Collective Investment Scheme Administration Exam – Quiz 06

Last Updated: June 2024

Table of Contents

CISI Exam Quiz 06 Topics Covers:

know the differences between single funds, umbrella schemes and master feeder schemes
understand the permissible share and unit classes issued by schemes
understand the treatment of the following in respect to the initial offer period
know process for appointment and removal of the AFM
know the requirements for appointment of the auditors
understand the difference between the audit and the AFM’s obligation for compliance monitoring
understand the requirement for a prudent spread of risk, the principles of investment and borrowing powers and managing liquidity
know the basis for investment or borrowing limits, the factors used in and obligations attached to valuing scheme property
know the minimum requirements relating to management of capital, risk and liquidity
know the types of corporate actions which may be received by the fund, the AFMs process to execute and the risks and regulatory requirements associated with these
know the restrictions and powers relating to cash, borrowing, stock lending and the exceptions applying
know how and when valuations are made including required frequency
be able to calculate the price of units and shares using the different methods permitted by the FCA
understand how prices are calculated for funds with multiple share classes
know the factors to be considered by a fund manager when determining a performance fee
know the charges that may be made by the AFM
understand the AFM’s discretion in setting dealing prices under single and dual pricing
know the requirements for price publication
know the requirements for notification to the depositary / trustee
know the minimum requirements relating to the controls around valuations (including fair valuation techniques)
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

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