Free CISI UK Financial Regulation practice questions
Exam-style UK Financial Regulation questions written to the current CISI syllabus. No sign-up, full explanations, and a feel for the paper.
These 10 questions are a free sample for the CISI UK Financial Regulation exam, written to the current syllabus and multiple-choice format. Pick an answer and the explanation appears straight away, so each one teaches you something whether you get it right or wrong.
This page covers the Level 3 Capital Markets Programme UK Financial Regulation paper, not the Level 4 UK Regulation & Professional Integrity unit.
They span several syllabus elements rather than one topic, so you get a feel for the breadth of the paper. For the complete question bank and full mock exams weighted like the real UK Financial Regulation paper, it is all included for £59, or £89 if you want all fourteen supported CISI exams.
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Try 10: UK Financial Regulation
Pick an answer to see whether you got it, and why.
Which of the following did the Financial Services Act 2012 NOT do?
Not quite. The answer is A.
The Financial Services Act 2012 dismantled the tripartite system: it created the FCA, returned prudential supervision of banks to the Bank of England through the PRA, and put the Financial Policy Committee on a statutory footing. The Financial Services Compensation Scheme is older, having been established under FSMA 2000, so the 2012 Act did not create it.
Consumer Duty was introduced as a new FCA Principle in July 2023. Which of the following statements about it is NOT correct?
Not quite. The answer is C.
The Consumer Duty sits as Principle 12 of the Principles for Businesses, requires firms to act to deliver good outcomes for retail customers, and where it applies it displaces Principles 6 and 7, which continue to govern firms outside its scope. It is a retail protection: business with eligible counterparties sits outside the Duty, so the claim that it extends there is the false statement.
How long must customer due diligence records normally be retained after a business relationship ends?
Not quite. The answer is B.
The Money Laundering Regulations require identification and transaction records to be kept for five years from the end of the business relationship. Seven years is the closest distractor because firms often default to the longer periods used for tax and accounting records, but the money laundering regime fixes its own shorter period.
A firm receives a complaint that it cannot resolve by the end of the third business day. Which of the following does DISP require? I A prompt written acknowledgement. II A summary resolution communication. III A final or holding response by the end of eight weeks. IV Notice to the FCA within five business days.
Not quite. The answer is A.
Once a complaint runs past the third business day the firm must acknowledge it promptly in writing and issue a final response, or a holding response, by the end of the eighth week. A summary resolution communication is the short form used only where the matter is settled by the third business day. DISP requires no separate notice to the FCA, which receives complaints data in periodic returns.
Which of the following are operational objectives of the FCA? I Consumer protection II Market integrity III Safety and soundness of firms IV Effective competition
Not quite. The answer is B.
The FCA has one strategic objective, that the relevant markets function well, and three operational objectives: consumer protection, market integrity and effective competition in the interests of consumers. Statements I, II and IV are therefore all correct. The closest distractor is the combination that adds III: safety and soundness is the PRA's general objective, and although the FCA supervises the prudential position of solo-regulated firms it is not one of its statutory objectives.
The Consumer Duty requires firms to deliver good outcomes in four specific areas. Which of the following is NOT one of the four Consumer Duty outcomes?
Not quite. The answer is A.
The four Consumer Duty outcomes are: (1) products and services; (2) price and value; (3) consumer understanding; and (4) consumer support. Capital adequacy and solvency are prudential matters regulated by the PRA, not outcomes under the Consumer Duty, which focuses on retail client treatment.
Which of the following is NOT a way of committing the concealing offence under the Proceeds of Crime Act?
Not quite. The answer is A.
The concealing offence is committed by concealing, disguising, converting or transferring criminal property, or by removing it from England and Wales, Scotland or Northern Ireland, which is why a courier who carries criminal cash abroad commits it. Acquiring, using or possessing criminal property is the separate acquisition offence, the one to which the adequate consideration defence attaches.
The FSCS provides compensation to clients of failed authorised firms. What is the maximum FSCS compensation limit for investment claims?
Not quite. The answer is B.
The FSCS compensation limit for investment claims is £85,000 per eligible claimant per firm, covering protected investment business such as investment advice and management. Do not confuse it with deposit protection, which rose to £120,000 per eligible depositor per authorised firm on 1 December 2025 (£110,000 was the figure originally consulted on). The investment limit was £50,000 before April 2019.
Which of the following Bank of England committees now exercises the functions of the Prudential Regulation Authority?
Not quite. The answer is D.
The PRA is part of the Bank of England. The Bank of England and Financial Services Act 2016 removed its status as a separate subsidiary, and its functions are now exercised through the Bank's Prudential Regulation Committee. The closest distractor is the Financial Policy Committee, which also sits inside the Bank and also worries about the safety of the system, but the FPC's remit is macroprudential; it looks at risks to the system as a whole rather than exercising the supervisory powers over individual firms that belong to the PRA.
The suitability, best execution and client reporting rules are disapplied for business with:
Not quite. The answer is C.
Eligible counterparty business strips out most of the selling, dealing and reporting protections, leaving categorisation and the fair, clear and not misleading duty in place. A per se professional client keeps best execution and reporting, losing only some information and assumption requirements. An elective professional client keeps more still, because the firm may assume knowledge but not the ability to bear losses. A retail client keeps every protection.
These are a free sample. PasskeyPrep has over 9,400 exam-standard questions across fourteen supported CISI exams, sorted so you drill exactly where you are weak. Start with the full free UK Financial Regulation mock exam: 75 original PasskeyPrep questions in 90 minutes, with no sign-up. It is independent practice material, not a CISI paper or a set of live CISI questions. Build your plan with the UK Financial Regulation exam guide, see what official material exists in the UK Financial Regulation past papers and mocks guide, or unlock the full bank and timed mocks from £59.
Frequently asked questions
Are these real CISI UK Financial Regulation questions?
No. CISI does not publish its live questions. These are original questions written by PasskeyPrep to match the current CISI UK Financial Regulation syllabus, format and difficulty.
Is the CISI UK Financial Regulation practice free?
The questions on this page are free with no sign-up. The full UK Financial Regulation question bank and mocks are one payment of £59, or £89 for all fourteen supported CISI exams. No subscription.
How should I use practice questions to pass UK Financial Regulation?
Read the workbook once to build the picture, then spend most of your time answering questions and reviewing the explanations, focusing hardest on the topics you keep getting wrong. Finish with full, timed mocks weighted like the real paper.