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In a secondary market equity trade, which of the following is an essential element captured at the point of execution?

The quantity, price and trade date of the shares dealt

The credit rating of the issuing company at admission

The original IPO subscription price of the issuer

The dividend cover ratio for the next financial year

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CISI Certificate in Investment Management (Investment Management Certificate / IMC)

Practice Questions100 questions

2026 Statistics

Key Facts: CISI Technology in Investment Management Exam

Multiple-Choice Questions

CISI Syllabus (effective 11 May 2026)

70%

Pass Mark

CISI Exam Information

1 hour

Exam Duration

CISI Syllabus

Syllabus Elements

CISI Syllabus

Level 3

RQF Award

CISI Qualification Page

81 hrs

Total Qualification Time

CISI Qualification Page

The CISI Technology in Investment Management exam has 50 multiple-choice questions in 1 hour, with a 70% pass mark (35 of 50). It is a Regulated Qualifications Framework Level 3 Award and a technical unit of the Investment Operations Certificate (IOC). The syllabus has 10 elements; Technology Management carries the most questions (8 of 50), followed by the Regulatory Framework and Managing Business Change (6 each). Computer-based candidates may receive up to 10% additional unscored trial questions with extra time. The exam is on-demand via remote invigilation or test centres, and a CISI workbook purchase is required at booking.

Sample CISI Technology in Investment Management Practice Questions

Try these sample questions to test your CISI Technology in Investment Management exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Within the financial services sector, which type of participant typically holds clients' securities and cash for safekeeping and administers settlement, income collection and corporate actions on their behalf?

A.A custodian

B.A robo adviser

C.A wealth manager

D.A building society

Explanation: A custodian is engaged to safeguard a client's financial assets, settle trades, collect income and process corporate actions; it does not make investment decisions. This safekeeping and administration role is distinct from the advisory or investment-management functions of the other participants.

2A robo adviser is best described as a participant that:

A.Operates a regulated investment exchange that matches buy and sell orders

B.Provides automated, algorithm-based investment advice and portfolio management with limited human intervention

C.Acts as a central counterparty that novates trades between members

D.Maintains the official record of legal ownership of dematerialised securities

Explanation: A robo adviser uses online algorithms to deliver investment advice or discretionary portfolio management at low cost, with little or no human adviser involvement. This automation is its defining technological characteristic within the participant landscape.

3A third party administrator (TPA) in fund operations typically provides which service?

A.Proprietary market making in equities and bonds

B.Retail deposit-taking and current account services

C.Outsourced fund accounting, NAV calculation and transfer agency for fund managers

D.Underwriting of new equity issues in primary markets

Explanation: A TPA delivers outsourced back- and middle-office services such as fund accounting, net asset value (NAV) calculation, transfer agency and investor record-keeping, allowing fund managers to focus on investment decisions. It does not trade on its own account.

4In a secondary market equity trade, which of the following is an essential element captured at the point of execution?

A.The original IPO subscription price of the issuer

B.The credit rating of the issuing company at admission

C.The dividend cover ratio for the next financial year

D.The quantity, price and trade date of the shares dealt

Explanation: A secondary market equity trade is defined by core economic terms: the security, quantity, price, trade date and counterparties. These elements drive downstream confirmation, clearing and settlement processing.

5Compared with a secondary market equity trade, a secondary market bond trade additionally requires the system to capture which element to settle the correct cash amount?

A.Accrued interest from the last coupon date to settlement

B.The number of voting rights attached to the holding

C.The ex-dividend date of the next equity dividend

D.The free float percentage of the issuer

Explanation: Bonds trade with accrued interest, so the buyer pays the clean price plus interest accrued since the last coupon. Systems must calculate accrued interest to determine the dirty (settlement) price, an element absent from a standard equity trade.

6Why is straight-through processing (STP) automation considered important in investment operations?

A.It guarantees that every trade will be profitable

B.It reduces manual rekeying, lowering operational risk, cost and settlement failures

C.It removes the need for any regulatory transaction reporting

D.It eliminates the requirement to reconcile cash and stock

Explanation: Automation through STP passes trade data electronically from execution to settlement without manual intervention, cutting rekeying errors, processing cost, settlement fails and operational risk. It improves timeliness and scalability rather than guaranteeing profit.

7The criticality of data management in investment operations is commonly summarised by which three attributes?

A.Volume, velocity and variety

B.Liquidity, solvency and profitability

C.Accuracy, timeliness and security

D.Confidentiality, novelty and brevity

Explanation: CISI frames data management criticality around accuracy (data is correct), timeliness (data is available when needed) and security (data is protected). These attributes underpin reliable, compliant operations.

8An asset owner, such as a pension scheme or insurance company, is best characterised as a participant that:

A.Provides automated execution-only trading venues

B.Acts as a transfer agent for collective investment schemes

C.Sets accounting standards for the financial services industry

D.Holds the underlying capital and appoints managers to invest it

Explanation: Asset owners are the ultimate holders of capital, for example pension funds, insurers and sovereign wealth funds. They typically delegate day-to-day investment to fund managers while retaining beneficial ownership and overall mandates.

9Under MiFID II, a key technology-driven obligation placed on investment firms is to:

A.Report transactions in financial instruments to the regulator, generally by T+1

B.Set the price of every retail bond sold to clients

C.Guarantee best execution by always trading on the largest exchange

D.Publish their internal source code to the regulator

Explanation: MiFID II requires firms to submit detailed transaction reports for reportable instruments to the competent authority, generally no later than the close of the following working day (T+1). Systems must capture extensive fields, driving significant technology investment.

10Under the GDPR data protection regime, which principle requires that personal data collected be limited to what is necessary for the stated purpose?

A.Perpetual retention

B.Data minimisation

C.Unrestricted profiling

D.Mandatory disclosure

Explanation: Data minimisation requires that personal data be adequate, relevant and limited to what is necessary for the purposes for which it is processed. It is one of GDPR's core principles, alongside purpose limitation and storage limitation.

About the CISI Technology in Investment Management Exam

CISI Technology in Investment Management is a Level 3 Award and a technical unit of the Investment Operations Certificate. It tests how technology supports investment operations across 10 syllabus elements, from regulation and trade capture to settlement, financial control, technology management, business change and procurement, via a 50-question computer-based multiple-choice exam.

Questions

50 scored questions

Time Limit

1 hour

Passing Score

70% (35 of 50 scored questions)

Exam Fee

CISI exam entry fee per the current price list, plus the required workbook, payable at booking (Chartered Institute for Securities & Investment (CISI))

CISI Technology in Investment Management Exam Content Outline

Technology in Investment Management

Roles of financial services participants, elements of equity and bond trades, the importance of automation and the criticality of data accuracy, timeliness and security.

12%

The Regulatory Framework

UK and European regulators, MiFID II, GDPR, FCA CASS/COBS/SYSC, SM&CR, APER, Basel II/III, FATCA, Dodd-Frank, EMIR, CSDR and KYC, and technology used for compliance.

Technology and the Functional Flow of Financial Instruments

Exchanges, MTFs, OTFs, systematic internalisers, fund platforms, central counterparties, trade repositories and real-time pre- and post-trade information sources.

The Role of Technology in Trade Capture

Decision support, ESG, order entry, pre-trade compliance, best execution, DMA, allocation and aggregation, algorithmic trading, self-servicing and risk mitigation.

10%

The Role of Technology in the Pre-Settlement Phase

Reference data, standing settlement instructions, client and counterparty agreements, trade agreement, matching engines and wholesale-versus-retail reporting.

10%

The Role of Technology in the Settlement and Post-Settlement Phases

Settlement instructions, stock lending and repos, asset segregation, cash funding, SWIFT/FIX/FpML/XBRL standards, reconciliation, corporate actions and post-trade compliance.

10%

The Impact of Technology on Financial Control

The financial control function, its relationship with trade capture and settlement, the general ledger and its components, account selection parameters and the stock record.

16%

Technology Management

IT roles, strategy alignment, infrastructure, databases and messaging, governance, cyber security, SLAs, DR, business continuity, operational resilience, change control and technology risk.

12%

Managing Business Change

Project planning and governance, the SDLC, waterfall and iterative methods, PRINCE2/PMI/ISO, testing, and FinTech: cloud, big data, crypto, DLT, AI, machine learning and open finance.

Technology Services Procurement

Buy-versus-build and open source, outsourcing, insourcing, offshoring and near-shoring, vendor selection and management, exit planning and outsourcing risks.

How to Pass the CISI Technology in Investment Management Exam

What You Need to Know

Passing score: 70% (35 of 50 scored questions)
Exam length: 50 questions
Time limit: 1 hour
Exam fee: CISI exam entry fee per the current price list, plus the required workbook, payable at booking

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CISI Technology in Investment Management Study Tips from Top Performers

1Allocate study time using the element question weightings: Technology Management carries the most questions, followed by the Regulatory Framework and Managing Business Change.

2Learn the regulators and rules (MiFID II, GDPR, CASS, EMIR, CSDR, SM&CR) and, crucially, the technology implications of each rather than just the names.

3Build a clear mental map of the trade lifecycle from capture through pre-settlement, settlement and financial control so cross-element questions are easier.

4Memorise what each messaging standard is for: SWIFT for settlement, FIX for execution, FpML for OTC derivatives and XBRL for reporting.

5Be confident on FinTech terms including cloud, big data, blockchain/DLT, AI, machine learning and open finance, as these feature in Managing Business Change.

6Practise timed 50-question mocks at one minute per question so your pacing matches the one-hour exam.

Frequently Asked Questions

How many questions are on the CISI Technology in Investment Management exam?

The exam has 50 multiple-choice questions to be completed in 1 hour. Candidates sitting by computer-based testing may also receive up to 10% additional trial questions that do not count toward the result, with proportionately more time allowed.

What is the pass mark for CISI Technology in Investment Management?

The pass mark is 70%, which means a candidate must answer at least 35 of the 50 scored multiple-choice questions correctly. Any unscored trial questions do not affect the result.

What level is the CISI Technology in Investment Management qualification?

It is a Level 3 Award on the Regulated Qualifications Framework (RQF), with European equivalence to level 4. It is one of the technical units that can be used toward the Investment Operations Certificate (IOC).

What topics does the CISI Technology in Investment Management syllabus cover?

The syllabus has 10 elements covering participants and data, the regulatory framework, functional flow of instruments, trade capture, pre-settlement, settlement and post-settlement, financial control, technology management, managing business change and technology services procurement.

How is the CISI Technology in Investment Management exam taken?

It is a computer-based, on-demand multiple-choice exam. Candidates can sit it online via remote invigilation or at one of CISI's global test centres, and a CISI workbook must be purchased when booking the exam.

How long should I study for CISI Technology in Investment Management?

CISI estimates the qualification involves around 81 hours of total study time. Many candidates prepare over roughly 6 to 10 weeks alongside work, using the official workbook and practice questions.

Is there a pass rate published for this CISI exam?

CISI does not currently display a pass rate for the Technology in Investment Management unit on its public exam page. Candidates should focus on the 70% pass mark and consistent mastery across all 10 syllabus elements.

How does this unit fit into the Investment Operations Certificate?

The IOC is achieved by passing an introductory unit, a regulatory unit and technical units. Technology in Investment Management is one of the technical unit options, so passing it contributes toward completing the full IOC.