IMC Unit 1 Mock Exam 22

IMC Unit 1 Mock Exam Two - Key Information

• Exam Version: 22
• Test Date: 1 December 2024
• Exam Duration: 1 hour 40 minutes
• Question Types: Standard Multiple Choice, Item Set, Gap Fill
• Calculator: On-screen calculator; handheld calculators are not permitted.
• Syllabus Version: 22
• Number of Questions: 85
• Tax Tables: Used in syllabus version 22.

Question Allocation by Content Area

• Financial markets and institutions: 10-20 questions
• Ethics and investment: 5-15 questions
• Regulation and legal concepts: 25-35 questions
• Legal concepts: 25-35 questions
• Client advice: 15-25 questions
• Taxation in the UK: 10-20 questions

Specific Questions (Page 3-6)

• Question 1: Post-trading disclosure for liquid equity securities does not require publishing counterparties, time of transaction
• Question 2: Standard settlement for equity transactions in London Stock Exchange is T+2 (two business days)
• Question 3: To comply with Conduct of Business rules, a firm does not have to tell a retail client of the maximum return of an investment
• Question 4: Lasting power of attorney (LPA) taken out in 2024 must be registered with the Office of the Public Guardian.

Specific Questions (Page 7-10)

• Question 5: A professional client can be treated as a qualified investor with a portfolio of €15,200,000 or as having carried out specific transactions
• Question 6: Temporary inability of a company to pay its bills is best described as Insolvency
• Question 7: An appointed representative of an authorized person requires Part 4A authorization if carrying out regulated activity
• Question 8: Actions of senior management that are least likely to promote ethical employee behavior involve not holding project teams and individual members accountable for unethical behaviour.

Further Questions(Page 11-12,Page 13-14,Page 15)

• Question 9: A contract can be ended by intention, breach, frustration, or agreement.
• Question 10: A deposit-taking bank in the UK is regulated by the Financial Conduct Authority and the Prudential Regulation Authority
• Question 11: A joint tenant is free to dispose of their share of property, giving notice to the other joint tenants.
• Question 12: A person discharging managerial responsibility (PDMR) must notify the relevant listed company within two business days of a personal transaction

Further Questions (Page 16)

• Question 13: Class 1A contributions
• Question 14: A UK listed company with only ordinary shares has one member with 5% or more of the votes who may demand a poll.
• Question 15: The stage when funds gained from criminal activity are laundered and used in a legitimate activity in the economy is known as Integration.
• Question 16: Private capital allocation is warranted by free-market governments
• Question 17: The Financial Conduct Authority
• Question 18: Asset allocation is the most important determinant of investment management performance.
• Question 19: Simplified Due Diligence (SDD), can be applied to certain types of business, like where the business doesn't involve face-to-face interactions.
• Question 20: Investment transactions where a member holds the beneficial ownership have priority over others
• Question 21: Principle 2, Skill, care, and diligence requires a firm to ensure that they are taking reasonable care to ensure that their advice and discretionary decisions are suitable for their customers.
• Question 22: Acquisitions by investors, which is required in two business days.
• Question 23: For Tom and Jayne selling the modern art sculpture before they would pay a capital gain charge can be up to £90,000

Further Questions(Page 21-22, Page 23) 

• Question 24: This question requires calculation of capital gains tax payable, if Jayne and Tom sell their holiday property.
• Question 25: Calculation of dividend tax payable by Tom
• Question 26: Calculation of Jayne's total income tax liability.
• Question 27: Maximum income tax relief for an EIS