CISI IAD Practice Test
Updated October 2026Facts verified Oct 25, 2026 against Chartered Institute for Securities & Investment
CISI IAD: upcoming dates and official changes
- Updated Oct 25, 2026: Number of questions is now 80 multiple-choice questions per unit (previously 80 multiple-choice questions per unit).
- Updated Oct 25, 2026: Time limit is now 2 hours per unit (previously 2 hours per unit).
- Updated Oct 25, 2026: Retake policy is now Up to 6 attempts per 12 months; 6-week rest after 3rd attempt (previously Max 6 attempts per 12 months; 6-week rest after 3rd attempt).
Facts verified Oct 25, 2026 against Chartered Institute for Securities & Investment. Dates that have passed are removed automatically.
- Each Investment Advice Diploma unit exam comprises 80 multiple choice questions. (Chartered Institute for Securities & Investment)
- Each Investment Advice Diploma unit exam lasts two hours. (Chartered Institute for Securities & Investment)
- The pass mark for the CISI Level 4 Securities exam, one of the Investment Advice Diploma units, is 70%. (Chartered Institute for Securities & Investment)
- CISI allows up to six attempts at the same exam subject in any 12-month period, with a six-week rest period enforced after the third sitting. (Chartered Institute for Securities & Investment)
- CISI Investment Advice Diploma exams can be taken online via remote invigilation or at one of CISI's global test centres. (Chartered Institute for Securities & Investment)
- The Investment Advice Diploma is suitable for practitioners advising and/or dealing in Securities or Derivatives. (Chartered Institute for Securities & Investment)
- CISI multiple-choice exam results are available online within 24 working hours but stay provisional until five working days after the exam. (Chartered Institute for Securities & Investment)
Facts verified Oct 25, 2026 against Chartered Institute for Securities & Investment. Dates that have passed are removed automatically.
CISI IAD Exam at a Glance
| Item | Detail | Official source |
|---|---|---|
| Number of questions | 80 multiple-choice questions per unit | Chartered Institute for Securities & Investment |
| Time limit | 2 hours per unit | Chartered Institute for Securities & Investment |
| Passing score (Securities unit) | 70% | Chartered Institute for Securities & Investment |
| Retake policy | Up to 6 attempts per 12 months; 6-week rest after 3rd attempt | Chartered Institute for Securities & Investment |
| Delivery | Online via remote invigilation or at a global test centre | Chartered Institute for Securities & Investment |
| Eligibility | Suitable for practitioners advising or dealing in Securities or Derivatives | Chartered Institute for Securities & Investment |
| Score release | Online within 24 working hours; provisional for 5 working days | Chartered Institute for Securities & Investment |
Facts verified Oct 25, 2026 against Chartered Institute for Securities & Investment. Dates that have passed are removed automatically.
Free CISI Investment Advice Study Tools
Interactive CISI Investment Advice resources on PracticeTestGeeks, free to start:
- CISI IAD Fixed Income Securities 1 — 7 questions with answer explanations
- CISI Investment Advice flashcards — review key terms and concepts card by card
- CISI Investment Advice study guide — topic-by-topic overview of what the exam covers
- CISI Investment Advice cheat sheet — one-page printable summary for last-minute review
Important: The CISI IAD examination requires thorough understanding of all core subject areas. Review the official UK exam guidelines and ensure you meet all eligibility requirements before scheduling your test date.
What are the key eligibility requirements for the CISI IAD?
Candidates must meet the educational and professional requirements set by the UK certification body. Check official prerequisites before applying.
Start FREE TestWhat is the best strategy for CISI IAD exam preparation?
Combine official study materials with practice tests, focus on weak areas, and create a structured revision timetable leading up to exam day.
Start FREE TestHow is the CISI IAD exam scored?
The CISI IAD uses a standardised scoring system. Results are typically provided as pass/fail, with detailed score reports available for each domain area.
Start FREE TestWhat should I bring on CISI IAD exam day?
Bring valid photo identification, your exam confirmation, and any approved materials. Arrive early and review the testing centre rules beforehand.
Start FREE TestCISI IAD Study Tips
- Create a structured study schedule at least 4-6 weeks before your CISI IAD exam date.
- Focus on understanding core concepts rather than memorising answers for the CISI Level 4 Diploma in Investment Advice.
- Use our free practice tests to identify weak areas and track your progress over time.
- Review the official CISI IAD exam syllabus to ensure complete topic coverage.
- Take timed practice sessions to build your exam pace and reduce test-day anxiety.
CISI IAD Practice Test Questions
Prepare for the CISI Level 4 Investment Advice Diploma exam with our free practice test modules. Each quiz covers key topics to help you pass on your first try.
CISI IAD Advanced Investment Analysis
CISI IAD Exam Questions covering Advanced Investment Analysis. Master CISI IAD Test concepts for certification prep.
CISI IAD Client Suitability and Alternativ...
Free CISI IAD Practice Test featuring Client Suitability and Alternative Investments. Improve your CISI IAD Exam score with mock test prep.
CISI IAD Derivatives – Options and Futures
CISI IAD Mock Exam on Derivatives – Options and Futures. CISI IAD Study Guide questions to pass on your first try.
CISI IAD Financial Planning Process
CISI IAD Test Prep for Financial Planning Process. Practice CISI IAD Quiz questions and boost your score.
CISI IAD Fixed Income Securities
CISI IAD Questions and Answers on Fixed Income Securities. Free CISI IAD practice for exam readiness.
CISI IAD Investment Environment
CISI IAD Mock Test covering Investment Environment. Online CISI IAD Test practice with instant feedback.
CISI IAD Investment Risk and Taxation
Free CISI IAD Quiz on Investment Risk and Taxation. CISI IAD Exam prep questions with detailed explanations.
CISI IAD Portfolio Construction and Manage...
CISI IAD Practice Questions for Portfolio Construction and Management. Build confidence for your CISI IAD certification exam.
CISI IAD Private Client Investment Advice
CISI IAD Test Online for Private Client Investment Advice. Free practice with instant results and feedback.
CISI IAD Regulation and Compliance
CISI IAD Study Material on Regulation and Compliance. Prepare effectively with real exam-style questions.
CISI IAD Securities and Markets
Free CISI IAD Test covering Securities and Markets. Practice and track your CISI IAD exam readiness.
- ✓Valid government-issued photo identification
- ✓Exam booking confirmation or admission notice
- ✓Approved calculator (if permitted)
- ✓Water bottle (clear, no labels)
- ✓Arrive 30 minutes before scheduled time
- ✓Know the test centre location and parking
- ✓Review key formulas or concepts the night before
- ✓Get a good night's sleep before exam day
Ready to Pass the CISI IAD?
Join thousands of candidates who have used our free practice tests to prepare for the CISI Level 4 Diploma in Investment Advice. Start practising today and build the confidence you need to succeed.
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Sample CISI Investment Advice Practice Questions
Try these questions from our free CISI Investment Advice practice tests. The correct answer and an explanation follow each question.
What is a 'free cash flow' (FCF) yield?
- A. The dividend yield of a company that has no debt
- B. Free cash flow (operating cash flow minus capex) divided by the market capitalisation, expressed as a percentage
- C. The yield on a company's corporate bonds relative to gilts
- D. The difference between a company's earnings yield and its dividend yield
Answer: B. Free cash flow (operating cash flow minus capex) divided by the market capitalisation, expressed as a percentage
FCF yield = free cash flow / market capitalisation. Free cash flow is the cash generated after capital expenditure — it is the cash available to return to shareholders via dividends or buybacks. A high FCF yield may indicate an undervalued company generating strong cash returns.
In a period of quantitative easing (QE) by the Bank of England, what is the expected effect on gilt prices?
- A. Gilt prices fall as supply increases
- B. Gilt prices remain unchanged
- C. Gilt prices rise as the Bank purchases gilts
- D. Gilt prices become more volatile but trend-neutral
Answer: C. Gilt prices rise as the Bank purchases gilts
During QE, the Bank of England purchases gilts from the secondary market, increasing demand and pushing prices upward. This in turn reduces gilt yields, lowering borrowing costs across the economy. The mechanism works through asset price channels to stimulate economic activity.
What is the role of the Financial Ombudsman Service (FOS) in relation to investment advice complaints?
- A. To prosecute firms for regulatory breaches
- B. To provide an independent dispute resolution service for complaints between consumers and financial firms
- C. To authorise and regulate financial advisers
- D. To set compensation limits for the FSCS
Answer: B. To provide an independent dispute resolution service for complaints between consumers and financial firms
The FOS is an independent body that resolves disputes between consumers and financial services firms. If a consumer is unhappy with a firm's response to their complaint (or the firm hasn't responded within 8 weeks), they can refer the matter to the FOS. The Ombudsman can award compensation up to the applicable limit. It is distinct from the FCA (which regulates) and the FSCS (which compensates when firms fail).
What is 'hedging' with derivatives and why do investors use it?
- A. Using derivatives to speculate on price increases
- B. Using derivatives to reduce or offset the risk of adverse price movements in existing portfolio positions, protecting against losses while retaining upside potential
- C. Using derivatives to increase portfolio leverage and amplify returns
- D. Using derivatives to avoid paying stamp duty on share purchases
Answer: B. Using derivatives to reduce or offset the risk of adverse price movements in existing portfolio positions, protecting against losses while retaining upside potential
Hedging involves taking an offsetting derivative position to protect against adverse price movements. For example, buying put options on an equity portfolio protects against a market fall. It is analogous to insurance — paying a premium (cost) to limit potential losses.
How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy
Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- cisi.org — Test delivery, eligibility, score release, retake policy, passing score, exam format, time limit · verified Oct 2026