CISI International Certificate in Wealth Management

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Questions and Answers

What is the primary purpose of the workbook mentioned?

To serve as a trading platform

To offer financial planning services

To provide legal advice on trading

To prepare for the International Certificate in Wealth and Investment Management examination (correct)

Who is the author of the workbook?

Martin Mitchell

Kevin Sloane

Rohan Dholakia

Kevin Rothwell (correct)

What time frame does the workbook cover for the exams?

From 1 January 2022 to 31 December 2023

From 1 March 2023 to 2 March 2024

From 2 March 2023 to 1 March 2025 (correct)

From 2 March 2022 to 1 March 2025

What is stated about the responsibility of the Chartered Institute for Securities & Investment?

They accept no responsibility for losses incurred from trading or investments Signup and view all the answers

What consequence may unauthorized use of the workbook lead to?

Civil claims for damages and criminal prosecution Signup and view all the answers

Where can candidates view the full syllabus according to the workbook?

At cisi.org and by calling customer support Signup and view all the answers

What is the warning given at the beginning of the workbook?

The laws mentioned may not apply to Scotland Signup and view all the answers

What is highlighted as a feature of the workbook related to the syllabus?

It includes a learning map with the full syllabus Signup and view all the answers

What is the primary benefit of P2P lending for savers?

Higher rates of return Signup and view all the answers

What differentiates investment banks from commercial banks?

They primarily focus on corporate finance and advisory work Signup and view all the answers

What is a key risk associated with P2P lending for savers?

Long withdrawal times Signup and view all the answers

What is shadow banking?

Financial activities by non-bank institutions providing bank-like services Signup and view all the answers

Which of the following entities is NOT typically serviced by investment banks?

Retail consumers Signup and view all the answers

What concern do regulators have regarding shadow banking?

Risks to the financial system Signup and view all the answers

What type of services do investment banks provide?

Corporate finance and advisory work Signup and view all the answers

What happens to the deposit in P2P lending that is waiting to be lent out?

It does not earn any interest Signup and view all the answers

What is a primary function of custodians in financial services?

Charging fees for their custodial services Signup and view all the answers

How do global custodians typically operate in different markets?

By having a branch or using local agents Signup and view all the answers

What differentiates a high-net-worth individual (HNWI) from a mass affluent client in wealth management?

HNWI has investable assets exceeding $1 million Signup and view all the answers

Which of the following services is typically associated with wealth management?

Tax planning and estate planning Signup and view all the answers

What trend is observed in the wealth management sector regarding financial advice and investment management?

They are integrating more closely Signup and view all the answers

What is a key feature of regional custodians compared to global custodians?

They provide services across a localized area Signup and view all the answers

Which type of services can wealth management offer to clients?

Investment products and estate management Signup and view all the answers

What defines the segmentation of clients in the wealth management sector?

The amount of investable assets they possess Signup and view all the answers

What is the estimated study time required for the workbook?

100 hours Signup and view all the answers

What feature allows you to read comfortably on any device?

Adjustable text size Signup and view all the answers

Which of the following is NOT a feature available through the ebook link?

Printed worksheets Signup and view all the answers

What learning aid is recommended for accommodating various learning styles?

Online videos and voice functions Signup and view all the answers

What tool helps users to keep track of important sections in the ebook?

Digital highlighting Signup and view all the answers

Which feature allows immediate access to definitions while studying?

Pop-up definitions Signup and view all the answers

What is one potential benefit of using the ebook over a traditional textbook?

It may incorporate multimedia elements. Signup and view all the answers

What method is suggested to provide feedback regarding learning resources?

Email your comments Signup and view all the answers

What was the primary purpose of the FATF when it was established?

To examine money laundering techniques and produce recommendations Signup and view all the answers

Which of the following is NOT one of the principal areas of focus for the FATF?

Promoting banking innovations to increase financial access Signup and view all the answers

What are the countries identified by the FATF as having inadequate anti-money laundering measures commonly referred to as?

Non-cooperative countries Signup and view all the answers

Which group was responsible for issuing a comprehensive plan of action to combat money laundering in 1990?

The Financial Action Task Force Signup and view all the answers

How does the FATF monitor the implementation of anti-money laundering measures by its members?

By conducting audits of national systems Signup and view all the answers

What type of recommendations does the FATF issue to combat money laundering and terrorist financing?

40 comprehensive recommendations plus additional guidance Signup and view all the answers

Which of the following correctly describes the regional groups established by the FATF?

They cover distinct regions including the Americas, Asia Pacific, Europe, and the Middle East and Africa. Signup and view all the answers

What role does the Wolfsberg Group play in relation to the FATF guidelines?

They provide guidance for private and correspondent banking activities. Signup and view all the answers

What is the primary role of the Bank for International Settlements (BIS)?

To serve as a 'central bank' for other central banks Signup and view all the answers

Which of the following groups does the Basel Committee on Banking Supervision (BCBS) primarily serve?

Central banks globally Signup and view all the answers

Which of the following does the Committee on Payments and Market Infrastructures (CPMI) focus on?

Overseeing payment, clearing, and settlement standards Signup and view all the answers

What does international cooperation among regulatory authorities aim to achieve?

Develop and improve common standards Signup and view all the answers

What is the purpose of the Basel Accords?

To set capital adequacy standards for banks Signup and view all the answers

What is the primary focus of the Committee on the Global Financial System (CGFS)?

Assessing issues related to financial markets and systems Signup and view all the answers

How does the Basel Process contribute to the global financial system?

By producing internationally agreed guidance Signup and view all the answers

Which of the following best describes the nature of regulations in the context of international finance?

Broadly applicable beyond national borders Signup and view all the answers

Study Notes

International Certificate in Wealth & Investment Management

Study Material: This workbook prepares students for the CISI's International Certificate in Wealth and Investment Management exam.
Publisher: Chartered Institute for Securities & Investment (CISI)
Author: Kevin Rothwell, FCSI
Reviewers: Martin Mitchell, Kevin Sloane, Chartered MCSI, Rohan Dholakia
Exam Coverage: March 2023 - March 2025
Study Time Estimate: Approximately 100 hours
Syllabus: Full syllabus available on cisi.org or by contacting +44 20 7645 0777
Examination Basis: The exam is based on the syllabus.
Workbook Features: Includes video clips, read-aloud function, adjustable text size, annotations, images, tables, animated graphs, links to relevant websites, pop-up definitions.
Online Resources: For exam preparation, an ebook with various tools is available
Responsibility Disclaimer: CISI does not accept responsibility for trading or investment decisions based on workbook content.

P2P Lending

Mechanism: Peer-to-peer (P2P) lending platforms connect borrowers and savers directly, cutting out banks.
Borrower Rates: Borrowers often get slightly lower rates.
Saver Rates: Savers may receive higher interest rates than with traditional banks, especially in low-interest rate environments.
Risk/Return: Savers accept slightly increased risk for higher returns.
Varying Rates: Available rates depend on the borrower type and risk the lender accepts.
Deposit Lending Time: Lending out a deposit may take time.
No Immediate Interest: Interest is not paid while waiting to be lent out.
Withdrawal Restrictions/Fees: Immediate withdrawals may not be possible, may take time, and incur fees or reduced interest rates.

Shadow Banking

Definition: A general term for non-bank institutions providing banking-like services outside banking regulations.
Range: This includes a range from pawnbrokers/finance companies to money market funds and specialised investment vehicles.
Regulatory Concerns: Regulators globally are increasing concerned about shadow banking risks to the financial system.

Investment Banks

Operation Differences: Investment banks differ from deposit-taking commercial banks.
Services: Investment banks provide advisory and finance services for companies (e.g., flotations, additional financing, mergers/acquisitions) and trading to institutions (pension funds, asset managers, hedge funds).
Typical Services: Corporate finance advisory, new security issues, takeovers, mergers, acquisitions, banking services for governments, institutions, companies.

Wealth Management

Definition: Providing financial services focused on preserving and enhancing client wealth.
Service Consolidation: Financial advice and investment management are increasingly integrated.
Service Examples: Tailored banking products, investment management, secured lending, investment products (foreign exchange, structured investments, property, alternative investments), trusts & estate management, tax planning, estate planning.
Wealth Segmentation: Services are segmented by wealth levels (mass affluent, high-net-worth, ultra-high-net-worth).

International Regulatory Bodies

International Cooperation: Regulations and laws increasingly apply beyond national borders, fostering international cooperation.
Bank for International Settlements (BIS): Located in Switzerland, owned by central banks. Serves central banks, not private individuals. Focuses on monetary and financial stability, international cooperation (e.g., Basel Accords, capital adequacy standards).
Basel Process: Promotes international cooperation and strengthens the stability of the global financial system. (Basel Committee on Banking Supervision, Committee on the Global Financial System, Committee on Payments and Market Infrastructures).
FATF (Financial Action Task Force): Created in response to money laundering concerns. Sets international standards for anti-money laundering and combating terrorist financing (CFT). Identifies trends and methods. Collaborates with other international bodies in combating money laundering and terrorist financing.

Role of Other International Agencies

Multiple Agencies: Other international agencies are involved in combating money laundering and terrorist financing.

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Description

This quiz helps students prepare for the CISI's International Certificate in Wealth and Investment Management exam. It covers essential topics and resources provided in the workbook designed by Kevin Rothwell. Brush up on your knowledge and get ready for the exam with this comprehensive quiz.