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100+ Free Saudi CME-4B Practice Questions

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Key Facts: Saudi CME-4B Exam

25 questions

CME-4B is a 25-question multiple-choice exam

Financial Academy - CME-4B exam details

30 minutes

Time allowed for the CME-4B examination

Financial Academy - CME-4B exam details

17 of 25

Pass mark for CME-4B (about 68%)

Financial Academy - CME-4B exam details

SAR 1,700

CME-4B exam fee payable to the Financial Academy

Financial Academy - CME-4B exam details

About 14 questions

Investment Funds Regulations form the largest part of CME-4B

CMA/CISI CME-4B syllabus

90% distribution

Saudi REITs must distribute at least 90% of net profit annually

Saudi Exchange - REIT instructions

200 investors

A listed Saudi REIT must have at least 200 investors

Saudi Exchange - REIT instructions

Mandatory from 2023

CME-4B is part of the CMA qualification series obligatory from 1 February 2023

CMA - new qualification examinations

CME-4B is the Saudi Capital Market Rules and Regulations exam for asset managers, set by the CMA and delivered by the Financial Academy in cooperation with CISI. It is a 25-question multiple-choice exam taken in 30 minutes, and candidates must score at least 17 out of 25 (about 68%) to pass; the exam fee is SAR 1,700. The syllabus weights Investment Funds Regulations most heavily (about 14 questions), followed by Real Estate Investment Funds Regulations (about 8) and Market Conduct Regulations (about 3). It is required for registration under the managing activity and is taken together with CME-4A. This 100-question bank provides original practice weighted to the official syllabus, with explanations for every option.

Sample Saudi CME-4B Practice Questions

Try these sample questions to test your Saudi CME-4B exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the CMA Investment Funds Regulations, the firm that establishes and runs an investment fund is known as the:
A.Custodian
B.Fund manager
C.Fund board
D.Distributor
Explanation: The Investment Funds Regulations define the fund manager as the authorised person that establishes and operates an investment fund and must act in the best interests of unitholders. The custodian, fund board and distributor each perform separate roles.
2Which body issues and enforces the Investment Funds Regulations in the Kingdom of Saudi Arabia?
A.The Saudi Central Bank (SAMA)
B.The Capital Market Authority (CMA)
C.The Saudi Exchange (Tadawul)
D.The Ministry of Finance
Explanation: The Capital Market Authority issues and enforces the Investment Funds Regulations under the Capital Market Law. SAMA, Tadawul and the Ministry of Finance have separate mandates and do not issue these regulations.
3To act as a fund manager under the Investment Funds Regulations, a firm must be an authorised person licensed to carry out which activity?
A.Dealing as principal only
B.Investment management (and fund operation)
C.Custody only
D.Securities advice only
Explanation: A fund manager must be an authorised person licensed for the activity of investment management and operation of funds (or investment management, appointing a licensed fund operator). Dealing, custody and advice are distinct licensed activities.
4Under the Investment Funds Regulations, the fund manager is primarily required to act:
A.In the interests of its own shareholders
B.For the benefit of the fund's unitholders
C.In the interests of the distributor
D.To maximise the fund manager's fees
Explanation: A core duty of the fund manager is to act for the benefit of the unitholders of the fund. Putting its own interests, the distributor's interests or fee maximisation first would breach the duty owed to unitholders.
5Where must the fund manager establish and maintain the register of unitholders for an investment fund?
A.In the Kingdom of Saudi Arabia
B.At the custodian's head office abroad
C.Wherever the distributor is located
D.At the offices of the CMA
Explanation: The Investment Funds Regulations require the fund manager to establish a register of unitholders and maintain it within the Kingdom. The register is conclusive evidence of the persons entitled to the units.
6The register of unitholders maintained by the fund manager is treated under the Regulations as:
A.An informal marketing list
B.Conclusive evidence of the persons entitled to the units
C.Optional for private funds
D.Owned by the custodian
Explanation: The Regulations state that the register shall be conclusive evidence as to the persons entitled to the units entered on it. It is a formal record, not optional, and is the manager's responsibility to maintain.
7Financial statements of an investment fund must be audited in accordance with standards issued by which body?
A.The International Accounting Standards Board (IASB)
B.The Saudi Organisation for Chartered and Professional Accountants (SOCPA)
C.The CMA's internal audit unit
D.The fund's own board
Explanation: Under the Investment Funds Regulations, a fund's financial statements must be audited in accordance with standards issued by SOCPA (the Saudi Organisation for Chartered and Professional Accountants). This is part of the manager's reporting obligations.
8A public fund is generally one whose units are offered to:
A.Only the fund manager's staff
B.The public generally, not limited to sophisticated investors or a minimum subscription
C.A single institutional investor
D.Foreign governments only
Explanation: A public fund offers its units to the public and is subject to the more detailed public-fund requirements of the Regulations. By contrast, private placements are restricted to sophisticated investors or large minimum subscriptions.
9Under the Investment Funds Regulations, a private placement of fund units can be made on the basis of a minimum investment amount per offeree of not less than:
A.SAR 100,000
B.SAR 500,000
C.SAR 1,000,000
D.SAR 5,000,000
Explanation: A private placement is defined as an offer made exclusively to sophisticated investors, or subject to a minimum investment amount per offeree of not less than SAR 1 million (or its equivalent). This threshold helps distinguish private from public offers.
10A private placement of an investment fund's units may also be made by offering them exclusively to:
A.Retail clients
B.Sophisticated investors
C.Foreign tourists
D.Unlicensed brokers
Explanation: A private placement is either an offer made exclusively to sophisticated investors, or one subject to the SAR 1 million minimum-subscription requirement. Offering exclusively to sophisticated investors satisfies the private-placement definition.

About the Saudi CME-4B Exam

The Saudi Capital Market Rules and Regulations - Asset Managers (CME-4B) is a mandatory regulatory examination set by the Capital Market Authority (CMA) and delivered by the Financial Academy in cooperation with the Chartered Institute for Securities & Investment (CISI). It is required for individuals seeking registration under the managing activity within an Authorised Capital Market Institution, such as fund managers, portfolio managers and investment analysts. CME-4B provides knowledge of the CMA's implementing regulations and covers three areas: the Investment Funds Regulations (fund manager duties, custody, public and private funds, foreign funds, subscription, pricing, valuation and redemption, and closed-ended traded funds), the Real Estate Investment Funds Regulations including Real Estate Investment Traded Funds (REITs), and the Market Conduct Regulations covering market manipulation, insider trading and conduct standards. It is taken alongside CME-4A (the International Certificate in Wealth & Investment Management) to complete the asset-management qualification.

Assessment

25 multiple-choice questions across three regulatory areas: Investment Funds Regulations (approximately 14 marks), Real Estate Investment Funds Regulations (approximately 8 marks) and Market Conduct Regulations (approximately 3 marks).

Time Limit

30 minutes

Passing Score

17 out of 25 marks (about 68%).

Exam Fee

SAR 1,700, payable to the Financial Academy. (Capital Market Authority (CMA), delivered by the Financial Academy in cooperation with CISI)

Saudi CME-4B Exam Content Outline

56%

Investment Funds Regulations

About 14 of 25 questions. Covers fund manager duties and eligibility, custody and the register of unitholders, public funds (including the SAR 10 million minimum raise rule and concentration limits), private funds and private placement (sophisticated investors or SAR 1 million minimum subscription), foreign funds, reporting to unitholders, subscription, pricing, valuation and redemption, and closed-ended investment traded funds.

32%

Real Estate Investment Funds Regulations

About 8 of 25 questions. Covers REIF organisational structure and governance, fund manager and disclosure duties, fund asset rules and custody, restrictions on borrowing, trading and advertising, and Real Estate Investment Traded Funds (REITs) - closed-ended, minimum 200 investors, SAR 10 nominal unit value, at least 90% of net profit distributed annually, at least 75% of assets in developed income-generating real estate, borrowing capped at 50% of total assets, and no vacant/white land.

12%

Market Conduct Regulations

About 3 of 25 questions. Covers prohibitions on market manipulation and insider trading, the use of inside information, direct versus indirect trading, liability for conduct breaches, and standards for issuing investment recommendations.

How to Pass the Saudi CME-4B Exam

What You Need to Know

  • Passing score: 17 out of 25 marks (about 68%).
  • Assessment: 25 multiple-choice questions across three regulatory areas: Investment Funds Regulations (approximately 14 marks), Real Estate Investment Funds Regulations (approximately 8 marks) and Market Conduct Regulations (approximately 3 marks).
  • Time limit: 30 minutes
  • Exam fee: SAR 1,700, payable to the Financial Academy.

Keys to Passing

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

Saudi CME-4B Study Tips from Top Performers

1Study the actual articles of the Investment Funds Regulations - examiners test specific duties, thresholds and time limits, not general finance theory.
2Memorise the key numeric rules: SAR 10 million minimum raise for public funds, SAR 1 million minimum subscription for private placement, and the REIT 90% distribution, 75% real-estate and 50% borrowing limits.
3Learn the difference between public funds, private funds and foreign funds, including who may be offered units and any minimum-investment or sophisticated-investor conditions.
4For REITs, master the listing conditions: closed-ended, minimum 200 investors, SAR 500 million minimum initial offer and SAR 10 nominal value per unit.
5In Market Conduct, be precise about what counts as inside information, market manipulation and unlawful disclosure, since this small section often contains catch questions.
6Practise under time pressure - 25 questions in 30 minutes is roughly 72 seconds each, so learn to recognise rules quickly rather than reasoning each from scratch.

Frequently Asked Questions

How many questions are on the CME-4B exam and how long is it?

CME-4B has 25 multiple-choice questions to be answered in 30 minutes. The questions are weighted across Investment Funds Regulations (about 14), Real Estate Investment Funds Regulations (about 8) and Market Conduct Regulations (about 3).

What is the pass mark for CME-4B?

Candidates must score at least 17 out of 25 marks, which is about 68%, to pass the CME-4B examination.

How much does the CME-4B exam cost?

The CME-4B exam fee is SAR 1,700, payable to the Financial Academy when you book the exam. The exam is offered in Arabic and English.

Who needs to pass CME-4B?

CME-4B is required for individuals registering under the managing activity within an Authorised Capital Market Institution, such as fund managers, portfolio managers and investment analysts. It is taken alongside CME-4A.

What is the difference between CME-4A and CME-4B?

CME-4A is the CISI International Certificate in Wealth & Investment Management, covering global wealth and investment topics. CME-4B is the Saudi-specific regulations paper on Investment Funds, REIF and Market Conduct Regulations. Both are needed for the full asset-management qualification.

Are these official CMA, Financial Academy or CISI questions?

No. These are original OpenExamPrep questions modelled on the CME-4B syllabus. The Financial Academy and CISI provide official study materials and exams separately.