Free CISI Global Securities Operations practice questions
Exam-standard Global Securities Operations 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 Global Securities Operations 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 Global Securities Operations paper, it is all included in the £59 Pass Package, which covers all nine CISI exams.
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Try 10: Global Securities Operations
Pick an answer to see whether you got it, and why.
Which of the following best describes an individual investor?
Not quite. The answer is B.
Individual investors invest their own money on their own account, rather than on behalf of a company or institution. Pooling the money of smaller investors describes an institutional investor, executing agency trades describes a broker, and managing assets for a fee describes an investment manager.
A settlement instruction for a corporate bond trade is being matched against the counterparty's instruction. Which data item would be required for this trade but would NOT generally be needed when matching an equity trade?
Not quite. The answer is B.
The number of days and the amount of accrued interest is required only if the instrument is a fixed-income security, so it applies to the bond trade but not generally to equities. The net settlement value, counterparty BIC and the direction of the trade are standard matching fields for all instruments.
Why are firms required to segregate client safe custody investments from the firm's own designated investments?
Not quite. The answer is A.
Segregation prevents co-mingling of client and firm assets, minimising the risk that client investments are used by the firm without the client's agreement or treated as the firm's assets in an insolvency. It is a protective measure, not a mechanism for netting, capital relief or lending.
From April 2025, what is the maximum amount of dividend income a UK individual can receive in a tax year before any dividend tax becomes payable?
Not quite. The answer is A.
From April 2025, individuals pay no tax on the first £500 of dividends received during the tax year, and this allowance is available only to those with dividend income. £1,000 and £2,000 are tempting because the allowance has been reduced in stages over recent years, but the current figure is £500.
The Bank for International Settlements (BIS) identifies three main categories of risk in the financial services sector. Which of the following correctly lists them?
Not quite. The answer is D.
The BIS identifies credit risk, market risk and operational risk as the three main categories of risk in financial services. The other risks listed are all recognised, but they sit outside the BIS's three headline categories — settlement and counterparty risk, for example, are treated as elements of credit risk, and reputational risk as a subcategory of operational risk.
In the UK, a certified sophisticated investor holds a certificate confirming their level of investment knowledge. Who must have issued that certificate, and within what period?
Not quite. The answer is D.
Certified sophisticated investors are persons holding a certificate issued in the past three years by an FCA-approved authority, confirming the required level of investment knowledge. Neither the exchange, the investor's own manager nor HM Treasury performs this certification role.
At which two levels is the matching of trade data typically conducted before settlement?
Not quite. The answer is C.
Matching happens first between the trading counterparties, who compare trade details bilaterally, via the settlement system or via a central matching facility, and second between the custodians acting for buyer and seller, who compare settlement instructions ahead of settlement date. The regulator, central bank and registrar are not parties to trade matching.
A UK firm holds client safe custody investments with an external custodian rather than physically holding them itself. At a minimum, how often must it reconcile its records of those investments?
Not quite. The answer is A.
Records of safe custody investments the firm is accountable for but does not physically hold must be reconciled at least every 25 business days in the UK, supported by statements from the custodian. The six-month interval applies to the physical count of assets the firm itself holds, not to this record reconciliation.
A UK higher-rate taxpayer receives dividend income in excess of the dividend allowance. At what rate is the excess taxed?
Not quite. The answer is C.
Dividends above the £500 allowance are taxed at 8.75% for basic-rate taxpayers (and non-taxpayers), 33.75% for higher-rate taxpayers and 39.35% for additional-rate taxpayers. 39.35% is the additional rate, not the higher rate, and 20% is the basic rate of income tax on earnings, not dividends.
A company that issued a corporate bond fails to pay the coupon due to bondholders and subsequently cannot redeem the principal at the redemption date. Which risk has crystallised for the bondholders?
Not quite. The answer is D.
Issuer risk is the risk that an issuer defaults on its obligations — in the case of a debt instrument, failing to meet interest payments and to redeem principal on the redemption date. Counterparty risk concerns default by a trade counterparty before a trade settles, while settlement risk concerns a transaction failing to complete as expected — neither describes an issuer defaulting on its own instrument.
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 Global Securities Operations questions?
No. CISI does not publish its live questions. These are original questions written by Passkey to match the current CISI Global Securities Operations syllabus, format and difficulty.
Is the CISI Global Securities Operations practice free?
The questions on this page are free with no sign-up. The full Global Securities Operations 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 Global Securities Operations?
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.
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