PracticeVideosBlogFlashcardsEspañol
All Practice Exams

Free Practice Questions for SIAA Securities & Managed Investments

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More SIAA Accreditation Exams (Australia)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

SIAA Accredited Derivatives Adviser Level 2 (ADA2) Exam

Practice Questions

SIAA Foreign Exchange Accreditation Exam

Practice Questions

SIAA Fundamentals of Securities Accreditation Exam

Practice Questions

SIAA Margin Lending Accreditation Exam

Practice Questions
Exam Review

Key Facts: SIAA Securities & Managed Investments Exam

$590-$790

Fee (member/non-member)

SIAA

Exam only

Variant

SIAA

Up to 120h

Study Time

SIAA

Tier 1

RG146 Level

ASIC RG 146

The SIAA Securities & Managed Investments accreditation is a single supervised online multiple-choice exam (exam-only variant) meeting ASIC RG146 Tier 1 for Generic Knowledge, Securities (General) and Managed Investments. The fee is $590/$590/$790 (individual/org member/non-member), with up to 120 hours of study supported. SIAA does not publish the question count, time limit, or pass mark.

Sample SIAA Securities & Managed Investments Practice Questions

Try these sample questions to review concepts for the SIAA Securities & Managed Investments exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following bodies is responsible for administering and monitoring compliance with the RG146 training standards for financial product advisers in Australia?
A.Australian Securities and Investments Commission (ASIC)
B.Australian Prudential Regulation Authority (APRA)
C.Australian Securities Exchange (ASX)
D.Stockbrokers and Investment Advisers Association (SIAA)
Explanation: The Australian Securities and Investments Commission (ASIC) is the regulatory authority responsible for administering training standards for financial product advisers in Australia, as outlined in Regulatory Guide 146 (RG146). APRA is responsible for the prudential regulation of banks, insurance companies, and superannuation funds. The ASX is a market operator rather than a retail adviser trainer, and the SIAA is an industry association that provides training courses but does not set or administer statutory compliance standards.
2Which of the following is a key right typically attached to ordinary shares in an Australian listed company that is NOT shared by preference shares?
A.The right to receive regular fixed interest payments
B.Priority of payment in the event of company liquidation
C.Full voting rights on general corporate resolutions
D.Guaranteed annual dividend payments regardless of profit
Explanation: Ordinary shares typically carry full voting rights at general meetings, allowing shareholders to vote on directors' appointments and corporate policies, which is usually not granted to preference shareholders unless dividends are in arrears. Interest payments apply to debt, not shares. Preference shares actually have priority in liquidation and dividend payments, whereas ordinary shareholders are residual claimants and do not have guaranteed dividends.
3What does the Yield to Maturity (YTM) of a corporate bond represent?
A.The annual coupon payment divided by the face value of the bond
B.The total anticipated return on a bond if it is held until it matures, assuming all interest payments are reinvested at the same rate
C.The premium paid to purchase the bond above its nominal face value
D.The profit earned by selling the bond in the secondary market before its maturity date
Explanation: Yield to Maturity (YTM) is the interest rate that equates the present value of a bond's future cash flows (coupons and principal repayment) to its current market price, assuming the bond is held to maturity and all cash flows are reinvested at the YTM rate. The annual coupon payment divided by face value is the nominal coupon rate, not YTM; a premium paid above face value is a capital premium; and the profit from a secondary-market sale before maturity is a capital gain - none of these describe YTM.
4Which of the following structural characteristics is a key feature of Exchange Traded Funds (ETFs) in Australia?
A.They are closed-ended funds with a fixed number of units traded on the secondary market
B.They are open-ended structures where the unit supply adjusts dynamically through an creation/redemption process
C.They are prohibited from paying out franked distributions to unit holders
D.They must be actively managed and are not permitted to track passive indices
Explanation: ETFs are open-ended unit trusts that allow authorized participants to create or redeem units dynamically depending on market demand, keeping the ETF trading price close to its Net Asset Value (NAV). Closed-ended funds with a fixed number of units traded on the secondary market describe Listed Investment Companies (LICs), not ETFs. ETFs can pass through franking credits to Australian residents, and many Australian ETFs are passive index trackers rather than actively managed.
5How does the investment structure of a Listed Investment Company (LIC) differ from a standard Exchange Traded Fund (ETF)?
A.LICs are open-ended trusts, while ETFs are closed-ended corporate entities
B.LICs are closed-ended investment companies with a fixed capital structure, meaning their share price can trade at a premium or discount to their Net Tangible Assets (NTA)
C.LICs can only invest in international fixed income, while ETFs are restricted to Australian equities
D.LICs do not have a board of directors, whereas ETFs are governed by a board of directors
Explanation: Listed Investment Companies (LICs) are incorporated as closed-ended companies on the ASX. Because the number of shares is fixed, the share price is driven by secondary market demand, which often causes the share price to trade at a premium or discount to the underlying Net Tangible Assets (NTA). ETFs, on the other hand, are open-ended trusts where supply adjusts to match Net Asset Value. The other options misstate the legal structures, asset restrictions, or governance models of these entities.
6What is the legal structure of a standard Managed Investment Scheme (MIS) in Australia?
A.A limited partnership registered with APRA
B.A public company where investors receive ordinary shares
C.A unit trust where a trustee holds assets and a Responsible Entity manages the scheme for unit holders
D.A joint venture agreement between the investors and the Australian Taxation Office (ATO)
Explanation: Most Managed Investment Schemes (MIS) in Australia are structured as unit trusts. The assets are held by a custodian or trustee on behalf of the investors (unit holders), and the scheme is operated by a licensed Responsible Entity (RE). An MIS is not structured as a limited partnership registered with APRA, a standard public corporation issuing ordinary shares, or a joint venture with the ATO.
7What is the primary purpose of Australia's dividend imputation system (franking credits)?
A.To penalize companies that distribute profits rather than reinvesting them
B.To prevent double taxation by allowing shareholders a tax offset for company tax already paid on profits
C.To encourage foreign investors to buy Australian bonds instead of shares
D.To automatically discount capital gains tax on share transactions
Explanation: Australia's imputation system attaches 'franking credits' to dividends representing the tax the company has already paid on its earnings (currently 30% for large companies). This prevents double taxation of corporate earnings by allowing Australian resident individuals to offset these credits against their personal income tax liability. Penalizing companies that distribute profits gets the system backwards - imputation rewards distributions; bond investments do not carry franking credits; and the CGT discount is a separate regime from dividend imputation.
8To qualify for the 50% Capital Gains Tax (CGT) discount in Australia, an individual investor must hold the asset for at least how long before disposal?
A.6 months
B.12 months
C.2 years
D.5 years
Explanation: Under Australian tax law, individual investors and trusts are eligible for a 50% discount on capital gains if they hold the CGT asset for at least 12 months (excluding the acquisition and disposal days). Six months does not meet the minimum, while two years and five years exceed the 12-month threshold the question asks for.
9How does diversification benefit an investment portfolio?
A.By guaranteeing that the portfolio will never experience a capital loss
B.By eliminating systematic market risk completely
C.By reducing unsystematic (specific) risk by spreading investments across different assets and sectors
D.By automatically maximizing the return of the highest-performing asset class
Explanation: Diversification is the practice of allocating capital in a way that reduces exposure to any single asset or risk factor. It helps eliminate unsystematic risk (the risk specific to a single company or sector), though systematic market risk cannot be diversified away. It does not guarantee profit or eliminate all loss, nor does it maximize return; rather, it aims to optimize risk-adjusted return.
10What is the primary role of a Product Disclosure Statement (PDS) in relation to managed investment products?
A.To provide a binding legal contract detailing individual client advice and fee arrangements
B.To disclose the features, fees, benefits, risks, and complaints procedures of a financial product to help retail clients make informed choices
C.To outline the internal operational regulations for financial advisers at a licensee firm
D.To serve as a marketing brochure that highlights only the historical performance of a fund
Explanation: A Product Disclosure Statement (PDS) is a document required under the Corporations Act to be provided to retail clients when recommending or offering a financial product. Its purpose is to disclose key information including fees, features, risks, and return policies so that clients can compare products. It is not an individual client advice document (which is a Statement of Advice), nor is it an internal compliance manual or a pure marketing brochure.

About the SIAA Securities & Managed Investments Exam

The SIAA Securities & Managed Investments Accreditation covers key concepts of equities, debt securities, managed investment schemes, ETFs, LICs, asset allocation, taxation (including CGT and franking credits), and Australian compliance standards (RG146 Tier 1, Best Interests Duty, and the SIAA Code of Conduct). Passing this exam qualifies financial professionals to provide general advice on securities and managed investments under RG146 Tier 1. SIAA does not publish a weighted content outline; the topic weights shown below reflect this practice bank's emphasis, not an official SIAA blueprint. RG146 accreditation certificates are jointly issued with Kaplan Professional.

Exam sponsor: Stockbrokers and Investment Advisers Association (SIAA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Single online supervised multiple-choice exam (closed book); question count, time limit and pass mark not published by SIAA

Time Limit

Not published by SIAA

Passing Score

Not published by SIAA

Exam / Certification Fees

$590 individual/org member / $790 non-member (SIAA, exam-only variant)

Exam sponsor website

Reported exam pass rate: Not published by SIAA. SIAA does not publish pass rates or a pass mark for this accreditation. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

25%

Asset Classes & Securities Products

Detailed properties of Australian equities, fixed income securities, hybrid instruments, ETFs, and Listed Investment Companies (LICs).

25%

Managed Investments & Fund Structures

Characteristics of Managed Investment Schemes (MIS), unit trusts, closed-end vs open-end vehicles, active/passive strategies, and alternative investments.

20%

Financial Regulation & Compliance

Best Interests Duty and FOFA obligations, RG146 Tier 1 requirements, disclosure documents (FSG, PDS, SOA), and the SIAA Code of Conduct.

15%

Taxation of Securities & Managed Funds

Calculation of franking credits and grossed-up dividends, Capital Gains Tax (CGT) discount, tax treatments of unit trusts, and Attribution Managed Investment Trust (AMIT) rules.

15%

Portfolio Construction & Advisory

Risk profiling, Strategic Asset Allocation (SAA), Tactical Asset Allocation (TAA), diversification concepts, and portfolio review practices.

Preparing for the SIAA Securities & Managed Investments Exam

What You Need to Know

  • Passing score: Not published by SIAA
  • Assessment: Single online supervised multiple-choice exam (closed book); question count, time limit and pass mark not published by SIAA
  • Time limit: Not published by SIAA
  • Exam / certification fees: $590 individual/org member / $790 non-member (SIAA, exam-only variant) Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

SIAA Securities & Managed Investments: Suggested Study Strategy

1Practice franking credit gross-up calculations and know how to calculate the tax offset for fully franked dividends (franking credit = dividend × 30/70 at the 30% company rate).
2Understand the structural differences between Listed Investment Companies (LICs) and Exchange Traded Funds (ETFs), particularly concerning trading at a premium/discount to Net Asset Value (NAV).
3Be clear on the Future of Financial Advice (FOFA) reforms, including the safe harbour steps to satisfy the Best Interests Duty under the Corporations Act.
4Memorise the capital gains tax discount rule: individuals and trusts get a 50% discount for assets held more than 12 months; companies are not eligible for the CGT discount.

Frequently Asked Questions

What is the format of the exam?

Assessment is a single supervised online multiple-choice exam (closed book) administered by SIAA. SIAA does not publicly publish the number of questions, time limit, or pass mark; these are provided to enrolled candidates.

Does this accreditation meet ASIC's RG146 compliance requirements?

Yes. Completing the SIAA Securities & Managed Investments accreditation satisfies the Tier 1 training requirements for Generic Knowledge, Securities (General), and Managed Investments for providing general advice in Australia.

What is the difference between the exam-only and the 'Plus Assignment' (Core 1) variants?

The exam-only variant (this accreditation) assesses knowledge through the online multiple-choice exam. The 'Securities & Managed Investments + Assignment' (Core 1) course adds a written Statement of Advice assignment and is priced separately. This practice bank targets the exam-only variant.

What is the fee?

The exam-only Securities & Managed Investments course is $590 for individual/org members and $790 for non-members (SIAA). The '+ Assignment' (Core 1) variant is a separate, higher-priced product.

How many study hours are recommended?

SIAA allows up to 120 hours for the exam-only course, depending on prior experience.