Last Updated: Aug 16, 2026
No. of Questions: 256 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Industry Regulation | 10% | - Regulatory authorities and rules - Client categorization and protection - Compliance and governance - Financial crime prevention |
| Topic 2: Investment Advice | 21% | - Portfolio recommendations and review - Communication and documentation - Advisory process - Taxation principles |
| Topic 3: The Financial Services Sector | 16% | - Structure and participants - Ethical standards and professional conduct - Market functions and products - Regulatory objectives and frameworks |
| Topic 4: Fiduciary Relationships | 16% | - Conflicts of interest - Duties and responsibilities - Risk profiling and suitability - Client needs assessment |
| Topic 5: Asset Classes | 10% | - Equities - Derivatives - Real estate and alternative assets - Cash and money market instruments - Fixed income securities |
| Topic 6: Lifetime Financial Provision | 18% | - Trusts and foundations - Protection and insurance planning - Estate and succession planning - Retirement planning |
| Topic 7: Economics and Investment Analysis | 10% | - Economic indicators and cycles - Valuation methods - Macroeconomics and markets - Investment mathematics and statistics |
| Topic 8: Investment Management | 15% | - Investment strategies - Portfolio construction theories - Performance measurement and evaluation - Risk and return concepts |
1. Which of the following underlies the pillars of risk tolerance?
A) Psychological traits
B) Sociological traits
C) Education
D) Experience
2. Back-end loading is often associated with:
A) Collective investments
B) Bonds
C) Real estate
D) Equities
3. In relation to the financial services industry, which one of the following statements regarding the European Union is true?
A) It delegates systemic risk control to the European Central Bank
B) It has the power of veto over national regulators
C) It operates as a single regulator
D) It aims to bring about a single market
4. What is the expected outcome of an assessment of a client's health protection priorities?
A) It will generate a new health policy
B) It will minimise the risk that policy exclusions will be imposed
C) It will remove the need to focus on other financial planning areas
D) It will quantify the extent to which the client should consider action
5. Enhanced due diligence is required in relation to customer identity if there is a possibility that the customer might be:
A) A member of the armed forces
B) A politically exposed person
C) A non-executive company director
D) A chairperson of a listed company's board
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: B |
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