UK Financial Regulation

CISI UK Financial Regulation · GB

Key exam facts

Provider

Chartered Institute for Securities & Investment (CISI), examination owner and publisher.

Format

Computer-based multiple-choice examination, available on demand at test centres.

Exam questions

Scored questions: 75.

Time limit

90 minutes for the standard 75 questions; proportionately more time if additional trial questions are included.

Passing score

CISI states a 70% pass mark and publishes grade bands of 52–67 Pass, 68–75 Pass with Merit, and 0–51 Fail; these published presentations are retained without inferring a different rounded threshold.

Exam fee

UK exam fee GBP 247, 1 April 2026–31 March 2027. Mandatory workbook GBP 105 separately; saver package GBP 367 includes exam, workbook and Revision Express. One-off qualification registration fee GBP 68 when registering a first qualification; concessionary rates are available for unemployed candidates.

Topics covered

• The Regulatory Environment (16%)

  • The Role of the FCA and PRA
  • Principles for Businesses
  • Fitness and propriety
  • Prudential Standards
  • The Regulatory Infrastructure
  • Regulated and Prohibited Activities
  • Regulated Activities
  • Training and Competence
  • know the role, activities and statutory objectives of the: • Financial Conduct Authority (FCA) • Prudential Regulatory Authority (PRA) • Key regulatory areas
  • know key features of the FCA’s Principles for Businesses
  • know the requirements of: • the Senior Managers & Certification Regime (SM&CR) • Fit and Proper Test (FIT)
  • know the purpose of the Capital Adequacy Requirement for certain types of investment firms
  • know the role of: • The Competition and Markets Authority (CMA) • HM Revenue & Customs (HMRC) • The Financial Policy Committee (FPC) • The Bank of England (BoE) • HM Treasury (HMT)
  • know the Pension regulator’s rules with respect to occupational pension schemes
  • understand how UK Financial services may be impacted by overseas: • directives • regulations • law • guidance • international intergovernmental bodies (e.g. FATF)
  • know the role played by oversight, influencing bodies and relevant codes of conduct: • internal audit • external audit • trustees • compliance • industry bodies, professional bodies and trade associations
  • know the regulated and prohibited activities: • authorised persons [PERG 2.2.3] • exempt persons and FSMA • offences under the Act • enforceability of agreements entered into with an unauthorised business • defences available under the Act • prohibition orders • actions for damages
  • know the main exclusions from the need for authorisation under the FSMA 2000 (Regulated Activities Order): absence of holding out; groups and joint enterprises; advice in newspapers; trustees, nominees and personal representatives; employee share schemes; overseas persons
  • know the investments specified in Part III of the Regulated Activities Order
  • know the authorisation procedures for firms: • the need for authorisation • the threshold conditions for authorisation
  • understand: the PRA and FCA individual accountability requirements for all firms; the requirements for individuals to be registered and be subject to the Senior Managers & Certification Regime and what this means; who is subject to the Conduct Rules
  • know regulatory responsibilities in relation to the assessment of employee competence: • per-engagement • at engagement • continuing professional development (CPD) • Statement of Professional Standing (SPSS)

• Conduct of Business and Client Assets (46.67%)

  • The Application and General Provisions of the FCA Conduct of Business Sourcebook (COBS)
  • Appointed Representatives
  • Accepting Clients
  • Client Agreements and Information Provision
  • Reliance on Others
  • Communicating with Clients, Including Financial Promotions
  • Retail clients
  • Communicating with Retail Clients
  • Cold Calls and Other Promotions that are not in writing
  • Suitability
  • Appropriateness (Non-Advised Services)
  • Product Disclosure and the Client’s Right to Cancel
  • Conflicts of interest
  • Inducements and Payment for Research
  • Personal Account Dealing
  • Dealing and Managing
  • Best Execution
  • Client Order Handling for MiFID and Non-MiFID Business
  • Client Limit Orders
  • Transaction and Trade Reporting
  • Reporting to Clients
  • Client Assets
  • know: • firms subject to the FCA Conduct of Business Sourcebook • activities which are subject to the FCA Conduct of Business Sourcebook including Eligible Counterparty Business and transactions between regulated market participants • the impact of location on firms/activities of the application of the FCA Conduct of Business Sourcebook: permanent place of business in UK
  • know how the application of the FCA Conduct of Business Sourcebook applies to appointed representatives including financial promotions and firm’s responsibilities for appointed representatives
  • • definition of client • the application of the rules on client categorisation • retail client professional client and eligible counterparty
  • understand client status: understand client status: • when a person is acting as agent for another person • the rule on categorising elective professional clients and the requirements for clients electing to be professional clients • the rule on elective eligible counterparties • providing clients with a higher level of protection • the requirement to provide notifications of client categorisation
  • know: • the requirement for firms to provide client agreements • when a client agreement is required to be signed • when it is acceptable to be provided to clients for MiFID business
  • know the requirement to provide information to clients prior to providing services to clients including information relating to the nature and risk of the services and designated investments being offered for MiFID and non-MiFID business
  • know the rules on: • disclosure of costs and associated charges • timing of disclosure • medium of disclosure, • changes to information provided to the client • compensation information for MiFID and non-MiFID business
  • know the rules, guidance and evidential provisions regarding reliance on others
  • know the FCA Conduct of Business Rules relating to fair treatment of customers, the application of the rules on communication to clients and on fair, clear and not misleading communications and financial promotions and the additional requirements relating to retail clients in respect of MiFID non-MiFID business
  • know: • the main exceptions to the financial promotion rules in COBS • the limitations in connection to MiFID business • the existence of the FPO
  • know the rules on prospectus advertisements
  • know the requirement for approving financial promotions and the circumstances of relying on another firm’s confirmation of compliance
  • understand the four elements of Consumer Duty
  • know obligations related to the Fair Treatment of Customers (FTOC) for firms outside of the scope of the Consumer Duty
  • know: • the general rule in connection with communicating with retail clients • the restrictions on the promotion of speculative illiquid securities to retail clients • the rules on past, simulated past and future performance • the rule on financial promotions containing offers or invitations
  • know the rules on: • unwritten promotions and the restriction on cold calling • financial promotions for overseas persons
  • understand the purpose of the suitability rules and the requirement for assessing suitability
  • understand: • the information which a firm must obtain from a client in order to make a suitability assessment • the guidance on assessing suitability
  • know the application of the assessing suitability rules for professional clients
  • understand the application of the rules on churning and switching for MiFID and non-MiFID business
  • know: • the obligation to provide a retail client with a suitability report for MiFID business and non-MiFID business • the timing and contents of a suitability report for MiFID business and non-MiFID business • relevant guidance for dealing with insistent clients
  • know the: • obligations for assessing appropriateness for MiFID and non-MiFID business • circumstances in which it is not necessary to assess appropriateness for MiFID business and non-MiFID business
  • know: • the purpose of the rules on the sale of packaged products to retail clients • the rules requiring the provision of key features to retail clients • the main features to be explained in the key features • the information about financial instruments (MiFID provisions)
  • know the rules for managing conflicts of interest: • common methods • contents of a conflicts policy
  • know the rules on managing conflict in connection with investment research and research recommendations
  • know the rules on inducements relating to: • MiFID business • the provision of independent advice, restricted advice and portfolio management services to retail clients • the provision of independent advice and portfolio management services to retail clients outside the UK or to Professional clients
  • know the rules regarding acceptable minor non-monetary benefits
  • understand: • the purpose and application of the personal account dealing rule • the restrictions on personal account dealing for MiFID business and non-MiFID business
  • know: • the arrangements required to comply with the personal account dealing rules including the notification requirements • exceptions regarding personal account dealing for MiFID and non- MiFID business
  • know the application of the rules on dealing and managing
  • understand the requirements of providing best execution for MiFID and Non-MiFID business
  • understand: • the requirements for an order execution policy • its disclosures, • the requirements for consent and review for MiFID and non-MiFID business
  • understand the rules on following specific instructions from a client
  • understand the rules on: • monitoring the effectiveness of execution arrangements and policy; • demonstrating compliance with the execution policy • the duties of portfolio managers and receivers and transmitters to act in a client’s best interest • information provision for MiFID business and non-MiFID business
  • understand the rule on client order handling and the conditions to be satisfied when carrying out client orders
  • know: • the rules on client limit orders • the obligation to make unexecuted client limit orders public for MiFID and non-MiFID business
  • know the definition of a reportable transaction
  • know the role and purpose of reporting: • transaction (UK MiFIR) • trade (UK MiFIR) • UK EMIR • short selling • UK SFTR
  • know which party to a trade is responsible for reporting including trades carried out by overseas branches
  • know: • general client and occasional reporting requirements • the provision of dealing confirmations and periodic statements to retail and professional customers • exceptions to the requirements and the record-keeping requirements in respect of MiFID and non-MiFID business
  • know: • the purpose of the client money and custody rules (CASS) • exemptions

• Enhancing Market Integrity (25.33%)

  • Market Abuse
  • Insider Dealing
  • Market Manipulation
  • Money Laundering and Financial Crime
  • Record Keeping Requirements
  • Bribery and Corruption
  • Fraud and Economic crime
  • Disclosure and Transparency rules
  • understand the scope and status of the UK Market Abuse Regulation
  • understand the civil and criminal regime for market abuse and insider dealing
  • understand the requirement to prevent and detect market abuse including the obligation on firms to make suspicious transaction and order reports
  • know the main concepts of: • inside information • insider dealing • unlawful disclosure of inside information and insider lists
  • know offences described in UK legislation and the instruments covered by the Criminal Justice Act 1993
  • understand market soundings and market manipulation
  • understand: • disclosure requirements for inside information • the requirement for insider lists
  • understand general defences relating to insider dealing
  • understand Special defences: • market makers acting in good faith • market information • price stabilisation • legitimate behaviour
  • know the four forms of market manipulation: • manipulating transactions • manipulating devices • dissemination • benchmark manipulation
  • know: • legitimate behaviour • the concept of accepted market practices • the obligation on Persons discharging managerial responsibilities
  • understand the obligations relating to the provision of investment recommendations
  • know the terms: • money laundering • criminal property
  • know the three stages of money laundering
  • understand the main offences set out in the Proceeds of Crime Act 2002 (POCA)
  • know due diligence measures designed to prevent money laundering and/or terrorist financing • Joint Money Laundering Steering Group (JMLSG) guidance • credit reference agencies
  • know the role of the Money Laundering Reporting Officer and/or Nominated Officer
  • know the duty to report suspicious activities
  • know record keeping requirements in relation to: • Anti – Money Laundering (AML) • Combating the Financing of Terrorism (CFT)
  • know the main purpose of the Bribery Act 2010 and the categories of offences covered in Sections 1 - 7 Bribery Act 2010
  • know responsibilities in relation to the prevention of fraud and economic crime
  • know the main concepts, legal requirements and regulations relating to disclosure and transparency rules as they relate to: • disclosure and control of inside information by issuers • transactions by persons discharging managerial responsibilities and their connected persons • share dealing by directors and other persons discharging managerial responsibilities, including closed periods; chairman’s approval; no short-term dealing Anti Money Laundering

• Complaints and Redress (12%)

  • Consumer rights
  • Customer Complaints
  • Data Protection Act 2018 (DPA)
  • Whistleblowing
  • know relevant aspects of the Consumer Rights Act 2015 (CRA)
  • know the: • purpose and requirements of the cancellation and withdrawal rights • application of reflection periods
  • know the criteria for a complainant to be eligible to lodge a complaint
  • know the procedures a firm must implement and follow to handle customer complaints
  • know the role of the Financial Ombudsman Scheme (FOS)
  • know the role of the Financial Services Compensation Scheme (FSCS)
  • know the six principles of the Data Protection Act 2018
  • know the rights of individuals in respect of the collection and use of their personal data
  • know the breach notification and reporting requirements
  • know the legal and regulatory basis for whistleblowing

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

Official sources and references

• UK Financial Regulation syllabus V33

  cover; printed p.1

• UK Financial Regulation syllabus V33

  printed p.4

• UK Financial Regulation syllabus V33

  printed p.5

• CISI Investment Operations Certificate

  UK Financial Regulation (IOC): Exam Details; Pass Mark / Pass Rate

• CISI price list 2026–2027

  UK exam prices, Qualifying Level 3 units, IOC, UK Financial Regulation

• CISI Candidate Update

  Level 3 IOC: UK Financial Regulation V33

Confirm current exam arrangements with the exam provider.