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CME-1A: Introduction to Securities & Investment
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The CISI International Introduction to Securities and Investment (IISI) CME-1A is a comprehensive exam that provides a broad foundation in financial services. Because the syllabus covers such a wide array of topics, understanding the exam’s structure and chapter weightings is critical for an efficient study plan.
The 2026 syllabus continues to emphasize the mechanics of core financial products while ensuring candidates have a solid grasp of the economic environment in which they operate.
2026 IISI Syllabus Weightings
The exam consists of 50 multiple-choice questions. The current syllabus allocates those questions across ten elements:
| Chapter Area | Weighting | Questions |
|---|---|---|
| Financial Services Industry | 6% | 3 |
| Economic Environment | 8% | 4 |
| Equities/Shares | 18% | 9 |
| Bonds/Fixed Interest | 14% | 7 |
| Other Markets and Investments | 10% | 5 |
| Derivatives | 8% | 4 |
| Investment Funds | 12% | 6 |
| Regulation and Ethics | 10% | 5 |
| Other Financial Products | 8% | 4 |
| Financial Advice | 6% | 3 |
Check the syllabus version and effective dates for the sitting you book. Do not use a distribution copied from an earlier version.
Free CISI IISI CME-1A Practice Questions & Exam Preview
Try 15 CISI IISI CME-1A practice questions from Equities and Stocks
Practice CISI IISI CME-1A exam questions with answers and explanations. The full course includes 5 mock exams and chapter study tools.
Exam Preview
Which statement about public and listed companies is correct?
Flashcards
What is the primary function of the financial services sector?
Focus Learn
- Distinction between wholesale and retail sectors
- Functions of Equity, Bond, FX, and Derivatives markets
- Types of Commercial Lending (Lines of credit, Unsecured loans, Term loans)
- Characteristics of Private and Digital/Crypto markets
- Role of Investment Banks in M&A, finance raising, and proprietary trading
- Key functions of Custodian banks (safekeeping, settlement, asset servicing)
- Definition of a financial conglomerate by the Bank for International Settlements (BIS)
- Concept of mutual societies and the demutualization process
- Distinction between P2P lending and Crowdfunding forms
- The role of Insurance Companies and Pension Funds as major market investors
Financial Markets Overview
The financial services sector links organizations seeking capital with those with capital available to invest. The wholesale/professional sector includes Equity markets (trading shares on regulated exchanges with indices like S&P 500, FTSE 100), Bond markets (debt instruments for raising capital, influenced by interest rates and credit risk), Foreign Exchange (decentralized OTC trading of currencies for trade, speculation, and hedging), Derivatives (trading options, swaps, futures based on underlying assets like interest rates, mostly OTC but moving to exchanges), Insurance (management of personal/corporate risk, dominated by entities like Lloyd's and large reinsurers like Munich Re), Commercial Lending (business loans, term loans, unsecured loans, lines of…
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Open every chapter’s key areas, pitfalls, exam traps and key numbers.
Focus on the Highest-Weight Areas
To pass the IISI exam, you must secure strong marks in the three most heavily weighted areas:
1. Equities and Bonds (32% combined)
These two chapters form the bedrock of the qualification.
- For Equities, you must understand the different types of corporate actions (rights issues, bonus issues), the rights of ordinary vs. preference shareholders, and how equity markets operate.
- For Bonds, focus heavily on the relationship between price and yield. Understand the difference between government bonds and corporate bonds, and how credit ratings impact bond pricing.
2. Investment Funds (12%)
You will be tested on the structural differences between open-ended and closed-ended funds. Ensure you know the definitions and operational mechanics of Unit Trusts, OEICs, Investment Trusts, and Exchange Traded Funds (ETFs).
3. Regulation and Ethics (10%)
This element tests regulatory objectives, client protection, financial crime and ethical conduct. Keep each rule tied to the jurisdiction and source stated in the workbook rather than combining requirements from different markets.
Key Definitions to Master
The IISI exam tests your vocabulary as much as your numerical skills. Review these essential definitions to ensure you don’t lose easy marks on terminology questions.
- Primary and secondary markets: A security is issued in the primary market and traded after issue in the secondary market.
- Current yield: Annual bond coupon divided by the bond’s current market price, not its nominal value.
- Rights issue and bonus issue: A rights issue asks existing shareholders to pay a subscription price; a bonus issue gives additional shares without a new cash payment.
- Open-ended and closed-ended funds: Distinguish how units or shares are created and how the dealing price is determined.
- Suitability: Relate a recommendation to the client’s objective, time horizon, financial position and capacity for loss.
Frequently Asked Questions
1 Which chapter has the highest weighting in the IISI exam?
In the current 50-question allocation, Equities has 9 questions and Bonds has 7. Together they account for 16 questions, or 32% of the paper. Check the syllabus version linked to your sitting before relying on the allocation.
2 Are there any mathematical calculations in the IISI exam?
Yes, you should be prepared for basic calculations, such as calculating dividend yield, running yield on bonds, and basic economic metrics. However, they are not highly complex.
3 How often does the CISI update the IISI syllabus?
The CISI generally updates their syllabuses annually to reflect changes in global financial regulations and market practices.
4 Is the Financial Services Regulation chapter heavily tested?
Yes, the regulation chapter is critical. You must understand the core principles of regulatory oversight, client protection, and financial crime prevention.
5 Can I skip the Derivatives chapter if I find it too hard?
No. The Derivatives chapter is a core component of the exam. Skipping it significantly reduces your margin for error across the rest of the syllabus.
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