CISI UK FINANCIAL REGULATIONS

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CISI UK FINANCIAL REGULATIONS

(REGS) EXAM 2025 WITH ACTUAL

CORRECT QUESTIONS AND VERIFIED

DETAILED ANSWERS |FREQUENTLY

TESTED QUESTIONS AND SOLUTIONS

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An individual who applied to the Financial Conduct Authority for approved person status was previously convicted for drug abuse. What key criteria is used to decide if this will influence the application?

A The time lapse since the offence B The nature of the punishment C Whether this will adversely affect their ability to perform the relevant controlled function D Whether this will adversely affect the integrity of the UK financial system 40 When a company issues new share C When a company issues new shares, pre-emption rights only apply to these shares if:

A the existing shareholders have held their shares for at least 12 months B the existing shareholders hold UK domicile status C the new shares are to be acquired for cash D the new shares are to be issued as part of an open offer C A bank's Money Laundering Reporting Officer (MLRO) received a report from a corporate finance adviser about a suspicious transaction carried out by a customer and considers there is 1 / 2

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a strong likelihood that money laundering is being attempted.What action must the MLRO consequently take?

A Report the matter to the Prudential Regulation Authority B Report the matter to the National Crime Agency C Conduct a detailed investigation and suspend the transaction whilst this is being carried out D Conduct a detailed investigation and notify the cashier of the outcome B To satisfy regulatory requirements (COBS 3.5) a firm is carrying out a 'qualitative test' on one of

its clients. The main purpose of this test is to:

A determine the client's attitude to investment risk B analyse the client's knowledge and capabilities C quantify the level of assets held by the client D assess the creditworthiness of the client B Company X discovers that a bona fide takeover offer from Company Y is to be received imminently.At this stage, and in accordance with the Takeover Code, Company X is prevented from:

A calling a general meeting of its shareholders B publishing a defence document C lobbying for referral to the Competition and Markets Authority (CMA) D entering into an inducement fee agreement D Shirley, an investment analyst, is suspected of insider dealing. If action is taken against her under the Financial Services and Markets Act rather than under the Criminal Justice Act, this

indicates that:

A a longer term of imprisonment can be imposed if found guilty B a longer appeals process will apply if found guilty C a lower criminal court will hear the case D a lower standard of proof will be required D

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