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IMC Unit 1 > IMC Unit 1 - Misc. > Flashcards

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
Q

How long must records be kept for for life policies or pension schemes?

A

5 years

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26
Q

What are the three European supervisory authorities?

A

ESMA
EBA
EIOPA

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27
Q

The Takeover Panel receives a levy of £1 on transactions over what value?

A

£10,000

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28
Q

What level of turnover does a CIS need to have to be considered a professional client?

A

Zero - they are always considered a professional client

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29
Q

How much of an investment bond can you take out annually without creating a chargeable lifetime event?

A

5%

(Accumulates over the years)

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30
Q

What amount does a person need to owe for creditors to pursue bankruptcy filings?

A

£5000

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31
Q

For what length of time does the FCA require a fund’s performance is shown for?

A

5 years or the life of the fund, whichever is shorter

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32
Q

What classification of client is a local authority?

A

Retail

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33
Q

At what stage do you get tax relief for a personal pension plan?

A

At time of investment

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34
Q

At what stage do you get tax relief for a life policy?

A

At time of maturity

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35
Q

Are commodities considered investments under FSMA 2000?

A

No

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36
Q

Are dividends paid out on pre- or post-tax profit?

A

Post-tax

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37
Q

What age does a person need to be for a will to be valid?

A

18+

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38
Q

Is an ISA a packaged product?

A

No

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39
Q

How long must businesses keep records to justify a tax return?

A

6 years

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40
Q

How frequently does the statement of funding principles need to be reviewed?

A

Every 5 years

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41
Q

How frequently does the statement of investment principles need to be reviewed?

A

Every 3 years

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42
Q

What amount of turnover does the acquired company need to have for the CMA to launch an investigation?

A

£70m

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43
Q

How long do you have to cancel a life policy after purchase?

A

30 days

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44
Q

How long after a personal transaction must a manager inform the company?

A

4 days

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45
Q

How long must a client agreement be kept for?

A

4 years

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46
Q

How long after an electronic notice of meeting is transmitted is it deemed to be sent?

A

48 hours

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47
Q

How often must an FCA firm send a report to the FCA on complaints received?

A

Twice a year

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48
Q

What periods of time to close out complaints are reported to the FCA by FCA firms?

A

4 weeks and 8 weeks

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49
Q

What class of NIC do employees fall into?

A

Class 1

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50
Q

What class of NIC do self-employed people fall into?

A

Class 2 and 4

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51
Q

What class of NIC do voluntary contributions fall into?

A

Class 3

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52
Q

What are the three FCA pillars?

A
  1. Firm systematic framework
  2. Event-driven work
  3. Issues and products
53
Q

The statement of responsibility refers to which group within an organisation?

A

The senior directors

54
Q

The responsibility map refers to which group within an organisation?

A

The whole organisation

55
Q

What is the settlement time for Eurobonds?

A

T+2

56
Q

What type of client is a special purpose vehicle classified as?

A

Per se professional

57
Q

How often would a client get a statement on their non-leveraged portfolio?

A

Every 3 months

58
Q

How often would a client get a statement on their leveraged portfolio?

A

Every month

59
Q

How long are MIFID records kept for?

A

5 years

60
Q

A quantitative test is used for determining professional clients for MIFID or non-MIFID business?

A

MIFID

61
Q

Complaints relating to non-MIFID business must be retained for how long?

A

3 years

62
Q

What is the max award that the financial ombudsman can make?

A

£375,000

63
Q

How long after an event can the FOS be complained to?

A

6 years

64
Q

How long after a customer discovers a problem can the FOS be complained to?

A

3 years

65
Q

How soon must a firm report a complaint to the FCA?

A

6 months

66
Q

ML records must be kept for how long?

A

5 years

67
Q

What two products do insider dealing not cover?

A

Unit trusts and life policies

68
Q

Under which regulation is the Pensions Regulator empowered?

A

The Pensions Act 2004

69
Q

Over what does the Pensions Regulator have jurisdiction?

A

Work-based pension schemes

70
Q

How is the Pensions Protection Fund (PPF) funded?

A

Levies on eligible defined benefit pension schemes

71
Q

How many auctions per day does SETSqx have?

A

Five

72
Q

How many people must a prospectus be offered to per EEA state before a prospectus is required?

A

150

73
Q

How much can you give as a wedding gift each year without incurring IHT?

A

£5000

74
Q

How much can you give to charity each year without incurring IHT?

A

£3000

75
Q

How much can an individual be charged by a credit reference agency to check their personal data?

A

£2

76
Q

What type of firm is supervised on an ongoing basis and by a dedicated FCA supervisor?

A

Fixed portfolio firm

77
Q

Is general insurance considered ad packaged retail investment and insurance product?

A

No

78
Q

How long do equities take to settle?

A

T+2

79
Q

How long do corporate bonds take to settle?

A

T+2

80
Q

Which entity settles exchange trades?

A

Clearing house

81
Q

Over what threshold do non-beneficial owners of a company have to disclose a stake?

A

10%

82
Q

Over what threshold do beneficial owners have to disclose a stake?

A

3%

83
Q

What cadence of transactions must a retail client make to be considered an elective professional client?

A

10 transactions per quarter for 4 quarters

84
Q

What size portfolio must a retail client have to be considered an elective professional client?

A

€500,000

85
Q

How long must a retail client have worked in finance to be considered an elective professional client?

A

1 year+

86
Q

What kind of distributions do a real estate fund make?

A

Property Income Distributions

87
Q

Where area corporate bonds most frequently traded?

A

OTC

88
Q

What type of tax do qualifying life policies incur?

A

None

89
Q

What type of tax do non-qualifying policies incur?

A

Income tax

90
Q

What type of tax do unit trusts incur?

A

CGT

91
Q

How much notice needs to be given for an EGM?

A

14 days

92
Q

How much notice needs to be given for an AGM?

A

21 days

93
Q

Why are the 4 requirements for an LSE listing?

A
  1. Market cap of £30m
  2. Free float of 10%
  3. 1 year working capital
  4. Max 20% convertibles and warrants
94
Q

How often to AIM companies need to publish results a year?

A

At least twice a year: full year and interim

95
Q

What directive introduced KIID documents?

A

UCITS IV

96
Q

Who is responsible for the preparation of the Statement of Investment Principles?

A

The trustee

97
Q

A depositary for an OIEC is equivalent to what other role?

A

Trustee

98
Q

Which class of national insurance relates to non-monetary benefits?

A

Class 1a

99
Q

What class of tax relates to PAYE?

A

Class 1B

100
Q

What % holding does a member need to have to demand a poll at a company meeting?

A

10%

101
Q

Purchases of which type of security do not incur SDRT?

A

AIM securities

102
Q

What is the rate of SDRT?

A

0.5%

103
Q

Does the purchaser or seller pay the takeover panel levy?

A

Both!

104
Q

Over what value does a transaction need to be to incur the takeover panel levy?

A

£10,000

105
Q

On which securities does the takeover panel levy occur?

A

UK equities

106
Q

What is the definition of a high net worth individual?

A

Income of £100,000 and/or net investable assets of at least £250,000

107
Q

What kind of securities does UK EMIR oversee?

A

Derivatives

108
Q

What is the maximum sentence for insider dealing?

A

10 years

109
Q

What are the restrictions on investments for a trust under the Trustee Act?

A

No restrictions

110
Q

Which listing requirement covers depositary receipts?

A

Standard listing

111
Q

What is the name of the LSE order book for retail bonds?

A

ORB

112
Q

A takeover offer must be kept open for how many days?

A

21

113
Q

What is the VAT charged on advice-only recommendations?

A

20%

114
Q

What is the VAT charge on arranging investments for a customer of an advisory business?

A

Exempt

115
Q

What level of assets and share capital is company required to be considered a professional client for non-MIFID business?

A

£5 million

116
Q

In which set of rules do inducements guidelines sit?

A

Conduct of Business

117
Q

Gilts accrue interest on which basis?

A

Actual/Actual

118
Q

What amount of assets does a deposit taker need to have before it is required to appoint a whistleblowing champion?

A

£250m

119
Q

Which government department set up the Upper Tribunal?

A

MoJ

120
Q

Are CFDs liable to CGT?

A

Yes

121
Q

What type of services require a suitability report?

A

Advised services

122
Q

What kind of services require an appropriateness report?

A

Non-advised services

123
Q

How soon must trade confirmations be sent to retail clients?

A

1 business day

124
Q

Reconciliations of custody assets must be done how often?

A

As often as necessary or once a month

125
Q

Reconciliations of client money should be done how often?

A

As often as necessary

126
Q

How long must non-MiFID records be kept for?

A

3 years

127
Q

How long must promotions relating to pensions and life policies be kept for?

A

6 years

128
Q

How long do gilts take to settle?

A

T+1

IMC Unit 1 (2 decks)

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