CISI Level 3 Practice Exam 2026 – The All-In-One Guide to Passing with Confidence!

This question tests the idea that a firm must be organized and controlled in a way that ensures responsible, effective operation, with risk management built into how the business is run. This is the principle of management and control. It emphasizes clear governance, defined responsibilities, adequate resources, robust internal controls, and an integrated risk framework so senior management can oversee risk, ensure regulatory compliance, and run the firm prudently.

Other FCA principles focus on different areas: market conduct governs how the firm behaves in markets and with clients; client assets protection concerns safeguarding clients’ assets and proper segregation; financial prudence relates to having sound financial resources and liquidity.