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2026 Statistics

Key Facts: EIP Exam

10 days

Minimum Education

EFPA EIP Standard

4.5 days

Investment Products

EFPA EIP Syllabus

80 hrs

Min Tuition

Required Course

EQF 4

EQF Level

Certification

Annual

CPD Cycle

EFPA Certification Standard

National

Exam Logistics

EFPA Member Bodies

EFPA EIP is an EQF Level 4 certification aligned with Article 18 of ESMA's knowledge-and-competence guidelines for staff giving investment advice. The common syllabus spans 10 classroom days: economic environment 1.0, financial markets 0.5, investment products 4.5, client needs 0.5, portfolio construction 1.5, insurance and retirement 1.0, and regulation/tax/ethics 1.0. Question count, time, pass mark, fee, and delivery method are set nationally rather than by one Europe-wide exam specification.

Sample EIP Practice Questions

Try these sample questions to test your EIP exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 110+ question experience with AI tutoring.

1Which of the following is a key characteristic of money market instruments?
A.High maturity, high credit risk, and low liquidity
B.High liquidity, short-term maturity, and relatively low risk
C.Variable dividend payouts, long-term maturity, and high price volatility
D.No secondary market trading and guaranteed return by the central bank
Explanation: Money-market instruments are short-term debt claims, commonly with original maturities of one year or less. Many are liquid and issued by highly rated governments, banks, or companies, so they often have relatively low risk and low interest-rate sensitivity. Credit and liquidity risk are not zero and vary by issuer and instrument.
2When interest rates in the market rise, what is the typical impact on the price of existing fixed-rate bonds?
A.The prices of existing bonds increase because their coupon payments become more valuable.
B.The prices of existing bonds decrease because their coupon payments are less attractive compared to new bonds.
C.The prices of existing bonds remain unchanged because the coupon rate is fixed at issuance.
D.The prices of existing bonds become highly volatile but always return to their par value immediately.
Explanation: There is an inverse relationship between interest rates and bond prices. When interest rates rise, new bonds are issued with higher coupons, making existing bonds with lower coupons less attractive. To compete, the price of existing bonds must fall to increase their yield to maturity to match the new market rate.
3What type of index weighting methodology does the Euro Stoxx 50 index utilize?
A.Price-weighted, where the index value is determined solely by the stock prices of its components.
B.Equal-weighted, where every component has the exact same weight regardless of size or price.
C.Free-float market-capitalization weighted.
D.Fundamental-weighted, based on accounting metrics like book value, cash flow, and sales.
Explanation: The EURO STOXX 50 is weighted by free-float market capitalization: investable shares, rather than all issued shares, determine the capitalization input. Under the April 2026 STOXX methodology, component weights are capped at 10% at quarterly reviews.
4In option contracts, what are the rights and obligations of a buyer of a put option?
A.The right to buy the underlying asset, with no obligation to do so.
B.The obligation to buy the underlying asset at a specified price.
C.The right, but not the obligation, to sell the underlying asset.
D.The obligation to sell the underlying asset at a specified price.
Explanation: A put option gives the buyer the right, but not the obligation, to sell the underlying asset at the strike price within a specified timeframe. The buyer pays a premium to the seller (writer) for this right. If the market price falls below the strike price, the buyer can exercise this option to sell at a price higher than the market.
5What is the primary operational difference between open-end mutual funds and exchange-traded funds (ETFs)?
A.Mutual funds can only invest in debt instruments, while ETFs can only invest in equities.
B.Mutual fund shares trade continuously on stock exchanges throughout the day, while ETFs are priced only once at the end of the day.
C.Mutual fund shares are bought and sold directly from the fund manager at the end-of-day NAV, while ETFs trade continuously on an exchange.
D.Mutual funds are exempt from regulatory oversight in the EU, whereas ETFs must fully comply with UCITS directives.
Explanation: Open-end mutual funds are bought or redeemed directly from the fund management company at the Net Asset Value (NAV) calculated at the close of the trading day. In contrast, ETFs trade on a secondary stock exchange throughout the day at market-determined prices, which can deviate slightly from the underlying NAV.
6Which of the following components is included in the expenditure approach to calculating Gross Domestic Product (GDP)?
A.Consumption, Investment, Government Spending, and Net Exports (Exports minus Imports).
B.Wages, Interest, Rent, and Corporate Profits.
C.Value added at each stage of production across primary, secondary, and tertiary sectors.
D.Personal Income, Savings, and Financial Market Transactions.
Explanation: The expenditure approach calculates GDP as the sum of all final goods and services purchased in an economy. The formula is GDP = Consumption + Investment + Government Spending + (Exports - Imports), representing total demand for domestic production.
7In the foreign exchange market, what is meant by the 'spot exchange rate'?
A.The exchange rate locked in today for a currency transaction that will occur at a specific date in the future.
B.The current rate for near-immediate settlement, usually within two business days.
C.The average exchange rate of a currency calculated over the past calendar year.
D.The exchange rate set by the European Central Bank as a target for monetary union members.
Explanation: The spot exchange rate is the current price of one currency in terms of another for immediate settlement. For most currency pairs, the standard settlement cycle for spot transactions is two business days (T+2) from the transaction date.
8What is the primary monetary policy objective (primary mandate) of the European Central Bank (ECB)?
A.Euro-area price stability, pursued through a 2% medium-term inflation target.
B.To minimize the unemployment rate within the European Union member states.
C.To manage the government debt levels of eurozone member countries.
D.To maintain a fixed exchange rate between the Euro and the US Dollar.
Explanation: Under the Treaty on the Functioning of the European Union, the primary objective of the ECB is to maintain price stability. The Governing Council defined this objective as maintaining year-on-year inflation at 2% over the medium term, as measured by the Harmonised Index of Consumer Prices (HICP).
9A financial institution enters into a repurchase agreement (repo) where it sells government bonds for €10,000,000 and agrees to buy them back in 7 days for €10,002,000. What is the annualized repo rate using a money market day-count convention (ACT/360)?
A.1.043%
B.1.033%
C.1.029%
D.1.020%
Explanation: Under the ACT/360 day-count convention, the formula for the repo rate is: Rate = (Repo Price - Purchase Price) / Purchase Price * (360 / Days). Plugging in the values: (€10,002,000 - €10,000,000) / €10,000,000 * (360 / 7) = 0.0002 * 51.42857 = 0.0102857, or 1.029%.
10A 5-year corporate bond has a modified duration of 4.2. If market interest rates decrease by 75 basis points (0.75%), what is the estimated percentage change in the bond's price?
A.A decrease of 3.15%
B.An increase of 3.15%
C.A decrease of 5.60%
D.An increase of 5.60%
Explanation: Modified duration measures the percentage change in a bond's price for a 1% change in yield. The formula is: % Change in Price = -Modified Duration * Change in Yield. Here, Change in Yield = -0.0075 (decrease). Therefore, % Change in Price = -4.2 * (-0.0075) = +0.0315, or an increase of 3.15%.

About the EIP Exam

The EFPA European Investment Practitioner is an EQF Level 4 certification for professionals providing a basic investment-advisory service. EFPA's common European standard specifies detailed learning outcomes and at least 10 classroom days or 80 tuition hours, while national EFPA bodies organise the certification examinations and set local logistics.

Assessment

Question count not published by the exam provider

Time Limit

Varies by national EFPA certification body

Passing Score

Varies by national EFPA certification body

Exam Fee

Varies by country and provider (EFPA national member associations and authorised certification bodies)

EIP Exam Content Outline

1.0 day (10%)

Economic Environment

Macroeconomic context, policy, indicators, and cycles.

0.5 day (5%)

Financial Markets

Market structure, participants, issuance, trading, and settlement.

4.5 days (45%)

Investment Products

Cash, bonds, equities, derivatives, funds, and insurance-based investments.

0.5 day (5%)

Assessing Client Needs

Client information, objectives, risk, constraints, and suitability.

1.5 days (15%)

Portfolio Construction

Allocation, diversification, selection, performance, and monitoring.

1.0 day (10%)

Insurance and Retirement

Insurance products for advice and investment products for retirement advice.

1.0 day (10%)

Regulation, Tax and Ethics

Investor protection, conduct, relevant taxation, regulation, and ethics.

How to Pass the EIP Exam

What You Need to Know

  • Passing score: Varies by national EFPA certification body
  • Assessment: Question count not published by the exam provider
  • Time limit: Varies by national EFPA certification body
  • Exam fee: Varies by country and provider

Keys to Passing

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

EIP Study Tips from Top Performers

1Allocate about 45% of syllabus study time to Investment Products, the largest official module.
2Understand the key difference between UCITS-compliant funds and alternative investment structures.
3Review MiFID II suitability guidelines carefully, focusing on disclosures and client profiling rules.
4Practice the portfolio-construction outcomes actually named in the syllabus, including allocation, risk/return, time-weighted and money-weighted performance, and monitoring.
5Use all 110 practice questions to test knowledge across the seven official syllabus blocks before checking your national exam rules.

Frequently Asked Questions

Is there one Europe-wide EIP exam format and pass mark?

EFPA Europe publishes the common qualification standard and syllabus, while national EFPA bodies organise certification exams. Use the current rules of the national body where you register for its question count, duration, pass mark, fee, retake, and delivery format.

How long do I need to study for the EFPA EIP exam?

The common standard calls for at least 10 classroom days or 80 tuition hours, or 5 classroom days for the progression route on top of EIA. Calendar time depends on the national program and the learner's experience.

Can I take the EFPA EIP exam online?

Delivery arrangements are set by national EFPA bodies and can change. Check the current registration information from the member association or certification body where you intend to sit the exam.

What is the fee for the EFPA EIP exam?

EFPA Europe does not publish one Europe-wide fee for every EIP candidate. Training, examination, certification, membership, and retake charges depend on the national body and provider.