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
Global Securities (Arabic)
V 4

Chapter 1, Section 9.3.4: the wording on page 69 has been slightly modified to reflect an easier understanding of the relation between a ‘lender’ and a ‘borrower’


Chapter 3, Section 2.1: the number of minimum shares included in the IOB has been altered to ‘one’ corresponding with the latest edition of the English book


 


 

11/02/2015 - 10/02/2016 15/05/2015
Islamic Finance Qualification
V 5.0

Chapter 7, Section 1.2.2:  Islamic Insurance – Takaful


Candidates please note that NCCI no longer exists. NCCI was converted to Tawuniya and became a publicly quoted stock holding company in 2006, operating under the cooperative laws of KSA. Tawuniya is a non-profit organisation.

31/08/2014 - 30/08/2016 17/10/2014
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
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).

11/07/2015 - 10/07/2016 23/06/2015
Administration of Settlement & Investments
V 12
In October and November 2014 a number of European markets changed their settlement periods to T+2. Candidates are advised that examinations will continue to test the settlement periods as stated in the current version of the CISI workbook until the syllabus is republished, after which time the new settlement periods, as stated in the new Edition of the CISI workbook, may be examined. 07/01/2015 - 30/08/2015 07/01/2014
UK Financial Regulation
V V22

The following amendments have been made to the edition 22 workbook.


Chapter 1


The following section has been added to following Section 3.2 to read:


3.3              PRA Fundamental Rules


In June 2014 the PRA published its Fundamental Rules, which replaced the Principles for Businesses. The Rules are high-level and collectively set out the PRA’s expectations of firms and act as an expression of the PRA’s general objective of promoting the safety and soundness of regulated firms. They are a clearer expression of the PRA’s expectations and more closely reflect the PRA’s underlying detailed rules than the Principles.


The Rules apply proportionately to all PRA firms, taking into account the difference between sectors and between sizes of firms. They apply with respect of activities wherever they are carried on.


The Fundamental Rules are:



  • A firm must conduct its business with integrity.

  • A firm must conduct its business with due skill, care and diligence.

  • A firm must act in a prudent manner.

  • A firm must at all times maintain adequate financial resources.

  • A firm must have effective risk strategies and risk management systems.

  • A firm must organise and control its affairs responsibly and effectively.

  • A firm must deal with its regulators in an open and cooperative way and must disclose to the PRA appropriately anything relating to the firm of which the PRA would reasonably expect notice.

  • A firm must prepare for resolution so, if the need arises, it can be resolved in an orderly manner with a minimum disruption of critical services.


Section 6 – The Relationship Between the FCA and the PRA and Various Other Bodies


Learning Objective 1.2.2 – the Competition Commission has been replaced with the Competition and Markets Authority


Section 6.3 - The UK Competition Commission (CC)

This section has been replaced with the following wording:


6.3              Competition and Markets Authority (CMA)


The Competition and Markets Authority (CMA) took over the role and functions previously carried out by the Competition Commission and the Office of Fair Trading.


The CMA came into being on 1 April 2014. It works to promote competition for the benefit of consumers – both within and outside of the UK. Its main aim is to make markets work well for consumers, businesses and the economy. It is not solely looking into competition within the financial services industry.


The CMA has five strategic goals:



  1. To deliver effective enforcement to deter wrongdoing, protect consumers and educate businesses.

  2. To extend competition frontiers by using the markets regime to improve the way competition works, in particular within the regulated sectors.

  3. To refocus consumer protection, working with its partners to promote compliance and understanding of the law, and empowering consumers to make informed choices.

  4. To achieve professional excellence by managing every case efficiently, transparently and fairly, and to ensure all legal, economic and financial analysis is conducted to the highest international standards.

  5. To develop integrated performance through ensuring that all staff are brought together from different professional backgrounds to form effective multi-disciplinary teams and to provide a trusted competition adviser across government.


The CMA is responsible for:



  • Investigating mergers which could restrict competition.

  • Conducting market studies and investigations in markets where there may be competition and consumer problems.

  • Investigating where there may be breaches of UK or EU prohibitions against anti-competitive agreements and abuses of dominant positions.

  • Bringing criminal proceedings against individuals who commit the cartel offence.

  • Enforcing consumer protection legislation to tackle practices and market conditions that make it difficult for consumers to exercise choice.

  • Co-operating with sector regulators and encouraging them to use their competition powers.

  • Considering regulatory references and appeals.


Chapter 4


Section 6.2.1 - The Principles and Rules on Conflicts of Interest


Example of a Chinese Wall in Operation


Section 150 FSMA has been amended to read Section 138D

29/04/2015 - 20/12/2015 29/04/2015
Platforms, Wealth Management & Service Providers
V 1.0
Platforms, Wealth Management and Service Providers Ed 1

The following changes have been made to two sections in the workbook:

Chapter 1, Section 5.2.2 Wrappers

First bullet point: ‘or in the name of a charity’ has been added to third sentence as below:

• General investment account – this account holds all investments that are neither pension fund investments nor the subject of tax restrictions. This type of account is open to all private individuals as well as charities. It can be operated in joint names (eg married couples or business partners) or in the name of a charity. Somewhat confusingly, this type of account is sometimes referred to as being ‘unwrapped’.

The following text has been removed from the first paragraph following the bullet point:
“Generally speaking these accounts may only be held by one named individual – they cannot be operated in joint names or in the name of a charity.”

The following text has been added to end of the section:
“Only onshore and offshore bonds can be held in joint names. All the other tax sheltered wrappers can only be opened in the name of a single individual.”

Page 80 ‘Restrictions around Client Eligibility’:

The text has been changed from:

“Broadly speaking, all the tax sheltered wrappers require……: to "Broadly speaking, most tax sheltered wrappers require……:
21/11/2014 - 20/11/2015 09/12/2014
Global Financial Compliance
V 2
This syllabus version has been extended to 10 November 2014. 31/10/2013 - 10/11/2014 31/10/2013
Collective Investment Schemes Administration
V 9
This syllabus version has been extended to 30 September 2015 11/05/2014 - 30/09/2015 12/02/2015

Level 3 Certificates

Exam Name & Syllabus version Update/Development Action Effective From/To Date Posted
UK Financial Regulation
V V22

The following amendments have been made to the edition 22 workbook.


Chapter 1


The following section has been added to following Section 3.2 to read:


3.3              PRA Fundamental Rules


In June 2014 the PRA published its Fundamental Rules, which replaced the Principles for Businesses. The Rules are high-level and collectively set out the PRA’s expectations of firms and act as an expression of the PRA’s general objective of promoting the safety and soundness of regulated firms. They are a clearer expression of the PRA’s expectations and more closely reflect the PRA’s underlying detailed rules than the Principles.


The Rules apply proportionately to all PRA firms, taking into account the difference between sectors and between sizes of firms. They apply with respect of activities wherever they are carried on.


The Fundamental Rules are:



  • A firm must conduct its business with integrity.

  • A firm must conduct its business with due skill, care and diligence.

  • A firm must act in a prudent manner.

  • A firm must at all times maintain adequate financial resources.

  • A firm must have effective risk strategies and risk management systems.

  • A firm must organise and control its affairs responsibly and effectively.

  • A firm must deal with its regulators in an open and cooperative way and must disclose to the PRA appropriately anything relating to the firm of which the PRA would reasonably expect notice.

  • A firm must prepare for resolution so, if the need arises, it can be resolved in an orderly manner with a minimum disruption of critical services.


Section 6 – The Relationship Between the FCA and the PRA and Various Other Bodies


Learning Objective 1.2.2 – the Competition Commission has been replaced with the Competition and Markets Authority


Section 6.3 - The UK Competition Commission (CC)

This section has been replaced with the following wording:


6.3              Competition and Markets Authority (CMA)


The Competition and Markets Authority (CMA) took over the role and functions previously carried out by the Competition Commission and the Office of Fair Trading.


The CMA came into being on 1 April 2014. It works to promote competition for the benefit of consumers – both within and outside of the UK. Its main aim is to make markets work well for consumers, businesses and the economy. It is not solely looking into competition within the financial services industry.


The CMA has five strategic goals:



  1. To deliver effective enforcement to deter wrongdoing, protect consumers and educate businesses.

  2. To extend competition frontiers by using the markets regime to improve the way competition works, in particular within the regulated sectors.

  3. To refocus consumer protection, working with its partners to promote compliance and understanding of the law, and empowering consumers to make informed choices.

  4. To achieve professional excellence by managing every case efficiently, transparently and fairly, and to ensure all legal, economic and financial analysis is conducted to the highest international standards.

  5. To develop integrated performance through ensuring that all staff are brought together from different professional backgrounds to form effective multi-disciplinary teams and to provide a trusted competition adviser across government.


The CMA is responsible for:



  • Investigating mergers which could restrict competition.

  • Conducting market studies and investigations in markets where there may be competition and consumer problems.

  • Investigating where there may be breaches of UK or EU prohibitions against anti-competitive agreements and abuses of dominant positions.

  • Bringing criminal proceedings against individuals who commit the cartel offence.

  • Enforcing consumer protection legislation to tackle practices and market conditions that make it difficult for consumers to exercise choice.

  • Co-operating with sector regulators and encouraging them to use their competition powers.

  • Considering regulatory references and appeals.


Chapter 4


Section 6.2.1 - The Principles and Rules on Conflicts of Interest


Example of a Chinese Wall in Operation


Section 150 FSMA has been amended to read Section 138D

29/04/2015 - 20/12/2015 29/04/2015
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

Level 4 Investment Advice Diploma

Exam Name & Syllabus version Update/Development Action Effective From/To Date Posted
UK Regulation & Professional Integrity
V 7
The following amendments have been made to the edition 7 workbook.

Chapter 5

Section 1 – The Regulatory Infrastructure

Learning Objective 5.1.2 – the Competition Commission has been replaced with the Competition and Markets Authority

Section 1.5 – The Bank of England (BoE)

The final paragraph has been deleted from the text.

Section 1.6 - The UK Competition Commission (CC)

This section has been replaced with the following wording:

1.6 Competition and Markets Authority (CMA)

The Competition and Markets Authority (CMA) took over the role and functions previously carried out by the Competition Commission and the Office of Fair Trading.
The CMA came into being on 1 April 2014. It works to promote competition for the benefit of consumers – both within and outside of the UK. Its main aim is to make markets work well for consumers, businesses and the economy. It is not solely looking into competition within the financial services industry.

The CMA has five strategic goals:

1. To deliver effective enforcement to deter wrongdoing, protect consumers and educate businesses.
2. To extend competition frontiers by using the markets regime to improve the way competition works, in particular within the regulated sectors.
3. To refocus consumer protection, working with its partners to promote compliance and understanding of the law, and empowering consumers to make informed choices.
4. To achieve professional excellence by managing every case efficiently, transparently and fairly, and to ensure all legal, economic and financial analysis is conducted to the highest international standards.
5. To develop integrated performance through ensuring that all staff are brought together from different professional backgrounds to form effective multi-disciplinary teams and to provide a trusted competition adviser across government.

The CMA is responsible for:

• Investigating mergers which could restrict competition.
• Conducting market studies and investigations in markets where there may be competition and consumer problems.
• Investigating where there may be breaches of UK or EU prohibitions against anti-competitive agreements and abuses of dominant positions.
• Bringing criminal proceedings against individuals who commit the cartel offence.
• Enforcing consumer protection legislation to tackle practices and market conditions that make it difficult for consumers to exercise choice.
• Co-operating with sector regulators and encouraging them to use their competition powers.
• Considering regulatory references and appeals.

Chapter 7

Section 1.1 – The FCA’s and PRA’s Principles for Businesses

Section heading has been amended to read The FCA’s Principles for Businesses

Paragraph 1 – the following sentence has been removed “These principles also apply to the PRA.”

Paragraph 2 – “and the PRA” has been removed from the second sentence.

The following section has been added at the end of Section 1.1 to read:

1.1.1 PRA Fundamental Rules

In June 2014 the PRA published its Fundamental Rules, which replaced the Principles for Businesses. The Rules are high-level and collectively set out the PRA’s expectations of firms and act as an expression of the PRA’s general objective of promoting the safety and soundness of regulated firms. They are a clearer expression of the PRA’s expectations and more closely reflect the PRA’s underlying detailed rules than the Principles.

The Rules apply proportionately to all PRA firms, taking into account the difference between sectors and between sizes of firms. They apply with respect of activities wherever they are carried on.

The Fundamental Rules are:

• A firm must conduct its business with integrity.
• A firm must conduct its business with due skill, care and diligence.
• A firm must act in a prudent manner.
• A firm must at all times maintain adequate financial resources.
• A firm must have effective risk strategies and risk management systems.
• A firm must organise and control its affairs responsibly and effectively.
• A firm must deal with its regulators in an open and cooperative way and must disclose to the PRA appropriately anything relating to the firm of which the PRA would reasonably expect notice.
• A firm must prepare for resolution so, if the need arises, it can be resolved in an orderly manner with a minimum disruption of critical services.

Section 3.1.1 – Perimeter Guidance Manual (PERG)

In the second paragraph Section 150 FSMA has been amended to read Section 138D

Chapter 10

Example of a Chinese Wall in Operation

Section 150 FSMA has been amended to read Section 138D

28/04/2015 - 20/12/2015 28/04/2015
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
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 - 31/12/2015 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.
24/04/2014 - 31/12/2015 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 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: