Candidate Update

The CISI provides exam candidates with the very latest news and developments affecting exam syllabuses and learning materials, listed by programme.

CBT Examinations Tutorial Guide

A tutorial, provided at the beginning of each exam, explains how computer based testing (CBT) works.

It gives you the time and the opportunity, before your exam starts, to practise:
  • moving forwards and backwards through the questions
  • flagging any to which you wish to return, either for review or to answer later
  • using the calculator

From April 2015, there will be some minor changes to the way in which exams are delivered at Prometric test centres and these are fully explained in the tutorial.

Exams delivered at the CISI test centre in London are not affected by these changes.

You can also familiarise yourself with the CBT process before you take your exam here.

If you require any further information or assistance please email the CISI Customer Support team or call them on +44 20 7645 0777.


Please select the relevant exam programme from the following tabs:


International & Stand-Alone Exams

Exam Name & Syllabus version Update/Development Action Effective From/To Date Posted
All Arabic Exams and Workbooks
V 1.0
Always effective 18/09/2015
Islamic Finance Qualification
V 6.0
The current version 6 of this exam will now end on 31 May 2016 with the new version starting on 1 June 2016.
24/09/2015 - 31/05/2016 24/09/2015
Fundamentals of Islamic Banking & Finance (Arabic)
V 1.0

We would like to draw your attention to the subtle difference in translation between ‘Speculation’ and ‘Mudaraba’ as the former is non-compliant with Sharia ’a principles whereas the latter is ‘a form of partnership contract within Islamic Finance’


Speculation=


Mudaraba=

29/07/2015 - 20/07/2017 29/07/2015
Investment Management (Level 4)
V 1

Investment Management Level 4; Chapter 3, Section 3.2.5 (syllabus version 1 and covering exams from 11 October 2012 until 12 March 2017).


The text in Section 3.2.5 of Chapter 3 currently states that the main types of orders that can be entered into stock exchange systems are described in Chapter 5. However, the following additional information has been added to this section:


3.2.5  Main Types of Market Orders


• Limit orders have a price limit and a time limit. For example, a limit order may state ‘sell 1,000 shares at 360p by next Tuesday’. Any time limit up to a maximum of 90 days can be put on these orders. If no time limit is placed on the order, it will expire at the end of the day that it is entered. Limit orders can be partially filled, and it is only limit orders that are displayed on the SETS order book.

• Iceberg orders are a particular type of limit order. They enable a market participant with a particularly large order to partially hide the size of their order from the market and reduce the market impact that the large order might otherwise have. The term ‘iceberg’ comes from the fact that just the top part of the order is on view (the peak of the iceberg), and the rest is hidden (the bulk of the iceberg is below the water). Once the top part of the order is executed, the system automatically brings the next tranche of the iceberg order onto the order book. This process continues until the whole of the iceberg order has been executed, or the time limit for the order expires.

• Named orders are non-anonymous limit orders available to all participants on SETSqx.

• At market (also known as ‘at best’) orders can only be input during automatic execution and have no specified price. The order will fill as much as possible at any available price and the remainder will be cancelled; it does not wait on the order book to match against later orders.

• Execute and eliminate orders can only be entered during automatic execution. As with the at best order, this type will execute as much of the trade as possible and cancel the rest. However, unlike an at best order, this order type has a specified price and will not execute at a price worse than that specified.

• Fill or kill orders can only be entered during automatic execution. They normally have a specified price (although they can be entered without one) and either the entire order will be immediately filled at a price at least as good as that specified, or the entire order will be cancelled (ie, if there are not enough orders at the price specified or better).

• A market order is a buy or sell order that is to be executed immediately at prevailing market price. Providing that there are available buyers and sellers, market orders are executed. The purpose of these order types is to achieve execution rather than specifying a price, which means the order giver cedes any real control over the price that will be achieved. The order can be executed with a number of different ‘fills’ being split across more than one order book counterparty. There may also be different prices for each fill.

29/09/2014 - 12/03/2017 29/09/2014
Global Financial Compliance
V 2
This syllabus version has been extended to 10 November 2014. 31/10/2013 - 10/11/2014 31/10/2013

Level 3 Investment Operations Certificate

Exam Name & Syllabus version Update/Development Action Effective From/To Date Posted
UK Financial Regulation
V 23
The text for Section 3.2 of chapter 5 has been amended to read:

3.2 Compensation Payable

There are limits to the amount of compensation that the FSCS will pay to eligible claimants:

• Deposits – 100% of £75,000 per individual per firm (for claims against firms declared in default) from 1 January 2016 for all eligible depositors. From 3 July 2015 corporates (companies – irrespective of size) came under the FSCS. Prior to 1 January 2016 the limit was £85,000 (except for corporates who became subject to this regime from July 2015 – at £75,000).
From 3 July 2015, the FSCS will provide a £1 million protection limit for temporary high balances held with your bank, building society or credit union if it fails. The £75,000 figure is the sterling equivalent of e100,000 as required by the recast Deposit Guarantee Schemes Directive.
• For protected insurance (long-term insurance contract) – 90% of the claim.
• For protected compulsory insurance (general insurance contract) – 100% of the claim.
• For protected non-compulsory insurance (ie, other general insurance) – 90% of the claim.
• For protected investment business and home finance advice – 100% up to £50,000.
01/04/2016 - 31/03/2017 18/02/2016
Managing Cyber Security
V V1
February 2016 updates

Page 5, figure 2 - deepwerweb.com has been changed to deeperweb.com

Page 18, Chapter 1, Section 1.7, Electronic Money: The FCA definition of e-money has been updated.

Amendments to the SLM:

LO 1.4.7 is now under section 4.5
LO 1.4.5 is now under section 4.8
LO 1.4.6 is now under section 4.8
LO 2.2.5 is now under section 2.3
LO 2.2.8 is now under section 2.1
LO 2.2.9 is now under section 2.1
LO 5.3.1 is now under section 3.3
LO 5.3.2 is now under section 3.3.5
LO 5.3.2 is now under section 3.4
LO 4.2.4 has been changed to LO 4.2.3
LO 4.2.5 has been changed to LO 4.2.4

The following text has been added to Chapter 2 to cover Learning Objective 2.2.5 - Police and Justice Act (2006): Section 37.

Section 2.3.5 A Second Additional Offence - Section 37
A second additional offence was added with respect to making, supplying or obtaining articles for use in computer misuse offences. After section 3 of the 1990 Act there was inserted:
‘3A Making, supplying or obtaining articles for use in offence under Sections 1 or 3
1. A person is guilty of an offence if
a. he makes, adapts, supplies or offers to supply any article
b. he intends it to be used to commit, or to assist in the commission of, an offence under Sections 1 or 3.
2. A person is guilty of an offence if he supplies or offers to supply any article believing that it is likely to be used to commit, or to assist in the commission of, an offence under Sections 1 or 3.
3. A person is guilty of an offence if he obtains any article with a view to its being supplied for use to commit, or to assist in the commission of, an offence under Sections 1 or 3.’
The term ‘article’ includes any programme or data held in electronic form.

Section 2.3.6 Penalties under Section 37
‘A person guilty of an offence under this section shall be liable:
a. on summary conviction in England and Wales, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum or to both;
b. on summary conviction in Scotland, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both;
c. on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.’

09/02/2016 - 10/01/2017 21/12/2015
Client Money & Assets
V 1.0

Chapter 2, Section 1.2


The following has been amended to read:


 Client money is ‘money’ held in client bank accounts, either as a general client bank account, a designated


client bank account or designated client fund accounts, and NOT only in the name of the firm.


 


Chapter 5, Section  2.1


The following has been amended to read:


 1. Assets are permitted to be held by/with a nominee company which is controlled by:



  • the firm;

  • an affiliated company;

  • a recognised investment exchange;

  • a third party with whom financial instruments are deposited under CASS 6.3 (depositing assets and arranging for assets to be deposited with third parties).



On page 106, chapter 8, section 2.1 has been amended to read:
CASS (Client Assets Sourcebook) large and CASS medium firms must complete a CMAR on a monthly basis. Small CASS firms are not required to complete a CMAR.
11/07/2015 - 10/07/2016 23/06/2015
Global Financial Compliance
V 2
This syllabus version has been extended to 10 November 2014. 31/10/2013 - 10/11/2014 31/10/2013

Level 3 Certificates

Exam Name & Syllabus version Update/Development Action Effective From/To Date Posted
All Arabic Exams and Workbooks
V 1.0
Always effective 18/09/2015
Corporate Finance Regulation
V 11
Amendments to Corporate Finance Regulation Edition 7, March 2016.

Chapter 4, Section 2.2.1, 3rd bullet point, amended to read:

Plcs not traded on a regulated market, which are registered in the UK, Channel Islands or Isle of Man, but only if they have their place of central management and control within those jurisdictions, and if at any time during the previous ten years their securities have been admitted to the Official List, or if dealings and/or prices for their securities have been published on a regular basis for a continuous period of at least six months in the ten years prior to the relevant date.

Chapter 6, Section 1.7.2

Between subsections `Rights Issue` and `Open Offer`, another subsection has been added:

Secondary Placing
A secondary placing is a non-pre-emptive issue, as shares are offered to new, incoming shareholders.
11/04/2016 - 10/04/2017 03/03/2016
Corporate Finance Regulation
V 11
Amendments to Corporate Finance Regulation Edition 7, March 2016.

Chapter 4, Section 2.2.1, 3rd bullet point, amended to read:

Plcs not traded on a regulated market, which are registered in the UK, Channel Islands or Isle of Man, but only if they have their place of central management and control within those jurisdictions, and if at any time during the previous ten years their securities have been admitted to the Official List, or if dealings and/or prices for their securities have been published on a regular basis for a continuous period of at least six months in the ten years prior to the relevant date.

Chapter 6, Section 1.7.2

Between subsections `Rights Issue` and `Open Offer`, another subsection has been added:

Secondary Placing
A secondary placing is a non-pre-emptive issue, as shares are offered to new, incoming shareholders.


Corporate Finance Regulation Ed7.2 - candidate update January 2016

Chapter 6, Section 1.2.1, page 215, numbered list replaced with:

1. London Stock Exchange PLC (LSE).
2. LIFFE Administration and Management.
3. ICE Futures Europe.
4. London Metal Exchange Ltd (LME).
5. ICAP Securities & Derivatives Exchange Ltd (ISDX).
6. BATS Trading Ltd.
7. CME Europe Ltd.
8. Euronext UK Markets Ltd.

Chapter 6, page 219, Section 1.5.2, replace first para with:

This reinforces Part 7, Section 95 of the FSA 2012 Act repealed Section 397 of FSMA and replaced the criminal offence relating to misleading statements and practices with three new criminal offences.
The offences are:
• making false or misleading statements (Section 89)
• creating false or misleading impressions (Section 90), and
• making false or misleading statements or creating false or misleading impressions in relation to specified benchmarks (Section 91).

The first two offences together largely replicate the now-repealed FSMA Section 397 offence. The misleading impressions offence, however, is now wider in scope and covers recklessly created misleading impressions as well as those created intentionally.
11/04/2016 - 10/04/2017 03/03/2016
UK Financial Regulation
V 23
The text for Section 3.2 of chapter 5 has been amended to read:

3.2 Compensation Payable

There are limits to the amount of compensation that the FSCS will pay to eligible claimants:

• Deposits – 100% of £75,000 per individual per firm (for claims against firms declared in default) from 1 January 2016 for all eligible depositors. From 3 July 2015 corporates (companies – irrespective of size) came under the FSCS. Prior to 1 January 2016 the limit was £85,000 (except for corporates who became subject to this regime from July 2015 – at £75,000).
From 3 July 2015, the FSCS will provide a £1 million protection limit for temporary high balances held with your bank, building society or credit union if it fails. The £75,000 figure is the sterling equivalent of e100,000 as required by the recast Deposit Guarantee Schemes Directive.
• For protected insurance (long-term insurance contract) – 90% of the claim.
• For protected compulsory insurance (general insurance contract) – 100% of the claim.
• For protected non-compulsory insurance (ie, other general insurance) – 90% of the claim.
• For protected investment business and home finance advice – 100% up to £50,000.
01/04/2016 - 31/03/2017 18/02/2016
Derivatives (Capital Markets Programme)
V V15
The Derivatives L3 workbook Ed 11.3 has been updated to version 11.4.

In the table in chapter 2, page 43, r1 has changed from to 0.0005 and r2 has changed to 0.0002 (to match the equation above it).


Derivatives Level 3, edition 11, chapter 2, page 42 example 3. The text has been updated:

Borrowing €13.065 million at 0.6% results in a repayment of €13,078,390.

The deposit of £10 million at 0.9% receives £10,090,000 at maturity.

The one-year forward FX contract of selling £10,090,000 at 1.3075 produces €13,192,675.
The net result is an arbitrage profit of €114,285.

In order to avoid such arbitrage opportunities existing, the one-year forward rate must be based on the interest rate differential between the euro and sterling. In other words, the one-year GBP/EUR forward rate should be 1.2962. The arbitrage-free one-year GBP/EUR forward rate is based on the current interest rate differential, therefore from the information listed above it is equal to €13,078,390/£10,090,000 or 1.2962.

The discount on sterling in the one-year forward FX rate is based on the relationship between its one-year interest rate and the euro’s. In this case, since sterling’s rate is higher, it must be at a discount (ie, worth less in the forward market) to avoid any arbitrage opportunities.


11/02/2016
Global Financial Compliance
V 2
This syllabus version has been extended to 10 November 2014. 31/10/2013 - 10/11/2014 31/10/2013

Level 4 Investment Advice Diploma

Exam Name & Syllabus version Update/Development Action Effective From/To Date Posted
Derivatives (Investment Advice Diploma)
V 6.0
Chapter 2, page 53, Section 4.2.1, last sentence - change `the resulting theoretical forward rate is 1.0949 EUR/USD` to `the resulting theoretical forward rate is 1.0943 EUR/USD`.

Chapter 3, page 88, Example 6, last 2 entries in calculation - should read:

Conversion to dividend points = 2080 x (0.0225 x (182/360)) = 23.66 points

Fair value of the future = 2085.78 – 23.66 = 2062.12

Chapter 3, page 121, Answer to Exercise 5 -

Fair value entry should read:
Fair value = cash price x interest rate (1 + (0.005 x (91/365))) – dividend points (see below).

Dividend yield conversion entry should read:
FTSE 100 dividend yield = 2.5%

Fair value of the future entry should read:
Fair value of the future = 6500 x (1 + (0.005 x (91/365)) which equals 6508.103 – 40.51 = 6467.80

MCQs, page 327, Q54 -
Options B and C should read:

B. It requires firms to hold only retail client’s funds in a separate account
C. Its aim is to protect all clients’ funds, such as the broking firm fail
08/03/2016 - 31/12/2016 08/03/2016
UK Regulation & Professional Integrity
V 8
Chapter 2, Section 1.2.3

The following has been amended to read:

Examples of 2016–17 tax allowances include:
Personal allowance, irrespective of an individual’s date of birth £11,000

The personal allowance has been adjusted and there is no longer an age related allowance. For the 2016–17 tax year the personal allowance will increase to £11,000.

Basic rate tax 20% (£0 to £32,000)
Higher rate tax 40% (£32,001 to £150,000)
Additional rate tax 45% (over £150,000)

For the 2016–17 tax year, the first £11,000 will be tax-free. Then 20% tax will apply up to £42,000 (ie, on the next £32,000, after allowing for the personal allowance tax-free amount). The rate of 40% will apply on anything earned above £42,000 up to £150,000. Earnings above £150,000 will be taxed at 45%.


01/04/2016 - 31/03/2017 10/02/2016
Investment, Risk & Taxation
V 4

Please see the below correction from Chapter 4, Section 11.3.3 of the Investment, Risk & Taxation Edition 4 workbook.


Common Tax Computations Example


 


James is 38 years old, married with children, and has gross monthly earnings of £3,800 from employment. Calculate his net monthly pay after income tax.


 


                                                                                                                                            Income Tax


Gross income                                                                                                                      £3,800.00


Personal allowance (£9,440/12)                                                  £786.67                           £0.00


Taxable income                                                                                                                   £3,013.33


Income taxable at basic rate £0 – £32,010/12)                           £2,667.50                        £533.50


Income taxable at higher rate (£3,013.33 – £2,667.50)              £345.83                           £138.33


Total income tax payable                                                                                                    £671.83


Net monthly pay                                                                             £3,800 – £671.83  =  £3,128.17


 

02/01/2014 - 30/10/2014 02/02/2014

Narrative

Exam Name & Syllabus version Update/Development Action Effective From/To Date Posted
Financial Markets
V 5.1
Chapter 3, Section 1.1.1

The following has been amended to read

Using the example accounts for XYZ plc encountered earlier:
ROCE = 2,814 ÷ (11,020) x 100 = 25.5%


Chapter 1, Section 1.7.1 - Elasticity of Demand

Amended to read If the PED for a good is less than 1 the supplier of the good will be able to increase prices and yet still maintain a positive growth in revenue as the price increases.

Page 298 - final paragraph, change first sentence to: `The term ‘debenture’ is used when the lender is not provided with some specified security by the borrower.`
Page 360 - on the Macaulay Duration table, in column 3, bottom row, the second figure has been amended to £96.01
Page 414 - on the first line, the dividend has been changed from 15p to 20p.
Page 415 - on STAGE TWO of the table, the figure in row 1, column 5 has been changed to £0.20
Page 416 - paragraph 2: the first two sentences have been changed to read:
`In this instance, the convertible is providing income in the form of interest at a rate of £10 per annum. The dividend income on the ordinary shares into which the convertible security could be converted is paying £8 per annum (20p/£1.80) and is subject to an expected annual rate of growth of 5%.`
Page 458 - table, row 2, column 2: change text to `Sell put at low price and buy call at higher price`
Page 467 - table, bottom row, column 3: change figure to £3,083,945

Chapter 2, Section 3.1, paragraph 3 on page 129 has been amended to read:


Like the balance sheet, the format of the income statement is governed by the law and underpinned by the requirements of various accounting standards. The income statement of XYZ plc is shown below. In reality, comparative numbers for the previous year and explanatory notes would be provided as well.

22/06/2016 - 07/12/2016 14/07/2015
Portfolio Construction Theory
V 1.2
Portfolio Construction Theory Ed3 v1.2

P69, 2nd para – change to: if the correlation between two funds are perfect (+1), then we infer that the portfolio standard deviation is just a function of the weighted averages of individual fund standard deviations. Then,

s_P=W_1 s_!+W_2 s_2

P74, para 2 - `unsystematic risk` changed to `systematic risk`.

P269, para 3 - change `standard deviation` to `correlation`.

P286 - Expected variance and the risk of the portfolio:

The formula is correct but the values should be:

= (1.04)^2 x (525) + [((0.20)^2 x 900) + ((0.10)^2 x 600) + ((0.30)^2 x 550) + ((0.40)^2 x 299)]
= (1.0816 x 525) + [(0.04 x 900 + 0.01 x 600 + 0.09 x 550 + 0.16 x 299)]
= 567.84 + (36 + 6 + 49.5 + 47.84)
= 567.84 + 139.34
= 707.18
SD = 26.59%

P437, para 2 - `Systematic risk (ie, after deduction of the risk-free rate) is used instead of total risk.` is deleted.
10/02/2016
Regulation & Compliance
V 3.0
Page 124, firms’ FCA objective categories have changed to:

C1 Banking and insurance groups with a very large number of retail customers, and universal/investment banks with very large client assets and trading operations. They have a named supervisor and a high level of firm-specific supervision.
C2 Firms across all sectors with a substantial number of retail customers and/or large wholesale firms. They have a named supervisor and a high level of firm-specific supervision.
C3 Firms across all sectors with retail customers and/or a significant wholesale presence. They are supervised with a sector-based approach, with less frequent firm-specific engagement.
C4 Smaller firms, including almost all intermediaries. They are supervised with a sector-based approach, with less frequent firm-specific engagement.

Page 128, firms’ prudential supervision categories have changed to:

P1 Firms and groups are those whose failure could cause significant, lasting damage to the marketplace, consumers and client assets, due to their size and market impact.
P2 Firms and groups are those whose failure would have less impact than P1 firms, but would nevertheless damage markets or consumers and client assets.
P3 Firms and groups are those whose failure, even if disorderly, is unlikely to have a significant market impact. They have the lowest intensity of prudential supervision.
P4 Firms are those with special circumstances – for example, firms in administration – for which bespoke arrangements may be necessary.
01/12/2015 - 21/06/2016 05/10/2015
Portfolio Construction Theory
V 6
The ASSESSMENT STRUCTURE for this exam, on page 525 of the workbook, should read:

This is a 3-hour examination of 100 marks comprising three sections:

SECTION A worth 20 marks
- candidates answer ALL parts of the multiple choice questions in this section.

SECTION B worth 40 marks
– candidates answer ALL parts of the short answer questions in this section.

SECTION C worth 40 marks
– candidates answer TWO questions from THREE, worth 20 marks each.
27/06/2014 - ongoing 15/05/2014
Diploma in Corporate Finance: Corporate Finance Strategy & Advice
V 1a
Corporate Finance Strategy & Advice

Please note the following change to the exam rubric for this paper applicable from the December 2013 sitting onwards.

The December exam will start at 13:00 and candidates will receive both the Information Booklet and the Question Paper.  They will not receive the Answer Book.

At 13:55 Answer Books will be circulated, then from 14:00, once candidates have been instructed to do so, candidates may open their answer books and begin writing.  They will then have 3 hours to complete the exam and will finish at 17:00.

This change will be reflected on the examination paper as follows:

Part 1: Time allowed: 1 Hour

Candidates will be provided with an Information Booklet and the examination question paper. Candidates have one hour in which to review the information booklet and questions. During this time, candidates may annotate the information book. The examination has been prepared on the assumption that candidates will not have any detailed knowledge of the type of company or sector to which it refers. No additional merit will be accorded to those candidates displaying such knowledge.

Part 2: Time allowed: 3 Hours The Answer Book will be distributed at 1.55 pm and candidates should open and begin writing in the answer book when instructed at 2.00 pm.


The syllabus has now been updated for 2014.
02/09/2013 - ongoing 17/10/2013
Diploma in Corporate Finance: Corporate Finance Techniques & Theory
V 1a
Corporate Finance Techniques & Theory

Please note the following change to the examination rubric for this paper applicable from the December 2013 sitting onwards.

There has been an adjustment to the number of question options between the June 2013 sitting and the December 2013 sitting.  For the December 2013 Sitting paper onwards:

SECTION A – FIVE questions in this section are to be answered  (Same as June 2013)

SECTION B – BOTH questions in this section are to be answered (rather than TWO out of THREE Questions)


The syllabus has now been updated for 2014.
02/09/2013 - ongoing 17/10/2013
Advanced Operational Risk
V 4
The AOR syllabus has been updated in 2015 for exam sittings in June 2015 onwards 01/01/2015 - ongoing 30/01/2015

Publications


Candidates may also find the following links of some use: