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

Test your knowledge with this mock exam covering the IMC Unit 1 syllabus. The exam includes various question types, such as multiple choice and gap fill, and addresses key areas including financial markets, ethics, regulation, and taxation. Prepare effectively for your exam on December 1, 2024.