CySEC Basic · Chapter 2 of 8
Chapter 2: Cypriot Investment Firms (CIFs)
Licensing, capital requirements, conduct of business rules, and client protection obligations for CIFs.
12 of 50 exam questions (24%) · 70 practice questions · free: 10 notes, 54 flashcards
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What Chapter 2 covers
The key topics of this chapter in the CySEC Basic syllabus. 4 of 5 have a free study note.
- CIF authorisation and licensing conditionsRead the note: How does a firm become a Cypriot Investment Firm, and what must it keep doing?
- Client categorisation: retail, professional, eligible counterpartyRead the note: How are clients categorised as retail, professional or eligible counterparties?
- Best execution and order handling rulesRead the note: What do best execution and client order handling require?
- Conduct of business and client protection obligations
- Conflicts of interest and inducementsRead the note: How must an investment firm identify, manage and disclose conflicts of interest?
Exam questions per chapter
50 questions in the CySEC Basic exam
- Ch 1 · Investment Services Law 20174 questions
- Ch 2 · Cypriot Investment Firms (CIFs) (this chapter)12 questions
- Ch 3 · CIFs and Banks8 questions
- Ch 4 · MiFIR (2014)5 questions
- Ch 5 · Insider Dealing & Market Manipulation8 questions
- Ch 6 · Open-Ended UCI Laws5 questions
- Ch 7 · Alternative Investments6 questions
- Ch 8 · AML & Terrorist Financing2 questions
Questions about Chapter 2
How many questions does CySEC Basic Chapter 2 carry?
Chapter 2, Cypriot Investment Firms (CIFs), accounts for approximately 12 of the 50 questions in the CySEC Basic exam (around 24% of the total). The exact number can vary slightly from one sitting to the next.
What topics are tested in CySEC Basic Chapter 2?
Chapter 2 covers: CIF authorisation and licensing conditions; Client categorisation: retail, professional, eligible counterparty; Best execution and order handling rules; Conduct of business and client protection obligations; Conflicts of interest and inducements.
Should I prioritise Chapter 2 in my CySEC Basic revision?
Yes. Chapter 2 is one of the highest-weighted chapters, with approximately 12 exam questions. Allocate proportionally more study time here, practise questions while the material is fresh and aim for 90%+ accuracy before moving on.
How can I practise CySEC Basic Chapter 2 questions?
Start with 10 free questions from across the CySEC Basic syllabus; no account is needed. For this chapter, the Chapter 2 Brief (€19) gives you 50 questions from this chapter, each with a hint before you answer and an explanation after. The Chapter 2 Exam Mock (€9) is 10 exam-style questions from the chapter: one attempt, then a review of every answer. If you are sitting the whole exam, the All-in-One (€219) has every chapter, all 829 questions and 5 full mock exams. Prices are final, with no VAT added, and access has no expiry date.
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See how the hints and explanations work before you pay.