CISI UK RPI — CISI UK Regulation & Professional Integrity Cheat Sheet

Last revised: September 28, 2026

Cheat sheet for CISI UK Regulation & Professional Integrity (CISI UK RPI): UK regulators, FCA conduct, SMCR, market abuse, AML, complaints, and ethics.

Use the tables for a quick pre-exam check. Expand a topic’s notes for explanations, examples, and additional distinctions.

Scope and study context

Use this Cheat Sheet for the Chartered Institute for Securities & Investment exam CISI UK Regulation & Professional Integrity (CISI UK RPI) as a final consolidation pass before topic drills, mock exams, and detailed explanations.

This page is independent exam-prep support. It is designed to help you connect key UK regulatory concepts, professional integrity principles, and common scenario traps to independent companion practice, original practice questions, and question-bank review.

Read the high-yield map first. Identify weak areas before opening a question bank.
Review the decision rules. Many CISI UK RPI questions test “what should the firm or individual do next?” rather than pure definition recall.
Use topic drills immediately after each section. Do not wait until you feel fully ready; original practice questions expose gaps quickly.
Read detailed explanations carefully. For regulation questions, the explanation often matters more than the answer choice because similar facts can change the outcome.

Identity and exam-use focus

This independent Cheat Sheet supports candidates preparing for the Chartered Institute for Securities & Investment exam CISI UK Regulation & Professional Integrity with official exam code CISI UK RPI.

Use it to revise the practical distinctions the exam commonly tests: who regulates what, when FCA rules apply, how client protections differ, what must be escalated, and how professional integrity changes the correct answer.

Area	What to be able to do quickly
UK regulatory structure	Distinguish FCA, PRA, Bank of England, HM Treasury, FOS, FSCS, and market infrastructure roles.
FSMA perimeter	Identify regulated activities, specified investments, authorisation needs, exemptions, and financial promotions.
FCA Handbook	Link scenarios to PRIN, SYSC, COBS, CASS, MAR, COCON, FIT, DISP, COMP, SUP, DEPP, and related rules.
Conduct and clients	Apply client categorisation, suitability, appropriateness, best execution, conflicts, and communications rules.
Accountability	Distinguish Senior Managers, Certification staff, Conduct Rules, fit and proper standards, and regulatory notifications.
Financial crime	Spot AML, sanctions, bribery, fraud, terrorist financing, suspicious activity, and tipping-off issues.
Market abuse	Distinguish insider dealing, unlawful disclosure, manipulation, inside information, and criminal/civil regimes.
Professional integrity	Choose the answer that protects clients, markets, the firm, and the profession, not just the answer that is technically convenient.

UK regulatory map

Body	Core role	Exam distinction
HM Treasury	Sets financial services policy and legislation framework.	Policy maker, not the day-to-day conduct supervisor of firms.
Parliament	Creates primary legislation such as FSMA-based powers.	Statute creates the legal perimeter; regulators make detailed rules within powers.
Bank of England	Monetary stability, financial stability, resolution, and oversight of key financial infrastructure.	Think system-wide stability, not retail conduct.
Financial Policy Committee, or FPC	Monitors and acts on systemic risk.	Macroprudential focus: stability of the financial system as a whole.
Prudential Regulation Authority, or PRA	Prudential regulation of banks, building societies, credit unions, insurers, and designated investment firms.	Safety and soundness; dual-regulated firms also have FCA conduct supervision.
Financial Conduct Authority, or FCA	Conduct regulation, market integrity, consumer protection, competition, and prudential regulation of FCA-only firms.	Main exam regulator for conduct, client treatment, market abuse, authorisation, and enforcement.
Payment Systems Regulator, or PSR	Regulation of payment systems.	Competition, access, innovation, and service-user interests in payment systems.
Financial Ombudsman Service, or FOS	Independent dispute resolution for eligible complaints.	Resolves complaints; not a prudential regulator and not a compensation fund.
Financial Services Compensation Scheme, or FSCS	Last-resort compensation when authorised firms cannot meet eligible claims.	Compensates default/insolvency-type failures, not ordinary investment losses.
Information Commissioner’s Office, or ICO	UK data protection regulator.	Relevant for personal data, privacy, breach handling, and data subject rights.
Office of Financial Sanctions Implementation, or OFSI	UK financial sanctions implementation and enforcement.	Relevant to sanctions screening, asset freezes, and sanctions reporting.

Notes and examples

FCA versus PRA

Scenario	Likely regulator focus
Bank capital adequacy, liquidity, recovery planning	PRA, with FCA conduct issues still possible.
Misleading investment promotion to retail clients	FCA.
Poor complaint handling	FCA rules and FOS process.
Market manipulation or insider dealing	FCA and possible criminal authorities depending on facts.
Client money segregation failure	FCA CASS.
Insurer solvency risk	PRA prudential focus plus FCA conduct obligations.
Senior manager accountability in a dual-regulated bank	FCA and/or PRA depending on function and issue.

UK regulatory architecture

The exam often tests whether you can identify the correct body, rule source, or route for escalation.

Body or framework	Core role for exam purposes	Candidate mistake to avoid
HM Treasury	Government department with responsibility for financial services policy and legislation	Treating it as the day-to-day conduct supervisor
Bank of England	Financial stability, monetary stability, and key market infrastructure responsibilities	Confusing its macro role with individual retail complaint handling
Prudential Regulation Authority	Prudential supervision of certain firms such as banks, insurers, and major investment firms	Assuming all investment firms are PRA-regulated
Financial Conduct Authority	Conduct regulation, market integrity, consumer protection, competition, and many firm authorisation/supervision functions	Forgetting that conduct duties can apply even where prudential supervision is elsewhere
Financial Ombudsman Service	Independent complaint resolution for eligible complainants	Confusing complaint adjudication with compensation for firm failure
Financial Services Compensation Scheme	Compensation scheme where authorised firms are unable, or likely unable, to meet claims	Treating it as the first step for every complaint
National Crime Agency	Receives suspicious activity reports through the UK financial crime framework	Confusing external SAR reporting with internal escalation to the MLRO/nominated officer
FCA Handbook	Source of many rules and guidance, including PRIN, SYSC, COBS, CASS, DISP, SUP, FIT, COND, DEPP and others	Memorising names without knowing what each sourcebook generally covers

Common FCA Handbook areas

Area	Think of it as…	Typical exam angle
PRIN	High-level Principles for Businesses	Broad conduct failures
SYSC	Senior management arrangements, systems and controls	Governance, controls, compliance oversight
COBS	Conduct of business for investment business	Client communication, suitability, best execution, conflicts
CASS	Client assets and client money	Segregation, custody, reconciliations
DISP	Complaints handling	Final response, escalation, Ombudsman rights
SUP	Supervision	Notifications, regulator relationship
FIT	Fitness and propriety	Honesty, competence, financial soundness
COND	Threshold conditions	Minimum standards for authorisation
DEPP / ENF	Decision procedure and enforcement	Sanctions, disciplinary outcomes

FSMA perimeter and authorisation

General prohibition logic

Under the FSMA framework, a person generally must not carry on a regulated activity in the UK by way of business unless authorised or exempt. For exam questions, work through four tests.

Test	Ask	Why it matters
Activity	Is the person dealing, arranging, advising, managing, safeguarding, administering, accepting deposits, effecting insurance, or another regulated activity?	If no regulated activity, FSMA authorisation may not be required, though other rules may still apply.
Investment	Does it involve a specified investment such as shares, debt securities, units in funds, derivatives, insurance contracts, deposits, or similar instruments?	Regulated activity must usually relate to a specified investment.
Business element	Is it carried on by way of business rather than as a purely private one-off?	The perimeter targets business activity.
UK connection	Is the activity carried on in the UK or sufficiently connected to the UK regime?	Location and territorial scope matter.

Notes and examples

Common regulated activity traps

Activity	Meaning in exam scenarios	Trap
Dealing as principal	Firm buys/sells investments for its own account.	Still regulated if done as a business activity in specified investments.
Dealing as agent	Firm executes transactions for clients.	Agency execution is not the same as giving advice.
Arranging	Bringing about or making arrangements with a view to investment transactions.	“I only introduced them” may still be arranging depending on facts.
Advising on investments	Personal recommendation on the merits of buying, selling, subscribing for, holding, or underwriting a specific investment.	Generic education is different from a recommendation tailored to the person.
Managing investments	Discretionary management of assets belonging to another.	Decision-making discretion is the key trigger.
Safeguarding/administering	Custody or administration of assets.	CASS issues often arise once client assets are held or controlled.
Agreeing to carry on activities	Agreement to perform a regulated activity can itself be caught.	Do not wait for execution to identify the perimeter issue.

Authorised, exempt, appointed, approved

Term	Meaning	Exam distinction
Authorised person	Firm with permission from FCA and/or PRA.	Authorisation belongs to the firm, not automatically to every employee.
Part 4A permission	Permission to carry on specified regulated activities.	A firm must stay within its permission scope.
Exempt person	Person exempt from needing authorisation for particular activities.	Exemptions are narrow and fact-specific.
Appointed representative	Person who conducts certain regulated activities under an authorised principal.	Principal accepts regulatory responsibility for the appointed representative’s relevant activities.
Approved person / Senior Manager approval	Individual approved to perform controlled or senior management functions.	Individual approval is separate from firm authorisation.
Certified person	Individual performing a certification function, assessed as fit and proper by the firm.	Certified by firm, not pre-approved by FCA for that function.

FCA Handbook high-yield map

Sourcebook / module	What it covers	Typical exam use
PRIN	FCA Principles for Businesses.	Broad duties: integrity, skill, customers’ interests, communications, conflicts, regulators, Consumer Duty.
SYSC	Senior management arrangements, systems, controls, compliance, risk, outsourcing.	Governance failure, unclear responsibilities, weak controls.
COND	Threshold conditions for authorisation.	Whether a firm remains suitable, resourced, supervised, and appropriately organised.
FIT	Fit and proper test for individuals.	Honesty, integrity, reputation, competence, capability, financial soundness.
COCON	Individual and senior manager Conduct Rules.	Personal accountability and expected behaviour.
COBS	Conduct of Business Sourcebook.	Client classification, communications, suitability, appropriateness, best execution, inducements.
CASS	Client Assets Sourcebook.	Client money, custody assets, segregation, reconciliations, records.
MAR	Market conduct rules and guidance.	Market abuse, disclosure standards, market integrity.
PROD	Product governance.	Target market, product approval, distribution strategy, product review.
DISP	Complaints handling and FOS rules.	Complaint recognition, response, escalation, final response.
COMP	FSCS compensation rules.	Eligibility and compensation when firms fail.
SUP	Supervision manual.	Notifications, regulatory reporting, information gathering.
DEPP	Decision Procedure and Penalties Manual.	Enforcement process, penalties, notices.
EG	Enforcement Guide.	FCA approach to investigation and enforcement.
PERG	Perimeter guidance.	Whether activity is regulated.
TC	Training and competence.	Competence, supervision, CPD, adviser standards.

FCA Principles and Consumer Duty

Principles for Businesses

No.	Principle	Exam application
1	Integrity	Do not mislead, conceal, backdate, misstate, or exploit information asymmetry.
2	Skill, care and diligence	Competent work, proper review, adequate evidence, and careful execution.
3	Management and control	Effective governance, risk management, controls, oversight, and escalation.
4	Financial prudence	Maintain appropriate financial resources and sound financial management.
5	Market conduct	Act to preserve proper standards and market integrity.
6	Customers’ interests	Pay due regard to customer interests and treat them fairly.
7	Communications with clients	Communicate in a way that is fair, clear, and not misleading.
8	Conflicts of interest	Manage conflicts fairly between firm/client and client/client.
9	Customers: relationships of trust	Take reasonable care to ensure suitability where discretion or advice applies.
10	Clients’ assets	Arrange adequate protection for client assets.
11	Relations with regulators	Be open and cooperative; disclose matters the regulator would reasonably expect notice of.
12	Consumer Duty	Act to deliver good outcomes for retail customers.

Notes and examples

Consumer Duty structure

Element	What it means	Exam trigger
Consumer Principle	A firm must act to deliver good outcomes for retail customers.	Retail product or service design, sales, support, or communications.
Cross-cutting rule: good faith	Act honestly, fairly, and consistently with reasonable customer expectations.	Hidden charges, exploitative terms, misleading nudges.
Cross-cutting rule: avoid foreseeable harm	Identify and prevent harm a reasonable firm should anticipate.	Known product risk, vulnerable customers, poor support journey.
Cross-cutting rule: support objectives	Enable customers to pursue financial objectives.	Friction in cancellation, switching, claims, complaints, or accessing support.
Products and services outcome	Products must be designed for an identified target market.	Selling outside target market without justification.
Price and value outcome	Price should be reasonable relative to benefits.	Fees not aligned with service or benefit.
Consumer understanding outcome	Communications support informed decisions.	Overly technical, unbalanced, or unclear disclosure.
Consumer support outcome	Support should meet customer needs through the relationship.	Long delays, obstructive servicing, inaccessible channels.

FCA Principles for Businesses

The Principles often provide the best answer in broad scenario questions.

Principle theme	What it means in exam terms	Scenario clue
Integrity	Act honestly and fairly	Concealment, misleading statements, false records
Skill, care and diligence	Competent, careful performance	Poor review, careless recommendation, weak due diligence
Management and control	Effective organisation and risk controls	No oversight, unclear responsibilities, weak compliance
Financial prudence	Adequate financial resources	Excessive risk to firm stability
Market conduct	Proper standards in markets	Manipulation, disorderly trading, abusive behaviour
Customers’ interests	Due regard to customer interests and fair treatment	Product sold for firm benefit over client need
Communications with clients	Clear, fair and not misleading	Unbalanced risk/return claims
Conflicts of interest	Manage conflicts fairly	Undisclosed incentives, self-dealing
Customers: relationships of trust	Reasonable care where firm has discretion or client relies on it	Portfolio management or advisory reliance
Clients’ assets	Adequate protection for client assets	Poor segregation, weak custody controls
Relations with regulators	Open and cooperative	Delayed notification, incomplete information
Consumer Duty	Deliver good outcomes for retail customers where applicable	Product value, understanding, support, foreseeable harm

Consumer Duty quick review

For retail customer scenarios, check:

Element	Practical meaning
Act in good faith	No exploitation of customer behavioural biases or information gaps
Avoid foreseeable harm	Identify and reduce harm the firm could reasonably anticipate
Enable and support objectives	Do not create unnecessary barriers to customer outcomes
Products and services	Target market and product design must be appropriate
Price and value	Charges should be assessed against benefits and outcomes
Consumer understanding	Communications should support informed decisions
Consumer support	Post-sale service should not frustrate reasonable customer needs

Trap: Consumer Duty is not simply a slogan for “be nice to clients.” It is an outcomes-based standard, especially relevant to product design, distribution, communications, and support.

SMCR and individual accountability

Regime components

Component	Applies to	Core idea	Exam clue
Senior Managers Regime	Individuals performing Senior Management Functions.	Regulator approval, clear responsibilities, reasonable steps.	“Who is accountable?” “Statement of responsibilities?”
Certification Regime	Individuals whose roles could cause significant harm to the firm or customers.	Firm certifies fitness and propriety, usually at least annually.	“Does FCA approve this person?” Often no: firm certifies.
Conduct Rules	Most relevant staff, plus additional rules for senior managers.	Minimum standards of individual conduct.	“What should the employee do?”
Fit and proper assessment	Senior managers and certified staff.	Honesty/integrity/reputation; competence/capability; financial soundness.	Misconduct, lack of competence, financial distress, dishonesty.

Notes and examples

Individual Conduct Rules

Rule	Plain-English exam meaning
Act with integrity	Do the right thing; do not deceive, conceal, or manipulate.
Act with due skill, care and diligence	Work competently and carefully; know limits of competence.
Be open and cooperative with regulators	Do not obstruct; escalate and disclose appropriately.
Pay due regard to customer interests and treat them fairly	Do not prioritise sales, bonuses, or convenience over fair client treatment.
Observe proper standards of market conduct	No market abuse, manipulation, improper information use, or misleading market behaviour.
Act to deliver good outcomes for retail customers	Consider Consumer Duty where retail customers are affected.

Senior Manager Conduct Rules

Senior manager rule	Practical expectation
Effective control	Ensure the business area is controlled effectively.
Compliance oversight	Take reasonable steps to ensure regulatory compliance in the area of responsibility.
Proper delegation	Delegate only to appropriate people and oversee delegated work.
Regulatory disclosure	Disclose information the FCA or PRA would reasonably expect notice of.

Supervision, enforcement, and regulatory powers

FCA power / process	Meaning	Exam use
Authorisation and permission	Grants or refuses permission to carry on regulated activities.	Firm must have correct scope before activity begins.
Variation or cancellation	Changes or removes permissions, including own-initiative action.	Used where firm no longer meets standards or poses risk.
Information requirement	Regulator can require documents, data, explanations.	Not cooperating is a Principle 11 / Conduct Rule issue.
Skilled person review	Independent report into specified matters.	Often used for systems, controls, remediation, or governance concerns.
Investigation	Formal inquiry into firm or individual conduct.	Preserve evidence; cooperate; avoid tipping off where financial crime is involved.
Public censure	Public statement of misconduct.	Reputational sanction without necessarily a financial penalty.
Financial penalty	Monetary sanction.	Penalty may apply to firms and individuals.
Restitution / redress	Compensation or repayment for harm caused.	Customer detriment and remediation focus.
Prohibition order	Prevents an individual from performing regulated functions.	Fitness and propriety failure.
Warning notice	Proposed regulatory action.	Early formal stage; subject can make representations.
Decision notice	Regulator decision after process.	May be referred to tribunal where applicable.
Final notice	Final published outcome.	Confirms action, penalty, prohibition, or other outcome.

Client categorisation and conduct standards

Client categories

Category	Protection level	Typical examples	Exam trap
Retail client	Highest	Individuals and smaller clients not classified otherwise.	Default category if no valid professional/ECP classification.
Professional client	Reduced protections	Authorised firms, large undertakings, institutional investors, or clients validly opted up.	Professional status does not remove all duties.
Eligible counterparty, or ECP	Lowest for eligible business	Certain financial institutions and sophisticated counterparties.	ECP status applies only to certain activities and does not permit dishonesty or misleading communications.

Re-categorisation

Movement	Meaning	Key control
Retail to elective professional	Client opts up and firm assesses expertise, experience, and knowledge.	Must follow proper process and warnings.
Professional to retail	Client requests higher protection or firm treats as retail.	More protections apply.
Professional to ECP	Only for eligible counterparty business and eligible clients.	Cannot use ECP classification to avoid unsuitable retail treatment.

Notes and examples

Client categorisation

Client category affects the level of regulatory protection.

Category	Broad meaning	Protection level	Exam reminder
Retail client	Default highest-protection category	Highest	If unsure, retail protection is usually the safer assumption
Professional client	Has experience, knowledge, and expertise to make investment decisions and assess risks	Lower than retail	Can be per se or elective, but elective treatment requires process and warnings
Eligible counterparty	Certain sophisticated counterparties for eligible types of business	Lowest for relevant business	Not a universal label for all interactions

Suitability, appropriateness, and execution-only

Route	When it applies	Firm must focus on	Common trap
Suitability	Personal recommendation or portfolio management	Client objectives, financial situation, ability to bear loss, knowledge and experience, risk tolerance	Treating a product as suitable merely because it is “high quality”
Appropriateness	Non-advised sale of certain complex products	Whether client has knowledge and experience to understand risks	Confusing it with full suitability
Execution-only	Client gives order without advice, often for non-complex products where conditions are met	Clear process, no disguised advice, required disclosures	A helpful suggestion can accidentally become advice
Best execution	Executing client orders	Best possible result considering relevant execution factors	Assuming best price alone always decides
Product governance	Designing and distributing products	Target market, distribution strategy, review	Selling outside target market without justification

Suitability red flags

A recommendation is vulnerable if:

The client’s investment objective is vague.
Risk tolerance is assumed from age or wealth alone.
Capacity for loss is ignored.
Costs and charges are not explained.
The firm recommends a product because it pays higher commission or benefits the firm.
The client does not understand leverage, illiquidity, concentration, or capital-at-risk features.
The adviser relies on old KYC information without checking material changes.

Advice, suitability, appropriateness, and execution-only

Concept	Applies when	Required assessment	Output / action
Information / guidance	General facts, education, or explanation not tailored as a personal recommendation.	Must still be fair, clear, and not misleading.	Avoid implying a recommendation if none is intended.
Investment advice	Personal recommendation on a specific investment or action.	Suitability: objectives, risk tolerance, knowledge, experience, financial situation, capacity for loss.	Recommend only suitable actions; keep evidence and reports where required.
Discretionary management	Firm makes investment decisions for client.	Suitability across mandate and transactions.	Manage within mandate and risk profile.
Appropriateness	Non-advised business in complex products.	Client knowledge and experience for the product/service.	Warn if inappropriate or if insufficient information.
Execution-only	Client instructs transaction without advice.	For non-complex products at client initiative, appropriateness may not be required if conditions are met.	Make clear no advice or assessment is being provided.

Notes and examples

Suitability versus appropriateness

Issue	Suitability	Appropriateness
Trigger	Advice or discretionary management.	Non-advised complex product/service.
Looks at objectives?	Yes.	No, not normally.
Looks at financial situation and capacity for loss?	Yes.	No, not normally.
Looks at knowledge and experience?	Yes.	Yes.
Result	Suitable recommendation or decision.	Product/service appropriate or warning required.
Common wrong answer	Treating a complex execution-only trade as suitable because client asked for it.	Performing full suitability when only appropriateness is required.

Communications, financial promotions, and inducements

Fair, clear, and not misleading

Requirement	Practical meaning
Balanced	Do not highlight benefits while hiding or minimising risks.
Accurate	No false, stale, or selective information.
Understandable	Appropriate for target audience and product complexity.
Identifiable marketing	Marketing material should be recognisable as such.
Risk disclosure	Prominent, relevant, and not contradicted by headline claims.
Performance information	Not cherry-picked; limitations and assumptions clear.

Notes and examples

Financial promotion restriction

Point	Exam application
What is caught	Invitation or inducement to engage in investment activity.
Who is caught	The restriction can apply to unauthorised persons as well as authorised firms.
Lawful route	Communicated by an authorised person, approved by an authorised person where permitted, or covered by an exemption.
Media	Websites, social media, emails, calls, presentations, brochures, and oral statements can all be promotions.
Trap	“It is only marketing” does not remove regulatory responsibility.

Inducements and conflicts

Issue	Correct handling
Fee, commission, gift, or hospitality from a third party	Assess conflict, client impact, disclosure, and whether it impairs duty to client.
Independent advice / portfolio management restrictions	Be alert to tighter limits on third-party benefits.
Soft commission / research	Must be controlled, justified, and not used to disguise improper benefits.
Sales targets	Cannot override suitability, Consumer Duty, or fair treatment.
Disclosure	Useful but not a substitute for preventing or properly managing a serious conflict.

Conflicts of interest and inducements

Conflicts are not automatically prohibited, but they must be identified, prevented, managed, and disclosed where appropriate.

Conflict type	Example	Proper response
Firm versus client	Firm earns more from one product than another	Manage incentive, disclose where required, ensure suitable outcome
Client versus client	Allocation of limited investment opportunity	Fair allocation policy
Employee versus client	Personal account dealing before client order	Restrictions, disclosure, monitoring, possible prohibition
Research / corporate finance conflict	Analyst pressure from issuer relationship	Information barriers and independent controls
Gifts and hospitality	Benefit from a broker or issuer	Assess materiality, record, approve, decline if improper

Decision rule: Disclosure alone is not a cure-all. If the conflict cannot be managed so the client is treated fairly, the firm may need to decline or stop acting.

Best execution and order handling

Topic	Rule of thumb
Core duty	Take all sufficient steps to obtain the best possible result for the client.
Execution factors	Price, costs, speed, likelihood of execution and settlement, size, nature, and other relevant considerations.
Retail priority	Total consideration, meaning price plus costs, is usually central.
Order execution policy	Firm must establish, disclose as required, follow, and monitor it.
Client instructions	Specific client instructions can limit the firm’s best execution obligation for that part of the order.
Aggregation	Permitted only with controls and fair allocation; cannot systematically disadvantage clients.
Timely execution	Execute promptly, fairly, and sequentially unless conditions justify otherwise.
Records	Evidence matters: venue choice, allocation, instructions, and monitoring.

CASS: client money and custody assets

Concept	Meaning	Key controls
Client money	Money held for or on behalf of clients.	Segregation, trust status, client bank accounts, reconciliations, prompt allocation and return.
Custody assets	Designated investments held for clients.	Proper registration, records, reconciliations, asset segregation, statements.
Mandate	Firm has authority over client assets or money without holding them.	Control risk; keep mandate records and prevent misuse.
Title transfer collateral arrangement, or TTCA	Client transfers full ownership to firm for collateral purposes.	Not client money/assets once validly transferred; must be appropriate and documented.
Mixed remittance	Payment contains client and firm money.	Allocate promptly and treat client element correctly.
Shortfall	Records show less money/assets than owed to clients.	Escalate, investigate, correct, and notify where required.

Notes and examples

CASS exam traps

Trap	Correct answer logic
“The firm is solvent, so segregation is less important.”	Wrong. CASS protects clients especially if the firm fails.
“A nominee holds the assets, so the firm has no responsibility.”	Wrong. The firm must maintain proper custody controls and oversight.
“Client money can be used temporarily for firm liquidity.”	Wrong. Client money is not firm money.
“Reconciliation is a back-office admin issue only.”	Wrong. It is a core client protection and systems/control issue.

Client money and client assets

Client asset protection is a common area for control-based questions.

Concept	Quick meaning	Exam trap
Client money	Money held for or on behalf of clients where client money rules apply	Assuming all receipts are client money without checking capacity and arrangement
Custody assets	Financial instruments held for clients	Ignoring records and ownership evidence
Segregation	Keep client assets separate from firm assets	“We can identify it later” is not adequate
Reconciliation	Compare internal records to external records	Treating reconciliation as optional admin
Mandates	Authority over client assets or accounts	Underestimating control risk
Title transfer collateral	Client transfers full ownership to firm under arrangement	May not be treated as client money/assets in the same way
CASS oversight	Senior accountability and controls	Thinking custody is purely an operations issue

CASS-style decision rules

If the firm holds client money, ask whether it is segregated, recorded, and reconciled.
If the firm holds custody assets, ask whether ownership and location are clear.
If there is a shortfall, poor records, or commingling, the issue is not just operational; it is a client protection and regulatory issue.
If a third party is used, due skill, care, and diligence in selection and monitoring matter.

Product governance

Role	Responsibilities
Manufacturer	Identify target market, design product to meet target needs, assess risks, test product, set distribution strategy, review product performance.
Distributor	Understand product, identify appropriate distribution market, follow distribution strategy, give feedback to manufacturer.
Both	Avoid foreseeable harm, communicate clearly, monitor outcomes, act where product causes poor outcomes.

Scenario	Likely issue
Complex product sold to clients outside target market	Product governance, suitability/appropriateness, Consumer Duty.
Charges make product poor value	Price and value outcome.
Distributor does not understand product risks	Training, competence, PROD, COBS.
Product performs as designed but customers misunderstand risk	Consumer understanding and communications.

Financial crime controls

AML and terrorist financing

Concept	Meaning	Exam action
Placement	Criminal proceeds enter the financial system.	Watch for unusual cash, third-party funding, inconsistent source of funds.
Layering	Transactions obscure origin or ownership.	Watch complex transfers, offshore structures, rapid movement.
Integration	Funds appear legitimate.	Watch asset purchases, investment liquidation, business proceeds.
Customer due diligence, or CDD	Identify and verify customer and beneficial owner; understand purpose and nature.	Must be done before or during onboarding according to risk.
Ongoing monitoring	Review transactions and relationship against expected profile.	CDD is not a one-off exercise.
Enhanced due diligence, or EDD	Additional checks for higher-risk cases.	PEPs, high-risk jurisdictions, complex structures, unusual transactions.
Simplified due diligence, or SDD	Reduced checks where lower risk and permitted.	Not “no due diligence.”
Suspicious activity report, or SAR	Report suspicion internally and, where appropriate, externally.	Suspicion is a low threshold; proof is not required.
MLRO / nominated officer	Receives internal reports and decides external reporting.	Staff should escalate, not investigate beyond role or alert client.
Tipping off	Improperly alerting someone to a report or investigation.	Do not tell the client a SAR has been or will be made.

Notes and examples

Sanctions

Control	Practical meaning
Screening	Check clients, beneficial owners, counterparties, and relevant payments against sanctions lists.
Asset freeze	Do not make funds or economic resources available to sanctioned persons.
Escalation	Freeze, reject/block where required, and report through proper channels.
False positives	Investigate promptly and document rationale.
Trap	AML comfort does not override sanctions. A low AML-risk client can still be sanctioned.

Bribery and corruption

Offence theme	Example
Bribing another person	Offering payment to win business improperly.
Being bribed	Accepting benefit to act improperly.
Bribing a foreign public official	Payment or advantage to influence official function.
Corporate failure to prevent bribery	Organisation lacks adequate prevention procedures.

Gifts and hospitality test	Good answer
Is it proportionate and legitimate?	Modest, transparent business hospitality may be acceptable.
Could it influence behaviour?	If yes, decline or escalate.
Is it recorded?	Use gifts and hospitality register.
Is there a public official involved?	Apply extra caution.
Would disclosure embarrass the firm or individual?	If yes, likely inappropriate.

Financial crime

Financial crime questions reward disciplined escalation. Do not improvise, warn the customer, or investigate beyond your role.

Money laundering stages

Stage	Meaning	Example
Placement	Introducing criminal property into the financial system	Cash deposit, initial investment
Layering	Creating complex transactions to obscure origin	Transfers across accounts or jurisdictions
Integration	Returning funds as apparently legitimate wealth	Investment proceeds, property purchase

AML and CDD review

Topic	Quick rule	Scenario clue
Customer due diligence	Identify and verify customer identity	New relationship, occasional transaction, doubt over identity
Beneficial ownership	Identify who ultimately owns or controls the customer	Company, trust, nominee, complex structure
Risk-based approach	Higher risk requires stronger controls	Unusual geography, structure, activity, or source of wealth
Enhanced due diligence	Apply more scrutiny to higher-risk cases	PEP, high-risk jurisdiction, unusual transaction pattern
Ongoing monitoring	Keep information current and review transactions	Activity inconsistent with known profile
Record keeping	Maintain evidence of checks and decisions	“We knew the client personally” is not enough

Suspicion workflow

Step	Correct exam response
Red flag appears	Pause and consider whether suspicion exists
Suspicion exists	Report internally to the MLRO or nominated officer
Client asks questions	Do not tip off or disclose improper information
Transaction pending	Follow internal procedures and MLRO guidance
Records	Document facts, decisions, and escalation

Trap: “SAR” can mean suspicious activity report in AML and subject access request in data protection. Read the context carefully.

Other financial crime areas

Area	Key exam point	Wrong instinct
Sanctions	Screen clients, counterparties, and transactions; freeze or stop activity where required	Treating sanctions as merely enhanced AML risk
Bribery	Improper advantage, facilitation payments, gifts, hospitality, third-party agents	Assuming small payments are always acceptable
Fraud	Deception for gain or to cause loss	Waiting for confirmed loss before escalating
Terrorist financing	Funds may be legitimate or illegitimate; purpose is key	Looking only for criminal source of funds
Tax evasion facilitation	Firm and employee controls matter	Treating it as solely the client’s problem
Cyber-enabled crime	Account takeover, payment diversion, identity compromise	Processing urgent instructions without verification

Market abuse and insider dealing

Inside information

Inside information is generally information that is:

Element	Meaning
Precise	Specific enough to draw a conclusion about possible price effect.
Non-public	Not generally available to the market.
Relates to issuer or financial instrument	Directly or indirectly relevant to issuer, instrument, or related derivatives.
Price-sensitive	Would be likely to have a significant effect on price if made public.

Notes and examples

Market abuse behaviours

Behaviour	Meaning	Example
Insider dealing	Using inside information to deal or attempt to deal.	Employee trades before unpublished takeover announcement.
Unlawful disclosure	Improperly disclosing inside information.	Banker tells friend about confidential transaction.
Market manipulation	False or misleading signals, price distortion, deception, or abusive practices.	Wash trades, spoofing, layering, ramping, misleading rumours.
Dissemination	Spreading false or misleading information.	Posting false takeover rumour to move price.
Benchmark manipulation	Manipulating input or process for benchmark setting.	False submissions to influence benchmark rate.

Civil market abuse versus criminal insider dealing

Point	Civil / regulatory market abuse	Criminal insider dealing
Focus	Market integrity and administrative/regulatory sanctions.	Criminal culpability.
Scope	Broad range of behaviours including manipulation and attempts.	Dealing, encouraging, or disclosing inside information in criminal context.
Standard / outcome	FCA enforcement, penalties, prohibition, public censure.	Criminal prosecution and potential criminal penalties.
Exam trap	“No trade occurred” may still be attempted manipulation or unlawful disclosure.	“I only encouraged someone else” can still be criminally relevant.

Market conduct controls

Control	Purpose
Insider lists	Track people with access to inside information.
Information barriers	Limit flow of confidential/inside information.
Restricted lists	Prevent or control trading in sensitive securities.
Personal account dealing rules	Prevent staff misuse of information and conflicts.
Market soundings controls	Manage disclosure before transactions.
Suspicious transaction and order reporting	Escalate suspicious market abuse indicators.
Clear disclosure procedures	Ensure issuers handle inside information properly.

Market integrity and market abuse

Market integrity questions often test whether behaviour damages confidence in fair, orderly, and transparent markets.

Inside information

Information is likely to be inside information if it is:

Criterion	Meaning
Precise	Specific enough to draw a conclusion about possible price effect
Non-public	Not generally available to the market
Relates to issuer or instrument	Concerns securities, issuers, derivatives, or relevant market matters
Price-sensitive	Would be likely to have a significant effect on price if public

Market abuse patterns

Behaviour	What it looks like	Trap
Insider dealing	Trading while in possession of inside information	Profit is not required for the behaviour to be problematic
Unlawful disclosure	Passing inside information without proper reason	“I only told one friend” is not a defence
Manipulation	False or misleading signals, artificial price levels, abusive orders	Cancelled orders can still matter
Rumour misuse	Spreading false or misleading information	Informal channels are still communications
Benchmark or price distortion	Conduct designed to influence reference prices	The market-wide effect is central
Improper order activity	Layering, spoofing, wash trades, marking the close	“No client complained” does not make it acceptable

Personal account dealing

If an employee wants to trade personally, ask:

Does the employee hold inside or confidential information?
Is there a pending client order?
Is the trade restricted by the firm’s policy?
Has pre-clearance been obtained where required?
Could the trade create a conflict or appearance of impropriety?

If the answer creates doubt, the safe exam action is usually to escalate to compliance and do not trade until cleared.

Complaints, redress, and compensation

Complaint handling

Step	What good handling looks like
Recognise complaint	Any expression of dissatisfaction may be a complaint if it alleges or implies financial loss, distress, or inconvenience.
Acknowledge and investigate	Prompt, fair, impartial investigation by competent staff.
Resolve quickly where possible	Complaints resolved by close of the third business day can use summary resolution communication where rules allow.
Final response	Generally required within eight weeks, or explain delay and FOS rights.
Root cause analysis	Identify systemic issues, not just individual complaint outcome.
Records	Keep complaint, investigation, outcome, redress, and communications evidence.

Notes and examples

FOS versus FSCS

Body	When used	What it does not do
Financial Ombudsman Service, or FOS	Customer has unresolved complaint against a firm and is eligible to refer.	Does not compensate simply because investments fall in value.
Financial Services Compensation Scheme, or FSCS	Authorised firm is unable or likely unable to meet eligible claims.	Does not replace normal complaint handling or cover every loss.

Redress logic

Scenario	Likely response
Unsuitable advice caused loss	Investigate, uphold if appropriate, calculate redress, remediate systems.
Poor service with inconvenience	Apology, correction, possible compensation depending on facts.
Investment loss from normal market movement	Not automatically compensable.
Firm failure with client assets missing	CASS, insolvency, and FSCS eligibility may become relevant.

Data protection and confidentiality

Principle / duty	Practical meaning
Lawfulness, fairness, transparency	Have a valid basis and tell individuals how data is used.
Purpose limitation	Use data only for specified legitimate purposes.
Data minimisation	Collect only what is needed.
Accuracy	Keep personal data accurate and up to date.
Storage limitation	Do not keep data longer than needed.
Security	Protect against unauthorised access, loss, or misuse.
Accountability	Be able to evidence compliance.
Confidentiality	Client and firm confidential information must be used only for proper purposes.

Notes and examples

Data scenario	Correct exam instinct
Client asks for personal data	Recognise data subject access process and verify identity.
Email sent to wrong recipient	Treat as potential personal data breach; escalate and record.
Colleague wants client details for unrelated reason	Do not disclose without proper purpose and authority.
Regulator requests information	Cooperate through correct internal process; consider legal privilege/confidentiality controls but do not obstruct.
Inside information is also personal/confidential data	Both market abuse and confidentiality rules may apply.

Data protection, confidentiality, and records

Area	Quick review point	Exam trap
Confidentiality	Client information should be protected unless disclosure is authorised or required	Sharing internally without need-to-know
Data protection	Personal data must be processed lawfully, fairly, securely, and for proper purposes	Keeping data indefinitely “just in case”
Data minimisation	Use only what is needed	Collecting excessive personal information
Accuracy	Keep relevant records current	Relying on outdated KYC for advice
Security	Prevent unauthorised access, loss, or misuse	Sending sensitive data through weak channels
Subject rights	Individuals may have rights over their data	Confusing data access with AML SAR handling
Record keeping	Maintain evidence of decisions, disclosures, checks, and approvals	Assuming verbal approval is enough

Governance, systems, controls, and outsourcing

Area	What the firm must evidence
Governance	Clear responsibility, oversight, reporting lines, challenge, and decision records.
Risk management	Identification, assessment, mitigation, monitoring, and escalation of risks.
Compliance	Policies, monitoring, advice, breach handling, regulatory change management.
Internal audit	Independent assurance over controls where proportionate.
Recordkeeping	Evidence of decisions, advice, transactions, communications, controls, and remediation.
Training and competence	Staff competent for roles, supervised until competent, ongoing CPD where required.
Whistleblowing	Safe channels for raising concerns; no retaliation.
Outsourcing	Due diligence, written agreement, monitoring, access/audit rights, exit plan, and retained responsibility.

Outsourcing trap

A firm can outsource an activity, but it cannot outsource regulatory responsibility. If a service provider fails, the regulated firm must still show it selected, contracted with, monitored, and controlled the provider appropriately.

Professional integrity

The CISI UK RPI exam does not test rules in isolation. It also tests whether you can apply the professional standards expected by the Chartered Institute for Securities & Investment and by regulators.

CISI Code of Conduct themes: exam-use summary

Theme	Practical behaviour	Common wrong answer
Act honestly and fairly	Put client and market integrity ahead of personal gain.	“Everyone does it” or “the client will never know.”
Act with integrity	Avoid conduct damaging to the firm, profession, or public trust.	Concealing errors to protect reputation.
Follow law, regulation, and standards	Apply both letter and spirit of rules.	Looking for loopholes to avoid fair outcomes.
Maintain market integrity and confidentiality	Do not misuse information or distort markets.	Trading on confidential information after hearing it informally.
Manage conflicts	Identify, avoid, control, disclose, and record conflicts.	Disclosure only after conflict has already harmed client.
Maintain competence	Keep knowledge current and work within capability.	Advising on unfamiliar products without support.
Decline work beyond competence	Seek assistance or refuse where not competent.	Accepting work to please a client or manager.
Uphold high personal standards	Behave professionally inside and outside formal client interactions.	Assuming private misconduct cannot affect fitness and propriety.

Notes and examples

Integrity decision checklist

When two answers both seem technically possible, choose the answer that best satisfies this sequence:

Is it legal and within permission?
Is it fair to the client or customer?
Does it preserve market integrity?
Does it avoid or properly manage conflicts?
Would the FCA, PRA, employer, client, and public view it as transparent and honest?
Is it within the individual’s competence and authority?
Has it been escalated, recorded, and disclosed where required?

Professional integrity

Professional integrity is not separate from regulation; it is the behaviour that makes regulatory standards work.

Integrity decision framework

When a scenario feels ethical rather than technical, use this sequence:

Identify the duty. Client interest, market integrity, confidentiality, legal obligation, employer policy, regulator duty.
Identify the conflict. Personal benefit, firm revenue, client pressure, colleague pressure, time pressure.
Avoid concealment. Do not hide facts, alter records, backdate documents, or create misleading impressions.
Escalate properly. Compliance, line manager, MLRO, whistleblowing channel, or senior management as appropriate.
Document. Record facts and decisions accurately.
Do not act until cleared where the action could breach law, regulation, or firm policy.

Common professional integrity scenarios

Scenario	Better answer	Poor answer
Client asks you to ignore suitability information	Refuse to misstate facts; document and escalate if needed	Let client sign a waiver for everything
Manager pressures you to approve misleading material	Challenge and escalate	Approve because manager is responsible
You discover a trade allocation error	Report, correct fairly, assess client impact	Hide if no client notices
You receive confidential information	Protect it and use only for proper purpose	Share with a colleague who is merely curious
You suspect money laundering	Follow internal reporting; do not tip off	Ask the client to explain in a way that alerts them
You made a mistake	Disclose internally promptly and support remediation	Delay until you can fix records
A gift is offered	Check policy, record, obtain approval or decline	Accept if it does not obviously affect you

High-yield distinctions

Distinction	Correct exam distinction
FCA vs PRA	FCA is conduct and markets; PRA is prudential safety/soundness for PRA firms.
FOS vs FSCS	FOS resolves complaints; FSCS compensates eligible claims when firms fail.
Authorised firm vs approved individual	Firm permission is separate from individual approval or certification.
Senior Manager vs Certified staff	Senior Managers need regulatory approval; certified staff are certified by firm as fit and proper.
Suitability vs appropriateness	Suitability is broader and applies to advice/discretionary management; appropriateness is narrower and applies to non-advised complex products.
Retail client vs professional client	Retail gets highest protection; professional has reduced protections but not no protections.
Professional client vs ECP	ECP is lowest protection and only for eligible counterparty business.
Advice vs information	Advice is a personal recommendation; information is factual/general but must still be fair and clear.
Financial promotion vs advice	Promotion induces investment activity; advice recommends a course of action. One communication can raise both issues.
Conflict disclosure vs conflict management	Disclosure alone is usually a last resort, not a complete control.
Client money vs firm money	Client money must be protected and segregated; firm cannot use it for itself.
Market rumour vs inside information	Rumour may be vague; precise non-public price-sensitive information can be inside information.
Suspicion vs proof in AML	Suspicion is enough to escalate; do not wait for proof.
Whistleblowing vs grievance	Whistleblowing concerns public interest wrongdoing; grievance is personal employment complaint.
Error correction vs concealment	Correct, escalate, record, and remediate; do not hide.

Scenario triggers and likely answer direction

If the question says…	Think…
“The client insists they understand the risk”	Still assess suitability/appropriateness where required; client insistence is not a waiver.
“The product is profitable for the firm”	Conflict, inducement, fair value, Consumer Duty.
“The information is confidential but not yet public”	Inside information, confidentiality, information barriers, personal account dealing.
“A manager asks staff not to tell compliance”	Integrity, escalation, whistleblowing, Conduct Rules, Principle 11.
“A client wants to invest unusually large funds from unclear source”	AML, source of funds/wealth, EDD, SAR if suspicious.
“Client assets cannot be reconciled”	CASS breach, operational risk, escalation, possible notification.
“The firm says the third-party outsourcer caused the issue”	Firm retains regulatory responsibility.
“Marketing shows only high returns”	Financial promotion and fair, clear, not misleading rules.
“A complaint is handled informally and not logged”	DISP, recordkeeping, root cause analysis.
“A staff member is financially distressed”	Fit and proper assessment, conflicts, fraud risk, supervision.
“A payment involves a sanctioned person”	Freeze/block/escalate/report; sanctions override commercial pressure.
“A senior manager delegated the task”	Was delegation appropriate and supervised? Reasonable steps matter.

Quick revision checklist

Rules and regulators

Know the difference between statute, regulator rules, guidance, and firm policy.
Map each scenario to the right body: FCA, PRA, Bank of England, FOS, FSCS, ICO, OFSI.
Apply the FSMA perimeter before assuming a firm can act.
Check firm permission scope, individual approval/certification, and competence.

Notes and examples

Client-facing conduct

Categorise the client correctly.
Decide whether the scenario is advice, discretionary management, appropriateness, or execution-only.
Apply fair, clear, and not misleading communications.
Identify conflicts early; do not rely on disclosure alone.
Apply Consumer Duty for retail customer outcomes.

Risk and escalation

Escalate AML suspicion, sanctions hits, market abuse indicators, CASS breaks, data breaches, and significant rule breaches.
Preserve records and evidence.
Cooperate with regulators through proper internal channels.
Do not conceal, backdate, mislead, tip off, or retaliate.

Professional integrity

Prefer answers that are transparent, fair, documented, competent, and escalated.
If a proposed action would look improper if reviewed by the FCA, client, employer, or court, it is probably not the best exam answer.
Rules are the minimum; professional integrity often requires a higher standard.

High-yield exam map

Area	What to know quickly	Common trap	Practice focus
UK regulatory structure	FCA, PRA, Bank of England, HM Treasury, FOS, FSCS, NCA, firm responsibilities	Assuming one body does everything	“Who regulates / who handles / who compensates?” drills
Authorisation	FSMA general prohibition, permissions, regulated activities, exemptions, appointed representatives	Activity is regulated only if both the activity and investment are specified and it is done by way of business	Scenario classification questions
FCA principles and conduct	Principles for Businesses, conduct rules, Consumer Duty, client interests, conflicts	Picking a narrow rule when a broad principle is clearly breached	Principle-to-scenario drills
Client categorisation	Retail, professional, eligible counterparty; protection levels	Treating eligible counterparties as a universal category for all services	Categorisation and disclosure questions
Advice and execution	Suitability, appropriateness, execution-only, best execution	Confusing suitability with appropriateness	Advice-route decision questions
Market integrity	Inside information, market abuse, misleading behaviour, personal account dealing	Thinking a trade must succeed to be abusive	Market abuse scenario drills
Financial crime	AML, CDD, EDD, sanctions, bribery, fraud, suspicious activity reporting	Tipping off, ignoring beneficial ownership, confusing sanctions with AML	Red-flag and escalation questions
Client assets and client money	Segregation, records, reconciliations, custody, client money controls	Assuming all money received by a firm is client money	CASS-style concept drills
Complaints and redress	Internal handling, FOS, FSCS, fair outcomes	Confusing compensation schemes with complaint resolution	“Where does the client go?” questions
Professional integrity	Honesty, competence, confidentiality, escalation, conflicts, whistleblowing	Choosing loyalty to employer over duty to clients, market integrity, or law	Ethics scenario questions

Authorisation and regulated activities

A core CISI UK RPI skill is deciding whether a firm or person is permitted to do something.

The quick authorisation test

    flowchart TD
	    A[Proposed business activity] --> B{Is there a specified activity?}
	    B -- No --> Z[Likely outside regulated activity analysis]
	    B -- Yes --> C{Is there a specified investment?}
	    C -- No --> Z
	    C -- Yes --> D{Is it done by way of business?}
	    D -- No --> Z
	    D -- Yes --> E{Is the person authorised or exempt?}
	    E -- Yes --> F[Check permission scope and conduct rules]
	    E -- No --> G[Potential breach of general prohibition]
	    F --> H{Is there a financial promotion?}
	    H -- Yes --> I[Check approval or exemption and communication standards]
	    H -- No --> J[Apply relevant conduct, systems, and integrity duties]

Notes and examples

Key concepts

Concept	Quick review point	Exam trap
General prohibition	A person must not carry on regulated activities in the UK unless authorised or exempt	Focusing only on the product and ignoring the activity
Regulated activity	Examples include dealing, arranging, advising, managing investments, safeguarding/administering assets, and other specified activities	Assuming every financial conversation is regulated advice
Specified investment	The investment must fall within the relevant statutory categories	Ignoring whether the instrument itself is covered
By way of business	The activity must have a business character	Treating a purely private, non-business action as automatically regulated
Part 4A permission	Authorised firms need permission for the specific activities they conduct	Assuming authorisation for one activity permits all activities
Exempt persons	Some persons may conduct certain activities without direct authorisation where an exemption applies	Treating exemption as unlimited permission
Appointed representative	Acts under the responsibility of an authorised principal for permitted activities	Forgetting the principal’s oversight and responsibility
Financial promotion	Invitation or inducement to engage in investment activity, communicated in the course of business	Assuming “marketing” is safe if no transaction has yet occurred

Financial promotion decision rules

A financial promotion question usually turns on four points:

Is there an invitation or inducement?
Is it communicated in the course of business?
Is it approved by an authorised person or covered by an exemption?
Is it fair, clear, and not misleading?

Common wrong answers:

“It is only a brochure, so rules do not apply.”
“The recipient is sophisticated, so no standards apply.”
“Risk warnings fix any misleading headline.”
“Past performance can be shown without balanced context.”

Complaints, redress, and regulator relations

Complaints

A complaint scenario usually asks whether the firm responds fairly and follows proper process.

Issue	Correct approach
Client expresses dissatisfaction	Recognise possible complaint; do not dismiss because wording is informal
Complaint is validly received	Investigate impartially and promptly
Firm made an error	Consider redress, correction, and root-cause analysis
Client remains dissatisfied	Provide proper escalation information where applicable
Repeated complaints	Identify systemic issues, not only individual cases

Notes and examples

FOS versus FSCS

Route	Use when…	Not for…
Financial Ombudsman Service	Eligible complainant disputes firm’s handling or outcome	Compensating all losses from market movements
Financial Services Compensation Scheme	Authorised firm cannot, or is likely unable to, meet valid claims	Routine service complaints against a solvent firm

Relations with regulators

Principle 11-style questions often turn on openness.

Regulated firms should:

Deal with regulators openly and cooperatively.
Notify regulators of significant matters where required.
Avoid misleading, incomplete, or delayed disclosures.
Maintain records that support regulatory reporting.
Escalate internally when a breach or potential breach is identified.

Trap: Hoping a problem “goes away” is rarely the correct answer. The exam usually favours early escalation, accurate records, and compliance involvement.

Senior management, conduct, and fitness

Fitness and propriety

Element	What it covers	Scenario clue
Honesty, integrity, reputation	Truthfulness, ethical conduct, disciplinary history	False CV, concealed conflict, misleading regulator
Competence and capability	Skills, qualifications, experience, training	Person lacks knowledge for role
Financial soundness	Personal financial position where relevant	Serious unmanaged financial problems

Conduct rule mindset

For individual accountability scenarios, ask:

Did the person act with integrity?
Did they exercise due skill, care, and diligence?
Did they deal with regulators appropriately?
Did they pay due regard to customer interests?
Did they observe proper standards of market conduct?
If they were a manager, did they take reasonable steps to control the business area?

Common mistake: Blaming “the firm” only. The exam may test both firm responsibility and individual accountability.

Fast scenario rules

Use this table when reviewing original practice questions.

If the question says…	Think…
“The client insisted”	Client pressure does not remove firm duties
“The employee did not personally profit”	Integrity or market abuse can still be breached
“The information was only shared with one person”	Confidentiality and unlawful disclosure still matter
“The firm is authorised”	Check whether it has the right permission
“The client is wealthy”	Wealth does not automatically mean professional client or suitable product
“The product has performed well historically”	Past performance does not remove risk disclosure or suitability duties
“The adviser gave no formal recommendation”	Substance matters; informal advice can still be advice
“The transaction is urgent”	Urgency increases control risk; do not bypass AML or sanctions checks
“No complaint has been made”	The firm may still need to correct harm or notify internally
“Everyone in the market does it”	Market custom does not override law, rules, or integrity

Common candidate mistakes

Memorising regulator names but not understanding their responsibilities.
Confusing authorisation with permission for every activity.
Treating retail, professional, and eligible counterparty labels as interchangeable.
Choosing disclosure as the answer for every conflict, even where prevention or refusal is required.
Missing the difference between suitability and appropriateness.
Thinking AML concerns require proof rather than suspicion.
Forgetting that tipping off risk can arise after suspicion is reported.
Assuming market abuse requires profit, loss, or a completed trade.
Ignoring record keeping as a regulatory control.
Choosing commercial convenience over escalation, documentation, and client protection.

Short practice plan

For a focused final pass:

Do 10–15 authorisation and financial promotion questions.
Do 10 client categorisation, suitability, and conduct questions.
Do 10 financial crime and market abuse questions.
Do 5–10 professional integrity scenarios.
Review every missed item using detailed explanations, then redo a mixed mini-mock.

Your next step: use the Cheat Sheet above to target weak areas, then practise with topic drills, mock exams, and a question bank of original practice questions with detailed explanations.

Put the review into practice

Finance Prep

Start CISI UK RPI \u2014 CISI UK Regulation & Professional Integrity on Web

Use the web app to preview question style, then practise the topics you need to revisit.

Original Finance Prep practice, independent from CISI: not official CISI questions, copied live-exam content, or exam dumps.

Current alignment Aligned to the relevant syllabus, exam elements, competency areas, and topic weights where they are available.

Practice modes Use topic drills, timed mocks, scenario questions, and focused review before deeper mixed practice.

Teaching explanations Explanations show the client, product, compliance, or calculation rule that makes the best answer defensible.

Stable bank Questions are prebuilt and reviewed before publication, so practice is stable and inspectable, not improvised during a quiz.

Study Plan