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CISI ICWIM Exam
International Certificate in Wealth and Investment Management (Page 5 )

Updated On: 9-Feb-2026
Page 4 of 21
PDF with 100 Questions

Why would an investment manager conduct forward looking security attribution?

  1. In order to calculate future profits
  2. To establish where future risks lie
  3. To quantify next year's annual charge
  4. In order to establish by how much they need to outperform the benchmark

Answer(s): B

Explanation:

Forward-looking security attribution is used by investment managers to identify and evaluate potential future risks in a portfolio. Rather than analyzing past performance, it focuses on anticipating how specific securities or factors could influence future returns and volatility, supporting proactive risk management and investment decisions.



Once an offshore foundation is established, who will normally be responsible for making ongoing decisions regarding the operational use of the foundation's assets?

  1. The board of directors
  2. The trustees
  3. The council
  4. The beneficiaries

Answer(s): C

Explanation:

In an offshore foundation, the council is typically responsible for making ongoing decisions regarding the operational use of the foundation's assets. The council acts in a governance role similar to trustees in a trust structure, ensuring the foundation operates in line with its charter and regulations.



An execution only sale usually means a sale where there is an absence of:

  1. charges
  2. advice
  3. product
  4. guarantee

Answer(s): B

Explanation:

An execution-only sale refers to a transaction where the intermediary provides no advice to the client. The client makes their own investment decision, and the firm merely executes the order without assessing suitability or offering recommendations.



Why is the process of prioritising the protection needs of your client important?

  1. To establish the net worth of your client
  2. It provides an opportunity to establish a benchmark
  3. To protect your firm from risk
  4. It allows you and the client to agree an affordable plan

Answer(s): D

Explanation:

Prioritising the protection needs of a client is crucial because it allows both the adviser and the client to agree on an affordable and realistic plan that addresses the most important risks first. This ensures the client's financial protection is aligned with their budget and life priorities.



In what circumstances would a central bank use its foreign reserves in the currency markets?

  1. To lower the rate of inflation
  2. To control the money supply
  3. To influence the nation's currency
  4. When influencing the short term interest rate

Answer(s): C

Explanation:

A central bank uses its foreign reserves in the currency markets primarily to influence the nation's currency.
This may involve buying or selling foreign currencies to stabilize or adjust the exchange rate, especially during periods of volatility or to support monetary policy objectives.






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