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IMC 2 > Wrong Answers > Flashcards

Wrong Answers Flashcards

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1
Q

FCA certification regime 2

Who apply to and what doe sit do

A

Applies to employees who can cause harm to firm

Ensure employee is competent to under certification function

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2
Q

Are ISAs a PRIIP

A

No

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3
Q

Example of ancillary service under mifid 2

A

Safekeeping of financial instruments for clients

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4
Q

When can a company offset trading losses 3

A

Income and gains in previous year, current year and profits from same trade in future years

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5
Q

General law on trust place what on trustees 2

A

Take Cary like any other prudent person

Give consideration to all beneficiaries

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6
Q

What legislation endows FCA with its statuary powers

A

Financial services and markets act 2000

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7
Q

What investment fund is not overseen by a trustee

A

Investment trust

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8
Q

Who is responsible for recognising overseas investment exchange

A

FCA

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9
Q

Who does PRIN apply to and what is said about breaches of prin

A

All authorised firms

Does not automatically lead to displinary measure

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10
Q

Can retail client ask to be treated as eligible counterpart y

A

No

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11
Q

Can per se professional client ask to be treated as retail client

A

Yes

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12
Q

Risk of fall in nominal value of investment is callee

A

Capital risk

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13
Q

If GDPR broken, when must firm notify ICO

A

72 hours

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14
Q

How long can losses on shares be carried forward

A

Indefinitely

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15
Q

What best describes equity isn terms of risk

A

High capital risk but low shortfall risk

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16
Q

What do pensions funds have highest allocation to usually

A

Equities

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17
Q

What are reasons for pension funds to close

A

Disclosure of schemes funding position in accounts

Increased longevity of members

Falling return on assets in scheme

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18
Q

What is levy rate for transactions over 10k to PTM

A

150p to takeover panel

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19
Q

Who is stewardship code directed to

A

institutional investors

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20
Q

Are unit trusts subject to insider dealer regs

A

No

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21
Q

Is remuneration apart of cfa code of ethics

A

No

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22
Q

What should apply to client bank accounts 2

A

Seperate from firms funds

Take reasonable care in selecting bank to hold account

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23
Q

How long must tax records to get tax returns be held for

A

6 years

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24
Q

What is adminstrator of a bankrupt person financial affairs called

A

Official receiver

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25
When can firm treat client as an elective professional
Required: Firm undertakes adequate assessment of expertise and passes Required: Client has asked to be treated as such Optional: client has transaction of over 1k each quarter for last 4 quarters Client has portfolio of over 500k Client has worked in financial sector for at leats a year
26
If firm already has permission to trade securities but wants to alter it so they can also safe guard securities what doe sit do
Apply to FCA for variation in permission
27
Up to what age is contributions to pensions schemes entitled to tax relief
75 years old
28
What investment services incur VAT at standard rate
Invetsment advice
29
Why is capital allocation more efficient when markets have high transparency and high liquidity
Lower cost of capital
30
After how many years should client agreement be kept after client terminates relationship
Zero
31
Client money rules 2
When bank fails - money is not to be pooled with other client accounts Where investment firm fails - money is pooled with other client accounts
32
What happens when company or collective investment scheme buys a residential property
Anti avoidance tax of 15%is charged don entire purchase where value is above 500k
33
What is the stamp duty tax rate for non uk residents
Additional 2% SDLT for non uk residents buying residential property of more than 40k
34
what is not necarssary for for an authroised fund to give the client
maximum return possible over the investment period and yield figure given
35
what happens if joint tnenant wants to dispose of their interest in their lifetime
give notice to other tenant and convert to a tenancy in common, then they can dispose
36
example of someone who may demand a poll at general meeting
one member with 10% or more of the votes
37
priority of transactions prof conduct
investment transactions for clients and employers have priority over transactiosn where member is beneficial owner
38
what principle for business includes taking care to ensure suitability of advice and discretioanry decisions a customer can rely on
principle 9 - customers: relationships of trust
39
max income tax releif from EIS scheme
30% on investment up to 1million
40
stampduty reserve tax is not paid on what financial instruments
uk company listed on AIM
41
who protects and enhances financial stability
FPC
42
how long must firm keep financial promotion of pensions for
6 years
43
what regulatory body is responsible for systemic infrastructure of central counterparties, payments systems etc
bank of england
44
how can firm appeal decision by fca
upper tribunal
45
how often does fca require a firm conduct external reconciliations between its internal accounts and accounts of third party holdings
as often as necarssay
46
what regs requires uk persons to report derivatives trades entered
UK EMIR
47
what is max tax defferred allownace that lillian can withdraw from a single premium insurnace fund
5% of its og premium and any unused allownace from previous years
48
does trustee act not apply to
authorised unit trust pension funds life insurnace fund
49
in remuneration code, how long much and how long must be defferred
40% defferred over 3 years
50
what do the rates of vat apply to
0% - children clothes and books 5% - energy products and services 20% - applies to most other goods
51
what can investor do if investor is falsely claiming to be authorised, what is a reflection of their contract now
investor was misled and they can choose to enforce contract if they choose or make it void
52
when can garaunteed bonuses be given
execptional circumstances, new hires and one year only
53
54
what needs to be created to show directors prescribed reponsibilties
statement of responsibility
55
what 3 (maybe more) are reposnsible for product manufacturing and distribution in prod governance
effective control over prod gov process compliance over see gov arranagments relevant staff understand the products
56
who is not required to report under CRS
national tax authorities required to report under standard
57
FCA has right to demand firms maintain higher cap requiremnts than stated in prudential regs, what supervision tool is this
remedy
58
what notice does fca need to give before visit to firm by enforcement officer
none
59
NYSE deisgnated market maker
continually quote buy and sell prices throughout the day
60
can FCA authorise BofE
no
61
a company wishes to float on LSE - what must it do regarding prospectus 3
prospectus approved by FCA prospectus availabvle to public ADVISTISE PROSPECTUS IN AT LEAST ONE NATIONAL NEWSPAPER
62
what is principal - principal guarantee structure
guarantee operates between clearing member and clearing house
63
main priority when reccomending a life policy
affordability of investor
64
fca qualification is not required for that activity
dealing derivatives
65
benefit of LSE CCP
Settlement Netting
66
who do FCA listing rules apply to and not apply to
applies to LSE firms does not apply to AIM firms
67
What can FOS do 3
amanage investments in UK and US securities advise on home finance scheme advising on decreasing term assurance
68
what type of trade is most likely settled on a payment v payment
FX
69
what things do not apply to criminal justice act
not possible for company to commit offense commodities not covered by the CJA
70
eurobonds coupon features 2
pay gross coupons no tax on coupons
71
what is standard for corp bonds and eurobonds, with regard to settlement
t+2

IMC 2 (7 decks)

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