Candidate Update

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

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
IT in Investment Operations
V 6
The syllabus version has been extended to 11 November 2014 12/11/2012 - 11/11/2014 14/05/2014
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
Exchange-Traded Derivatives
V 11

Due to a change in the demand for the Exchange-traded derivatives exam as well as developments within the industry, we have taken the decision to merge our Exchange-Traded and OTC Derivatives subjects and create one exam. This exam is to be called ‘Derivative Operations’ and will be available from  1st  December 2014. The separate Exchange-Traded and OTC Derivatives syllabi will be examined for the last time on 31st December 2014.


 The Derivatives Operations unit is a 75 question, level 3 examination 90 minutes in duration.  The workbook will be available from the 1st September and the syllabus can be found here


 

29/07/2014 - 31/12/2014 29/07/2014
OTC Derivatives
V 11

Due to a change in the demand for the Exchange-traded derivatives exam as well as developments within the industry, we have taken the decision to merge our Exchange-Traded and OTC Derivatives subjects and create one exam. This exam is to be called ‘Derivative Operations’ and will be available from  1st  December 2014. The separate Exchange-Traded and OTC Derivatives syllabi will be examined for the last time on 31st December 2014.


The Derivatives Operations unit is a 75 question, level 3 examination 90 minutes in duration.  The workbook will be available from the 1st September and the syllabus can be found here


 

29/07/2014 - 31/12/2014 29/07/2014
UK Financial Regulation
V 20
Edition 20 Workbook Chapter 2, Section 8.2 - Statutory Notices

Due to a typographical oversight, this section has been amended to read:

FSMA gives the regulators the power to issue a variety of notices to authorised firms and/or approved persons, collectively referred to as statutory notices. These are:

• Warning notices – give the recipient details about the action the regulator proposes to take and why it proposes to do so. They also give the recipient the right to make representations as to why the regulator should not take this action.
• Decision notices – give details of the action that the regulator has decided to take, leaving room for appeal by the recipient.
• Further decision notices – may follow the issue of a decision notice if the regulator has agreed with the recipient to take a different action to that proposed in the original decision notice. The regulator can issue a further decision notice only with the consent of the recipient.
• Supervisory notices – give the recipient details regarding the action the regulator has taken, or proposes to take. A typical supervisory notice might limit a firm’s Part 4A permission with immediate effect (and hence it would seem reasonable for the regulator to alert the public to the fact that the firm is no longer permitted to carry on certain activities).

In addition, the FCA can issue the following notices, but they are not referred to as ‘statutory notices’.
These are:

• Notices of discontinuance – let the recipient know that, if the regulator has previously sent it a warning notice and/or a decision notice, it has decided not to proceed with the relevant action.
• Final notices set out the terms of the final action which the regulator has decided to take and the date that it is effective from. They are also – unlike warning and decision notices – published by the regulator on its website.

The above changes are also reflected in Question 13 of the Multiple Choice Questions, which now reads as follows:

13. Which of the following notices are statutory notices?

A. Warning, decision and supervisory notices
B. Warning, decision and final decision notices
C. Warning, decision and discontinuance notices
D. Supervisory, discontinuance and final decision notices

Q13. Answer: A Ref: Chapter 2, Section 8.2 (LO 2.2.2)
The FCA publishes statutory notices on its website that comprise warning, decision and supervisory notices. Notices of discontinuance and final notices are deemed non-statutory for the purposes of the DEPP part of the FCA Handbook and are not published on the FCA website.
21/11/2013 - 20/08/2014

8/5/2014
IT in Investment Operations
V 6
The syllabus version has been extended to 11 November 2014 12/11/2012 - 11/11/2014 14/05/2014
Global Financial Compliance
V 2
This syllabus version has been extended to 10 November 2014. 31/10/2013 - 10/11/2014 31/10/2013
Administration of Settlement & Investments
V 16
The following text has been removed from Chapter 2, Section 2.3.3 of 16th Edition workbook.

The appointed CF10a person must not be the same as the person fulfilling controlled function CF10, the compliance oversight function.
28/05/2014

Level 3 Certificates

Exam Name & Syllabus version Update/Development Action Effective From/To Date Posted
UK Financial Regulation
V 20
Edition 20 Workbook Chapter 2, Section 8.2 - Statutory Notices

Due to a typographical oversight, this section has been amended to read:

FSMA gives the regulators the power to issue a variety of notices to authorised firms and/or approved persons, collectively referred to as statutory notices. These are:

• Warning notices – give the recipient details about the action the regulator proposes to take and why it proposes to do so. They also give the recipient the right to make representations as to why the regulator should not take this action.
• Decision notices – give details of the action that the regulator has decided to take, leaving room for appeal by the recipient.
• Further decision notices – may follow the issue of a decision notice if the regulator has agreed with the recipient to take a different action to that proposed in the original decision notice. The regulator can issue a further decision notice only with the consent of the recipient.
• Supervisory notices – give the recipient details regarding the action the regulator has taken, or proposes to take. A typical supervisory notice might limit a firm’s Part 4A permission with immediate effect (and hence it would seem reasonable for the regulator to alert the public to the fact that the firm is no longer permitted to carry on certain activities).

In addition, the FCA can issue the following notices, but they are not referred to as ‘statutory notices’.
These are:

• Notices of discontinuance – let the recipient know that, if the regulator has previously sent it a warning notice and/or a decision notice, it has decided not to proceed with the relevant action.
• Final notices set out the terms of the final action which the regulator has decided to take and the date that it is effective from. They are also – unlike warning and decision notices – published by the regulator on its website.

The above changes are also reflected in Question 13 of the Multiple Choice Questions, which now reads as follows:

13. Which of the following notices are statutory notices?

A. Warning, decision and supervisory notices
B. Warning, decision and final decision notices
C. Warning, decision and discontinuance notices
D. Supervisory, discontinuance and final decision notices

Q13. Answer: A Ref: Chapter 2, Section 8.2 (LO 2.2.2)
The FCA publishes statutory notices on its website that comprise warning, decision and supervisory notices. Notices of discontinuance and final notices are deemed non-statutory for the purposes of the DEPP part of the FCA Handbook and are not published on the FCA website.
21/11/2013 - 20/08/2014

8/5/2014
Derivatives / Financial Derivatives Syllabi
V 13
Candidates should note the recent industry changes below that have been reflected in the new Derivatives / Financial Derivatives syllabus version 13 (edition 9 of the Derivatives workbook  and Financial Derivatives Module) and will be tested from 31 October 2013.

NYSE Liffe
The changes relate mainly to the trading system and clearing house used by NYSE Liffe.

Where previously the trading system was Liffe CONNECT, it is now called the Universal Trading Platform (UTP).

NYSE Liffe’s clearing is no longer through LCH.Clearnet but through ICE Clear Europe, using the Universal Clearing Platform (UCP) for matching and reporting, instead of the Trade Registration System (TRS) and Clearing Processing System (CPS).

Turquoise Derivatives Europe
There have also been changes to the clearing houses used by Turquoise Derivatives Europe, and to small elements of the clearing and processing of commodities trading.

Candidates with version 8 of the workbook edition should particularly take note of these changes and are encouraged to purchase the most up to date workbook edition for these exams which can be purchased in pdf format for £25
31/10/2013 - TBC 08/10/2013
Global Financial Compliance
V 2
This syllabus version has been extended to 10 November 2014. 31/10/2013 - 10/11/2014 31/10/2013
Corporate Finance Technical Foundations
V 5
The following additional text has been added to the Corporate Finance Technical Foundations Edition 5 workbook (covering exams from 11 April 2014 to 10 April 2015 and based on syllabus version 9) in Chapter 4, Section 2, covering Learning Objectives 4.1.1 and 4.1.2.


Enterprise value can be calculated in two ways.

1. Present value of the total free cash flows expected to be generated by the enterprise, discounted at the WACC; this is discussed in more detail later in Section 7.

2. Market capitalisation (share price x number of shares in issue) plus
Preference and other shares (if any) plus
Non-controlling (minority) interest (if any) plus
Total long-term debt plus total short-term debt less
Total cash and cash equivalents

This gives the total capital invested in the business enterprise; ie, the enterprise value.

There are a number of alternative ways of addressing some of these components. For the purpose of this syllabus, you should use the guidelines shown here.

• Where preference and other shares are quoted, they should be included at their market value (where shown) rather than at book value.
• Finance leases are to be included in debt.
• Where the debt includes bonds or other debt securities, these should be included at their market value (where shown) rather than at their book value.
• ‘Cash and cash equivalents’ may include money market deposits or other liquid ’near-cash’ assets. These should be included at current market value (where shown) rather than at book value.

In practice, you may see additional components of enterprise value, such as pension deficits, options or warrants, operating leases and investment in associates. They are not included for the purposes of this syllabus.


Illustration

Markap plc has 1,000,000 shares in issue, priced at 220p. Its market capitalisation is therefore £2.2 million: this is its equity value.
Markap also has £1 million of long-term bonds, trading at 99p. Their market value is therefore £990,000. It also has £500,000 of unquoted preference shares and £200,000 of cash.

Its enterprise value is therefore calculated as market capitalisation plus preference shares plus net debt; ie:
£2,200,000 + £500,000 + £990,000 – £200,000 = £3,490,000.

Note that the difference between equity value and enterprise value is the sum of the non-equity capital invested in the business. Equity value represents the total of all assets owned by the company, after deduction of amounts owing to other stakeholders; ie, the value owned by shareholders. Enterprise value represents the total of all operational assets owned by the business – irrespective of who they are attributable to.

20/3/2014

Level 4 Investment Advice Diploma

Exam Name & Syllabus version Update/Development Action Effective From/To Date Posted
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
Level 6 Certificate in Private Client Investment Advice and Management
V
Further clarification has been provided to assist candidates in gaining an understanding of the equation shown in Chapter 7, Section 6.1.1, Page 230, where C is a withdrawal and negative figure.

One for you to have a go at! A portfolio was worth £25,000 at the start of the calendar year and £28,000 at the end of the calendar year. During the year no additional money had been invested, but £1,000 was withdrawn at the end of June. There were no income distributions. What is the MWR?

Money-weighted rate of return = D + V1 – V0 – C
V0 + (C x n/12)

D=0 no dividends
V1=28,000 value at end of year
V0=25,000 starting value
C= -1,000 addition to the fund in the year. N.B. it is negative because money was taken out

0 + 28,000 – 25,000 + 1,000 = 4,000
25,000 + (-1,000 x 6/12) 25,000 – 500

= 0.1633
= 16.33%


17/06/2014 - 04/12/2014 17/06/2014
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
Applied Wealth Management Syllabus v5.1
V
An amendment has been made to the Applied Wealth Management Ed2 learning manual in Chapter 6, Section 1.5.3. In the second bullet point on page 206, ‘Easy-access savings account’ has been replaced by ‘NS&I Direct Saver’ and the bullet point now reads:

• NS&I Direct Saver - similar to a savings account from a bank or building society, these accounts are taxable but interest is paid gross. The interest rate is variable with a minimum £1 investment and maximum of £2 million per person. No notice is required to withdraw the investment and there is no penalty for doing so.


Additional information can be found below regarding NS&I:

The NS&I announced a number of changes in 2012, which included:

• new ways for investors to track their money: online and by phone;
• a penalty for cashing in early on some products;
• a minimum age of 16 for all investors.

The chancellor also announced a number of changes in the 2014 budget, including:

• launching a choice of market leading savings bonds for people aged over 65 in January 2015;
• increasing the Premium Bonds investment limit from £30,000 to £40,000 on 1 June 2014; and increasing it again to £50,000 during 2015-16;
• increasing the number of £1 million Premium Bonds prizes per month to two, starting with the August 2014 prize draw;
• announcing a net financing target for 2014-15 of £13 billion, within a range of £11 billion to £15 billion, to allow NS&I to undertake these measures.

NS&I products are directly linked to government spending and the Treasury and are therefore subject to change, from budget to budget, and from government to government. It is prudent to check the NS&I website for the latest products, terms and interest rates and monitor new budget announcements closely.
24/04/14
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 Global Securities Operations
V 3.1

Reflecting the changes to the FSA which came into force from 1 April 2013, the CISI`s Advanced Global Securities Operations workbook has been amended to reflect the name changes.  The syllabus remains unaltered for June 2014 and December 2014 sittings. The June and December exam papers will refer where relevant to the FCA and PCA, rather than the FSA.

The syllabus for AGSO will be updated for June 2015 and December 2015 sittings, and the updated workbook for this updated syllabus version will be available in March 2015.

01/04/2013 - 01/03/2014 23/04/2013
Advanced Operational Risk
V 3
The AOR syllabus has been updated for exam sittings in 2013 01/12/2013 - Ongoing 19/02/2013

Publications


Candidates may also find the following links of some use: