Candidate Update

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

Special Notice

Due to a systems error, between October 2012 and February 2017 the certificates issued for the CISI Level 3 Award for Introduction to Investment contained an incorrect Ofqual Qualification Accreditation Number (QAN). All certificates that were distributed within this period did not contain the correct QAN of 501/0782/3. Due to the historical nature of this error, the decision has been taken to reissue those certificates issued from 1 September 2016 to 28 February 2017 ONLY.

Those who received their certificate between 1 October 2012 and 31 August 2016 are still able to receive an updated certificate with the correct QAN and can request this, by contacting customersupport@cisi.org.

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

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 and Stand-alone

Exam Name & Syllabus version
Update/Development
Action Effective From/To
Date Posted
  • International Certificate in Wealth & Investment Management V 5

    International Certificate in Wealth & Investment Management V 5

    The following updates have been made to your workbook edition.

    Chapter 1, Section 2.3 – the last table has been amended to read:



    Multiple choice question number 69 – the correct answer has been amended to: ‘B’

    Multiple choice question number 70 – the correct answer has been amended to ‘B’ and the answer explanation reads:

    The forward rate in one year’s time will be based on the spot rate adjusted by the relative interest rates. The formula = spot rate x (1 + quote currency interest rate/ 1 + base currency rate) so the forward rate = 1.25 x (1.015/1.010) = 1.2562.

    Multiple choice question number 72 – the correct answer has been amended to: ‘D’

    Multiple choice question number 88 – the correct answer has been amended to: ‘B’

    Multiple choice question number 89 and the corresponding answer have been replaced with the following:

    89. Which ONE of the following statements relates to the strong form of the Efficient Markets Hypothesis?

    A. Future share prices can be predicted using historical share price data

    B. Share prices reflect all available information known or knowable about the companies in question

    C. Privately available information is not instantly reflected in share prices

    D. Investors do not always process freely available information accurately

    Answer: B

    EMH has a number of key assumptions and the strong form purports that share prices reflect all available information known or knowable about the security in question.

    Answer reference:  Chapter 7, Section 1.2

    Chapter 4, Section 1.3.5 has been amended to read:

    1.3.5 China Trust

    Main Differences Between China and Western Trusts

    The development of Western trusts or international trusts (also known as ‘real trust’) has always followed the origin of trust business due to its long history, developed economic system, sound legal system and corporate governance structure. Its origin refers to a private legal agreement between settlor and trustee. The settlor and beneficiary are different individuals. This helps achieve the effect of asset isolation protection and wealth inheritance of the trust.

    China Trust, founded in 1979, is a special non-bank wealth management system, which constitutes the four pillars of China’s finance sector together with banking, insurance and securities. China’s trust has developed for a short time and is limited by the imperfect economic environment and legal system and the shortage of talents. Compared with the UK and the US, China’s trust has become a financing and financial tool. It is different from international trusts: the majority of China’s trusts are self-interest trusts. This means that the trustor and the beneficiary are one person.

    China’s trust plan is essentially an investment fund in nature. However, most of the funds raised by fund companies are mainly invested in standardised securities such as stocks, bonds and futures, while trust funds are usually invested in entity enterprises, which is equivalent to lending.

    Trust products in China can also be regarded as a kind of debt income. Investors invest in financing parties through trust projects issued by trust companies. Within the period specified in the contract, a trust company repays the principal and interest income to the investor. This is similar to some fixed income financial products of the bank.

    In 2019, the scale of entrusted assets in China’s trust industry ranked second only to banks, surpassing securities, and insurance.

    The main investment directions of China trust plan are:

    1. Government infrastructure construction (eg, urban construction and road construction)
    2. Real estate (eg, commercial real estate and affordable housing construction)
    3. Industrial and commercial enterprise financing loans (eg, financing loans of listed companies)

    These are also the most common types of trust projects in China. Three main examples of trust products in China are provided below.

    Real Estate Trust  



    Infrastructure Construction Trust



    Commercial Enterprise Trust


    02/03/2021 - 01/03/2023
    16/08/2021
    Testing
  • Global Financial Compliance (Arabic)

    Global Financial Compliance (Arabic)

    Global Financial Compliance (Arabic) Ed1 & Ed2
    Chapter 1, Section 1-6-4
    Page 30
    There is a typo in the word “not” in the first line of the paragraph, this should be removed from the Arabic to reflect the correct meaning.

    04/03/2022 - 31/01/2023
    04/01/2022
    Testing
  • International Introduction to Securities & Investment (Kenya) V3

    International Introduction to Securities & Investment (Kenya) V3
    The following update has been made to your workbook edition.

    The Front/Cover page final exam date has been amended to read:

    This workbook relates to syllabus version 3 and will cover examinations from

    2 March 2021 to 20 January 2023


     
    02/01/2021 - 20/01/2023
    27/06/2022
    Testing
  • International Introduction to Securities & Investment V14

    International Introduction to Securities & Investment V14
    The following update has been made to your workbook edition.

    Chapter 7, Section 3.2, last paragraph has been amended to read:

    A number of factors contribute to the extent of the discount which will vary across different investment companies, and have an impact on yield, for example, a discount can enhance the dividend yield of a closed-ended investment trust. There is still much debate about the actual cause of discounts in closed-ended funds, such as investment trust companies. One reason could be a reflection of poor performance in the management of the fund or an overcharge of management fees. The theory that investment
    trusts can trade at a discount if the managers charge a fee has been around since the 1970s. There is a suggestion that if fund managers charge investors a fee but fail to add value to their investments, then the value of the fund is likely to be less than its NAV. Other factors identified as contributing to discounts include the potential for taxes on gains within the fund (unrealised gains that may one day be realised) and finally agency costs that may vary according to the agency issues or conflicts that may occur due to different interests between agents (those who run the trust) and principals (the shareholders who have an ownership stake in the trust). What is generally observed is that a smaller discount (or even a premium) will be displayed when investment trusts are nearing their winding-up, or are about to undergo some corporate activity, such as a merger/takeover.
     
    10/09/2021 - 09/09/2022
    20/05/2022
    Testing
  • Technology in Investment Management V11

    Technology in Investment Management V11
    Technology in Investment Management V11

    The following updates have been made to your workbook edition.

    Chapter 1, Section 3.2.4, Example – Bonds’ text has been amended to read:

    The Cable and Wireless 4% Convertible Bond maturing 16 July 2025 last paid a coupon on 16 January 2020. On trade date 5 February 2020, for value date 7 February 2020, Investor A sells £100,000 face value of this bond to Investor B at a trade price of 96% of face value. Assuming that there are no commissions or fees, then the consideration that B has to pay A will be calculated as follows:

    Principal amount: £100,000 face value @ trade price 96%     £96,000.00
    Accrued interest: £100,000 face value x 4% for 22 days          £241.10
    Consideration                                                                            £96,241.10

    Chapter 2, Section 1.5, first bullet list’s second bullet point has been amended to read:

    • However, the TCA did not cover any provisions or rules for financial services. This meant that UK firms immediately lost their passporting rights to sell and support services from the UK into the EU from 31 December 2020 (23:00 GMT) onwards.
     
    Chapter 4, Section 3.2.2, second paragraph has been amended to read:

    These MiFID II requirements have been implemented by the FCA within Conduct of Business Sourcebook (COBS) 11.2.14 to 11.2.18 inclusive.
     
    Chapter 4, Section 3.3.2, Example – More Complex Agency Trade’s alpha list’s third and eighth letter has been amended to read:

    c. 20 February – ABC sends a confirmation to DEF confirming that it has bought 500,000 Sony Corp on the Tokyo Stock Exchange at JPY6,450 per share, and giving details of the commission due and net proceeds payable by the investor on 22 February.

    h. 21 February – ABC sends a confirmation to DEF confirming that it has bought 500,000 Sony Corp on the Tokyo Stock Exchange at JPY 6,684 per share, and giving details of the commission due and net proceeds payable by the investor on 23 February.

    Chapter 4, Section 3.3.2, Example – Principal Trade’s text has been amended to read:

    ABC’s confirmation to Megabank:

    Trade date: 20 February
    Value date: 22 February

    Chapter 5, Section 1.4.2, table’s third row has been amended to read:

    CUSIP

    code

    A1234R56

    Committee on Uniform Security Identification Procedures (CUSIP) is the coding system used by exchanges and clearing houses in the US and Canada.

    North American markets only.

    Chapter 5, Section 1.4.3, Example table’s first row has been removed and has been amended to read:

    Instrument

    Quantity

    Price

    Price

    Multiplier

    Price Divisor

    Principal

    Amount

    Pound share

    1,000

    98

    1

    1

    98,000

    Bond

    1,000,000

    98

    1

    100

    980,000

    T-bond future

    10

    98

    1,000,000

    400

    2,450,000

    Chapter 5, Section 1.5.1, The Legal Entity Identifier (LEI)’s second bullet list has been amended to read:

    The LEI is compiled as follows:
    • characters 1 to 4 identify the LOU that issued the LEI
    • characters 5 and 6 are reserved
    • characters 7 to 18 are the unique alphanumeric string assigned to the organisation by the LOU
    • the final two characters are checksum digits. 
     

    Chapter 6, Section 4.1.1, Definition has been amended to read:

    Definitions

    Accrual is an accounting term. It is defined as a method of accounting in which each item is entered as it is earned or incurred, regardless of when actual payments are received or made. Accrued interest is defined as the interest that has accumulated on a transaction since the last interest payment date or start date, up but not including the value date. 

    Chapter 6, Section 5.6’s title and first paragraph has been amended to read:

    5.6   Financial Information eXchange (FIX) Protocol

    The Financial Information eXchange (FIX) protocol was initiated in 1992 by a group of institutions and brokers interested in streamlining their trading processes. It is an open message standard, controlled by no single entity, that can be structured to match the business requirements of each firm. At the time that the FIX protocol was founded, institutions and brokers that were not banks had only recently become eligible to join SWIFT, and the founding firms were not satisfied with the ISO 7775 securities messages that were then available on the SWIFT network.
     
    Chapter 6, Section 5.8, first paragraph has been amended to read:

    XBRL is an acronym for Extensible Business Reporting Language. This is an XML message standard for exchanging information about corporate data such as balance sheets and profit and loss accounts between the company concerned and its auditors, regulators, customers, research analysts and other interested parties. XBRL standards are compatible with ISO 20022.
     
    Chapter 8, Section 1.2.4, seventh paragraph has been amended to read:

    However, there are various software products that can be purchased that allow non-technical users to develop reports over a database (without the need to write complex SQL programs). The most common relational database products are ORACLE, IBM’s DB2, Sybase, Microsoft’s SQL-Server and the opensource product MySQL (which is now owned by ORACLE). 
     
    Chapter 8, Section 3.3.4, Level 3 – Service Specialists has been amended to read:

    Service specialists should normally be hidden from the user, letting the analysts handle interaction with the users. Knowing the identity of the level 3 service specialist of the day should not be necessary for the second level support, as second level resources should have an internal mechanism to escalate to the right person via impersonal email accounts or service boxes. When a specific problem with a service has been identified, the service specialists (level 3) should inform level 2 (analysts) of problem repercussions
    and the likely timescale for returning to a normal production environment.

    Any major anticipated system changes should be announced by the service specialists to the users and the second level analysts in a timescale according to the relevant rules, together with the documentation, tools and assistance to handle any additional questions.

    The time for service incidents being satisfied should be recorded and any incidents that took an unacceptable amount of time to be resolved might need to be recorded in a specific report to be reviewed by level 4 management. 

    Chapter 9, Section 4.3.1, third paragraph has been amended to read:

    The Guide recognises 44 processes that fall into five basic process groups and ten knowledge areas that are typical of almost all projects. The five process groups are:

    Glossary, FIX Protocol has been amended to read:

    FIX Protocol
    The Financial Information eXchange (FIX) protocol was initiated in 1992 by a group of institutions and brokers interested in streamlining their trading processes. It is an open message standard controlled by no single entity, that can be structured to match the business requirements of each firm.
     

     


     

    11/05/2022 - 10/05/2023
    15/04/2022
    Testing
  • Fundamentals of Financial Services V5

    Fundamentals of Financial Services

    The following update has been made to your ebook edition.

    Chapter 2, Section 3, Exercise 2 – The table in the answer has changed to:

    Investments

    Risk ranking (where 1 is the highest risk and 6 the lowest risk)

    US government bonds

    6

    Equities issued by a start-up company

    2

    Equities issued by a large, well-established company

    3

    Bonds issued by a large, well-established company

    4

    Bonds issued in US dollars by a country with a stuttering economy and unstable government

    5

    Roulette wheel at a casino

    1

    01/08/2021 - 31/07/2023
    25/03/2022
    Testing

Level 3 IOC

Exam Name & Syllabus version
Update/Development
Action Effective From/To
Date Posted
  • UK Financial Regulation V29

    UK Financial Regulation V29
    01/04/2022 - 31/03/2023
    08/02/2022
    Testing
  • Global Financial Compliance (Arabic)

    Global Financial Compliance (Arabic)

    Global Financial Compliance (Arabic) Ed1 & Ed2
    Chapter 1, Section 1-6-4
    Page 30
    There is a typo in the word “not” in the first line of the paragraph, this should be removed from the Arabic to reflect the correct meaning.

    04/03/2022 - 31/01/2023
    04/01/2022
    Testing
  • Global Securities Operations

    Global Securities Operations (Ed17)
    The following updates have been made to your workbook edition.

    Chapter 1, Section 11 has been amended to read:

    So if a broker-dealer receives a customer order to purchase 500 shares of ABC Corporation at US$100
    per share, the broker-dealer would execute the order for 500 shares of ABC Corporation at US$100 per
    share by buying it from a seller in the market. Since both transactions were executed at exactly the same
    terms, this would be classified as riskless principal transaction.
    Note that the customer, however, would typically have to pay commissions to the broker-dealer, unless
    the commissions had been waived (which may be the case in certain commission-free trading platforms).

    Chapter 4, section 8, last subheading has been amended to read:

    First Green UK Savings Bond
    In 2021, the government-backed National Savings & Investments (NS&I) launched its first green bond with a fixed rate of 0.65% over three years.

    Proceeds earned on the bonds will be used to fund government projects, such as green transport infrastructure, renewable energy and pollution prevention. 

    Chapter 6, section 1.4, a new subheading has been added after the last paragraph to read:

    Systematic risk underlies virtually all investment.

    Liquidity Risk
    Liquidity risk is a financial risk concerning how easily a security or financial asset (including investment funds) can be traded quickly, especially when selling an asset to realise cash. It also refers to the ability to sell an asset without impacting the market price. 

    For investment funds, liquidity is generally seen as the ability for the fund to fulfil redemption orders as requested. Authorised funds and those that are less complex would generally carry less liquidity risk, ie, if an asset has a lack of liquidity depth, there is a risk that the price will move significantly, eg, a sale is attempted.
    01/07/2022 - 30/06/2023
    06/06/2022
    Testing
  • International Introduction to Securities & Investment (Kenya) V3

    International Introduction to Securities & Investment (Kenya) V3
    The following update has been made to your workbook edition.

    The Front/Cover page final exam date has been amended to read:

    This workbook relates to syllabus version 3 and will cover examinations from

    2 March 2021 to 20 January 2023


     
    02/01/2021 - 20/01/2023
    27/06/2022
    Testing
  • International Introduction to Securities & Investment V14

    International Introduction to Securities & Investment V14
    The following update has been made to your workbook edition.

    Chapter 7, Section 3.2, last paragraph has been amended to read:

    A number of factors contribute to the extent of the discount which will vary across different investment companies, and have an impact on yield, for example, a discount can enhance the dividend yield of a closed-ended investment trust. There is still much debate about the actual cause of discounts in closed-ended funds, such as investment trust companies. One reason could be a reflection of poor performance in the management of the fund or an overcharge of management fees. The theory that investment
    trusts can trade at a discount if the managers charge a fee has been around since the 1970s. There is a suggestion that if fund managers charge investors a fee but fail to add value to their investments, then the value of the fund is likely to be less than its NAV. Other factors identified as contributing to discounts include the potential for taxes on gains within the fund (unrealised gains that may one day be realised) and finally agency costs that may vary according to the agency issues or conflicts that may occur due to different interests between agents (those who run the trust) and principals (the shareholders who have an ownership stake in the trust). What is generally observed is that a smaller discount (or even a premium) will be displayed when investment trusts are nearing their winding-up, or are about to undergo some corporate activity, such as a merger/takeover.
     
    10/09/2021 - 09/09/2022
    20/05/2022
    Testing
  • Technology in Investment Management V11

    Technology in Investment Management V11
    Technology in Investment Management V11

    The following updates have been made to your workbook edition.

    Chapter 1, Section 3.2.4, Example – Bonds’ text has been amended to read:

    The Cable and Wireless 4% Convertible Bond maturing 16 July 2025 last paid a coupon on 16 January 2020. On trade date 5 February 2020, for value date 7 February 2020, Investor A sells £100,000 face value of this bond to Investor B at a trade price of 96% of face value. Assuming that there are no commissions or fees, then the consideration that B has to pay A will be calculated as follows:

    Principal amount: £100,000 face value @ trade price 96%     £96,000.00
    Accrued interest: £100,000 face value x 4% for 22 days          £241.10
    Consideration                                                                            £96,241.10

    Chapter 2, Section 1.5, first bullet list’s second bullet point has been amended to read:

    • However, the TCA did not cover any provisions or rules for financial services. This meant that UK firms immediately lost their passporting rights to sell and support services from the UK into the EU from 31 December 2020 (23:00 GMT) onwards.
     
    Chapter 4, Section 3.2.2, second paragraph has been amended to read:

    These MiFID II requirements have been implemented by the FCA within Conduct of Business Sourcebook (COBS) 11.2.14 to 11.2.18 inclusive.
     
    Chapter 4, Section 3.3.2, Example – More Complex Agency Trade’s alpha list’s third and eighth letter has been amended to read:

    c. 20 February – ABC sends a confirmation to DEF confirming that it has bought 500,000 Sony Corp on the Tokyo Stock Exchange at JPY6,450 per share, and giving details of the commission due and net proceeds payable by the investor on 22 February.

    h. 21 February – ABC sends a confirmation to DEF confirming that it has bought 500,000 Sony Corp on the Tokyo Stock Exchange at JPY 6,684 per share, and giving details of the commission due and net proceeds payable by the investor on 23 February.

    Chapter 4, Section 3.3.2, Example – Principal Trade’s text has been amended to read:

    ABC’s confirmation to Megabank:

    Trade date: 20 February
    Value date: 22 February

    Chapter 5, Section 1.4.2, table’s third row has been amended to read:

    CUSIP

    code

    A1234R56

    Committee on Uniform Security Identification Procedures (CUSIP) is the coding system used by exchanges and clearing houses in the US and Canada.

    North American markets only.

    Chapter 5, Section 1.4.3, Example table’s first row has been removed and has been amended to read:

    Instrument

    Quantity

    Price

    Price

    Multiplier

    Price Divisor

    Principal

    Amount

    Pound share

    1,000

    98

    1

    1

    98,000

    Bond

    1,000,000

    98

    1

    100

    980,000

    T-bond future

    10

    98

    1,000,000

    400

    2,450,000

    Chapter 5, Section 1.5.1, The Legal Entity Identifier (LEI)’s second bullet list has been amended to read:

    The LEI is compiled as follows:
    • characters 1 to 4 identify the LOU that issued the LEI
    • characters 5 and 6 are reserved
    • characters 7 to 18 are the unique alphanumeric string assigned to the organisation by the LOU
    • the final two characters are checksum digits. 
     

    Chapter 6, Section 4.1.1, Definition has been amended to read:

    Definitions

    Accrual is an accounting term. It is defined as a method of accounting in which each item is entered as it is earned or incurred, regardless of when actual payments are received or made. Accrued interest is defined as the interest that has accumulated on a transaction since the last interest payment date or start date, up but not including the value date. 

    Chapter 6, Section 5.6’s title and first paragraph has been amended to read:

    5.6   Financial Information eXchange (FIX) Protocol

    The Financial Information eXchange (FIX) protocol was initiated in 1992 by a group of institutions and brokers interested in streamlining their trading processes. It is an open message standard, controlled by no single entity, that can be structured to match the business requirements of each firm. At the time that the FIX protocol was founded, institutions and brokers that were not banks had only recently become eligible to join SWIFT, and the founding firms were not satisfied with the ISO 7775 securities messages that were then available on the SWIFT network.
     
    Chapter 6, Section 5.8, first paragraph has been amended to read:

    XBRL is an acronym for Extensible Business Reporting Language. This is an XML message standard for exchanging information about corporate data such as balance sheets and profit and loss accounts between the company concerned and its auditors, regulators, customers, research analysts and other interested parties. XBRL standards are compatible with ISO 20022.
     
    Chapter 8, Section 1.2.4, seventh paragraph has been amended to read:

    However, there are various software products that can be purchased that allow non-technical users to develop reports over a database (without the need to write complex SQL programs). The most common relational database products are ORACLE, IBM’s DB2, Sybase, Microsoft’s SQL-Server and the opensource product MySQL (which is now owned by ORACLE). 
     
    Chapter 8, Section 3.3.4, Level 3 – Service Specialists has been amended to read:

    Service specialists should normally be hidden from the user, letting the analysts handle interaction with the users. Knowing the identity of the level 3 service specialist of the day should not be necessary for the second level support, as second level resources should have an internal mechanism to escalate to the right person via impersonal email accounts or service boxes. When a specific problem with a service has been identified, the service specialists (level 3) should inform level 2 (analysts) of problem repercussions
    and the likely timescale for returning to a normal production environment.

    Any major anticipated system changes should be announced by the service specialists to the users and the second level analysts in a timescale according to the relevant rules, together with the documentation, tools and assistance to handle any additional questions.

    The time for service incidents being satisfied should be recorded and any incidents that took an unacceptable amount of time to be resolved might need to be recorded in a specific report to be reviewed by level 4 management. 

    Chapter 9, Section 4.3.1, third paragraph has been amended to read:

    The Guide recognises 44 processes that fall into five basic process groups and ten knowledge areas that are typical of almost all projects. The five process groups are:

    Glossary, FIX Protocol has been amended to read:

    FIX Protocol
    The Financial Information eXchange (FIX) protocol was initiated in 1992 by a group of institutions and brokers interested in streamlining their trading processes. It is an open message standard controlled by no single entity, that can be structured to match the business requirements of each firm.
     

     


     

    11/05/2022 - 10/05/2023
    15/04/2022
    Testing
  • Derivatives V21

    Derivatives V21
    Derivatives Level 3 Certificates (Ed17)

    Derivatives Level 3 (Ed17) Chapter 8 Section 3.3 Example 4.

    Example 4 should read:

    Example 4 

    A fund manager has a portfolio of top UK equities, currently valued at £15,000,000. He hedges the portfolio by selling 250 FTSE index futures at 7230. The FTSE 100 cash index currently stands at 7785. A day later, the FTSE 100 index has fallen by 25 index points and the futures contract has fallen by 16 points. The outcome for the fund manager is as follows:

    1.            Unhedged equity portfolio value = £15,000,000

    2.            Physical portfolio value on Day 2:

    (7785-25)/7785  x  £15,000,000 =   £14,951,830

    3.            Change in value of physical portfolio =  £14,951,830 -   £15,000,000 =   -£48,170

    4.            Futures on Day 2:   7230 – 16 = 7214

    Futures profit = 250 x  (7230 – 7214) x £10 =   £40,000

    5.            Hedged portfolio value loss = Loss due to change in basis = £40,000 – £48,170 = –£8,170

     

    11/10/2021 - 10/10/2022
    05/10/2021
    Testing

Level 3 Certificates

Exam Name & Syllabus version
Update/Development
Action Effective From/To
Date Posted
  • UK Financial Regulation V29

    UK Financial Regulation V29
    01/04/2022 - 31/03/2023
    08/02/2022
    Testing
  • Securities (Capital Markets Programme)

    Securities (Capital Markets Programme) Ed 17
    Chapter 4, section 3.1, page 117

    The expected market capitalisation of the company should be at least £700,000 for the company’s shares to be listed.

    At least 25% of the company’s shares should be in public hands, or be available for public purchase.

    In order to reflect updated market regulation the above has been amended to the following:

    The expected market capitalisation of the company should be at least £30 million for the company’s shares to be listed.

    At least 10% of the company’s shares should be in public hands, or be available for public purchase.

    Please note the following amendments to the figures in the example table in Chapter 2, Section 2.2.2. (p.24)

    Stock Name

    Redemption

    Price

    Flat Yield

    GRY

    7.625% Treasury

    5 years

    120

    6.35%

    3.23%

    6.875% Treasury

    5 years

    116

    5.93%

    3.35%

     

     

     

     

     

    22/03/2022 - 21/03/2023
    03/05/2022
    Testing
  • Corporate Finance Technical Foundations V12

    Corporate Finance Technical Foundations V12

    The following update has been made to your ebook edition.

    Chapter 1, Section 1 - The first numbered list has been amended as shown below:

    The key principles of financial mathematics (or quantitative methods) can be summarised in the following three aphorisms:

    1. Don’t put all your eggs in one basket.
    2. A bird in the hand is worth two in the bush.
    3. There's no such thing as a free lunch. 
    11/04/2022 - 10/04/2023
    25/03/2022
    Testing
  • Derivatives V21

    Derivatives V21
    Derivatives Level 3 Certificates (Ed17)

    Derivatives Level 3 (Ed17) Chapter 8 Section 3.3 Example 4.

    Example 4 should read:

    Example 4 

    A fund manager has a portfolio of top UK equities, currently valued at £15,000,000. He hedges the portfolio by selling 250 FTSE index futures at 7230. The FTSE 100 cash index currently stands at 7785. A day later, the FTSE 100 index has fallen by 25 index points and the futures contract has fallen by 16 points. The outcome for the fund manager is as follows:

    1.            Unhedged equity portfolio value = £15,000,000

    2.            Physical portfolio value on Day 2:

    (7785-25)/7785  x  £15,000,000 =   £14,951,830

    3.            Change in value of physical portfolio =  £14,951,830 -   £15,000,000 =   -£48,170

    4.            Futures on Day 2:   7230 – 16 = 7214

    Futures profit = 250 x  (7230 – 7214) x £10 =   £40,000

    5.            Hedged portfolio value loss = Loss due to change in basis = £40,000 – £48,170 = –£8,170

     

    11/10/2021 - 10/10/2022
    05/10/2021
    Testing

Publications & Elearning

Exam Name & Syllabus version
Update/Development
Action Effective From/To
Date Posted

Qualifications Bulletin

The bulletin is a quarterly email sent to all interested parties to provide an update on key areas relating to qualifications.

You can view past bulletins below and if you would like to receive the bulletin regularly please login to My CISI and set your email preference to opt in.

Narrative


Exam Name & Syllabus version
Update/Development
Action Effective From/To
Date Posted
  • Advanced Financial Planning V2 and V3

    Advanced Financial Planning V2 and V3
    For the March and September 2022 Advanced Financial Planning exams, questions will be based on the 2021-2022 tax rates.
    02/03/2022 - 07/09/2022
    28/02/2022
    Testing
  • Financial Plan Case Study V3

    Financial Plan Case Study V3
    22/12/2021 - next edition
    22/12/2021
    Testing
  • All Summer 2022 narrative exams

    Corporate Finance Techniques & Theory V9
    Corporate Finance Strategy & Advice V9
    Regulation & Compliance V9
    Pension Transfers & Planning Advice V5
    Bonds & Fixed Interest Markets
    Fund Management
    Private Client Investment Advice & Management V8
    Financial Markets V10
    Portfolio Construction Theory V8
    Advanced Global Securities Operations V8
    Applied Wealth Management V8
    Global Operations Management V7
    For the June 2022 narrative exams, questions will be based on the 2021-2022 tax rates.
    14/06/2022 - 17/06/2022
    28/02/2022
    Testing
  • Regulation & Compliance V9

    Regulation & Compliance V9
    The following update has been made to your workbook edition. 

    Chapter 6, End of Chapter Questions – the following text has been removed:

    End of Chapter Questions

    Think of an answer to each question and refer to the appropriate section for confirmation.

    1. What is the meaning of ‘compliance risk’?
                Answer Reference: Section 1
    2. What is meant by the compliance function being independent?
                Answer Reference: Section 1.3, 1.5 and Guideline 8
    3. Why should a firm have a compliance monitoring programme, what is its purpose and aim?
                Answer Reference: Section 1.5 and Guideline 2
    4. What is the purpose of mandatory compliance reports?
                Answer Reference: Section 1.5 and Guideline 3
    5. What CISI Code of Conduct principle is where the key stakeholder is the client?
                Answer Reference: Section 2.4.1
    Chapter 2, Section 15.4.12 – this text has been amended to include:

    Cryptoassets 
    A cryptoasset is understood to be a digital representation of value or contractual rights that can be transferred, stored or traded electronically, and which may (though does not necessarily) utilise cryptography, distributed ledger technology or similar technology. The term ‘token’ is used interchangeably with ‘cryptoasset’ hereafter.

    Cryptoassets could fulfil a diverse set of functions, ranging from the trading of digital collectibles to raising capital for new projects. No internationally agreed taxonomy or classification of cryptoassets exists. In 2019, the Financial Conduct Authority (FCA) published its ‘Guidance on Cryptoassets’ which described the following broad categories of token in relation to how they fit within existing FCA regulation: e-money tokens, security tokens and unregulated tokens.

    • e-money tokens meet the definition of electronic money in the Electronic Money Regulations 2011 (EMRs) – broadly, digital payment instruments that store value, can be redeemed at par value, at any time and offer holders a direct claim on the issuer 
    • security tokens have characteristics akin to specified investments, like a share or a debt instrument, as set out in UK legislation. Broadly, these are likely to be tokenised, digital forms of traditional securities. As with e-money tokens, these are already within the UK’s regulatory perimeter and therefore subject to FCA regulation 
    • unregulated tokens are neither e-money tokens nor security tokens and include: 
     utility tokens – tokens used to buy a service, or access a DLT platform – this could, for example, include access to online cloud storage, and 
     exchange tokens – tokens that are primarily used as a means of exchange – this includes widely known cryptoassets such as Bitcoin, Ether and XRP.

    The term ‘stablecoins’ is an evolution of cryptoassets, which seek to minimise volatility in value. Depending on design, stablecoins currently fall into any of the categories set out above – though are currently more likely to be unregulated exchange tokens or e-money tokens. Stablecoins aim to maintain stability in their price, typically in relation to stable assets such as fiat currency. Examples include Tether, Paxos or USD coin.

    In 2019, the FCA published a consultation on prohibiting the sale to retail clients in investment products that references cryptoassets. 

    The FCA published a policy statement with final rules in October 2020, prohibiting the marketing, distribution and sale in or from the UK to retail clients, of derivatives and exchange-traded notes (ETNs) that reference certain types of unregulated transferable cryptoassets. 

    In July 2020, HM Treasury published a consultation on the promotion of cryptoassets. The consultation sought industry views on a proposal to bring the promotion of certain types of cryptoassets within the scope of financial promotions regulation. The intention being to enhance consumer protection, while continuing to promote responsible innovation. This consultation closed in October 2020.

    The government has identified that many of the unregulated cryptoassets expose consumers to unacceptable levels of risk. The following are three areas that they see as priority for action to be taken: 

    • consumer protection
    • financial crime. and
    • market integrity.

    The HM Treasury made a statement on 18 January 2022 that they are planning to strengthen the rules on cryptocurrency advertisements and protect consumers from misleading claims. The statement lists the following:
    • the government plans to legislate to address misleading cryptoassets promotions
    • adverts will be brought into line with other financial advertising, ensuring they are fair and clear
    • new rules will increase consumer protection while encouraging innovation.

    The Chancellor of the Exchequer stated:

    ‘Cryptoassets can provide exciting new opportunities, offering people new ways to transact and invest – but it’s important that consumers are not being sold products with misleading claims. We are ensuring consumers are protected, while also supporting innovation of the cryptoasset market.’

    The Advertising Standards Authority (ASA) recently published a webpage with advice on adverts for ‘Cryptosassets’. The webpage provides advice for advertisers, and includes recent case law examples:

    • Regulation of cryptoassets
     clearly stating that they are not regulated by the FCA and do not fall under the FSCS or the FOS
     including recent case law where adverts did not make it clear that the product was not regulated in the UK, ruling that these adverts should have included a statement to the effect that made this clear.
    • Do not take advantage of consumers’ inexperience or credulity.
    • Include all relevant material.
    • Make clear that the value can go down as well as up.
    • State the basis used to calculate any projections or forecasts.
    • Make clear that past performance is not a guide for future performance.

    [source of information: ASA website www.asa.org.uk]

    In February 2022, the Financial Stability board (FSB) published a paper titled “Assessment of risk to Financial stability from Crypto-assets”, providing an updated assessment on the risks from cryptoassets to financial stability.

    The report focuses on vulnerabilities relating to three segments of the cryptoasset markets:

    • unbacked cryptoassets (such as Bitcoin),
    • stablecoins, and
    • decentralised finance (DeFi) and cryptoasset trading platforms.

    The FSB concluded that cryptoassest markets are fast evolving and that, at some point in the future, they could pose a threat to global financial stability. In addition, due to their evolution and international nature of these markets, they could bring about the potential for regulatory gaps, fragmentation or arbitrage. 

    Areas the FSB identified for ongoing vigilance include:

    • Potential increasing bank sector involvement in the cryptoasset eco-system, especially where activities give rise to balance sheet exposure to cryptoassets, not captured by (or not in compliance with) appropriate regulatory treatment. 
    • Institutional investors increasing their exposures to cryptoassets relative to the size of their portfolios. Risks could increase further if such exposures employ high levels of leverage, including through the use of derivatives referencing cryptoassets. 
    • Acceleration in adoption of cryptoassets for payments. This could happen via partnerships with established payment firms or retailers/social networks. 
    • The growth, role and risks associated with cryptoasset trading platforms. Losses in cryptoassets, where accompanied by leverage, liquidity mismatch and interconnections with the traditional financial system, may amplify systemic risk arising from wealth effects. Loss of confidence in stablecoins could also trigger sales of their reserve assets, potentially affecting the functioning of short-term funding markets.
    • A rapid growth of DeFi, in the absence of clearly identifiable intermediaries or parties responsible for governance, challenges core financial (stability) regulatory and supervisory disciplines and doctrines. Differing regulatory approaches could lead to regulatory arbitrage, thus increasing potential systemic risks. 
    • Data gaps impeding risk assessment and calibration of policy options.

    The FSB noted that they will continue to monitor developments and risks in cryptoasset markets, explore potential regulatory and supervisory implications of unbacked cryptoassets, including actions jurisdictions have taken, or plan to take, to address financial stability during 2022. 

    They will also continue to monitor and share information on regulatory and supervisory approaches to ensure effective implementation of their high-level recommendations for the regulation, supervision and oversight of “global stablecoin” arrangements.

    [source of information – FSB website www.fsb.org] 
    15/06/2022 - 06/06/2023
    15/02/2022
    Testing
  • Advanced Financial Planning V2

    Advanced Financial Planning V2
    Chapter 3 Section 7.5 (p.151)
    Text amended to read “Let’s assume that an individual wants to buy a car worth £20,000 and the interest rate is 3% pa.”

    Chapter 4 Section 1.2 (p.165)
    PPR exemption period amended from 18 months to 9 months.

    Chapter 4 Section 1.12 (pp.180-81)
    1.    Child Benefit 2020-2021 amended to £1,094.60
    2.    Child Benefit income tax charge (1% × £1,094.60 × 20) = £218.92

    Chapter 5 Section 2.2.4 (p.221)
    Formula amended to read:

    Solution
    Expected portfolio return = (0.4 × 10%) + (0.6 × 12%) = 11.2%
    Variance = (0.4)² x (0.08)² + (0.6)² x (0.1)² + (2 x 0.4 x 0.6 x 0.08 x 0.1) x 0.87
    = (0.16 x 0.0064) + (0.36 x 0.01) + 0.00384 x 0.87
    = 0.001024 + 0.0036 + 0.0033408
    = 0.0079648
    Standard deviation = √0.0079648
    = 0.08924
    09/04/2021 - tbc
    09/04/2021
    Testing
  • Level 6 Certificate in Private Client Investment Advice and Management V8

    Level 6 Certificate in Private Client Investment Advice and Management V8

    The following update has been made to your workbook edition.

    Chapter 7, Section 6.1.2’s example has been amended to read:

    Example

    A portfolio was worth £30,000 at the start of the calendar year and £34,000 at the end of the calendar year. During that year, an additional £4,000 had been invested at the end of April and £1,000 withdrawn at the end of October.  There was an income payment of £150 during the year. The MWR would be:

    D + V1 – V0 – C
    V0 + (C1 x n/12) + (C2 x n/12)

    There has been a net cash inflow of £3,000 during the year (£4,000 – £1,000), so C = £3,000.

    150 + 34,000 – 30,000 – 3000                  =                  1,150     

    30,000 + (4,000 x 8/12) + (–1,000 x 2/12)         30,000 + 2,666.67 – 166.67 

    = 0.0354 or 3.54%

    16/06/2022 - 30/11/2022
    11/05/2022
    Testing
  • Pension Transfers & Planning Advice V 1

    Pension Transfers & Planning Advice V 1
    16/05/2018 - 31/12/2025
    16/05/2018
    Testing
  • Applied Wealth Management V 5

    Applied Wealth Management V 5
    Applied Wealth Management Edition 5 Workbook

    Chapter 10, section 1.8.4

    The rules regarding dying intestate have been amended as below and differ from what appears in the Applied Wealth Management Edition 5 workbook.

    For the June 2018 exam, both what appears in the workbook and the new rules will be accepted.
    Married partners or civil partners inherit under the rules of intestacy only if they are actually married or in a civil partnership at the time of death. So if you are divorced or if your civil partnership has been legally ended, you can’t inherit under the rules of intestacy.
    Partners who separated informally can still inherit under the rules of intestacy. Cohabiting partners (sometimes wrongly called `common-law` partners) who were neither married nor in a civil partnership cannot inherit under the rules of intestacy.
    If there are surviving children, grandchildren or great grandchildren of the person who died and the estate is valued at more than £250,000, the partner will inherit:
    • all the personal property and belongings of the person who has died, and
    • the first £250,000 of the estate, and
    • half of the remaining estate.
    If there are no surviving children, grandchildren or great-grandchildren, the partner will inherit:
    • all the personal property and belongings of the person who has died and
    • the whole of the estate with interest from the date of death.
    16/05/2018 - 31/12/2025
    16/05/2018
    Testing
  • Diploma in Corporate Finance: Corporate Finance Strategy & Advice V 1a

    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.

    Corporate Finance Strategy and Advice Ed1 Addendum October 2021
    02/09/2013 - ongoing
    17/10/2013
     
    Testing
  • Diploma in Corporate Finance: Corporate Finance Techniques & Theory V 1a

    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
    Testing
  • Financial Markets Edition 9

    Financial Markets Edition 9
    Financial Markets

    The following update has been made to your workbook edition.

    Syllabus Learning Map – Reading List – this text has been amended to read:

    1. ISE Essentials of Investments (IRWIN FINANCE) – 2021 by Zvi Bodie Professor, Alex Kane, et al. 4 Jan 2021

    2. Navigating the Street: A Better Approach to Investing 2021 by Guy Davis & David Shahrestani, Indep Published

    3. Essential Economics for Business – 2019 by John Sloman – Pearson

    4. Analysing Financial Performance: Using Integrated Ratio Analysis, 1st Ed, Nic La Rosa , Routledge

    5. Ratio Analysis: Financial Ratios, Kindle Edition, 2020 Raj Kumar Sharma – Indep Published

    6. Financial Shenanigans, 4th Ed: How to Detect Accounting Gimmicks and Fraud in Financial Reports  – 2018 – McGraw Hill – 2018 by Howard Schilit, Jeremy Perler, Yoni Engelhart

    7. Bond Markets, Analysis, and Strategies, 10th edition 2021 Frank J. Fabozzi and Francesco A. Fabozzi – MIT Press

    8. Options, Futures, and Other Derivatives, Global Edition by John Hull 17 Jun 2021 – Pearson

    9. Derivatives: Theory and Practice of Trading, Valuation, and Risk Management (Springer Texts in Business and Economics) – 2020 Jiří Witzany

    10. Green Investment: A comprehensive Guide, Kindle Edition, 2020 Urs Markwalder – MAM Media

    11. Inefficient Markets ‘an Introduction to Behavioral Finance‘ (C.L.E.): An Introduction to Behavioural Finance (Clarendon Lectures in Economics) 2000 Andrei Shleifer

    12. Understanding Financial Risk Management – 2019 by Angelo Corelli – Emerald Publishing

    13. Fundamentals of Financial Instruments: An Introduction to Stocks, Bonds, Foreign Exchange, and Derivatives (Wiley Finance) by Sunil K. Parameswaran, 28 Mar 2022

    14. The Structure and Regulation of Financial Markets, 14 December 2000 by Peter D. Spencer – Oxford Press

     

    16/06/2022 - 30/12/2022 
    20/12/2021
    Testing

Level 4 Investment Advice Diploma

Exam Name & Syllabus version
Update/Development
Action Effective From/To
Date Posted
  • Economics and Markets for Wealth Management V2

    Economics and Markets for Wealth Management V2

    The following update has been made to your workbook edition.

    Chapter 3, Section 1.4.5 - The calculation under ‘Real Returns’ has been amended as shown below:



    Chapter 4, section 5.3 – The table has been amended as shown below:

    Chapter 4, section 7.3.2 – The table has been amended as shown below:



    Chapter 6, section 5.5.3 – The following calculations have been amended as shown below:

      

    21/12/2021 - 20/12/2023
    12/04/2022
    Testing
  • Derivatives (Investment Advice Diploma)

    Derivatives (Investment Advice Diploma) (Edition 11)

    In reference to time limits on block trading covered on p.92 and p.125, the following update has been made to the current edition of the workbook (Ed12):

    Only energy and softs must be reported within 5 minutes. Nearly all other types fall into 15 minutes or 1 hour limits.

    31/12/2021 - 30/12/2022
    10/12/2021
    Testing
  • UK Regulation & Professional Integrity V14

    UK Regulation & Professional Integrity V14

    The following amendment has been made to Chapter 10, Section 3.5.1, sub bullet point 2

    • the size of the client’s financial portfolio exceeds €500,000 (defined as including cash deposits and financial instruments)

    Chapter 10, Section 4.1.7– this text has been amended to read:

    Firms must provide retail clients with information on the costs and charges to which they will be subject in respect of both investment services and/or financial instruments, including ancillary services (MiFID II applied these requirements to ECPs and professional clients, however this was removed by HM Treasury from July 2021 as part of the UK’s MiFID Quick fix package).

    Relevant costs and charges include:

     • the total price to be paid, including all related fees, commissions, charges and expenses and any taxes payable via the firm

    • if these cannot be indicated at the time, the basis on which they will be calculated so that the client can verify them

    • the commissions charged by the firm must be itemised separately in every case

    • if the above are to be paid in a foreign currency, what currency is involved and the conversion rates and costs

    • if other costs and taxes not paid or imposed by the firm could be applicable, the fact that this is so;

    • how the above items are to be paid/levied

    • information about compensation schemes.

    12/03/2022 - 11/03/2023
    08/02/2022
    Testing
  • Financial Planning & Advice V5

    Financial Planning & Advice V5
    The following update has been made to your workbook edition.

    Chapter 2, Section 4.8.1’s second example has been amended to read:

    Example

    Carly invested in an onshore SPLAB just over five years ago. On encashment today, she realised a chargeable gain of £50,000. Carly’s only other taxable income (ie, after allowances) is her £30,000 salary.

    Step 1 – Carly’s total taxable income and resulting tax bill

    • Salary falling in basic rate tax band – £30,000 @ 20% = £6,000
    • Gain falling in personal savings allowance – £500 @ 0% = £0
    • Gain falling in remaining basic rate tax band – £7,200 @ 20% = £1,440
    • Gain falling in higher rate tax band – £42,300 @ 40% = £16,920
    • Total income tax = £18,360

    Step 2 – Tax due on Carly’s £50,000 gain

    • Tax on gain – £1,440 + £16,920 = £18,360
    • Less, basic rate tax deducted at source (£50,000 @ 20%) = £10,000
    • Tax remaining = £8,360

    Step 3 – Annual equivalent

    • £50,000 / 5 (complete policy years) = £10,000

    Step 4 – Tax on annual equivalent of £10,000

    • Gain falling in personal savings allowance – £500 @ 0% = £0
    • Gain falling in remaining basic rate tax band – £7,270 @ 20% = £1,454
    • Gain falling in higher rate tax band – £2,230 @ 40% = £892
    • Tax on annual equivalent – £1,454 + £892 = £2,346
    • Less, basic rate tax deducted at source (£10,000 @ 20%) = £2,000
    • Tax remaining = £346
    • Multiply back up by 5 (complete policy years) = £1,730

    Step 5 – Top-slicing relief given

    • Step 2 minus Step 4
    • £8,360 – £1,800 = £6,560

    Carly’s liability after top-slicing relief is therefore £7,800. From her total liability to tax of £24,360 (Step 1), we deduct the £6,560 top-slicing relief (Step 5) and the basic rate tax credit of £10,000 (£50,000 @ 20%), leaving £7,800. If Carly had taken out an offshore bond, the five-step process to follow is identical, except that we only deduct the top-slicing relief from her total tax liability at the very end of our calculation. There is no deduction for the basic rate tax credit.

    Chapter 1, Section 2.2, fifth paragraph has been amended to read:

    Assessing a client’s appetite for risk, and matching it to their objectives, is a fundamental part of financial planning. Typically, the higher the risk taken, the greater the potential financial return. There is a direct relationship between risk and return, known as the risk-return trade off.
     
    Chapter 4, Section 1.1.2, first paragraph has been amended to read:

    The client’s ability to take on risk is, in theory, positively correlated to their time horizon; this essentially means that the younger they are, the more risks their portfolio should be able to tolerate. The client’s willingness and capacity to assume risk is based on their financial situation as discussed in chapter 1.
    Chapter 4, Section 1.3.5 has been amended to read:

    With a LISA, any contribution made by the individual will be matched with a 25% top-up from the government. With the maximum allowance for 2021–22 being £4,000, this means that the maximum contribution by the government is £1,000. The bonus is given on contributions made until the investor is 50, and the plan is designed to provide a retirement fund or to be used to buy a property. If the cash is withdrawn before the age of 60, other than to use as a deposit for a first home, the bonus plus any interest and growth on that bonus is lost and usually a withdrawal charge of 25% of the amount withdrawn is imposed. This penalty took effect from April 2018. The withdrawal charge was temporarily reduced from 25% to 20% from 6 March 2020 to 5 April 2021 as a result of the coronavirus (COVID-19) pandemic.
     

     
    01/10/2021 - 30/09/2022
    03/06/2022
    Testing