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IMC Unit 1 - Misc. Flashcards

1
Q

In what block of the FCA handbook do the Conduct of Business rules sit?

A

Block 3

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2
Q

What are the five types of packaged retail investment products?

A

Life policies
Regulated unit trusts
Investment trust savings schemes
Personal pension plans
Stakeholder pension plans

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3
Q

At what level of shareholding can a single shareholder call a company meeting?

A

5%

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4
Q

How many years can a company carry back terminal losses?

A

3 years

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5
Q

How often for firms need to assess whether staff are fit and proper?

A

Annually

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6
Q

How long does a shareholder have to notify a company when it crosses the 3% threshold?

A

2 business days

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7
Q

In which block of the FCA handbook does COBS and CASS sit? (Block name and number)

A

Block 3: Business standards

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8
Q

In which block of the FCA handbook does PRIN, COND, and FIT sit? (Block name and number?)

A

Block 1: High-level standards

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9
Q

What is the name of Block 2 of the FCA handbook?

A

Prudential standards

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10
Q

What is the name of Block 4 of the FCA handbook?

A

Regulatory processes

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11
Q

What is the name of Block 5 of the FCA handbook?

A

Redress

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12
Q

What is the name of Block 6 of the FCA handbook?

A

Specialist sourcebooks

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13
Q

What is the name of Block 7 of the FCA handbook?

A

Listing, Prospectus and Disclosure

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14
Q

For MiFID business, what size of balance sheet is required to be considered a per se professional client?

A

€20m

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15
Q

For MiFID business, what amount of net turnover is required to be considered a per se professional client?

A

€40m

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16
Q

For MiFID business, what amount of own funds is required to be considered a per se professional client?

A

€2m

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17
Q

For MiFID business, what size of workforce is required to be considered a per se professional client?

A

No requirement

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18
Q

For non-MiFID business, what size of balance sheet is required to be considered a per se professional client?

A

€12.5m

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19
Q

For non-MiFID business, what amount of net turnover is required to be considered a per se professional client?

A

€25m

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20
Q

For non-MiFID business, what size of workforce is required to be considered a per se professional client?

A

250

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21
Q

For non-MiFID business, what amount of own funds is required to be considered a per se professional client?

A

No requirement

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22
Q

Insider dealing is a criminal or civil offence?

A

Criminal

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23
Q

Market abuse is a criminal or civil offence?

A

Civil

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24
Q

How long must records be kept for for pension transfers?

A

Indefinitely

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25
How long must records be kept for for life policies or pension schemes?
5 years
26
What are the three European supervisory authorities?
ESMA EBA EIOPA
27
The Takeover Panel receives a levy of £1 on transactions over what value?
£10,000
28
What level of turnover does a CIS need to have to be considered a professional client?
Zero - they are always considered a professional client
29
How much of an investment bond can you take out annually without creating a chargeable lifetime event?
5% (Accumulates over the years)
30
What amount does a person need to owe for creditors to pursue bankruptcy filings?
£5000
31
For what length of time does the FCA require a fund’s performance is shown for?
5 years or the life of the fund, whichever is shorter
32
What classification of client is a local authority?
Retail
33
At what stage do you get tax relief for a personal pension plan?
At time of investment
34
At what stage do you get tax relief for a life policy?
At time of maturity
35
Are commodities considered investments under FSMA 2000?
No
36
Are dividends paid out on pre- or post-tax profit?
Post-tax
37
What age does a person need to be for a will to be valid?
18+
38
Is an ISA a packaged product?
No
39
How long must businesses keep records to justify a tax return?
6 years
40
How frequently does the statement of funding principles need to be reviewed?
Every 5 years
41
How frequently does the statement of investment principles need to be reviewed?
Every 3 years
42
What amount of turnover does the acquired company need to have for the CMA to launch an investigation?
£70m
43
How long do you have to cancel a life policy after purchase?
30 days
44
How long after a personal transaction must a manager inform the company?
4 days
45
How long must a client agreement be kept for?
4 years
46
How long after an electronic notice of meeting is transmitted is it deemed to be sent?
48 hours
47
How often must an FCA firm send a report to the FCA on complaints received?
Twice a year
48
What periods of time to close out complaints are reported to the FCA by FCA firms?
4 weeks and 8 weeks
49
What class of NIC do employees fall into?
Class 1
50
What class of NIC do self-employed people fall into?
Class 2 and 4
51
What class of NIC do voluntary contributions fall into?
Class 3
52
What are the three FCA pillars?
1. Firm systematic framework 2. Event-driven work 3. Issues and products
53
The statement of responsibility refers to which group within an organisation?
The senior directors
54
The responsibility map refers to which group within an organisation?
The whole organisation
55
What is the settlement time for Eurobonds?
T+2
56
What type of client is a special purpose vehicle classified as?
Per se professional
57
How often would a client get a statement on their non-leveraged portfolio?
Every 3 months
58
How often would a client get a statement on their leveraged portfolio?
Every month
59
How long are MIFID records kept for?
5 years
60
A quantitative test is used for determining professional clients for MIFID or non-MIFID business?
MIFID
61
Complaints relating to non-MIFID business must be retained for how long?
3 years
62
What is the max award that the financial ombudsman can make?
£375,000
63
How long after an event can the FOS be complained to?
6 years
64
How long after a customer discovers a problem can the FOS be complained to?
3 years
65
How soon must a firm report a complaint to the FCA?
6 months
66
ML records must be kept for how long?
5 years
67
What two products do insider dealing not cover?
Unit trusts and life policies
68
Under which regulation is the Pensions Regulator empowered?
The Pensions Act 2004
69
Over what does the Pensions Regulator have jurisdiction?
Work-based pension schemes
70
How is the Pensions Protection Fund (PPF) funded?
Levies on eligible defined benefit pension schemes
71
How many auctions per day does SETSqx have?
Five
72
How many people must a prospectus be offered to per EEA state before a prospectus is required?
150
73
How much can you give as a wedding gift each year without incurring IHT?
£5000
74
How much can you give to charity each year without incurring IHT?
£3000
75
How much can an individual be charged by a credit reference agency to check their personal data?
£2
76
What type of firm is supervised on an ongoing basis and by a dedicated FCA supervisor?
Fixed portfolio firm
77
Is general insurance considered ad packaged retail investment and insurance product?
No
78
How long do equities take to settle?
T+2
79
How long do corporate bonds take to settle?
T+2
80
Which entity settles exchange trades?
Clearing house
81
Over what threshold do non-beneficial owners of a company have to disclose a stake?
10%
82
Over what threshold do beneficial owners have to disclose a stake?
3%
83
What cadence of transactions must a retail client make to be considered an elective professional client?
10 transactions per quarter for 4 quarters
84
What size portfolio must a retail client have to be considered an elective professional client?
€500,000
85
How long must a retail client have worked in finance to be considered an elective professional client?
1 year+
86
What kind of distributions do a real estate fund make?
Property Income Distributions
87
Where area corporate bonds most frequently traded?
OTC
88
What type of tax do qualifying life policies incur?
None
89
What type of tax do non-qualifying policies incur?
Income tax
90
What type of tax do unit trusts incur?
CGT
91
How much notice needs to be given for an EGM?
14 days
92
How much notice needs to be given for an AGM?
21 days
93
Why are the 4 requirements for an LSE listing?
1. Market cap of £30m 2. Free float of 10% 3. 1 year working capital 4. Max 20% convertibles and warrants
94
How often to AIM companies need to publish results a year?
At least twice a year: full year and interim
95
What directive introduced KIID documents?
UCITS IV
96
Who is responsible for the preparation of the Statement of Investment Principles?
The trustee
97
A depositary for an OIEC is equivalent to what other role?
Trustee
98
Which class of national insurance relates to non-monetary benefits?
Class 1a
99
What class of tax relates to PAYE?
Class 1B
100
What % holding does a member need to have to demand a poll at a company meeting?
10%
101
Purchases of which type of security do not incur SDRT?
AIM securities
102
What is the rate of SDRT?
0.5%
103
Does the purchaser or seller pay the takeover panel levy?
Both!
104
Over what value does a transaction need to be to incur the takeover panel levy?
£10,000
105
On which securities does the takeover panel levy occur?
UK equities
106
What is the definition of a high net worth individual?
Income of £100,000 and/or net investable assets of at least £250,000
107
What kind of securities does UK EMIR oversee?
Derivatives
108
What is the maximum sentence for insider dealing?
10 years
109
What are the restrictions on investments for a trust under the Trustee Act?
No restrictions
110
Which listing requirement covers depositary receipts?
Standard listing
111
What is the name of the LSE order book for retail bonds?
ORB
112
A takeover offer must be kept open for how many days?
21
113
What is the VAT charged on advice-only recommendations?
20%
114
What is the VAT charge on arranging investments for a customer of an advisory business?
Exempt
115
What level of assets and share capital is company required to be considered a professional client for non-MIFID business?
£5 million
116
In which set of rules do inducements guidelines sit?
Conduct of Business
117
Gilts accrue interest on which basis?
Actual/Actual
118
What amount of assets does a deposit taker need to have before it is required to appoint a whistleblowing champion?
£250m
119
Which government department set up the Upper Tribunal?
MoJ
120
Are CFDs liable to CGT?
Yes
121
What type of services require a suitability report?
Advised services
122
What kind of services require an appropriateness report?
Non-advised services
123
How soon must trade confirmations be sent to retail clients?
1 business day
124
Reconciliations of custody assets must be done how often?
As often as necessary or once a month
125
Reconciliations of client money should be done how often?
As often as necessary
126
How long must non-MiFID records be kept for?
3 years
127
How long must promotions relating to pensions and life policies be kept for?
6 years
128
How long do gilts take to settle?
T+1

IMC Unit 1 (2 decks)

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