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

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

Technology in Investment Management V12

Technology in Investment Management V12

The following update has been made to your workbook edition:

Chapter 6, Section 4.1. The correct diagram reference has been amended to read as follows:

Let us look again at the systems architecture diagram of a typical investment bank that we first saw in chapter 5, section 1.3.”

11/05/2023 - 10/05/2025
20/09/2023

Testing
UAE Financial Rules & Regulations Edition 4

UAE Financial Rules & Regulations Edition 4
The following updates have been made to your workbook edition:
This learning manual relates to syllabus version 4.0 and will cover exams from 10 September 2023 and 30 November 2025.
Chapter 1, Section 1.1.1 has been amended to read:
The SCA is managed by a board of directors, and the board is based on a resolution from the Cabinet of Ministers. The resolution of the Cabinet of Ministers determines the chairman of the board, the remunerations of the board members, the mechanism for holding meetings and taking decisions.
• The period in office – with the exception of the chief executive, SCA board members are appointed for four years, renewable once. In the event of a member stepping down prior to the end of that member’s term, a successor will be appointed for the remaining period of the original term.
• Ownership of securities – upon joining the board, every member has to declare to the SCA the securities owned by themselves, their spouse and minor children as well as any holdings with any broker. In addition, any changes in these holdings during their period in office need to be declared within one week after they are made aware of the change. All declarations need to be made in writing.
• Immediate termination of membership – members have to forfeit their membership in the following events:
• Conviction of an offence of dishonour or breach of trust.
• Bankruptcy.
• Failure to attend three consecutive meetings without an acceptable excuse.
• Validity of board meetings – board meetings are deemed valid if they are attended by the majority of the members. The chairman, or their deputy has to be in attendance.
• Resolutions – passed by a majority of the votes of the members present at the meeting. In the event the vote is undecided (ie, for and against have the same number of votes), the person chairing the meeting has the deciding vote.

MCQs, Answer 10:

The amended answer now reads as follows:

10. A Chapter 2, Section 2.2
The Authority’s initial licence approval requirements for financial eligibility include not having repeatedly had returned cheques.

10/09/2023 - 30/11/2025
06/06/2024

Testing
Investment Management (Level 4) Edition 3

Investment Management (Level 4) Edition 3
The following update has been made to your workbook edition:

Chapter one title has updated from “Economics” to “The Investment Management Industry”.
Addendum
Page no.387, MCQs, Question no.27, amended to read as follows:
Page no.397, MCQs, Question No.75, amended to read as follows:
Page No.404, Question no.27, amended to read as follows:
Page no.85, Chapter 1, End of Chapter Questions, Question no.23, amended to read as follows:
Page no.137, Chapter 2, End of Chapter Questions, Question no.4, 5 and 6, amended to read as follows.
Page No.231, chapter 4, the equation at the end of section 6.5.2, amended to read as follows:
Page no.242, Chapter 4, The beginning of the section 6.9.3, amended to read as follows:
Page no.298, Chapter 5, section 4.1.1, last row table header amended to read as follows:
Page 399, MCQ Question no.80, the first answer amended to read as follows:
Page 412, MCQ, Question No.75, Answer reference amended to read as follows:
Page 413, MCQ, Question No.79, the numeral in the third column (Covariance (B4) amended to read as follows:
Page no.77, Chapter 1, Section 7.3.2- the third raw of the table amended to read as follows.
Page no.242, Chapter 4, Section 6.9.3, amended to read as follows.

11/12/2022 - 19/09/2025
13/12/2024

Testing
International Introduction to Securities & Investment V17

International Introduction to Securities & Investment V17
The following updates have been made to your workbook edition:
Chapter 3, Section 3.2.5, sixth paragraph has been amended to read:
Shares are bought and sold with the right to receive the next declared dividend up to the date when ownership is recorded. The record date is announced (declared) on the declaration date some time before. From the declaration date to the record date, the shares are described as cum-dividend. If the shares are purchased cum-dividend, the purchaser will receive the declared dividend. For the period after the record date, the shares go ex-dividend. Buyers of shares when they are ex-dividend are not entitled to the declared dividend.
Chapter 4, Section 5.1, text from the second paragraph following the chart has been removed and now reads:

The bank receives the proceeds of the sale which it can then use to finance other lending. The investor receives a bond that has the security of asset backing and credit enhancements and on which they will receive periodic interest payments until its eventual repayment.
Chapter 7, Section 5.1, the fourth and fifth bullet point in the bullet list has been amended to read:

• Gearing – many hedge funds can borrow funds and use derivatives to potentially enhance returns. Sometimes also referred to as leverage.
• Liquidity – to maximise the hedge fund manager’s investment freedom, hedge funds usually impose an initial ‘lock-in’ period of between one and three months before investors can sell their investments on. This allows the fund manager to increase the notional market exposure (for example, through using derivatives or carry trades). That exposure to the market can then be at many multiples to the cash (nominal) value of the investment.
Chapter 9, Section 2.2, the last paragraph has been amended to read:
To make comparisons easier, lenders must quote the true cost of borrowing, embracing the EAR and including any fees that are required to be paid by the borrower. This is known as the annual percentage rate (APR). The additional fees that the lender adds to the cost of borrowing might be, for example, loan arrangement fees. However, it should be noted that the terms used to describe the EAR may differ globally. The APR will vary between lenders, all of whom have to advise customers as to what their APR is before agreements are signed.
10/09/2024 - 09/09/2025
03/02/2025

Testing
Fundamentals of Credit Risk Management (Africa) Ed1.5 V3

Fundamentals of Credit Risk Management (Africa) Ed1.5 V3
The following update has been made to your workbook edition.

The edition number and final exam date in the front cover has amended to read:
Edition 1.5
Covering exams from
29 October 2018 to 30 June 2025

29/10/2018 - 30/06/2025
29/11/2024

Testing
Global Financial Compliance (V11)

Global Financial Compliance (V11)
The following updates have been made to the workbook edition.

The end of chapter questions of chapters 1-5 have been amended as follows:

Chapter 1- End of Chapter Questions

2. State the main differences between rules-based and principles-based approaches to regulation.
Answer reference: Sections 1.3
6. State the key policy goals of MiFID II.
Answer reference: Section 1.5.2

7. List how the Market Abuse Regulation (MAR) applies to financial instruments to increase market integrity and investor protection.
Answer reference: Section 1.5.2

8. What does Section 404 of the Sarbanes-Oxley (SOX) Act require publicly registered US companies to do?
Answer reference: Section 1.5.2

9. What is the definition of payment services?
Answer reference: Section 1.5.2

10. What is the punishment for defrauding securities investors?
Answer reference: Section 1.5.2

11. How is AMLD best described?
Answer reference: Section 1.5.2

3. What is counterparty risk?
Answer reference: Section 1.7.2
14. How do regulators approach Fintech?
Answer reference: Section 1.8.1
Additionally, the question numbering has been changed from Question 10-24.
Chapter 2- End of Chapter Questions
2. Who is responsible for establishing a written compliance policy containing the basic principles followed by management and staff?
Answer reference: Section 1.1.2
3. What is the purpose of the compliance manual?
Answer reference: Section 1.2.1
4. What are the three key stages involved in a risk-based approach to a monitoring programme?
Answer reference: Section 1.4
Additionally, the question numbering has been changed from Question 3-10.
Chapter 3- End of Chapter Questions
2. What is the purpose of the Financial Action Task Force (FATF)?
Answer reference: Section 1.3.3
3. Give two examples of predicate offences in financial crime.
Answer reference: Section 1.3.4
4. How does a Ponzi scheme work?
Answer reference: Section 1.3.5
5. What are typical cybercrime activities?
Answer reference: Section 1.3.5
6. Describe how a material misstatement of financial statements may arise.
Answer reference: Section 1.3.6
7. What is the difference between tax avoidance and tax evasion?
Answer reference: Section 1.3.7
8. Explain the concept of dual criminality.
Answer reference: Section 1.3.8
17. In applying a risk-based approach to identifying money laundering, what factors should a firm consider?
Answer reference: Section 2.5
Additionally, the question numbering has been changed from Question 9-20.
Chapter 4- End of Chapter Questions

2. Name three Chartered Institute for Securities & Investment (CISI) Code of Conduct Principles.
Answer reference: Section 1.3.2

5. What are the components to create an ethical culture?
Answer reference: Section 1.5.7

Chapter 5- End of Chapter Questions

11. Name three of the Bank for International Settlements (BIS) principles for enhancing corporate governance.
Answer reference: Section 1.9

20. How do you calculate a risk score?
Answer reference: Section 2.5.1

Additionally, the question numbering has been changed from Question 11-31.

A new section, 2.4.6 on ‘whistleblowing’ has been added after section 2.4.5 of the workbook. (Page 150-151)
The following update has been made to the workbook edition.

Page numbering of chapter 5, Appendices, Glossary, MCQs and the SLM of contents page No.V has been changed and now reads as:

Governance, Risk Management and Compliance 169

Appendices 205

Glossary 227

Multiple Choice Questions 235

Syllabus Learning Map 269

Chapter 1

‘client’ has been marked as a glossary term under section 1.4

The paragraph started with ‘OTFs’ in between the table of section 1.6.3 and section 1.7 is removed.

End of Chapter Questions 2, 11,13 and 14, answer references have been amended and now read as follows:

2. State the main differences between rules-based and principles-based approaches to regulation.
Answer reference: Sections 1.3, 2.3.2, 2.3.3

11. How is AMLD best described?
Answer reference: Section 1.5.3

13. What is counterparty risk?
Answer reference: Section 1.7

14. How do regulators approach Fintech?
Answer reference: Section 1.8

Chapter 2

The LO 2.1.2 under section 1.2 is amended and now reads as follows:

2.1.2 understand Principle 6 of the BCBS Principles on Compliance and the compliance Function in Banks

The LO 2.2.4 under section 2.1.3 is amended and now reads as follows:

2.2.4 Understand Principle 5 of the BCBS Principles on Compliance and the compliance Function in Banks

End of Chapter Question No.3 is changed to read as:

3. What does Principle 5 of the BCBS Principles on Compliance and the compliance Function in Banks require of a firm’s compliance function?
Answer reference: Section 1.3.1

The answer references of End of Chapter Questions No.2, 3 and 4 are changed to read as:

2. Who is responsible for establishing a written compliance policy containing the basic principles followed by management and staff? Answer reference: Section 1.1.3

3. What does Principle 5 of the BCBS Principles on Compliance and the compliance Function in Banks require of a firm’s compliance function?
Answer reference: Section 1.3.1

4. What are the three key stages involved in a risk-based approach to a monitoring programme? Answer reference: Section 1.5

Chapter 3

The section number in ‘see section’ in the following paragraph under ‘Offshore Trusts’ is revised to read as follow:

Although offshore trusts may be used by people for legitimate tax planning, ie, minimising an individual’s or family’s tax liability within the tax regulations relating to their country of residence and the offshore centre, such trusts may also be used for tax evasion. While tax avoidance is legal, tax evasion is a crime and any suspicion is reportable as with any financial crime. See section 1.7 on tax evasion and tax avoidance.

The answer references of questions 2,3,4,5,6,7 and 8 and the Question No.2 of End of chapter questions in Chapter 3 have been amended as follows:

2. What is the purpose of the Financial Action Task Force (FATF)?
Answer reference: Section 1.3.4

3. Give two examples of predicate offences in financial crime.
Answer reference: Section 1.4
4. How does a Ponzi scheme work?
Answer reference: Section 1.5

5. What are typical cybercrime activities?
Answer reference: Section 1.5

6. Describe how a material misstatement of financial statements may arise.
Answer reference: Section 1.6

7. What is the difference between tax avoidance and tax evasion?
Answer reference: Section 1.7

8. Explain the concept of dual criminality.
Answer reference: Section 1.8

Chapter 4

Additional content has been added to section 3.1 to read as follows:

The following are the expected outcomes set out by the UK’s Financial Conduct Authority (FCA) for customers in the retail area from a fair treatment approach:
Outcome 1 – Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture.
Outcome 2 – Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.
Outcome 3 – Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale.
Outcome 4 – Where consumers receive advice, the advice is suitable and takes account of their circumstances.
Outcome 5 – Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect.
Outcome 6 – Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.
Firms are expected to be able to demonstrate that they are consistently treating their customers fairly and delivering fair outcomes relevant to their business. A firm needs to be able to:
demonstrate that senior management have instilled a culture whereby they understand:
• what the fair treatment of customers means
• where they expect their staff to achieve this at all times, and
• where (a relatively small number of) errors are promptly found, put right and learnt from

End of Chapter Questions

The answer reference of Question No.2 is amended to:

2. Name three Chartered Institute for Securities & Investment (CISI) Code of Conduct Principles.
Answer reference: Section 1.3.1

Section 4 has amended from Fair Dealing to Client Outcomes

The following content in 4.8.4 has amended to read as follows:

National rules will confirm how such segregation is achieved – in particular, the actions required when a firm receives client money. For example, a firm that operates the ‘normal approach’ to segregation must promptly place client money received into one or more accounts opened with any of the following (as permitted by the regulations):
• a central bank
• an institution authorised to hold client money
• a bank authorised in a third country
• a qualifying money market fund.

Glossary

The glossary term’ European Economic Area (EEA)’ is now removed as a glossary term.

MCQ

The following changes have been made to the MCQ questions and answers

Answers

5. C Chapter 1, Section 1.4 and 2.2.3

19. C Chapter 1, Section 1.5.3

Under the Foreign Account Tax Compliance Act (FATCA) and the US-UK intergovernmental agreement, a UK foreign financial institution must report to His Majesty’s Revenue and Customs (HMRC) on its account holders who are US persons or foreign entities with substantial US ownership.

26. B Chapter 5, Section 1.2

It is the responsibility of the board of directors to set out the governance structure for the organisation, to make sure it is implemented as intended, and to provide effective supervision over senior management. Members of the board need to act with honesty and integrity and need to be independent. Members of the board of directors and senior managers of financial institutions performing key roles need to be approved by the regulator to execute their function.

54. D Chapter 1, Section 1.6.3

60. D Chapter 5, Section 2.2.6

The key to managing stakeholder risk is to:
• build relationships at senior levels
• understand their agenda and how it may differ from the firm’s own agenda, and
• manage expectations with any new developments.

64. A Chapter 1, Section 1.3

72. D Chapter 2, Section 2.1.3

The concept of independence involves four related elements:
• Compliance should have a formal status within the firm.
• There should be a group compliance officer or head of compliance.
• Their responsibilities within the firm should not lead to conflicts of interest.
• They should have access to information and personnel.

74. C Chapter 3, Section 1.4

79. A Chapter 3, Section 1.7

83. D Chapter 3, Section 1.5

89. B Chapter 3, Section 1.6
Questions
19. In respect of the Foreign Account Tax Compliance Act (FATCA) under the UK-US intergovernmental agreement, which of the following are UK foreign financial institutions required to do?

A. Report monthly to the Internal Revenue Service (IRS) on account holders who are US persons or foreign entities
B. Report annually to the IRS on account holders who are UK domiciled
C. Report to His Majesty’s Revenue and Customs (HMRC) on account holders who are US persons or foreign entities
D. Report monthly to HMRC on account holders who are UK domiciled

26. Which of the following is responsible for setting out the governance structure of an organisation?

A. Head of Compliance
B. Board of Directors
C. Senior Management
D. SMCR Regime

SLM

The following changes have been done to the Syllabus Learning Map

Syllabus Unit/Element 3.1.5- Chapter/Section has revised to 1.4

Syllabus Unit/Element 3.1.6- Chapter/Section has revised to 1.5

Syllabus Unit/Element 3.1.7- Chapter/Section has revised to 1.6

Syllabus Unit/Element 3.1.8- Chapter/Section has revised to 1.7

Syllabus Unit/Element 3.1.9- Chapter/Section has revised to 1.8

Syllabus Unit/Element 3.2.8 - Chapter/Section has revised to 2.7

Syllabus Unit/Element 4.5.2 - Chapter/Section has revised to 5.1

Syllabus Unit/Element 5.2.6 - Chapter/Section has revised to 2.5.6

01/10/2024 - 30/09/2026
12/11/2024

Testing
Fundamentals of Financial Services (French) Edition 4

Fundamentals of Financial Services (French) Edition 4
The last exam date of the current version has been changed from 10 Feb 2025 to 10 Feb 2027.

11/02/2024 - 10/02/2027
09/10/2024

Testing
International Introduction to Securities & Investment (Africa) V10

International Introduction to Securities & Investment (Africa) V10
Chapter 4, Section 4.2.4, the last paragraph has been removed and the following is now the last paragraph in the section before the example box:

Preferred bonds, also known as ‘preferreds’ (more common in the US than the UK), have similar characteristics to shares and bonds and have the potential to offer investors higher yields than holding the company’s ordinary shares or bonds. They are essentially bonds that have equity-like features and are generally issued by large banks and insurance companies. They are usually undated/perpetual and carry callable rights for the issuer within the first five to ten years of issuance. A specific equity-like feature is the fact that these pay dividends as opposed to coupons as with other bonds. Within the issuer’s capital structure, preferreds rank lower than senior debt but higher than equity.
Chapter 3, Section 3.2.5, sixth paragraph has been amended to read:

Shares are bought and sold with the right to receive the next declared dividend up to the date when ownership is recorded. The record date is announced (declared) on the declaration date some time before. From the declaration date to the record date, the shares are described as cum-dividend. If the shares are purchased cum-dividend, the purchaser will receive the declared dividend. For the period after the record date, the shares go ex-dividend. Buyers of shares when they are ex-dividend are not entitled to the declared dividend.

Chapter 4, Section 5.1, text from the second paragraph following the chart has been removed and now reads:

The bank receives the proceeds of the sale which it can then use to finance other lending. The investor receives a bond that has the security of asset backing and credit enhancements and on which they will receive periodic interest payments until its eventual repayment.

Chapter 7, Section 5.1, the fourth and fifth bullet point in the bullet list has been amended to read:
• Gearing – many hedge funds can borrow funds and use derivatives to potentially enhance returns. Sometimes also referred to as leverage.
• Liquidity – to maximise the hedge fund manager’s investment freedom, hedge funds usually impose an initial ‘lock-in’ period of between one and three months before investors can sell their investments on. This allows the fund manager to increase the notional market exposure (for example, through using derivatives or carry trades). That exposure to the market can then be at many multiples to the cash (nominal) value of the investment.
Chapter 9, Section 2.2, the last three paragraphs have been amended to read:

To make comparisons easier, lenders must quote the true cost of borrowing, embracing the EAR and including any fees that are required to be paid by the borrower. This is known as the annual percentage rate (APR). The additional fees that the lender adds to the cost of borrowing might be, for example, loan arrangement fees. However, it should be noted that the terms used to describe the EAR may differ globally. Another example would be if a shop persuades a consumer to buy a piece of furniture on credit and then adds charges, such as insurance, delivery charges, a three-year repair and maintenance contract and other fees, all priced by the shop with no chance for the consumer to decline or buy from another provider.

Many African financial sector regulators do not have specific directives determining how annual interest rates must be quoted, for instance by APR, or what related charges should be cited/applied explicitly and included when quoting loan rates. In 2014, the banking industry in Kenya adopted APRs as standard so that borrowers can compare the costs of a loan from different lenders.

The APR will vary between lenders, all of whom have to advise customers as to what their APR is before agreements are signed.
10/09/2024 - 09/09/2025
03/02/2025

Testing
International Introduction to Securities & Investment V17

International Introduction to Securities & Investment V17
The following update has been made to your workbook edition:
Chapter 4, Section 4.2.4, the last paragraph has been removed and the following is now the last paragraph in the section:

Preferred bonds, also known as ‘preferreds’ (more common in the US than the UK), have similar characteristics to shares and bonds and have the potential to offer investors higher yields than holding the company’s ordinary shares or bonds. They are essentially bonds that have equity-like features and are generally issued by large banks and insurance companies. They are usually undated/perpetual and carry callable rights for the issuer within the first five to ten years of issuance. A specific equity-like feature is the fact that these pay dividends as opposed to coupons as with other bonds. Within the issuer’s capital structure, preferreds rank lower than senior debt but higher than equity.

10/09/2024 - 09/09/2025
09/10/2024

Testing
Fundamentals of Financial Services V6

Fundamentals of Financial Services Edition 6 (syllabus version 6.0)
The following update has been made to your workbook edition.

This learning manual relates to syllabus version 6.0 and will cover exams from 1 August 2023 and 31 July 2026

01/08/2023 - 31/07/2026
25/10/2024

Testing
International Introduction to Securities & Investment (Kenya) V4

International Introduction to Securities & Investment (Kenya) V4
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 4 and will cover examinations from 21 January 2023 to 20 July 2025

21/01/2023 - 20/07/2025
07/11/2024

Testing
Managing Operational Risk in Financial Institutions V5

Managing Operational Risk in Financial Institutions (V5)
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 5 and will cover exams from 02 March 2023 to 10 November 2025

02/03/2023 - 10/11/2025
06/05/2025

Testing
International Introduction to Securities and Investment Arabic Ed17

International Introduction to Securities and Investment Arabic Ed17
The following update has been made to the workbook edition:
Chapter 5, Section 3.3
The definition of “put option” has been amended.

تعديل تعريف خيار البيع في الصفحة 110 من:
خيار البيع (put option): لبائع عقد الخيار الحقُّ في بيع الأصل...
إلى:
خيار البيع (put option): لمشتري عقد الخيار الحقُّ في بيع الأصل...

11/01/2025 - 10/01/2026
13/12/2024

Testing
Regulations & Market Practice (Kenya) V3

Regulations & Market Practice (Kenya) V3
The following update has been made to your workbook edition.
The final exam date in the front cover has been amended to read:
This learning manual relates to syllabus version 3.1 and will cover exams from 22 March 2022 to 30 August 2025.

22/01/2022 - 30/08/2025
19/12/2024

Testing
International Certificate in Wealth & Investment Management V7

International Certificate in Wealth & Investment Management V7
The following updates have been made:
Chapter 6, section 2.1.3
Investment Styles

The amended paragraph (duplicated text removed) reads as follows:

Growth Investing

Growth investing is a relatively aggressive investment style.
True growth stocks are those that are able to differentiate their product or service from their industry peers so as to command a competitive advantage. This results in an ability to produce high- quality and above-average earnings growth, as these earnings can be insulated from the business cycle. A growth stock can also be one that has yet to gain market prominence, but has the potential to do so – growth managers are always on the lookout for the next Apple or Tesla.
The key to growth investing is to rigorously forecast future earnings growth and to avoid those companies susceptible to issuing profits warnings. A growth stock trading on a high P/E ratio will be
savagely marked down by the market, if it fails to meet earnings expectations.
Chapter 8, section 2.4
Life Assurance

The amended paragraph reads as follows:

Note that in this industry, the term ‘assurance’ is often used interchangeably with ‘insurance’, although they are not the same thing: assurance usually covers the policyholder for their entire life, while insurance is designed to cover the policyholder for a specific term.
Chapter 3, section 3.4.2
The equation in the example box is amended to read as follows:
Chapter 3, section 2
A value in the table has been amended to 16:00
Chapter 6, section 2.3

The paragraph has been amended to read as follows:

“Generally speaking, active bond strategies are used by portfolio managers who believe that the bond market is not perfectly efficient and therefore subject to mispricing. They can also be employed where it is believed that the market’s view on future interest rate movements (implied by the yield curve) is incorrect or has failed to be anticipated, known as market timing.”

Chapter 6, section 5.3

The paragraph in the 2nd example has been amended to read:
“As the fund is actually valued at $18.75 million, it has outperformed the benchmark by $0.25 (ie, $18.75
million - $18.5 million). The next step is to calculate the absolute outperformance or underperformance
of the fund relative to the benchmark attributable to asset allocation.”

Chapter 7, section 7.4

A new paragraph has been included, and the text reads as follows:

“If an investor receives a dividend from an overseas company that has had WHT deducted, it will still
remain liable to income tax – this raises the risk of double taxation of the dividend or interest income.
To address this issue, governments enter into double taxation treaties (or double taxation agreements
(DTAs)) to agree how any payments will be handled. In very simple terms, the way that a DTA operates is
that the two governments agree what rate of tax will be withheld on any interest or dividend payment.

Double taxation relief (DTR) may apply when an individual is liable to pay income tax on overseas
earnings. As its name suggests, DTR helps to protect individuals from being taxed twice on the same
income - once by the foreign country, and again by their home country. For DTR to apply, the two
countries in question must have a DTA between them. There are many such agreements in place with
countries worldwide, such as the UK and China, the US and Malta, and India and Japan. Generally, these
DTAs set out that tax will be imposed only by the country where the income is earned, the capital gains
are realised, or the foreign property is situated.”
Answers to Multiple Choice Questions
The following answer references have been amended:
6. A Chapter 7, Section 4.6.2
21. B Chapter 6, Section 5.2.3
23. B Chapter 5, Section 4.2.2

32. D Chapter 5, Section 1.4.4

58. D Chapter 6, Section 4.4

68. D Chapter 3, Section 1.2

75. D Chapter 7, Section 3.3

95. D Chapter 7, Section 1.3.4

02/03/2025 - 01/03/2027
14/03/2025

Testing
International Certificate in Wealth & Investment Management (Arabic) Edition 7

International Certificate in Wealth & Investment Management (Arabic) Edition 7
The following update has been made:
Answers to Multiple Choice Questions
The following answer reference has been amended:

01/06/2025 - 31/05/2027
28/04/2025

Testing

Level 3 IOC

Exam Name & Syllabus version

Update/Development

Action Effective From/To

Date Posted

Technology in Investment Management V12

Technology in Investment Management V12

The following update has been made to your workbook edition:

Chapter 6, Section 4.1. The correct diagram reference has been amended to read as follows:

Let us look again at the systems architecture diagram of a typical investment bank that we first saw in chapter 5, section 1.3.”

11/05/2023 - 10/05/2025
20/09/2023

Testing
International Introduction to Securities & Investment V17

International Introduction to Securities & Investment V17
The following updates have been made to your workbook edition:
Chapter 3, Section 3.2.5, sixth paragraph has been amended to read:
Shares are bought and sold with the right to receive the next declared dividend up to the date when ownership is recorded. The record date is announced (declared) on the declaration date some time before. From the declaration date to the record date, the shares are described as cum-dividend. If the shares are purchased cum-dividend, the purchaser will receive the declared dividend. For the period after the record date, the shares go ex-dividend. Buyers of shares when they are ex-dividend are not entitled to the declared dividend.
Chapter 4, Section 5.1, text from the second paragraph following the chart has been removed and now reads:

The bank receives the proceeds of the sale which it can then use to finance other lending. The investor receives a bond that has the security of asset backing and credit enhancements and on which they will receive periodic interest payments until its eventual repayment.
Chapter 7, Section 5.1, the fourth and fifth bullet point in the bullet list has been amended to read:

• Gearing – many hedge funds can borrow funds and use derivatives to potentially enhance returns. Sometimes also referred to as leverage.
• Liquidity – to maximise the hedge fund manager’s investment freedom, hedge funds usually impose an initial ‘lock-in’ period of between one and three months before investors can sell their investments on. This allows the fund manager to increase the notional market exposure (for example, through using derivatives or carry trades). That exposure to the market can then be at many multiples to the cash (nominal) value of the investment.
Chapter 9, Section 2.2, the last paragraph has been amended to read:
To make comparisons easier, lenders must quote the true cost of borrowing, embracing the EAR and including any fees that are required to be paid by the borrower. This is known as the annual percentage rate (APR). The additional fees that the lender adds to the cost of borrowing might be, for example, loan arrangement fees. However, it should be noted that the terms used to describe the EAR may differ globally. The APR will vary between lenders, all of whom have to advise customers as to what their APR is before agreements are signed.
10/09/2024 - 09/09/2025
03/02/2025

Testing
Global Financial Compliance (V11)

Global Financial Compliance (V11)
The following updates have been made to the workbook edition.

The end of chapter questions of chapters 1-5 have been amended as follows:

Chapter 1- End of Chapter Questions

2. State the main differences between rules-based and principles-based approaches to regulation.
Answer reference: Sections 1.3
6. State the key policy goals of MiFID II.
Answer reference: Section 1.5.2

7. List how the Market Abuse Regulation (MAR) applies to financial instruments to increase market integrity and investor protection.
Answer reference: Section 1.5.2

8. What does Section 404 of the Sarbanes-Oxley (SOX) Act require publicly registered US companies to do?
Answer reference: Section 1.5.2

9. What is the definition of payment services?
Answer reference: Section 1.5.2

10. What is the punishment for defrauding securities investors?
Answer reference: Section 1.5.2

11. How is AMLD best described?
Answer reference: Section 1.5.2

3. What is counterparty risk?
Answer reference: Section 1.7.2
14. How do regulators approach Fintech?
Answer reference: Section 1.8.1
Additionally, the question numbering has been changed from Question 10-24.
Chapter 2- End of Chapter Questions
2. Who is responsible for establishing a written compliance policy containing the basic principles followed by management and staff?
Answer reference: Section 1.1.2
3. What is the purpose of the compliance manual?
Answer reference: Section 1.2.1
4. What are the three key stages involved in a risk-based approach to a monitoring programme?
Answer reference: Section 1.4
Additionally, the question numbering has been changed from Question 3-10.
Chapter 3- End of Chapter Questions
2. What is the purpose of the Financial Action Task Force (FATF)?
Answer reference: Section 1.3.3
3. Give two examples of predicate offences in financial crime.
Answer reference: Section 1.3.4
4. How does a Ponzi scheme work?
Answer reference: Section 1.3.5
5. What are typical cybercrime activities?
Answer reference: Section 1.3.5
6. Describe how a material misstatement of financial statements may arise.
Answer reference: Section 1.3.6
7. What is the difference between tax avoidance and tax evasion?
Answer reference: Section 1.3.7
8. Explain the concept of dual criminality.
Answer reference: Section 1.3.8
17. In applying a risk-based approach to identifying money laundering, what factors should a firm consider?
Answer reference: Section 2.5
Additionally, the question numbering has been changed from Question 9-20.
Chapter 4- End of Chapter Questions

2. Name three Chartered Institute for Securities & Investment (CISI) Code of Conduct Principles.
Answer reference: Section 1.3.2

5. What are the components to create an ethical culture?
Answer reference: Section 1.5.7

Chapter 5- End of Chapter Questions

11. Name three of the Bank for International Settlements (BIS) principles for enhancing corporate governance.
Answer reference: Section 1.9

20. How do you calculate a risk score?
Answer reference: Section 2.5.1

Additionally, the question numbering has been changed from Question 11-31.

A new section, 2.4.6 on ‘whistleblowing’ has been added after section 2.4.5 of the workbook. (Page 150-151)
The following update has been made to the workbook edition.

Page numbering of chapter 5, Appendices, Glossary, MCQs and the SLM of contents page No.V has been changed and now reads as:

Governance, Risk Management and Compliance 169

Appendices 205

Glossary 227

Multiple Choice Questions 235

Syllabus Learning Map 269

Chapter 1

‘client’ has been marked as a glossary term under section 1.4

The paragraph started with ‘OTFs’ in between the table of section 1.6.3 and section 1.7 is removed.

End of Chapter Questions 2, 11,13 and 14, answer references have been amended and now read as follows:

2. State the main differences between rules-based and principles-based approaches to regulation.
Answer reference: Sections 1.3, 2.3.2, 2.3.3

11. How is AMLD best described?
Answer reference: Section 1.5.3

13. What is counterparty risk?
Answer reference: Section 1.7

14. How do regulators approach Fintech?
Answer reference: Section 1.8

Chapter 2

The LO 2.1.2 under section 1.2 is amended and now reads as follows:

2.1.2 understand Principle 6 of the BCBS Principles on Compliance and the compliance Function in Banks

The LO 2.2.4 under section 2.1.3 is amended and now reads as follows:

2.2.4 Understand Principle 5 of the BCBS Principles on Compliance and the compliance Function in Banks

End of Chapter Question No.3 is changed to read as:

3. What does Principle 5 of the BCBS Principles on Compliance and the compliance Function in Banks require of a firm’s compliance function?
Answer reference: Section 1.3.1

The answer references of End of Chapter Questions No.2, 3 and 4 are changed to read as:

2. Who is responsible for establishing a written compliance policy containing the basic principles followed by management and staff? Answer reference: Section 1.1.3

3. What does Principle 5 of the BCBS Principles on Compliance and the compliance Function in Banks require of a firm’s compliance function?
Answer reference: Section 1.3.1

4. What are the three key stages involved in a risk-based approach to a monitoring programme? Answer reference: Section 1.5

Chapter 3

The section number in ‘see section’ in the following paragraph under ‘Offshore Trusts’ is revised to read as follow:

Although offshore trusts may be used by people for legitimate tax planning, ie, minimising an individual’s or family’s tax liability within the tax regulations relating to their country of residence and the offshore centre, such trusts may also be used for tax evasion. While tax avoidance is legal, tax evasion is a crime and any suspicion is reportable as with any financial crime. See section 1.7 on tax evasion and tax avoidance.

The answer references of questions 2,3,4,5,6,7 and 8 and the Question No.2 of End of chapter questions in Chapter 3 have been amended as follows:

2. What is the purpose of the Financial Action Task Force (FATF)?
Answer reference: Section 1.3.4

3. Give two examples of predicate offences in financial crime.
Answer reference: Section 1.4
4. How does a Ponzi scheme work?
Answer reference: Section 1.5

5. What are typical cybercrime activities?
Answer reference: Section 1.5

6. Describe how a material misstatement of financial statements may arise.
Answer reference: Section 1.6

7. What is the difference between tax avoidance and tax evasion?
Answer reference: Section 1.7

8. Explain the concept of dual criminality.
Answer reference: Section 1.8

Chapter 4

Additional content has been added to section 3.1 to read as follows:

The following are the expected outcomes set out by the UK’s Financial Conduct Authority (FCA) for customers in the retail area from a fair treatment approach:
Outcome 1 – Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture.
Outcome 2 – Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.
Outcome 3 – Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale.
Outcome 4 – Where consumers receive advice, the advice is suitable and takes account of their circumstances.
Outcome 5 – Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect.
Outcome 6 – Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.
Firms are expected to be able to demonstrate that they are consistently treating their customers fairly and delivering fair outcomes relevant to their business. A firm needs to be able to:
demonstrate that senior management have instilled a culture whereby they understand:
• what the fair treatment of customers means
• where they expect their staff to achieve this at all times, and
• where (a relatively small number of) errors are promptly found, put right and learnt from

End of Chapter Questions

The answer reference of Question No.2 is amended to:

2. Name three Chartered Institute for Securities & Investment (CISI) Code of Conduct Principles.
Answer reference: Section 1.3.1

Section 4 has amended from Fair Dealing to Client Outcomes

The following content in 4.8.4 has amended to read as follows:

National rules will confirm how such segregation is achieved – in particular, the actions required when a firm receives client money. For example, a firm that operates the ‘normal approach’ to segregation must promptly place client money received into one or more accounts opened with any of the following (as permitted by the regulations):
• a central bank
• an institution authorised to hold client money
• a bank authorised in a third country
• a qualifying money market fund.

Glossary

The glossary term’ European Economic Area (EEA)’ is now removed as a glossary term.

MCQ

The following changes have been made to the MCQ questions and answers

Answers

5. C Chapter 1, Section 1.4 and 2.2.3

19. C Chapter 1, Section 1.5.3

Under the Foreign Account Tax Compliance Act (FATCA) and the US-UK intergovernmental agreement, a UK foreign financial institution must report to His Majesty’s Revenue and Customs (HMRC) on its account holders who are US persons or foreign entities with substantial US ownership.

26. B Chapter 5, Section 1.2

It is the responsibility of the board of directors to set out the governance structure for the organisation, to make sure it is implemented as intended, and to provide effective supervision over senior management. Members of the board need to act with honesty and integrity and need to be independent. Members of the board of directors and senior managers of financial institutions performing key roles need to be approved by the regulator to execute their function.

54. D Chapter 1, Section 1.6.3

60. D Chapter 5, Section 2.2.6

The key to managing stakeholder risk is to:
• build relationships at senior levels
• understand their agenda and how it may differ from the firm’s own agenda, and
• manage expectations with any new developments.

64. A Chapter 1, Section 1.3

72. D Chapter 2, Section 2.1.3

The concept of independence involves four related elements:
• Compliance should have a formal status within the firm.
• There should be a group compliance officer or head of compliance.
• Their responsibilities within the firm should not lead to conflicts of interest.
• They should have access to information and personnel.

74. C Chapter 3, Section 1.4

79. A Chapter 3, Section 1.7

83. D Chapter 3, Section 1.5

89. B Chapter 3, Section 1.6
Questions
19. In respect of the Foreign Account Tax Compliance Act (FATCA) under the UK-US intergovernmental agreement, which of the following are UK foreign financial institutions required to do?

A. Report monthly to the Internal Revenue Service (IRS) on account holders who are US persons or foreign entities
B. Report annually to the IRS on account holders who are UK domiciled
C. Report to His Majesty’s Revenue and Customs (HMRC) on account holders who are US persons or foreign entities
D. Report monthly to HMRC on account holders who are UK domiciled

26. Which of the following is responsible for setting out the governance structure of an organisation?

A. Head of Compliance
B. Board of Directors
C. Senior Management
D. SMCR Regime

SLM

The following changes have been done to the Syllabus Learning Map

Syllabus Unit/Element 3.1.5- Chapter/Section has revised to 1.4

Syllabus Unit/Element 3.1.6- Chapter/Section has revised to 1.5

Syllabus Unit/Element 3.1.7- Chapter/Section has revised to 1.6

Syllabus Unit/Element 3.1.8- Chapter/Section has revised to 1.7

Syllabus Unit/Element 3.1.9- Chapter/Section has revised to 1.8

Syllabus Unit/Element 3.2.8 - Chapter/Section has revised to 2.7

Syllabus Unit/Element 4.5.2 - Chapter/Section has revised to 5.1

Syllabus Unit/Element 5.2.6 - Chapter/Section has revised to 2.5.6

01/10/2024 - 30/09/2026
12/11/2024

Testing
International Introduction to Securities & Investment (Africa) V10

International Introduction to Securities & Investment (Africa) V10
Chapter 4, Section 4.2.4, the last paragraph has been removed and the following is now the last paragraph in the section before the example box:

Preferred bonds, also known as ‘preferreds’ (more common in the US than the UK), have similar characteristics to shares and bonds and have the potential to offer investors higher yields than holding the company’s ordinary shares or bonds. They are essentially bonds that have equity-like features and are generally issued by large banks and insurance companies. They are usually undated/perpetual and carry callable rights for the issuer within the first five to ten years of issuance. A specific equity-like feature is the fact that these pay dividends as opposed to coupons as with other bonds. Within the issuer’s capital structure, preferreds rank lower than senior debt but higher than equity.
Chapter 3, Section 3.2.5, sixth paragraph has been amended to read:

Shares are bought and sold with the right to receive the next declared dividend up to the date when ownership is recorded. The record date is announced (declared) on the declaration date some time before. From the declaration date to the record date, the shares are described as cum-dividend. If the shares are purchased cum-dividend, the purchaser will receive the declared dividend. For the period after the record date, the shares go ex-dividend. Buyers of shares when they are ex-dividend are not entitled to the declared dividend.

Chapter 4, Section 5.1, text from the second paragraph following the chart has been removed and now reads:

The bank receives the proceeds of the sale which it can then use to finance other lending. The investor receives a bond that has the security of asset backing and credit enhancements and on which they will receive periodic interest payments until its eventual repayment.

Chapter 7, Section 5.1, the fourth and fifth bullet point in the bullet list has been amended to read:
• Gearing – many hedge funds can borrow funds and use derivatives to potentially enhance returns. Sometimes also referred to as leverage.
• Liquidity – to maximise the hedge fund manager’s investment freedom, hedge funds usually impose an initial ‘lock-in’ period of between one and three months before investors can sell their investments on. This allows the fund manager to increase the notional market exposure (for example, through using derivatives or carry trades). That exposure to the market can then be at many multiples to the cash (nominal) value of the investment.
Chapter 9, Section 2.2, the last three paragraphs have been amended to read:

To make comparisons easier, lenders must quote the true cost of borrowing, embracing the EAR and including any fees that are required to be paid by the borrower. This is known as the annual percentage rate (APR). The additional fees that the lender adds to the cost of borrowing might be, for example, loan arrangement fees. However, it should be noted that the terms used to describe the EAR may differ globally. Another example would be if a shop persuades a consumer to buy a piece of furniture on credit and then adds charges, such as insurance, delivery charges, a three-year repair and maintenance contract and other fees, all priced by the shop with no chance for the consumer to decline or buy from another provider.

Many African financial sector regulators do not have specific directives determining how annual interest rates must be quoted, for instance by APR, or what related charges should be cited/applied explicitly and included when quoting loan rates. In 2014, the banking industry in Kenya adopted APRs as standard so that borrowers can compare the costs of a loan from different lenders.

The APR will vary between lenders, all of whom have to advise customers as to what their APR is before agreements are signed.
10/09/2024 - 09/09/2025
03/02/2025

Testing
International Introduction to Securities & Investment V17

International Introduction to Securities & Investment V17
The following update has been made to your workbook edition:
Chapter 4, Section 4.2.4, the last paragraph has been removed and the following is now the last paragraph in the section:

Preferred bonds, also known as ‘preferreds’ (more common in the US than the UK), have similar characteristics to shares and bonds and have the potential to offer investors higher yields than holding the company’s ordinary shares or bonds. They are essentially bonds that have equity-like features and are generally issued by large banks and insurance companies. They are usually undated/perpetual and carry callable rights for the issuer within the first five to ten years of issuance. A specific equity-like feature is the fact that these pay dividends as opposed to coupons as with other bonds. Within the issuer’s capital structure, preferreds rank lower than senior debt but higher than equity.

10/09/2024 - 09/09/2025
09/10/2024

Testing
International Introduction to Securities & Investment (Kenya) V4

International Introduction to Securities & Investment (Kenya) V4
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 4 and will cover examinations from 21 January 2023 to 20 July 2025

21/01/2023 - 20/07/2025
07/11/2024

Testing
International Introduction to Securities and Investment Arabic Ed17

International Introduction to Securities and Investment Arabic Ed17
The following update has been made to the workbook edition:
Chapter 5, Section 3.3
The definition of “put option” has been amended.

تعديل تعريف خيار البيع في الصفحة 110 من:
خيار البيع (put option): لبائع عقد الخيار الحقُّ في بيع الأصل...
إلى:
خيار البيع (put option): لمشتري عقد الخيار الحقُّ في بيع الأصل...

11/01/2025 - 10/01/2026
13/12/2024

Testing
Regulations & Market Practice (Kenya) V3

Regulations & Market Practice (Kenya) V3
The following update has been made to your workbook edition.
The final exam date in the front cover has been amended to read:
This learning manual relates to syllabus version 3.1 and will cover exams from 22 March 2022 to 30 August 2025.

22/01/2022 - 30/08/2025
19/12/2024

Testing
Platforms, Wealth Management & Service Providers V8

Platforms, Wealth Management & Service Providers V8
The following updates have been made to your workbook edition.
There has been a slight change on the chapter 7 cover page heading, from ‘Taxatilon to Taxation’, which was a typing error.

21/11/2024 - 20/11/2025
22/01/2025

Testing
Derivatives V24

Derivatives V24
Derivatives (Ed20)

Chapter 3 section 1.2
The text has been amended to read:

Immediate or Cancel – this means execute the order, in whole or in part, if market conditions
permit; any unexecuted portion is cancelled.
Fill or Kill (FOK) – similar to Immediate or Cancel but the order must be executed in its entirety, or
cancelled.
Chapter 4 section 4.1.1
The intrinsic value in the table has been amended, and the update is as follows:

11/10/2025 - 10/02/2026
03/03/2025

Testing
Risk in Financial Services V11

Risk in Financial Services V11
The following update has been made to your workbook edition.

Chapter 5, section 2.6.4
The following points have been amended:
A positive correlation describes a relationship where, in general, an increase in the price of one share is associated with an increase in another.
A negative correlation is a relationship where, in general, an increase in one share price is associated with a decrease in another.
Chapter 6, section 1.1
The heading above the graph has been amended to read as follows:

Value of the $, 1974–2023
11/08/2024 - 10/08/2026
14/03/2025

Testing
UK Financial Regulation V32

UK Financial Regulation V32
The following bullet amendment has been made to your workbook:

Chapter 4, Section 8.4.3
“A client money and assets return (CMAR) – this return is required to be submitted on a monthly basis by large and medium sized firms, with no requirement for small firms. The return provides an overview of firm-specific CASS positions and an overview of UK firms’ CASS holdings – enabling the FCA to make regulated interventions on a firm-specific or thematic basis.”

01/04/2025 - 31/03/2026
17/03/2025

Testing

Level 3 Certificates

Exam Name & Syllabus version

Update/Development

Action Effective From/To

Date Posted

Derivatives V24

Derivatives V24
Derivatives (Ed20)

Chapter 3 section 1.2
The text has been amended to read:

Immediate or Cancel – this means execute the order, in whole or in part, if market conditions
permit; any unexecuted portion is cancelled.
Fill or Kill (FOK) – similar to Immediate or Cancel but the order must be executed in its entirety, or
cancelled.
Chapter 4 section 4.1.1
The intrinsic value in the table has been amended, and the update is as follows:

11/10/2025 - 10/02/2026
03/03/2025

Testing
Corporate Finance Regulation (Edition 15)
Corporate Finance Regulation (Edition 15)
The following change has been made to page 104, chapter 2 section 9.1 of the workbook.
The text after the bullet points ending in ‘……JMLSG guidance’, now reads as,
Secondary includes the Money Laundering Regulations 2017 (The Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017)
11/04/2025 - 10/04/2026
04/03/2025
Testing
Risk in Financial Services V11

Risk in Financial Services V11
The following update has been made to your workbook edition.

Chapter 5, section 2.6.4
The following points have been amended:
A positive correlation describes a relationship where, in general, an increase in the price of one share is associated with an increase in another.
A negative correlation is a relationship where, in general, an increase in one share price is associated with a decrease in another.
Chapter 6, section 1.1
The heading above the graph has been amended to read as follows:

Value of the $, 1974–2023
11/08/2024 - 10/08/2026
14/03/2025

Testing
UK Financial Regulation V32

UK Financial Regulation V32
The following bullet amendment has been made to your workbook:

Chapter 4, Section 8.4.3
“A client money and assets return (CMAR) – this return is required to be submitted on a monthly basis by large and medium sized firms, with no requirement for small firms. The return provides an overview of firm-specific CASS positions and an overview of UK firms’ CASS holdings – enabling the FCA to make regulated interventions on a firm-specific or thematic basis.”

01/04/2025 - 31/03/2026
17/03/2025

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

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
Portfolio Construction Theory V12

Portfolio Construction Theory workbook V12
Page 605, under the section 2.2, Non-Domicile Status and Portfolio Considerations, the second sentence of the last paragraph has been amended to read:

It means that individuals who are UK resident for tax purposes but whose domicile is outside the UK will no longer be able to benefit from certain tax advantages, such as not paying UK tax on foreign income and gains.

Page 606, under the section 3.2.1, Allowances and Allowable Deductions, the second and third bullets are amended to read:

• Contributions to a personal pension plan or a company pension scheme – subject to certain limitations, contributions made to a personal pension plan or corporate pension scheme can help to reduce a taxpayer’s income tax liability.
• Gift Aid donations – charitable donations made by individuals can also potentially reduce the income tax liability.

Page 606, under the section 3.2.1, Allowances and Allowable Deductions, the content for Tax Relief for Pension Contributions and Charitable Donations has been amended to read:

If an individual makes contributions to pension plans and/or charities from their net pay during a tax year, the amount paid should be grossed up by basic rate tax (ie, by dividing by 0.8). The grossed-up amount is then deducted from the individual’s adjusted net income (ANI) for the year. If they remain a higher or additional rate taxpayer after this deduction, then the grossed-up amount is also added to the statutory limit where taxable income is taxed at the basic rate (ie, ‘basic rate extender’); the effect is that more of the individual’s other income will be taxed at the basic rate rather than the higher/additional rate, thereby effectively providing ‘higher rate tax relief’. If the individual is instead a basic rate taxpayer, then this extension does not have the effect of reducing their tax liability.
Notably, any adjustment is not automatic; rather, the individual has to claim the tax relief, either through their Self-Assessment tax return, or by notifying HMRC and requesting an adjustment to their tax code.

Page 606, under the section 3.2.1, Allowances and Allowable Deductions, the content for Adjusted Net Income (ANI) has been added to read:
Page 612 - 615, under the section 3.3.7, Income Tax Calculation example has been amended to read:

05/06/2025 - 27/11/2025
31/01/2025

Testing
Pension Transfers & Planning Advice

Pension Transfers & Planning Advice
We are withdrawing our Pension Transfers & Planning Advice exam in the summer 2025 session. This also means that any resits for these exams must be booked and sat by the final sitting on 3 June 2025. Once the examination withdrawal date has passed, you will not be able to sit the exam. If you have any questions, please contact our Customer Support Team.
Chapter 2, Exercise 2, Question 2 has been amended to read as follows:

‘The Better Marketing Ltd SSAS has assets of £5 million including an existing loan of £1 million from James, the managing director. During the 2024–25 tax year, the SSAS makes a loan of £500,000 tothe firm’s sister company, Creative Design Ltd.’
Chapter 2, section 1.1.5

The amended text reads as follows:

On 6 April 2024, the Lifetime Allowance (LTA) was abolished. It was replaced by the Lump Sum Allowance (LSA) and Lump Sum and Death Benefit Allowance (LSDBA); this is covered in more detail in chapter 3, section 4. The standard LSDBA is £1,073,100.

24/07/2024 - 03/06/2025
31/07/2024

Testing
Global Operations Management (Edition 10)

Global Operations Management (Edition 10)
The following update has been made to your workbook edition.
The exam date of the book has been changed from 28 November 2024 to 5 June to 28 November 2024 to 3 June 2025.

28/11/2024 - 03/06/2025
24/10/2024

Testing
Financial Markets Version 12

Financial Markets Version 12
The following update has been made to your workbook edition.

Chapter 1, Section 3.1.2 on Page 36. The paragraphs have been amended to read as follows:

Also called return on shareholders’ funds, return on equity (ROE) measures the percentage return the company is achieving on the amount of funds provided by shareholders, which come from two main sources:
The share capital and share premium, being the funds paid by investors for new shares in the company.
Retained earnings (ie, accumulated from profits not paid out as dividends over the years).

ROE (%) Net income / Shareholders' equity =
Shareholders’ equity refers to the owners’ claim on the assets of a company after debts have been settled. Hence:
Shareholders’ equity = Total assets – Total liabilities
which, for XYZ plc in sections 1.1, 1.2.1 and 1.3, for 20X2, is:
Shareholders’ equity = 24,429 – 16,116 = 8,313
Alternatively, shareholders’ equity can be viewed as the money raised by the company through issuing shares (both ordinary and preference), as well as profits retained in the business and additional funds raised above the nominal value of the shares.
Hence:
Shareholders’ equity = Share capital + Retained earnings + Share premium
which, for XYZ plc, is:
Shareholders’ equity = 250 + 7,238 + 825 = 8,313
Notice that the result is the same as the one calculated above.
ROE must be compared to the company’s own historical ROE, and to the industry’s ROE average. The level of ROE that is considered strong will depend on the industry in which the company operates, at which stage in the company lifecycle the firm is in, and the economic situation – for some firms, this level will be around 10%, while for others, it will be 15–20%. A good rule of thumb is to target an ROE that is equal to or just above the industry average – if higher, this could indicate that the company is more successful than generating profit internally. Note, however, that an industry’s average ROE may be skewed by any outliers.
In the case of XYZ plc in sections 1.1, 1.2.1 and 1.3, for 20X2:
ROE (%) = 1,284/8,313 = 0.1545 or 15.45%
This means that the company is generating £15.45 of profit for every £100 of equity it owns.”
Chapter 1, Section 4.1 on Page 66. The paragraph has been amended to read as follows:
“Bonus issues do not always result in a whole number of shares – sometimes, they can result in fractional shares being issued. For example, in a 5-for-2 bonus issue (ie, they receive 2 shares for every 5 held), an investor holding 25 shares would end up with 25 + 62.5 = 87.5 shares. As it is not possible to hold fractional shares, the number of shares that the investor receives will typically be rounded down (87 in this case), along with a cash payment for the fraction (eg, for 0.5 shares). The figures used for a bonus issue can be whatever the company decides.”
Chapter 2, Section 4.2 on Page 114. The table in the example has been amended to read as follows:

Chapter 2, Section 4.2 on Page 124. The equation has been amended to read as follows:

04/06/2025 - 26/11/2025
21/02/2025

Testing
Advanced Financial Planning V5 and V6

Advanced Financial Planning V5 and V6
For the March 2025 Advanced Financial Planning exam and the June 2025 narrative exams, questions will be based on the 2024-2025 tax rates. For the September 2025 and March 2026 Advanced Financial Planning exams, and the November/December 2025 narrative exams, questions will be based on the 2025-2026 tax rates.

04/09/2024 - 31/03/2026
25/02/2025

Testing

Level 4 Investment Advice Diploma

Exam Name & Syllabus version

Update/Development

Action Effective From/To

Date Posted

Investment, Risk & Taxation V15

Investment, Risk & Taxation V15
The following updates have been made to your workbook edition:
Page 217, Chapter 3, Section 1.3.2 the example solution related to the calculation has been amended to read:

Page 340, Chapter 4, Section 12.3.1 the second row of the example, which is the personal allowance, has been amended to read:
Page 555, Chapter 8, Section 2.5 the example related to the 17–30 days return calculation has been amended to read:
Page 239, Chapter 3, Section 2.4.1 the sentence below the ‘Sharpe ration equation’ has been amended to read:

This means that for every unit of risk, they are earning 1.17 units of excess return.

Page 253, Chapter 3, under the section Performance Analysis, in the example – ‘CAPM Returns’ has been amended to read:

CAPM Returns:
Fund R: RCAPM = 3% + 0.64 (9.2% – 3%) = 6.97%
Fund S: RCAPM = 3% + 0.85 (9.2% – 3%) = 8.27%

Page 254, Chapter 3, under the section Performance Analysis, in the example – ‘Alphas’ has been amended to read:

Alphas:
Fund R: α = 7.20% – 6.97% = 0.23%
Fund S: α = 6.60% – 8.27% = -1.67%

Page 254, Chapter 3, under the section Performance Analysis, in the example – the last sentence of the second paragraph is amended and updated to read:
However, based on the calculations for alpha, fund R has positive residual returns and those for fund S are negative. Therefore, fund R has provided superior returns compared with fund S.
Page 254, Chapter 3, under the section Performance Analysis, in the example – the last two sentences of the last paragraph are amended and updated to read:
If this coincides with a low R-squared for fund S, this implies that fund S's performance is less influenced by broader market trends, indicating that its results come from more active management. If fund S’s low R-squared had corresponded with a positive alpha, this would imply a potentially higher degree of skilful management in selecting securities or timing market movements, potentially giving fund S a better chance to outperform the market going forward.

31/10/2024 - 30/10/2025
17/02/2025

Testing
Securities (Investment Advice Diploma) V15

Securities (Investment Advice Diploma) V15
The following updates have been made to your workbook edition:
Chapter 3, Section 6.1, first paragraph has been amended to read:
A warrant gives the right to the holder to buy shares from the company that issued the warrant at a specified price on or before a specified date. Essentially, a warrant is very similar to a call option, which gives the right to buy a share. Warrants have all the characteristics of call options, such as volatility, risk and valuation factors. The major difference is that warrants are issued by and exercisable on the company, which will issue new shares on exercise – therefore, they are dilutive. Traded and traditional options are issued by investors and relate to shares already in issue; their exercise does not result in new shares being issued – hence, they are not dilutive.
Chapter 8, Section 3.3.3, The ISA Wrapper, second paragraph has been amended to read:

Cash ISAs are savings accounts where the interest is not taxed; and, in addition to income tax relief, investments in stocks and shares ISAs provide a shelter from CGT, in that any gains on investments held within the ISA are exempt from CGT. However, there is a limit to how much can be inserted into such a wrapper account. Each tax year, everyone over the age of 18 has an ISA allowance which sets the maximum that can be saved within the tax-free wrapper for that tax year.
MCQ, Question 40 has been amended to read:
40. Which of the following best describes the primary role of unit trust trustees?

A. The primary duty of the trustees is to protect the interests of the unitholders
B. The trustees must qualify targeted risk in the way assets and their custody are managed
C. They must demonstrate that they have an appropriate level of training and formal qualifications to carry out their responsibilities
D. The trustees must be regulated and supervised by the FCA and report directly to the trust manager

MCQ, Answer 40 has been amended to read:

40. A Chapter 4, Section 1.1.1

Trustees of a unit trust must be authorised by the FCA and fully independent of the trust manager. The primary duty of the trustees is to protect the interests of the unitholders.
Chapter 2, Section 2.2.5, first paragraph has been amended to read:

As we saw in section 1.1.4 of this chapter, high yield bonds have a lower credit rating. For example, bonds with a grade below BBB– (using S&P’s rating system) would be classed as 'high-yield', as they will require issuers to provide a high coupon to the bond in order to compensate investors for the higher credit risk associated with the inferior credit rating. Similar ratings are also provided by Moody’s and Fitch. Historically, high-yield bonds have a high correlation with equities.

31/12/2024 - 30/12/2025
22/11/2024

Testing
Derivatives (Investment Advice Diploma) V15

Derivatives L4 Ed15 (Syllabus version 15.0)
The following update has been made:

The omitted chapter 9 has now been added to V15.2 of the workbook.
The omitted “Exercise Answers” chapter has now been added to V15.2 of the workbook.
31/12/2024 - 30/12/2025
18/12/2024

Testing
UK Regulation & Professional Integrity V17

UK Regulation & Professional Integrity V17
The following updates have been made to your workbook edition.
Chapter 9- Section 4.1 The Role and Purpose of the FSCS, is updated to read as follows:
The Financial Services Compensation Scheme (FSCS) is the UK’s statutory compensation scheme for customers of UK authorised financial services firms, which can pay compensation if a firm is unable, or likely to be unable, to pay claims against it, to eligible claimants. The FSCS is essentially an insurance policy that is paid for by all authorised firms and provides protection to some clients in the event of a firm’s collapse.
Chapter 10, Section 9.1
The following bullet amendment has been made to your workbook:

“A client money and assets return (CMAR) – this return is required to be submitted on a monthly basis by large and medium sized firms, with no requirement for small firms. The return provides an overview of firm-specific CASS positions and an overview of UK firms’ CASS holdings – enabling the FCA to make regulated interventions on a firm-specific or thematic basis.”

12/03/2025 - 11/03/2026
06/03/2025

Testing

Candidate Update

CBT Examinations Tutorial Guide

International and Stand-alone

Technology in Investment Management V12

UAE Financial Rules & Regulations Edition 4

Investment Management (Level 4) Edition 3

International Introduction to Securities & Investment V17

Fundamentals of Credit Risk Management (Africa) Ed1.5 V3

Global Financial Compliance (V11)

Fundamentals of Financial Services (French) Edition 4

International Introduction to Securities & Investment (Africa) V10

International Introduction to Securities & Investment V17

Fundamentals of Financial Services V6

International Introduction to Securities & Investment (Kenya) V4

Managing Operational Risk in Financial Institutions V5

International Introduction to Securities and Investment Arabic Ed17

Regulations & Market Practice (Kenya) V3

International Certificate in Wealth & Investment Management V7

International Certificate in Wealth & Investment Management (Arabic) Edition 7

Level 3 IOC

Technology in Investment Management V12

International Introduction to Securities & Investment V17

Global Financial Compliance (V11)

International Introduction to Securities & Investment (Africa) V10

International Introduction to Securities & Investment V17

International Introduction to Securities & Investment (Kenya) V4

International Introduction to Securities and Investment Arabic Ed17

Regulations & Market Practice (Kenya) V3

Platforms, Wealth Management & Service Providers V8

Derivatives V24

Risk in Financial Services V11

UK Financial Regulation V32

Level 3 Certificates

Derivatives V24

Corporate Finance Regulation (Edition 15)

Risk in Financial Services V11

UK Financial Regulation V32

Publications & Elearning

Qualifications Bulletin

Narrative

Diploma in Corporate Finance: Corporate Finance Strategy & Advice V 1a

Portfolio Construction Theory V12

Pension Transfers & Planning Advice

Global Operations Management (Edition 10)

Financial Markets Version 12

Advanced Financial Planning V5 and V6

Level 4 Investment Advice Diploma

Investment, Risk & Taxation V15

Securities (Investment Advice Diploma) V15

Derivatives (Investment Advice Diploma) V15

UK Regulation & Professional Integrity V17