PracticeVideosBlogFlashcardsEspañol
All Practice Exams

100+ Free SEC Certified Investment Solicitor (CIS) Practice Questions

Pass your SEC Phase 2-7A Certified Investment Solicitor (CIS) Exam — Philippines exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
Not disclosed Pass Rate
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More Philippines SEC Certification Program

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

SEC Certification Examination Phase 1 (General) — Philippines

Practice Questions

SEC Phase 2-7B Equities Securities Salesman (ESS) Exam — Philippines

Practice Questions

SEC Phase 2-7C Fixed Income Market Salesman (FIMS) Exam — Philippines

Practice Questions

SEC Phase 2-7D Compliance Officer / Associated Person (CO/AP) Exam — Philippines

Practice Questions

SEC Phase 2-7E Proprietary/Non-Proprietary Securities (Timeshare) Salesman (PNPSS) Exam — Philippines

Practice Questions
2026 Statistics

Key Facts: SEC Certified Investment Solicitor (CIS) Exam

50

Exam Questions

SEC Philippines

75%

Passing Score

SEC Philippines

3 hours

Time Limit

SEC Philippines

RA 2629

Governing Law

Philippine Congress

PHP 50M

Min Capitalization

SEC Rules on Investment Companies

7 days

Max Redemption Payment

Investment Company Act

The SEC CIS (Phase 2-7A) exam consists of 50 multiple-choice questions with a 3-hour limit and a passing score of 75%. Administered by the Philippine SEC, it is the mandatory license for selling mutual funds. Sponsoring firm training and passing Phase 1 are prerequisites.

Sample SEC Certified Investment Solicitor (CIS) Practice Questions

Try these sample questions to test your SEC Certified Investment Solicitor (CIS) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under current regulations of the Philippine Securities and Exchange Commission (SEC), what is the minimum paid-up capital required to incorporate a new investment company (mutual fund)?
A.PHP 10 million
B.PHP 20 million
C.PHP 50 million
D.PHP 100 million
Explanation: Under current SEC rules and guidelines implementing the Investment Company Act (RA 2629), an investment company (mutual fund) must have a minimum paid-up capital of PHP 50 million to incorporate and register. This high capitalization requirement ensures that the fund has sufficient initial resources to maintain operations and protect public investors.
2According to Section 15 of the Investment Company Act (RA 2629), what is the minimum percentage of the board of directors of an investment company that must NOT be interested persons (i.e., must be independent)?
A.At least 20%
B.At least 40%
C.At least 50%
D.At least 60%
Explanation: Section 15 of RA 2629 states that no registered investment company shall have a board of directors more than 60 percent of the members of which are interested persons of the company. Therefore, at least 40 percent of the board must be independent (non-interested) to ensure fair governance and protect shareholder interests.
3Which of the following activities is strictly prohibited for an open-end investment company (mutual fund) in the Philippines under the Investment Company Act?
A.Investing in government bonds
B.Engaging in short selling transactions
C.Redeeming shares on a daily basis
D.Reinvesting customer dividends
Explanation: Under RA 2629 and SEC rules, mutual funds are prohibited from engaging in short selling. Short selling involves selling securities that the fund does not own, which exposes the fund to unlimited loss risk and violates the conservative risk-management rules established to protect mutual fund investors.
4Are registered investment companies in the Philippines permitted to purchase securities on margin?
A.Yes, without limit
B.Yes, but only up to 10% of their net assets
C.Yes, provided it is approved by the SEC
D.No, it is strictly prohibited
Explanation: Buying securities on margin (borrowing funds from a broker to purchase securities) is strictly prohibited for registered investment companies under RA 2629. This prevents leverage from magnifying potential investment losses, keeping the risk profile aligned with public investment standards.
5Under the Investment Company Act (RA 2629), what is the maximum amount that a mutual fund may borrow, and under what conditions?
A.Up to 10% of net assets, for temporary or emergency purposes only
B.Up to 25% of net assets, for leveraging stock returns
C.Up to 50% of net assets, with shareholder approval
D.Borrowing is completely prohibited under all circumstances
Explanation: An investment company is generally prohibited from borrowing money, except that it may borrow from a bank for temporary or emergency purposes in an amount not exceeding 10% of its net assets. Such loans must not be used to buy more securities (leverage).
6How often must a registered investment company file financial reports with the Securities and Exchange Commission (SEC) and distribute them to its shareholders?
A.Monthly
B.Quarterly
C.Semi-annually and annually
D.Every two years
Explanation: Registered investment companies are required under the Investment Company Act and SEC rules to submit reports to the SEC and distribute financial statements to their shareholders semi-annually and annually. These reports must include audited financial statements to ensure complete transparency.
7Under RA 2629, a contract between an investment company and its investment adviser (fund manager) must be approved by which of the following?
A.A vote of the majority of the outstanding voting securities
B.The SEC Commissioner alone
C.The Board of Directors only
D.The custodian bank
Explanation: Section 14 of RA 2629 stipulates that any investment advisory contract must be approved by a majority vote of the outstanding voting securities of the investment company. This ensures that shareholders have the final say on who manages their assets and under what terms.
8If a mutual fund wishes to change its fundamental investment policies (such as changing from a conservative income fund to an aggressive growth fund), who must approve this change?
A.The fund manager alone
B.A majority of the outstanding voting securities (shareholders)
C.The custodian bank
D.The Philippine Stock Exchange
Explanation: Changes to a mutual fund's fundamental investment policies, which are set forth in its registration statement and prospectus, require the approval of a majority of the outstanding voting securities (shareholders). The fund manager cannot make these fundamental shifts unilaterally.
9Which of the following corporate forms must an investment company take to be registered under the Investment Company Act of the Philippines?
A.Sole Proprietorship
B.Partnership
C.Stock Corporation
D.Non-Stock Corporation
Explanation: An investment company in the Philippines must be incorporated as a stock corporation. Under the Revised Corporation Code and RA 2629, it must issue redeemable shares of common stock to represent ownership in the fund's underlying assets.
10What is the primary regulatory purpose of the Investment Company Act (RA 2629)?
A.To guarantee that mutual fund investors never lose money
B.To regulate the activities of investment companies and protect the investing public
C.To set the prices of stocks traded on the Philippine Stock Exchange
D.To act as the sole distributor of mutual funds in the Philippines
Explanation: The primary purpose of RA 2629 is to regulate the operations, registration, and disclosures of investment companies, thereby preventing fraud, self-dealing by affiliates, and excessive risk-taking, and ensuring that the public is fully informed when investing in fund shares.

About the SEC Certified Investment Solicitor (CIS) Exam

The SEC Certified Investment Solicitor (CIS) certification is the official license required in the Philippines to solicit, sell, or offer mutual fund shares to the public. It verifies competency in the Investment Company Act (RA 2629), sales and ethics compliance, mutual fund mechanics, and customer protection regulations.

Questions

50 scored questions

Time Limit

3 hours

Passing Score

75%

Exam Fee

PHP 500 - PHP 1,000 (Securities and Exchange Commission (Philippines))

SEC Certified Investment Solicitor (CIS) Exam Content Outline

25%

Investment Company Act (RA 2629) & SEC Regulations

Mutual fund legal setup, registration, director independence, corporate powers, and SEC filing guidelines.

25%

Mutual Fund Principles & Products

Equity, bond, balanced, and money market funds, sales loads, pricing, and NAVPS calculations.

25%

Sales Rules & Professional Conduct

Certified solicitor rights and responsibilities, prohibited conduct, fair dealing, and advertisement approval.

25%

Customer Protection & AMLA Compliance

AMLA obligations (KYC, covered/suspicious reports), client suitability profiling, data privacy, and complaint handling.

How to Pass the SEC Certified Investment Solicitor (CIS) Exam

What You Need to Know

  • Passing score: 75%
  • Exam length: 50 questions
  • Time limit: 3 hours
  • Exam fee: PHP 500 - PHP 1,000

Keys to Passing

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

SEC Certified Investment Solicitor (CIS) Study Tips from Top Performers

1Memorize the key provisions of RA 2629, including the definition of an investment company, independent director ratios, and minimum capitalization rules.
2Understand the mechanics of NAVPS calculations, noting how daily valuations are affected by assets, liabilities, and outstanding shares.
3Be clear on sales loads: distinguish between front-end loads, back-end loads, redemption fees, and operating expense ratios.
4Review the prohibited acts for solicitors, such as guaranteeing client returns, churning accounts, or sharing profits/losses.
5Learn AMLA thresholds by heart: covered transactions exceed PHP 500,000 in a single banking day, and suspicious transactions must be reported regardless of the amount.

Frequently Asked Questions

What is a Certified Investment Solicitor (CIS)?

A Certified Investment Solicitor is an individual licensed by the Philippine Securities and Exchange Commission (SEC) to distribute, solicit, and sell shares or units of investment companies (specifically mutual funds) to the public in the Philippines.

What is the format and duration of the SEC CIS Exam?

The SEC Phase 2-7A exam is a specialized module containing 50 multiple-choice questions. Candidates are allotted a 3-hour testing window, and the passing threshold is 75% (at least 38 correct answers).

Do I need to take another exam before Phase 2-7A?

Yes. Prospective capital market professionals in the Philippines must first pass the SEC Certification Examination Phase 1 (General Exam) before they can take any specialized Phase 2 exam, including Phase 2-7A.

What are the rules regarding corporate sponsorship for the CIS license?

To legally solicit mutual funds, you must be sponsored by an SEC-registered investment company or mutual fund distributor. The sponsoring firm submits your registration application to the SEC after you pass both Phase 1 and Phase 2-7A exams.

What is the primary law governing mutual funds in the Philippines?

Mutual funds in the Philippines are governed by Republic Act No. 2629, also known as the Investment Company Act, which regulates the incorporation, operations, and registration of investment companies.