Investment Management Certificate

About the IMC and unit information

The Investment Management Certificate (IMC) is an FSA-approved threshold competency examination that aims to test your basic knowledge of the regulations and practices of financial markets, the categories of securities and the principles of investment management.

The aim of the Investment Management Certificate (IMC) is to provide you with knowledge and understanding of:

• managing investments
• advising clients in investments and derivatives
• dealing for clients in investments and derivatives
• advising on investments in the course of corporate finance business
• managing investments in relation to venture capital investments
• the activity of a broker fund advisor

It is required by the Financial Services Authority (FSA) for those managing investments, those advising on investments and those overseeing the safeguarding and administering of investments.

The IMC is assessed using an examination paper containing 155 multiple-choice questions in a three hours and fifteen minutes examination. Alternatively you may sit the two units required to successfully complete the IMC seperately.

• Full IMC
• Unit 1 - UK Regulation & Markets
• Unit 2 - Investment Practice

Full - IMC

The certificate broadly breaks down into two sections, one on UK Regulation and Markets, and one on Investment Practice.

The UK Regulation and Markets component begins with a detailed look at the regulatory environment in the UK and the rules and principles that financial firms must follow. European regulation and the impact of MiFID on these rules are also examined. Other sources of investment crime are then explored, alongside segregated topics such as the regulation of pension funds and the key trading platforms used within the UK. The final topic covered is taxation.

Within the Investment Practice component we will cover the fundamental approaches and methods used within the investment management industry. The course gives a solid grounding in financial maths, the principles of which are carried over into the asset valuation section as the characteristics of bonds, equities and derivatives are covered, alongside various valuation methodologies. The fundamentals of accounting are covered along with an introduction to financial statement analysis and the use of economic resources within the economy. To complete the certificate we look at portfolio management and techniques for constructing portfolios, as well as methods for evaluating and measuring investment performance.

Unit 1 – UK Regulation & Markets

This unit considers the regulatory environment in the UK and the background that led to the creation of the Financial Service Authority (FSA). The rules and principles that financial firms must follow are covered, along with the ways in which these are enforced by the FSA. European regulation and the impact of MiFID on these rules are also examined.

Insider dealing, money laundering and other sources of investment crime are then explored, alongside more segregated topics such as the regulation of collective investment schemes and pension funds. There is also a section on markets and the key trading platforms used within the UK. The final topic covered is taxation.

Unit 2 – Investment Practice

We will cover the fundamental approaches and methods used within the investment management industry. The unit gives a solid grounding in financial maths, covering statistical techniques such as calculating standard deviation and variance, as well as approaches for discounting cash flows to obtain present values. The basic principles of financial maths are carried over into the asset valuation section as the characteristics of bonds, equities and derivatives are covered, alongside various valuation methodologies.

In order to understand businesses the fundamentals of accounting are covered along with an introduction to financial statement analysis. The use of resources within the economy is also examined with sections on both micro and macro economics. The jigsaw is completed with a look at portfolio management and techniques for constructing portfolios, as well as methods for evaluating and measuring investment performance.

Delegates must pass both units to successfully complete the IMC.