Collective Investment Scheme Administration Exam – Quiz 03

Last Updated: June 2024

Table of Contents

CISI Exam Quiz 03 Topics Covers:

know what constitutes a pricing error, the consequences and the action to be taken by the AFM and trustee / depositary
know the requirements for reconciling cash and units between the AFM, custodian and trustee / depositary
understand how investors can buy and sell units from the AFM
understand how different classes are used for different types of investor
know the difference between an exchange and a conversion
be able to apply the IA’s suggested formula to ensure proper and fair exchange of shares / units
be able to calculate the number of units following conversion
be able to calculate purchase consideration and redemption proceeds using the different methods permitted by the FCA
understand the use and consequences of fund liquidity and unit dealing suspension
know the definition, role and function of intermediaries
understand the difference between investing directly with the AFM or via an intermediary
know the methods by which investor transactions are executed
know the documentation required in relation to the execution of investor transactions
understand how fees and discounts affect investor transactions
understand the treatment of distributions of income and other rights
understand the AFMs responsibilities for issue and cancellation of units / shares
know the requirements for the establishment, maintenance and contents of a register
understand who can be registered as a holder of units / shares
know the status of the register as proof of ownership
know the process for rectification of registration errors
understand the registration treatment of third party interests
understand the entitlement to inspection
know the requirements for the collection of beneficial holder details
understand the processes and information requirements relating to transfers by the holder, in favour of the AFM, and by the operation of law
know the requirements governing the sub-registers for savings plans and ISAss
know the rights of holders on sub-registers
know who has responsibility for sub-registers
know the regulatory requirements for settlement
understand the different methods of settling investor transactions
understand the different treatment of income for income and accumulation shares / units

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