Free CISI UK Financial Regulation practice questions
Exam-standard UK Financial Regulation questions written to the current CISI syllabus. No sign-up, full explanations, and a feel for the real paper.
These 10 questions are a free sample for the CISI UK Financial Regulation exam, written to the current syllabus and the real 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.
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 exactly like the real UK Financial Regulation paper, it is all included in the £59 Pass Package, which covers all nine CISI exams.
Choose your exam
Try 10: UK Financial Regulation
Pick an answer to see whether you got it, and why.
Which legislation created the current 'twin peaks' regulatory structure in the UK, replacing the Financial Services Authority?
Not quite. The answer is C.
The Financial Services Act 2012 abolished the FSA and created the twin peaks model, establishing the FCA and the PRA, effective from 1 April 2013. FSMA 2000 was the original legislation that created the FSA as a single integrated regulator.
Consumer Duty was introduced as a new FCA Principle in July 2023. Under which Principle number does the Consumer Duty appear in the FCA's Principles for Businesses?
Not quite. The answer is C.
Consumer Duty is Principle 12, introduced by the FCA in July 2023. It requires firms to act to deliver good outcomes for retail customers. Where Principle 12 applies, Principles 6 (customers' interests) and 7 (communications with clients) are disapplied for that business — Principle 12 sets a higher and more outcomes-focused standard in their place. Firms outside the scope of the Consumer Duty continue to comply with Principles 6 and 7.
Anti-money laundering (AML) regulations require firms to retain records of customer due diligence (CDD) and transaction records. How long must these records generally be retained after the end of the business relationship?
Not quite. The answer is A.
The Money Laundering Regulations require firms to retain customer due diligence records and records of transactions for five years from the end of the business relationship or the date of the occasional transaction. This retention period enables law enforcement and regulators to investigate historic suspicious activity.
A retail client complains to a firm about advice received. Under the FCA's DISP rules, how quickly must the firm send a written acknowledgement of the complaint?
Not quite. The answer is B.
DISP requires the firm to send the complainant a prompt written acknowledgement that the complaint is being dealt with — there is no longer a fixed 5-business-day deadline (a figure from the pre-2016 regime). The firm must then keep the complainant informed of progress and send a final response (or a holding response explaining the delay and giving FOS referral rights) within 8 weeks.
The FCA has a strategic objective and three operational objectives. Which of the following is the FCA's strategic objective?
Not quite. The answer is D.
The FCA's strategic objective is to ensure that the relevant markets function well. Consumer protection, market integrity, and competition are the three operational objectives through which the FCA pursues the strategic objective. Candidates frequently confuse the strategic and operational 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 C.
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.
The Proceeds of Crime Act 2002 (POCA) creates several principal money laundering offences. Which section covers the offence of 'concealing, disguising, converting, transferring, or removing criminal property'?
Not quite. The answer is C.
Section 327 POCA covers the concealing, disguising, converting, transferring, or removing from the UK of criminal property. Section 328 covers arrangements that facilitate the acquisition, retention, use, or control of criminal property. Section 329 covers acquisition, use, and possession. Section 330 covers failure to disclose.
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 C.
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.
The Prudential Regulation Authority (PRA) is part of, and accountable to, which body?
Not quite. The answer is C.
The PRA is part of the Bank of England. It was a wholly-owned BoE subsidiary from 2013 to 2017, but the Bank of England and Financial Services Act 2016 abolished that separate-subsidiary status; the PRA's functions are now exercised through the Bank's Prudential Regulation Committee (PRC). It focuses on the safety and soundness of systemically important firms. The FCA is a separate, independent public body — it is not part of the Bank of England.
Under COBS, there are three categories of client for classification purposes. Which of the following correctly lists these categories?
Not quite. The answer is A.
COBS uses three client categories: retail client (highest level of protection), professional client (intermediate protection), and eligible counterparty (least protection, used only for certain wholesale transactions). 'Market counterparty' is the pre-MiFID term that eligible counterparty replaced, and 'sophisticated' and 'high-net-worth' investors are financial-promotion certifications, not COBS client categories. The categorisation determines the conduct rules that apply, including suitability, best execution and disclosure.
These are a free sample. Passkey has over 4,400 exam-standard questions across all nine CISI exams, sorted so you drill exactly where you are weak. Find your weak spots with the free diagnostic.
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 Passkey 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 part of the £59 Pass Package, a single payment covering all nine CISI exams.
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.
Find your weak spots before exam day.
Start free with chapter 1 of every exam, take the free diagnostic to see where you stand, then unlock everything for one payment of £59, backed by our 80% mock guarantee.