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Key Facts: CISI Chartered Wealth Manager Exam

3 units

Consecutive Level 7 Units

CISI

3 hours

Written Exam Per Unit

CISI

Jun & Dec

Exam Windows

CISI

~200 hrs

Study Time Per Unit

CISI

Level 7

Ofqual Diploma in Wealth Management

CISI

The CISI Chartered Wealth Manager qualification (Ofqual Level 7 Diploma in Wealth Management) comprises three consecutive units: Financial Markets, Portfolio Construction Theory and Applied Wealth Management. Each unit is assessed by a three-hour written narrative exam (short-answer, essay and case study), held twice a year in June and December, and is not multiple choice. CISI recommends around 200 hours of study per unit. A Level 4 benchmark qualification such as the Investment Advice Diploma is required before enrolling. This free bank is MCQ knowledge-prep over the same technical syllabus.

Sample CISI Chartered Wealth Manager Practice Questions

Try these sample questions to review concepts for the CISI Chartered Wealth Manager exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In the macroeconomic circular flow, an increase in the household savings ratio, all else equal, is most likely to have which immediate effect on aggregate demand?
A.It reduces consumption, lowering aggregate demand in the short run
B.It raises consumption, increasing aggregate demand
C.It has no effect because savings always equal investment
D.It directly increases government spending
Explanation: Aggregate demand comprises consumption, investment, government spending and net exports. A higher savings ratio means households spend a smaller share of income, so consumption and short-run aggregate demand fall (the 'paradox of thrift').
2A central bank raises its policy interest rate to combat rising inflation. Through the monetary transmission mechanism, which outcome is most directly expected?
A.An immediate rise in long-term inflation expectations
B.Higher borrowing costs that dampen consumption and investment
C.An automatic increase in fiscal tax revenue
D.A guaranteed appreciation of all asset prices
Explanation: Raising the policy rate increases the cost of borrowing and the return on saving, reducing credit-financed consumption and investment, which cools aggregate demand and inflationary pressure over time.
3Gross Domestic Product measured by the expenditure approach is best expressed as which of the following?
A.Total tax receipts minus public spending
B.Wages + rent + interest + profit
C.C + I + G + (X - M)
D.Money supply multiplied by velocity
Explanation: The expenditure approach sums consumption (C), investment (I), government spending (G) and net exports (exports X minus imports M). This is the standard national income identity used in economic analysis.
4An economy is described as being in 'stagflation'. Which combination of conditions does this describe?
A.Rapid growth with full employment
B.Deflation accompanied by a current-account surplus
C.Falling prices with strong growth
D.High inflation combined with stagnant growth and high unemployment
Explanation: Stagflation is the simultaneous occurrence of high inflation, stagnant or negative output growth and elevated unemployment. It complicates policy because measures to fight inflation can deepen the slowdown.
5Which statement best describes the relationship between bond prices and yields?
A.They move in opposite directions
B.Yield only affects floating-rate bonds
C.They move in the same direction
D.They are unrelated
Explanation: Bond prices and yields are inversely related: as required market yields rise, the present value of a bond's fixed cash flows falls, so its price declines, and vice versa.
6A bond has a modified duration of 6.0. If market yields rise by 50 basis points, the approximate percentage change in the bond's price is:
A.-6.0%
B.-3.0%
C.+3.0%
D.-0.5%
Explanation: Modified duration estimates price change as -duration x change in yield. Here -6.0 x 0.50% = -3.0%, so the price falls by roughly 3%. Duration gives a first-order linear approximation of interest-rate sensitivity.
7Convexity is added to a duration-based estimate of bond price change primarily because:
A.It converts yield to maturity into current yield
B.Duration overstates gains and losses symmetrically
C.The price-yield relationship is curved, not linear
D.Convexity measures default risk
Explanation: The bond price-yield relationship is convex (curved). Duration is a linear approximation, so convexity is a second-order term that corrects the estimate, improving accuracy for larger yield changes.
8Using the constant-growth dividend discount model (Gordon growth model), a share is expected to pay a dividend of 4.00 next year, the required return is 9% and the perpetual growth rate is 4%. The estimated value per share is:
A.100.00
B.36.00
C.44.44
D.80.00
Explanation: The Gordon growth model gives P = D1 / (r - g) = 4.00 / (0.09 - 0.04) = 4.00 / 0.05 = 80.00. The model values a share as the present value of a perpetually growing dividend stream.
9Which valuation multiple is most appropriate for comparing capital-intensive companies with very different capital structures and depreciation policies?
A.Enterprise value to EBITDA (EV/EBITDA)
B.Price-to-sales (P/S)
C.Price-to-earnings (P/E)
D.Dividend yield
Explanation: EV/EBITDA is capital-structure neutral and excludes depreciation and amortisation, so it allows fairer comparison of firms with different leverage and depreciation policies than equity-only metrics like P/E.
10A UK-listed company announces a rights issue. The primary purpose of a rights issue is to:
A.Return surplus cash to shareholders
B.Raise new equity capital, typically offered to existing shareholders pro rata
C.Convert debt into preference shares automatically
D.Reduce the number of shares in issue
Explanation: A rights issue raises new equity by offering existing shareholders the right to buy additional shares, usually at a discount and in proportion to their holdings, helping preserve their percentage ownership.

About the CISI Chartered Wealth Manager Exam

The CISI Chartered Wealth Manager (CWM) qualification is a Level 7 (postgraduate) UK wealth management credential made up of three units: Financial Markets, Portfolio Construction Theory and Applied Wealth Management. Each unit is assessed by a three-hour written narrative exam held in June and December.

Exam sponsor: Chartered Institute for Securities & Investment (CISI). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Performance-based assessment

Time Limit

Three-hour written exam per unit (three units)

Passing Score

Examiner-set pass standard per unit; CISI does not publish a single fixed percentage

Exam / Certification Fees

Set per unit by CISI at booking; each of the three units is paid for separately, plus workbook and any tuition costs

Exam sponsor website

Reported exam pass rate: Not published by CISI. CISI does not publish a single headline pass rate for the Chartered Wealth Manager units. 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.

Unit 1 of 3

Unit 1: Financial Markets

Economics and economic statistics, financial markets and securities, asset classes, equity and fixed income valuation, derivatives, alternative assets, and company and financial statement analysis.

Unit 2 of 3

Unit 2: Portfolio Construction Theory

Fundamentals of investment theory, principal asset classes, collective investments, asset allocation, modern portfolio theory, CAPM, the efficient market hypothesis, behavioural finance, and risk and performance measurement.

Unit 3 of 3

Unit 3: Applied Wealth Management

Taxation and financial planning, suitability and risk profiling, client management, ethics and regulation, trusts and estate planning, and applying all three units to client case studies.

Preparing for the CISI Chartered Wealth Manager Exam

What You Need to Know

  • Passing score: Examiner-set pass standard per unit; CISI does not publish a single fixed percentage
  • Assessment: Performance-based assessment
  • Time limit: Three-hour written exam per unit (three units)
  • Exam / certification fees: Set per unit by CISI at booking; each of the three units is paid for separately, plus workbook and any tuition costs 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

CISI Chartered Wealth Manager: Suggested Study Strategy

1Treat each unit as a six-month project and align study with the June or December exam window.
2Practise writing full narrative and case-study answers, not just recalling facts, because the real exams reward structured, applied responses.
3Use these multiple-choice drills to confirm technical knowledge before moving to past-paper essay practice.
4Master the core formulas (CAPM, Sharpe ratio, duration, dividend discount model) so you can apply them under time pressure.
5Study Applied Wealth Management last, since it integrates content from Financial Markets and Portfolio Construction Theory.
6Keep UK taxation, suitability and ethics knowledge current, as rules and thresholds change between editions.

Frequently Asked Questions

What is the CISI Chartered Wealth Manager qualification?

It is a UK Level 7 (postgraduate) wealth management credential from the Chartered Institute for Securities & Investment, recognised by Ofqual as the CISI Level 7 Diploma in Wealth Management. Passing all three units lets you apply for the Chartered Wealth Manager title.

How is the CISI CWM exam structured?

The qualification has three consecutive units: Financial Markets, Portfolio Construction Theory and Applied Wealth Management. Each unit is assessed by a separate three-hour written narrative exam containing short-answer, essay and case-study questions.

Is the CISI CWM exam multiple choice?

No. All three units are assessed by three-hour written narrative exams rather than multiple-choice tests. This free question bank is multiple-choice knowledge-prep designed to drill the same technical syllabus before you practise full written answers.

When are the CISI CWM exams held?

The unit exams are held twice a year, in June and December. Most candidates prepare for one unit per window, spreading their studies over roughly 18 months to two years.

How much study time does CISI CWM require?

CISI recommends around 200 hours of study per unit, which is roughly 600 hours in total across the three units, including the workbook, any tuition and wider reading.

What do I need before enrolling on CISI CWM?

Candidates must hold an appropriate benchmark qualification first, such as the Investment Advice Diploma (IAD) or another RDR-compliant Level 4 qualification, before enrolling on the Chartered Wealth Manager qualification.

What topics does the CISI CWM cover?

Across the three units it covers economics and financial markets, asset classes and valuation, modern portfolio theory and asset allocation, risk and performance, taxation and financial planning, behavioural finance, suitability, client management and ethics.