CISI Investment Advice Diploma

CISI Investment, Risk and Taxation

Official CISI Accredited Training Partner

Structured preparation for the CISI Level 4 Investment, Risk and Taxation unit, aligned to Version 16 and the current Candidate Update for exams through 30 November 2026.

320 Practice Questions Detailed Study Notes Realistic Mock Exams

Course syllabus information reviewed for 2026. Always check the awarding body’s latest official syllabus and candidate updates before booking or sitting your exam.

Exactly what is included

5 mock exams × 80 questions · 320 unique questions · 400 total question slots · unlimited retakes
Focus Learn · key areas, pitfalls, exam traps & key numbers
Flashcards · fun, fast and effective recall
Formulas, worked calculations and dated tax references
Audio Learning · every chapter in audio
AI Analyzer & Mentor · pinpoints your weak areas
Study Mode Exams · learn while you train
AI Chat trained specifically for this exam
Community-polished data, improved every day
Up-to-date, accuracy-checked content

AI Audio Summaries New

Listen to course modules on the go. Perfect for studying while driving or commuting.

🎧 Audio

* This is a chapter sample. All audio is available in the full version.

Prepare for CISI Investment, Risk and Taxation

Investment, Risk and Taxation is one of the two core Level 4 units in the CISI Investment Advice Diploma. Candidates combine it with UK Regulation and Professional Integrity and one technical unit: Securities, Derivatives, or Financial Planning and Advice. The same unit also combines with Financial Planning and Advice in the CISI Certificate in Paraplanning.

The syllabus moves from asset classes and fundamental analysis through investment risk, UK taxation, investment products, portfolio construction, the advice process and portfolio review. The course follows Version 16, maps all 80 questions across the eight official elements and incorporates the CISI Candidate Update posted in June 2026, including its extended final exam date of 30 November 2026.

Study all 140 granular objectives with eight detailed chapters, 245 recall and formula cards, and 223 searchable references including 70 worked calculations. Four original 80-question mocks progress from foundations to final practice; a fifth paper mixes 20 questions from each. Tax exercises state 2025/26 explicitly, while dated updates distinguish later rule changes.

Key Benefits

Core IAD preparation

Understand exactly where this unit fits within the Investment Advice Diploma and related CISI qualification routes.

✓ IAD core unit
✓ Certificate in Paraplanning unit
✓ Level 4 assessment

Official weighting plan

Prioritise all 80 questions using the eight published syllabus elements and their exact weightings.

✓ Taxation: 16 questions
✓ Asset Classes: 13 questions
✓ Advice Process: 13 questions

Current corrected scope

Prepare against Version 16 with the applicable 2026 formula, tax, options, product and portfolio updates.

✓ June 2026 Candidate Update
✓ Extended exam window
✓ All eight elements

Syllabus

Module 1: Asset Classes 16.25% syllabus weight

🎧 Audio

Cash, fixed-income securities, equities, property and alternative assets, including their characteristics, valuation, risks and returns.

• Cash and fixed income
• Equities and property
• Alternative assets

Module 2: Fundamental Analysis 7.5% syllabus weight

Company accounts and valuation, economic concepts, macroeconomic indicators, policy and the influences on asset classes.

• Company analysis
• Economic indicators
• Fiscal and monetary policy

Module 3: Principles of Investment Risk and Return 11.25% syllabus weight

Time value of money, return measurement, investment risk, portfolio theory, behavioural finance and statistical analysis.

• Time value and returns
• Risk and portfolio theory
• Statistics and behavioural finance

Module 4: Taxation of Investors and Investments 20% syllabus weight

UK income tax, investment income, NICs, CGT, IHT, residence, stamp taxes, VAT, corporation tax, compliance and planning.

• Personal and trust taxation
• CGT and IHT
• Investment tax planning

Module 5: Investment Products 16.25% syllabus weight

Collective and closed-ended investments, wrappers, insurance bonds, private markets, derivatives, structured products and pensions.

• Funds and tax wrappers
• Derivatives and structured products
• Pensions and private markets

Module 6: Portfolio Construction and Planning 6.25% syllabus weight

Asset allocation, diversification, investment theory, product selection, research, charges and management styles.

• Asset allocation
• Diversification
• Investment selection

Module 7: The Process of Giving Investment Advice 16.25% syllabus weight

Client information, needs, objectives, capacity for loss, risk profiling, suitability, recommendations, disclosure and implementation.

• Fact finding and objectives
• Risk and suitability
• Recommendations and implementation

Module 8: Portfolio Performance and Review 6.25% syllabus weight

Performance measurement, attribution, benchmarks, appraisal, rebalancing and ongoing client and portfolio review.

• Performance measurement
• Attribution and appraisal
• Review and rebalancing

Frequently Asked Questions

The Level 4 assessment contains 80 scored multiple-choice questions, lasts 120 minutes and has a 70% pass mark: 56 correct answers. Unidentified trial questions can add proportionate time.

The page follows Version 16 and the current CISI Candidate Update. The update extends the final exam date for this version to 30 November 2026.

Not by itself. The IAD requires this unit, UK Regulation and Professional Integrity, and one technical unit: Securities, Derivatives, or Financial Planning and Advice.

Yes. CISI also uses Investment, Risk and Taxation with Financial Planning and Advice in the Certificate in Paraplanning.

Taxation of Investors and Investments carries 16 of 80 questions. Asset Classes, Investment Products and the Process of Giving Investment Advice each carry 13.

Eight detailed chapter summaries, 245 recall and formula cards, 223 searchable references including 70 worked calculations, a syllabus-grounded AI tutor and five full 80-question papers. The first four contain 320 original questions; the fifth is an equal mixed sample. Eight English chapter revision summaries are available in male and female voices.

Always confirm the latest official CISI syllabus and Candidate Updates for your 2026 sitting. This page records Version 16 and the applicable update verified on 19 September 2026.

Yes! Test your knowledge and review detailed explanations with the free CISI Investment, Risk and Taxation Mock Exam Preview below. It contains 15 exam-style questions from one named syllabus topic; the full course provides complete mock exams and syllabus coverage.

Interactive preview

Free CISI Investment, Risk and Taxation Practice Questions & Exam Preview

Try 15 CISI Investment, Risk and Taxation practice questions from Chapter 4: Taxation of Investors and Investments

Practice CISI Investment, Risk and Taxation exam questions with answers and explanations. The full course includes 5 mock exams and complete syllabus coverage.

Exam Preview

Chapter 4: Taxation of Investors and Investments

Question 1 of 15

For 2025/26, how is the standard personal allowance reduced above £100,000 adjusted net income?

1 / 15

Flashcards

Card 1 of 10Number Recall

Question

What is the official scored-paper pass boundary?

Tap to reveal answer

Focus Learn

Key Examinable Areas10

1.1.1: Choosing a deposit
1.1.2: Cash is not free of risk
1.1.3: Money-market fund structures
1.1.4: Peer-to-peer lending
1.1.5: Selecting a cash holding
1.2.1: Reading foreign-exchange markets
1.3.1: Who issues bonds?
1.3.2: Bond return and duration
1.3.3: Bond structures
1.3.4: Bond dealing and settlement

Common Pitfalls to Avoid3

Exam Traps3

Key Numbers10

What is the official scored-paper pass boundary? 56 correct answers out of 80 (70%); the standard examination time is 120 minutes. Trial questions can add proportionate time.
What dated FSCS deposit limits should be distinguished? £85,000 per eligible person per authorised firm through 30 November 2025; £120,000 from 1 December 2025. Qualifying temporary high balances can receive up to £1.4 million for six months under the current rules.
When does the updated £1.50 PTM levy apply? On qualifying purchase or sale consideration exceeding £10,000. Exactly £10,000 is outside that trigger.
How do basis points convert to percentage points? 100 basis points = 1 percentage point; 1 basis point = 0.01 percentage points = 0.0001 as a decimal rate.
Compound interest and AER: FV = P(1 + j/m)^(mt); AER = (1 + j/m)^m − 1. P = £10,000 principal; j = 6% nominal annual rate; m = 2 half-yearly periods; t = 2 years. Reinvest all interest; no fees or tax.
Net interest and linked accounts: Net interest = gross interest × (1 − tax rate); combined yield = total net interest / total required balance. £8,000 earns 5%; a mandatory linked £2,000 balance earns 0%. All interest is taxable at a supplied 20% rate; allowances already used.
FX quote direction and spread: Quote USD per GBP: buying GBP costs USD ÷ dealer offer; selling GBP receives GBP × dealer bid. A dealer quotes GBP/USD 1.2500–1.2600. A customer first sells $12,600 to buy pounds, then immediately sells those pounds. No extra fees.
Fixed coupon and floating-rate margin: Coupon = nominal × annual rate × period fraction; floating rate = reference rate + margin. Nominal £20,000; reference 4%; margin 75 basis points; half-year coupon. Rate is already reset for this period. For the net illustration, supplied tax rate is 20% and allowances are used.
Effective conversion price: Effective price per share = bond purchase cost / shares received on conversion. A convertible costs £1,080 and its terms provide 40 shares on conversion. Ignore accrued interest and dealing charges.
Running and approximate redemption yields: Running yield = annual coupon / price; workbook approximate redemption yield = coupon/price + (redemption − price)/(price × years). £100 nominal bond; annual coupon £5; purchase £96; redemption £100 in four years. This is the workbook approximation, not exact IRR.

Chapter 1: Asset Classes

Start with the economic claim you own: a deposit, debt claim, residual equity interest, physical asset or contractual exposure. Compare the source of income, potential capital change, liquidity, counterparty and market risks. An asset's name alone does not establish protection or suitability. The sections below distinguish the major asset classes and connect valuation methods to their assumptions.

Choosing a deposit

A current account serves payments; instant-access savings prioritise availability. A notice account requires advance notice or a stated penalty, while a fixed-term deposit commits money for an agreed term under its rate terms. Money-market deposits have specified dealing sizes and maturity terms. NS&I products have their own access, eligibility and tax rules and Treasury b…

Unlock all Focus Learn

Open every chapter’s key areas, pitfalls, exam traps and key numbers.

Adaptive study tools

Focus weak topics, learn with feedback, then switch to exam conditions.

Practice modes

Learn first. Then prove you’re ready.

Learn with feedback, then switch to exam conditions.

Study Mode

Instant feedback & explanations

See the answer and explanation after each choice.

Exam Mode

Realistic exam simulation

Use the timer, keep answers hidden, then review your result.

Who Is This For?

✓ Candidates completing the two core units of the CISI Investment Advice Diploma

✓ Candidates combining this unit with Financial Planning and Advice for the Certificate in Paraplanning

✓ Investment advisers, paraplanners, portfolio professionals and wealth-management staff

✓ Practitioners who need Level 4 knowledge of investments, risk, UK taxation and suitability