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Free CISI UAE Financial Rules and Regulations Exam Practice Questions

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Total Questions : 186

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Question # 1

What additional rule applies to a venture capital fund once the value of its managed assets reaches AED 180 million?

Options:

A.  

An additional cash buffer must be created

B.  

The assets must be reconciled more frequently

C.  

Quarterly IFRS reporting must be implemented

D.  

A Risk Management Officer must be appointed

Discussion 0
Question # 2

Which type of securities are subject to exchange crime prohibitions?

Options:

A.  

Company shares and bonds only

B.  

Company shares, bonds and derivatives

C.  

All tradeable financial instruments except crypto-assets

D.  

All tradeable financial instruments including crypto-assets

Discussion 0
Question # 3

Under what circumstances, if any, is an introducer allowed to provide an investor with financial analysis?

Options:

A.  

Only if the client proactively requests one

B.  

Only if no recommendations are made

C.  

Only if it is licensed to do so

D.  

Under no circumstances

Discussion 0
Question # 4

Which of the following is a sanction available to the Authority in the event of a violation of its provisions?

Options:

A.  

Impose a financial fine of not more than AED 100,000

B.  

Impose a financial fine of not less than AED 100,000

C.  

Suspend the licensed body for a period of two years

D.  

Suspend any financial activity practised during an investigation

Discussion 0
Question # 5

The watch list, which is monitored by an Authority-established committee, consists of which group of companies?

Options:

A.  

Companies in the first category

B.  

Companies in the second category

C.  

All private companies which have declared losses in the last 12 months

D.  

All public companies which have declared losses in the last 12 months

Discussion 0
Question # 6

In what circumstances may representatives of a broker or employees of brokerage firms trade for their own accounts?

Options:

A.  

Only through the account of a spouse or family member, with written approval of the brokerage firm manager and the Authority

B.  

Only through their own firms and upon written approval of the brokerage firm manager and the Authority

C.  

Only through their own firms and upon written approval of the brokerage firm manager and the DFM

D.  

Only through other firms and upon written approval of the brokerage firm manager and the Authority

Discussion 0
Question # 7

Establishing a local investment fund requires the approval of the Authority, for a public fund this will either be granted or rejected within:

Options:

A.  

5 working days

B.  

10 working days

C.  

20 working days

D.  

30 working days

Discussion 0
Question # 8

Which of the following does the Authority require licensed bodies to do in respect of close ties with other firms?

Options:

A.  

Notify the Authority of any close ties and make sure that these ties will not impede the Authority's supervision and control

B.  

Seek prior approval from the Authority for any close ties and make sure that these ties will not impede the Authority's supervision and control

C.  

Ensure that any close ties are limited to other capital-market firms which are also under the Authority's supervision and control

D.  

Ensure that any close ties are limited to branches of the firm which also practise financial activity, after obtaining the Authority's approval

Discussion 0
Question # 9

Where debt instruments are held by cash investment funds, the credit rating of these instruments must reach what minimum threshold?

Options:

A.  

BB

B.  

BB+

C.  

BBB

D.  

BBB+

Discussion 0
Question # 10

A firm which intends to send advertising material directly to a client has been correctly advised that many of the financial promotion rules are inapplicable. This is because:

Options:

A.  

The firm has fewer than five full-time employees

B.  

The client is a politically exposed person

C.  

The firm offers purely execution-only services

D.  

The client is an eligible counterparty

Discussion 0

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