Updated Apr 26, 2026 Verified UAE-Financial-Rules-and-Regulations dumps Q&As - 100% Pass
New 2026 Latest Questions UAE-Financial-Rules-and-Regulations Dumps - Use Updated CISI Exam
NEW QUESTION # 61
The role of the authorised agent of the exchange-traded fund (ETF) is to:
- A. ensure that the transfer of ownership of units is completed
- B. update sell and buy orders
- C. regularly announce the indicative value of the net value of assets
- D. announce the net value of the unit's assets on a daily basis
Answer: C
Explanation:
The authorised agent of an ETF has a critical role in maintaining transparency and liquidity in the market.
According to CISI UAE Financial Rules and Regulations, the authorised agent is responsible for regularly announcing the indicative value of the net assets of the ETF units. This indicative net asset value (iNAV) provides investors and market participants with a near real-time estimate of the underlying assets' value, reflecting market fluctuations throughout the trading day. Unlike the official net asset value (NAV), which is typically calculated at the end of the trading day, the iNAV supports intra-day trading decisions and helps maintain price alignment between the ETF units and their underlying assets. This responsibility is fundamental in ensuring efficient price discovery and protecting investor interests in the ETF market.
Reference: CISI UAE Financial Rules and Regulations - Investment Funds and ETF Operations, Section
6.4.2 (2023).
NEW QUESTION # 62
When a company applies to become a Special Purpose Acquisition Company, its sponsors must prepare proposals to:
- A. identify potential money laundering
- B. manage conflicts of interest
- C. reduce the risk to investors
- D. deal with succession planning
Answer: B
Explanation:
Sponsors of companies applying to become Special Purpose Acquisition Companies (SPACs) in the UAE must prepare detailed proposals that specifically address the management of conflicts of interest. This is mandated under CISI UAE Financial Rules and Regulations to ensure that the SPAC's activities remain transparent and investors' interests are protected. Conflicts of interest may arise from the sponsors' dual roles or relationships with target companies or investors. Addressing these conflicts proactively through proposals and policies supports integrity and market confidence. While risk reduction and anti-money laundering are critical, the regulations explicitly highlight conflict management as a core area for SPAC sponsors.
Reference: CISI UAE Financial Rules and Regulations - Regulatory Infrastructure, SPAC Sponsorship Requirements, Section 6.3.4 (2023).
NEW QUESTION # 63
When updating their money laundering compliance framework, firms involved in crypto assets are required to take into account the recommendations of which body?
- A. United Nations Office on Drugs and Crime
- B. Bank for International Settlements
- C. World Bank
- D. Financial Action Task Force
Answer: D
Explanation:
Under the UAE's Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) framework, firms, including those involved in crypto assets, are required to align their compliance practices with international standards. The Financial Action Task Force (FATF) provides the global framework and recommendations to combat money laundering and terrorism financing. Firms must adhere to these recommendations to update and maintain their AML compliance programs effectively, ensuring that they remain in line with the best global practices and avoid involvement in illicit activities. The FATF's guidelines specifically address the risks posed by crypto assets and set standards for monitoring, reporting, and controlling potential misuse of such assets for money laundering purposes.
Reference: CISI UAE Financial Rules and Regulations - Anti-Money Laundering Framework and Crypto Assets, Section 9.2.4 (2023).
NEW QUESTION # 64
Why would the Authority board resolve temporarily to halt trading in the shares of any company?
- A. A written complaint is made relating to a market activity
- B. It does not have the technical equipment necessary to conduct its activity electronically
- C. It transpires that the spouse of a board member is a director of that entity
- D. A threat to the proper and regular working of that market arises
Answer: D
Explanation:
The Authority board may decide to temporarily halt trading in the shares of a company if a threat to the proper and regular working of that market arises. This action is taken to ensure the integrity of the market and protect investors from any disruption caused by irregularities or unexpected events. Such threats could include issues like system failures, significant market manipulation, or events that might cause unfair trading conditions.
Halting trading is a precautionary measure that aims to stabilize the market, allowing time for the issue to be resolved before trading resumes.
Reference: CISI UAE Financial Rules and Regulations - Trading Halts and Market Integrity, Section 3.4.2 (2023).
NEW QUESTION # 65
If a discrepancy comes to light when conducting an external reconciliation, what must the firm do?
- A. Immediately suspend operations with the third party
- B. Immediately inform the regulator verbally and follow this up in writing
- C. Close the client's account by close of business on the same day
- D. Investigate and correct it as soon as possible
Answer: D
Explanation:
If a discrepancy is identified during an external reconciliation process, the firm is required to investigate and correct it as soon as possible. The CISI UAE Financial Rules and Regulations emphasize that discrepancies, whether in financial data or operational procedures, must be thoroughly examined to determine the root cause and rectified promptly. Immediate corrective action helps to ensure that financial statements and other reports remain accurate and reliable, preventing any further errors or compliance issues. While it may be necessary to inform the regulator or suspend operations in extreme cases, the first priority is to address the discrepancy through investigation and correction.
Reference: CISI UAE Financial Rules and Regulations - Reconciliation and Error Resolution, Section 8.1.4 (2023).
NEW QUESTION # 66
A vote carried out by the board of the Authority resulted in a tie. What happens in these circumstances?
- A. The chairman or their deputy is granted the casting vote
- B. The decision is postponed until another vote can be taken
- C. The vote for the resolution is automatically carried
- D. The vote against the resolution is automatically carried
Answer: A
Explanation:
Under the CISI UAE Financial Rules and Regulations, in the event of a tie vote by the board of the Authority, the chairman or their deputy is granted the casting vote to resolve the deadlock. This mechanism ensures decisions can be made efficiently without indefinite postponement. The casting vote provides a decisive voice to the chair in balancing the board's decisions, reflecting common governance principles in corporate and regulatory bodies. Automatic carriage or rejection of resolutions without further input is not allowed, and postponement is typically avoided to maintain regulatory effectiveness.
Reference: CISI UAE Financial Rules and Regulations - Governance and Board Procedures, Section 2.4.8 (2023).
NEW QUESTION # 67
Following a public subscription, what must a Special Purpose Acquisition Company do with the proceeds?
- A. Deposit not less than 100% of the public subscription proceeds within two business days of receipt
- B. Deposit not less than 90% of the public subscription proceeds within one business day of receipt
- C. Deposit not less than 100% of the public subscription proceeds within one business day of receipt
- D. Deposit not less than 90% of the public subscription proceeds within two business days of receipt
Answer: C
Explanation:
Special Purpose Acquisition Companies (SPACs) operating under UAE financial regulations must safeguard investors' funds post-public subscription. According to the CISI UAE Financial Rules and Regulations, SPACs are required to deposit100% of the public subscription proceeds within one business day of receipt into an escrow or segregated account. This requirement ensures that the funds are secured and managed transparently while awaiting acquisition activities. The strict one-business-day deadline prevents misuse or misallocation of investor money and aligns with international best practices for fund protection. This is critical in maintaining market confidence and regulatory compliance, as SPACs act as investment vehicles with inherent risk related to future mergers or acquisitions.
Reference:CISI UAE Financial Rules and Regulations - Investment Funds and SPAC Requirements, Section 6.3.1 (2023).
NEW QUESTION # 68
A joint-stock company applying for a licence to conduct clearing activities in a commodity market recently appointed a new chairman and a new CEO. Why did this lead to the application being refused?
- A. Only the chairman held a tranche of the company's shares
- B. They had been employed by the company during the previous year
- C. They were supported by just three other board members
- D. Only the CEO's compensation had been approved by the Authority
Answer: B
Explanation:
According to CISI UAE Financial Rules and Regulations, applications for licences to conduct clearing activities require that key senior officers such as the chairman and CEO meet certain tenure and independence criteria. The application was refused because both the newly appointed chairman and CEO had been employed by the company during the previous year, which raises concerns about independence and potential conflicts of interest. Regulators require sufficient separation and stability in leadership to ensure effective governance and risk management in critical market infrastructure roles like clearing. The recent employment history suggested insufficient cooling-off periods or independence safeguards.
Reference: CISI UAE Financial Rules and Regulations - Licensing Requirements for Clearing Firms, Section 7.1.3 (2023).
NEW QUESTION # 69
Which of the following is one of the prescribed financial activities for which the Authority can issue a license?
- A. Corporate planning
- B. Promotion
- C. Risk management
- D. Analysis
Answer: C
Explanation:
Under CISI UAE Financial Rules and Regulations, risk management is among the prescribed financial activities for which the Securities and Commodities Authority (SCA) issues licenses. Licensing ensures that entities engaging in financial risk assessment and mitigation services meet regulatory standards related to expertise, governance, and compliance. Activities such as analysis, promotion, and corporate planning are not independently licensable financial activities but may be ancillary functions within licensed firms. The licensure of risk management activities supports market stability and investor protection by formalizing oversight of critical financial functions.
Reference: CISI UAE Financial Rules and Regulations - Regulatory Infrastructure and Licensing, Section
3.1.2 (2023).
NEW QUESTION # 70
An in-kind shares evaluation report must be based on data covering what maximum period before the evaluation date?
- A. Four months
- B. One month
- C. Two months
- D. Three months
Answer: D
Explanation:
Under CISI UAE Financial Rules and Regulations, an in-kind shares evaluation report must be based on data covering a maximum period of three months prior to the evaluation date. This ensures the valuation reflects recent market conditions and financial information, maintaining accuracy and relevance. Longer periods could risk outdated or misleading valuations, affecting investor decisions and fund reporting. The three-month timeframe is aligned with international valuation standards applied to in-kind contributions to investment funds.
Reference: CISI UAE Financial Rules and Regulations - Investment Funds, In-Kind Share Valuation Requirements, Section 6.2.8 (2023).
NEW QUESTION # 71
A firm offering custody, clearing and recording, is required to have a minimum paid-up capital of:
- A. AED 150 million
- B. AED 50 million
- C. AED 100 million
- D. AED 30 million
Answer: C
Explanation:
As per the CISI UAE Financial Rules and Regulations, firms involved in custody, clearing, and recording services must have a minimum paid-up capital of AED 100 million. This capital requirement ensures that firms in this category have sufficient financial resources to manage the risks associated with their operations, which include handling clients' assets, ensuring compliance with financial regulations, and absorbing potential operational or financial losses. The higher capital threshold also enhances the stability and credibility of such firms, making them more resilient to market fluctuations and operational challenges.
Reference: CISI UAE Financial Rules and Regulations - Capital Requirements for Custody, Clearing, and Recording Firms, Section 7.3.2 (2023).
NEW QUESTION # 72
Firms providing investment management services must provide periodic statements to retail clients, in normal circumstances at least every:
- A. 3 months
- B. month
- C. 12 months
- D. 6 months
Answer: D
Explanation:
The CISI UAE Financial Rules and Regulations require that firms offering investment management services deliver periodic statements to retail clients at least every 6 months under normal circumstances. This frequency strikes a balance between providing clients with timely updates on their investments and operational practicality for firms. The statements include performance, transaction details, fees, and holdings, enabling retail clients to monitor their portfolios and make informed decisions. More frequent reporting may be required in special situations, but semi-annual reporting is the standard minimum.
Reference: CISI UAE Financial Rules and Regulations - Client Reporting Requirements, Section 4.5.3 (2023).
NEW QUESTION # 73
The Corporate Governance Guide automatically allows board members of public joint-stock companies to accept gifts up to what maximum stated value?
- A. AED 200
- B. AED 500
- C. AED 300
- D. AED 100
Answer: C
Explanation:
According to the Corporate Governance Guide for public joint-stock companies, board members are automatically allowed to accept gifts up to a maximum value of AED 300. This limit is set to ensure that the acceptance of gifts does not raise concerns about conflicts of interest or unethical conduct. By establishing a cap on the value of acceptable gifts, the guide aims to promote transparency and prevent any undue influence on the decision-making process of board members. This helps maintain the integrity of the corporate governance framework and fosters trust among stakeholders.
Reference: CISI UAE Financial Rules and Regulations - Corporate Governance and Gift Acceptance, Section 10.4.5 (2023).
NEW QUESTION # 74
The whistleblowing policy submitted by an applicant for a financial activities licence must include a mechanism for:
- A. protecting the reporting employee
- B. ensuring all staff have a named reporting contact
- C. escalating any reports to board level
- D. disciplining staff proven to have breached rules
Answer: A
Explanation:
The CISI UAE Financial Rules and Regulations require that the whistleblowing policy submitted by licence applicants incorporates a clear mechanism for protecting the reporting employee. This protection includes confidentiality safeguards, protection against retaliation, and secure channels for raising concerns. Ensuring the safety and anonymity of whistleblowers is fundamental to encouraging the reporting of unethical or illegal conduct, thereby enhancing regulatory compliance and corporate governance. Other aspects such as escalation procedures and disciplinary measures are important but secondary; the central pillar of effective whistleblowing policy is the protection of the individual who reports wrongdoing.
Reference: CISI UAE Financial Rules and Regulations - Regulatory Infrastructure and Whistleblowing, Section 3.4.2 (2023).
NEW QUESTION # 75
An applicant for a financial activities licence must have procedures in place to recover electronic records from the archive within what maximum period?
- A. Three business days
- B. Five business days
- C. Four calendar days
- D. Two calendar days
Answer: A
Explanation:
According to CISI UAE Financial Rules and Regulations, applicants for a financial activities licence must ensure that their record-keeping systems allow for recovery of electronic records from archives within a maximum period of three business days. This requirement ensures timely access to data necessary for audits, investigations, and regulatory reviews. The three-business-day timeframe balances operational feasibility with regulatory needs for responsiveness and data integrity, supporting transparency and compliance in the UAE financial sector.
Reference: CISI UAE Financial Rules and Regulations - Record-Keeping and Data Recovery Procedures, Section 3.5.10 (2023).
NEW QUESTION # 76
What is the minimum fine that can be levied on a person found guilty of financing an illegal organisation?
- A. AED 300,000
- B. AED 200,000
- C. AED 250,000
- D. AED 150,000
Answer: D
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).
NEW QUESTION # 77
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