Client Money & Assets Exam – Quiz 05

Last Updated: June 2024

Table of Contents

CISI Exam Quiz 05 Topics Covers:

be able to apply the standard methods of internal client money reconciliation
understand how to deal with reconciliation discrepancies
know what the margined transaction requirement is
understand the requirements for the segregation of safe custody assets
know the obligations created by the permissions
understand the different legal obligations that arise in respect of custody relationships
understand the implications and risks of intragroup models and third party appointments
understand firms’ responsibilities in respect of the selection, appointment, and review of a third party custodian
understand the rules concerning depositing assets outside of the UK
understand the requirements for third party custody agreements
understand the use of exemptions available within the custody rules
understand the impact of legal arrangements on the custody rules
understand when the collateral rules (CASS 3) apply
understand when a firm can enter into securities financing transactions in respect of client assets
know the circumstances in which liens may be granted over client assets
know which books and records should be maintained and the function of each
understand the purpose of the external custody reconciliations, physical asset reconciliations and internal custody record checks
understand how to treat reconciliation discrepancies
understand firms’ obligations in relation to shortfalls
know how often the reconciliations must be carried out
know the rules on organisational arrangements as set out in CASS 6 and CASS 7
know firms’ obligations to notify the FCA of breaches in accordance with CASS 6 and 7
understand the role responsible for CASS operational oversight within a firm, and its relationship with Prescribed Responsibility z
know the requirements for the content and submission of the Client Money and Assets Return (CMAR)
understand the elements of good oversight, including appropriate governance, training, compliance, risk management, and internal audit
understand the firm’s oversight responsibilities in respect of outsourcing arrangements
know the duty of the CASS auditor to submit a client assets report
know the difference between a reasonable assurance engagement and a limited assurance engagement and when these apply
know the content, format, and submission deadline of the Client Assets Report and be aware of the FRC standard that applies
know the role of the Financial Reporting Council (FRC) in respect of the Client Asset Assurance standard

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