CISI UK Financial Regulation
CISI UKFR element

Associated Legislation and Regulation questions for the CISI UKFR exam

Money laundering, insider dealing, market abuse, and the Data Protection Act 2018.

Practise this in a free mock

The financial-crime and market-conduct element, and the one candidates most often underestimate. It ties together several separate regimes — anti-money-laundering, the criminal offence of insider dealing, the civil market-abuse regime, and data protection — and the questions frequently hinge on which regime applies and whether the consequence is criminal or civil.

What associated legislation covers in the UKFR exam

  • The Money Laundering Regulations 2017 and the Proceeds of Crime Act: customer due diligence, enhanced due diligence and the risk-based approach
  • The three principal money-laundering offences, suspicious activity reports to the NCA, and the offence of tipping off
  • Insider dealing under the Criminal Justice Act 1993 — a criminal offence — and the inside information and dealing that trigger it
  • The market-abuse regime (UK MAR): insider dealing, unlawful disclosure and market manipulation as civil offences
  • The Data Protection Act 2018 and UK GDPR: the principles, lawful bases and individuals' rights
  • Transaction, trade and transparency reporting, and the Bribery Act

Where candidates lose marks

Confusing insider dealing (a criminal offence under the Criminal Justice Act 1993) with market abuse (a civil regime). The same behaviour can breach both, but the routes and burdens of proof differ.

Thinking a suspicion needs proof before a SAR is made. The test is knowledge or suspicion, reported to the MLRO and on to the NCA — not certainty.

Missing tipping off. Telling a client their transaction has been reported is itself a separate offence.

Worked examples

Real questions from our bank, with the reasoning. No sign-in needed.

Sample question 1

A firm is arranging regular AML awareness sessions for its staff. Which regulation requires firms to provide ongoing money laundering training?

  1. AProceeds of Crime Act 2002
  2. BMoney Laundering Regulations 2017Correct
  3. CSerious Organised Crime and Police Act 2005
  4. DSYSC
  5. EFraud Act 2006

Why: MLR 2017 Section 24 requires firms to provide adequate training to staff to prevent money laundering.

Sample question 2

A back-office clerk becomes suspicious that a transaction may involve laundered funds. What is the correct internal reporting obligation for staff in this situation?

  1. AReport the suspicion to the nominated officer or MLROCorrect
  2. BReport the suspicion directly to the FCA supervisor
  3. CReport the matter directly to the Serious Fraud Office
  4. DReport the suspicion in writing to the High Court
  5. EReport the concern directly to the affected client

Why: Staff must report suspicions internally to the nominated officer or MLRO.

Test yourself on associated legislation

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The other four elements

The Regulatory Environment
The FCA, the PRA and the Bank of England, their objectives and the regulatory infrastructure.
The Financial Services and Markets Act 2000 and Financial Services Act 2012
FSMA 2000, regulated and prohibited activities, authorisation, and the FCA's powers.
FCA Conduct of Business (COBS) and Client Assets (CASS)
Client categorisation, suitability, financial promotions, and client money and custody.
Complaints and Redress
The DISP rules, the Financial Ombudsman Service and the Financial Services Compensation Scheme.
Read the complete CISI UKFR guide

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