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CISI UAE Financial
Rules and Regulations
Exam
Version: Demo
[ Total Questions: 10]
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UAE-Financial-Rules-and-Regulations
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CISI - UAE-Financial-Rules-and-RegulationsPass Exam
1 of 6Verified Solution - 100% Result
A. 
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Category Breakdown
Category Number of
Questions
Anti-Money Laundering and Combating the Financing of Terrorism and Illegal
Organisations (Federal Law No. 20 of 2018)
2
Client Protection 5
Trading 2
The Regulatory Infrastructure 1
TOTAL 10
Question #:1 - [Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations 
(Federal Law No. 20 of 2018)]
What is the minimum fine that can be levied on a person found guilty of financing an illegal organisation?
AED 150,000
AED 200,000
AED 250,000
AED 300,000
Answer: A
Explanation
Under Federal Law No. 20 of 2018 and relevant CISI UAE Financial Rules and Regulations, the minimum 
fine imposed on a person convicted of financing an illegal organisation is AED 150,000. This penalty 
underscores the seriousness with which the UAE treats the crime of funding illegal or terrorist entities. 
Alongside financial sanctions, convicted individuals may face imprisonment and other legal consequences. 
These stringent penalties are part of the UAE’s commitment to combating terrorism financing and protecting 
national and international security.
Reference: CISI UAE Financial Rules and Regulations — AML Criminal Sanctions, Section 8.4.5 (2023).
Question #:2 - [Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations 
(Federal Law No. 20 of 2018)]
If an offering person arranges the issuance of crypto assets for which funds have been subscribed by investors, 
controls must be set up to avoid:
subscriptions being taken at excessive levels from non-qualified investors
subscriptions being taken at different threshold levels
prices being determined at the discretion of the issuer
CISI - UAE-Financial-Rules-and-RegulationsPass Exam
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D. 
A. 
B. 
C. 
D. 
prices being allowed to fluctuate during the opening offer period
Answer: A
Explanation
Under Federal Law No. 20 of 2018 and related CISI UAE Financial Rules and Regulations, issuers arranging 
crypto asset offerings must establish controls to prevent subscriptions being taken at excessive levels from 
non-qualified investors. This is a key investor protection and anti-money laundering measure designed to 
restrict high-risk investment exposure to those with adequate knowledge, resources, and risk appetite. By 
enforcing subscription limits for non-qualified investors, the regulations mitigate fraud, market manipulation, 
and financial losses while ensuring regulatory compliance. Controls over pricing discretion or fluctuations, 
while relevant, are not the central regulatory concern in this context.
Reference: CISI UAE Financial Rules and Regulations — AML and Crypto Asset Issuance Controls, Section 
8.2.4 (2023).
Question #:3 - [Client Protection]
The disclosure of a licensed body’s legal status, including the fact that it is licensed by the Authority, is 
important because:
it ensures that no clients suffer from perceived or actual misbehaviour at the hands of a firm which is 
regulated
it enables those that might suffer from perceived or actual misbehaviour at the hands of a firm to raise 
their concerns with the regulator
it forces firms to disclose their regulatory status and that they are subject to the Authority’s control and 
supervision
it allows third party firms to use, utilise, or copy the Authority’s logo for any reason and this reassures 
clients
Answer: B
Explanation
Disclosing a licensed body’s legal status and its licensing by the Authority is crucial because it enables clients 
and others who may suffer from perceived or actual misbehaviour to raise their concerns with the regulator. 
This transparency mechanism empowers investors and market participants to seek redress and promotes 
regulatory oversight. While the disclosure also signifies the firm’s subjection to regulatory supervision, the 
primary benefit is facilitating complaint handling and protection. It does not imply that no misbehaviour 
occurs, nor does it authorize the unauthorised use of the Authority’s branding by third parties.
Reference: CISI UAE Financial Rules and Regulations — Client Protection and Regulatory Disclosure, 
Section 4.1.8 (2023).
Question #:4 - [Client Protection]
CISI - UAE-Financial-Rules-and-RegulationsPass Exam
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A. 
B. 
C. 
D. 
A. 
B. 
C. 
D. 
In what circumstances can the requirement for licensed bodies to disclose their legal status be waived?
An emergency has been notified to the Authority
A court case against the licensed body is in progress
A significant market correction is taking place
A takeover bid for the licensed body has been launched
Answer: A
Explanation
The CISI UAE Financial Rules and Regulations allow the waiver of the requirement for licensed bodies to 
disclose their legal status only in specific scenarios such as when an emergency has been notified to the 
Authority. This provision recognizes that during certain urgent situations, standard disclosure obligations may 
be temporarily suspended to allow for swift action or confidentiality. Other circumstances such as ongoing 
court cases, market corrections, or takeover bids do not automatically justify waivers of disclosure 
obligations, preserving investor transparency and trust under normal conditions.
Reference: CISI UAE Financial Rules and Regulations — Regulatory Disclosure Obligations and Waivers, 
Section 4.1.10 (2023).
Question #:5 - [Trading]
Which of the following features of a previous order can be changed with the order remaining valid?
Share category
Market
Order type
Volume
Answer: D
Explanation
In UAE financial markets, certain order attributes can be modified after submission while keeping the order 
active. According to the CISI UAE Financial Rules and Regulations on Trading, the of a previous volume
order is the feature that can be changed without invalidating the order. Adjusting volume allows traders to 
increase or decrease the quantity of securities to be traded without withdrawing and resubmitting the order. 
However, changes to share category, market, or order type typically require cancellation of the existing order 
and placing a new one, as these changes affect the fundamental nature and execution venue of the order. This 
flexibility in modifying volume supports market efficiency and helps traders respond swiftly to changing 
conditions while maintaining order validity.
CISI - UAE-Financial-Rules-and-RegulationsPass Exam
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A. 
B. 
C. 
D. 
A. 
B. 
C. 
D. 
Reference:CISI UAE Financial Rules and Regulations — Trading Rules and Order Modifications, Section 
7.1.5 (2023).
Question #:6 - [Client Protection]
The policies of a firm applying for a financial activities licence must include arrangements to provide a copy 
of its complaints handling procedure to clients:on request
within 24 hours of accepting the client
within 48 hours of accepting the client
on receipt of a complaint
Answer: A
Explanation
Under the CISI UAE Financial Rules and Regulations, firms applying for a financial activities licence are 
required to have formal policies addressing client protection, including clear complaints handling procedures. 
Such firms must make these procedures , ensuring transparency and available to clients on request
accessibility without imposing undue burden on clients or firms. The regulatory framework does not mandate 
automatic distribution within fixed timeframes upon client acceptance or complaint receipt but emphasizes 
accessibility and prompt responsiveness when clients seek the information. This approach balances 
operational feasibility and client rights to be informed about how their complaints will be managed. Providing 
the procedure upon request also fosters a trust-based relationship and helps resolve disputes effectively.
Reference:CISI UAE Financial Rules and Regulations — Client Protection and Complaints Handling, 
Section 4.2.7 (2023).
Question #:7 - [Client Protection]
A licensed person who conducts financial activities related to security tokens is required to carry out a 
suitability check only if:
the token falls into the high risk category
the amount being invested exceeds AED 100,000
the client is not a qualified investor
the licensed person has less than 3 years' relevant experience
Answer: C
Explanation
CISI - UAE-Financial-Rules-and-RegulationsPass Exam
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According to CISI UAE Financial Rules and Regulations, a licensed person dealing with security tokens must 
conduct a suitability check when the client is not a qualified investor. This requirement protects less 
sophisticated investors by ensuring that the financial products offered match their investment knowledge, risk 
tolerance, and financial circumstances. Qualified investors are presumed to have sufficient expertise and 
resources, thus not mandating suitability checks. The nature of the token or amount invested is not the 
primary trigger; rather, client qualification status governs the obligation to perform suitability assessments. 
This aligns with investor protection principles embedded in UAE financial regulations.
Reference: CISI UAE Financial Rules and Regulations — Client Protection and Suitability Checks, Section 
4.3.9 (2023).
Question #:8 - [Trading]
During a trading session, if an order is not fully executed, then:
the order will be dealt with at the next trading session
the transaction is executed at the price set on the other side of the transaction
the remaining unexecuted volume is cancelled and a new order is placed, at the last executed price
the remaining unexecuted volume stays on the trading system, at the last executed price
Answer: D
Explanation
In the Dubai Financial Market (DFM) and other UAE exchanges, if an order is not fully executed during a 
trading session, the remaining unexecuted volume remains on the trading system at the last executed price, 
subject to the order’s validity instructions (e.g., good-till-cancelled). This approach allows the unfilled portion 
to remain active in the market for potential matching with future opposing orders, supporting liquidity and 
order continuity. Orders are not automatically cancelled or deferred to the next session unless specified. This 
process ensures transparency and orderly execution consistent with regulatory trading rules.
Reference: CISI UAE Financial Rules and Regulations — Trading Order Execution Rules, Section 7.2.8 
(2023).
Question #:9 - [Client Protection]
Where a brokerage firm on the DFM has a client with a debit balance, the regulations prevent the firm from:
accepting new orders from the client
providing investment advice to the client
paying any cash to the client
selling securities on the client’s behalf
CISI - UAE-Financial-Rules-and-RegulationsPass Exam
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A. 
B. 
C. 
D. 
Answer: A
Explanation
According to CISI UAE Financial Rules and Regulations, if a client holds a debit balance with a brokerage 
firm on the Dubai Financial Market (DFM), the firm is prevented from accepting new orders from that client 
until the debit balance is cleared. This measure protects both the brokerage firm and market integrity by 
ensuring that clients do not accumulate unpaid debts from trading activities, thereby reducing credit risk. The 
restriction applies specifically to new orders; other services such as providing advice or selling securities may 
continue under certain conditions.
Reference: CISI UAE Financial Rules and Regulations — Client Protection and Debit Balance Controls, 
Section 4.4.12 (2023).
Question #:10 - [The Regulatory Infrastructure]
The minimum paid-up capital requirement for ranking and advice firms is:
none
AED 5 million
AED 30 million
AED 50 million
Answer: B
Explanation
Under CISI UAE Financial Rules and Regulations, firms offering ranking and advisory services in the 
financial sector must meet a minimum paid-up capital requirement of AED 5 million. This capital threshold 
ensures that such firms have sufficient financial resources to maintain operational stability, manage risks, and 
fulfill regulatory obligations. It also reflects the level of responsibility these firms carry in providing 
investment advice and rankings that impact market participants. Higher capital requirements apply to more 
systemically significant entities, but the AED 5 million benchmark balances accessibility and prudence for 
ranking and advice firms.
Reference: CISI UAE Financial Rules and Regulations — Licensing Capital Requirements, Section 3.2.5 
(2023).
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